Superannuation (PSS) Membership Inclusion Declaration No. 3 1991 No. 463
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 463
Issued by authority of the Minister for Finance
Superannuation Act 1990
Declaration under Section 6(1)(j)
The Superannuation Act 1990 (the Act) makes provision for and in relation to an occupational superannuation scheme, the Public Sector Superannuation (PSS) scheme, for Commonwealth employees and certain other persons.
Section 6 specifies the persons who may be members of the PSS. In accordance with paragraph 6(1)(j) of the Act, a person declared in writing by the Minister for Finance to be a person to whom section 6 applies shall be a member of the PSS.
The Commonwealth provides health services to veterans and their dependants through the repatriation hospitals and other facilities. These repatriation hospitals and some other repatriation institutions are to be transferred to State control as part of the integration of veterans' health services with those of the States.
On transfer of the repatriation hospitals and other repatriation institutions to State control, staff employed at these institutions may transfer to State employment. These staff are at present employed under the Public Service Act 1922 and include persons who are members of the PSS.
Staff who transfer to State employment will be taken, by virtue of the Repatriation Institutions (Staff) Act, to have resigned from the Commonwealth Public Service. Rather than superannuation resignation benefits becoming payable, it is intended that any PSS members who transfer may continue to be members of the PSS, subject to negotiations with the respective States, including negotiation on recovery of the relevant employer superannuation costs.
Superannuation (PSS) Membership Inclusion Declaration No. 3, contained in the Statutory Rule, provides that staff of a repatriation institution who transfer to State employment shall be members of the PSS if, immediately before transfer, they were PSS members (or had elected to become PSS members and do not become members of a superannuation scheme applying to employment with that State).
The Declaration also provides that the staff will continue as PSS members unless the Minister for Finance signs a certificate to the effect that satisfactory arrangements have not been made in respect of payments by the States for the staff. This provision is primarily to ensure that the States meet the cost to the Commonwealth of continuing to provide superannuation benefits for those staff.
In accordance with section 45 of the Act, a declaration under paragraph 6(1)(j) of the Act is a disallowable instrument for the purposes section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.
Overview
The Superannuation Act 1990 was enacted to establish an occupational superannuation scheme, specifically the Public Sector Superannuation (PSS) scheme, for Commonwealth employees and certain other persons. The 1991 Superannuation (PSS) Membership Inclusion Declaration No. 3, issued under the authority of the Minister for Finance, addresses the issue of ensuring that staff transferring from Commonwealth control to State employment in repatriation hospitals and other institutions can continue to be members of the PSS. This legislative measure was introduced to facilitate a smooth transition of superannuation arrangements when staff transfer from Commonwealth to State employment, ensuring that these individuals maintain their PSS membership under certain conditions. This includes the requirement that States make satisfactory arrangements to cover the associated employer superannuation costs. The policy objective is to avoid superannuation resignation benefits becoming payable and to ensure continuity of superannuation membership for affected staff.
Scope and Application
The Superannuation (PSS) Membership Inclusion Declaration No. 3 1991 No. 463, issued under the authority of the Minister for Finance, pertains to the Superannuation Act 1990, which establishes an occupational superannuation scheme known as the Public Sector Superannuation (PSS) scheme for Commonwealth employees and specific other individuals. This statutory rule, which serves as a disallowable instrument under the Acts Interpretation Act 1901, aims to define the eligibility criteria for PSS membership. Specifically, it extends PSS membership to staff of repatriation institutions who transfer to State employment, provided they were PSS members prior to the transfer or had elected to become members and do not join a superannuation scheme applicable to their new State employment. The primary purpose of this rule is to facilitate the continuation of PSS membership for these staff members while ensuring that the States bear the financial responsibility for the superannuation benefits provided by the Commonwealth. However, their membership remains contingent upon satisfactory arrangements being negotiated and confirmed by the Minister for Finance, who can revoke membership if such arrangements are not met.
Key Provisions
The Superannuation (PSS) Membership Inclusion Declaration No. 3 1991 (Statutory Rule No. 463) pertains to the Superannuation Act 1990, which governs the Public Sector Superannuation (PSS) scheme for Commonwealth employees and specific other individuals. Section 6 of the Act identifies who is eligible to be a member of the PSS. Pursuant to section 6(1)(j), a person declared by the Minister for Finance in writing to be eligible under section 6 is to be considered a member of the PSS. The Declaration applies to staff of repatriation hospitals and other repatriation institutions that are to be transferred to State control, who may also transfer to State employment. The aim is to ensure that these staff members, if they were already PSS members, can continue to be PSS members, subject to negotiations between the Commonwealth and the respective States, including the recovery of employer superannuation costs by the States.
The Declaration imposes specific obligations on the parties involved. Firstly, it mandates that staff transferring to State employment from repatriation institutions must continue as PSS members if they were PSS members prior to the transfer, or had elected to become PSS members and do not join a superannuation scheme applying to their new State employment. Secondly, the Minister for Finance must ensure that satisfactory arrangements are made with the respective States for the payment of superannuation costs. If such arrangements are not satisfactory, the Minister has the authority to sign a certificate, leading to the cessation of these staff members' PSS membership.
Failure to comply with the provisions of the Declaration may result in various consequences. Under section 45 of the Superannuation Act 1990, a declaration under section 6(1)(j) is a disallowable instrument, meaning it can be annulled by a resolution of either House of the Parliament. Additionally, the Declaration is a Statutory Rule under the Statutory Rules Publication Act 1903. While the specific penalties for non-compliance are not detailed in the text, the potential annulment by Parliament underscores the importance of adhering to the Declaration’s stipulations.