Superannuation (PSS) Membership Inclusion Declaration No. 14 1994 No. 269
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 269
Issued by the authority of the Minister for Finance
Superannuation Act 1990
Declaration under paragraph 6(1)(j)
The Superannuation Act 1990 (the Act) makes provision for and in relation to an occupational superannuation scheme, known as the Public Sector Superannuation (PSS) scheme, for Commonwealth employees and certain other persons.
Section 6 of the Act specifies the persons who may be members of the PSS scheme. In accordance with paragraph 6(1)(j) of the Act, a person declared by the Minister for Finance to be a person to whom section 6 applies is a member of the PSS scheme. Declarations made under paragraph 6(1)(j) have been cited as Superannuation (PSS) Membership Inclusion Declarations.
Membership arrangements applying to the PSS generally exclude a person from membership if the person is a member of another superannuation scheme to which the employer has agreed to make employer contributions,
Some PSS scheme members are employed on flexible remuneration arrangements which enable them to receive part of their remuneration as non-cash benefits. Under such arrangements some members may sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative superannuation scheme in addition to contributions already being made to the PSS scheme. It is intended that where a PSS member is entitled to such arrangements as part of his or her remuneration package, selection of this option should not exclude the person from membership of the PSS scheme.
The Declaration contained in the Statutory Rules and cited as "Superannuation (PSS) Membership Inclusion Declaration No. 14" amends earlier Superannuation (PSS) Membership Inclusion Declarations to give effect to this intention. The details of the Declaration are set out in the attachment.
Section 45 of the Act provides that such a declaration is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.
The Declaration commences on gazettal.
Overview
The Superannuation (PSS) Membership Inclusion Declaration No. 14, issued under the Superannuation Act 1990, aims to address the issue of excluding Public Sector Superannuation (PSS) scheme members from their entitlements due to participation in flexible remuneration arrangements. Enacted by the Parliament of Australia, the Act establishes the PSS scheme for Commonwealth employees and certain other individuals, with the overarching policy objective of providing a comprehensive and inclusive superannuation arrangement. The Declaration, made by the Minister for Finance, seeks to ensure that PSS members who opt for flexible remuneration arrangements, including those that involve sacrificing part of their cash salary for additional superannuation contributions to another scheme, do not lose their membership in the PSS scheme. This amendment to the earlier Superannuation (PSS) Membership Inclusion Declarations ensures that the selection of flexible remuneration options does not inadvertently exclude eligible members from the PSS scheme. The Declaration is subject to disallowance by Parliament and operates from the date of its gazettal.
Scope and Application
The Superannuation (PSS) Membership Inclusion Declaration No. 14 applies to the Public Sector Superannuation (PSS) scheme, which is established under the Superannuation Act 1990. This Act provides for an occupational superannuation scheme specifically for Commonwealth employees and certain other specified individuals. The Act identifies who can be members of the PSS scheme, and a person declared by the Minister for Finance to be eligible under section 6(1)(j) of the Act is deemed a member of the PSS scheme. This legislative arrangement is designed to ensure that individuals who are members of another superannuation scheme, including those who participate in flexible remuneration arrangements that involve non-cash benefits, can still be included as members of the PSS scheme. This ensures continuity and comprehensiveness of superannuation coverage for eligible members, preventing exclusion due to participation in alternative superannuation arrangements. The scope of the Act is national, given that it is a Commonwealth Act, and the declared rules and membership inclusions are subject to disallowance under section 46A of the Acts Interpretation Act 1901. The Declaration, which modifies previous inclusion declarations, is a Statutory Rule under the Statutory Rules Publication Act 1903 and takes effect upon gazettal.
Key Provisions
The Superannuation (PSS) Membership Inclusion Declaration No. 14, under Section 6(1)(j) of the Superannuation Act 1990, is a declaration that expands the eligibility criteria for membership in the Public Sector Superannuation (PSS) scheme. This scheme is designed to provide superannuation benefits to Commonwealth employees and other specified individuals. Under Section 6 of the Act, the Minister for Finance can declare individuals eligible for membership in the PSS scheme. This particular declaration, number 14, aims to ensure that employees on flexible remuneration arrangements, who choose to allocate a portion of their salary towards superannuation contributions in an alternative scheme, remain eligible for the PSS scheme. This is intended to prevent exclusion from the PSS scheme for those who voluntarily choose to contribute to another scheme as part of their remuneration package.
The obligations and requirements imposed by this declaration are primarily concerned with maintaining the eligibility of certain individuals for the PSS scheme. Specifically, the declaration mandates that employees who opt for flexible remuneration arrangements, including salary sacrifice schemes for additional superannuation contributions, should not be excluded from PSS membership. This ensures that the benefits of both the PSS and any additional superannuation scheme are preserved. The declaration clarifies that the selection of a flexible remuneration arrangement does not disqualify an individual from being a member of the PSS scheme. It also requires that the PSS scheme continue to accommodate members who participate in such arrangements, ensuring that these members are not inadvertently excluded due to their participation in additional superannuation schemes.
Failure to comply with the provisions of the Superannuation (PSS) Membership Inclusion Declaration No. 14 could result in legal consequences for the involved parties. While the statutory rules do not explicitly detail specific penalties for non-compliance, breaches of the Act or its regulations could lead to civil or criminal actions under the broader framework of the Superannuation Act 1990. The Act provides for various penalties, which may include fines and imprisonment, depending on the nature and severity of the breach. Furthermore, individuals who are wrongfully excluded from the PSS scheme due to misinterpretation or non-compliance with this declaration may seek redress through the courts, potentially resulting in further legal and financial consequences for the responsible parties.