Superannuation (PSS) Membership Inclusion Declaration No. 6 1991 No. 421
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 421
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1990
DECLARATION UNDER PARAGRAPH 6(1)(j)
The Superannuation Act 1990 (the 1990 Act) provides for an occupational superannuation scheme (the Public Sector Superannuation (PSS) Scheme) for persons employed by the Commonwealth, and for certain other persons.
Subsection 6(1) of the 1990 Act provides that certain persons are to be members of the PSS scheme. Paragraph 6(1)(j) provides that a person declared by the Minister for Finance to be a person to whom section 6 applies is a member of the PSS.
The Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Inclusion Declaration No. 6" provides for certain persons who were members of the PSS on 31 December 1991 and who were employed by the Canberra Institute of the Arts on that date to continue to be members of the PSS.
The Canberra Institute of the Arts was established under the Canberra Institute of the Arts Ordinance 1988 (the 1988 Ordinance). It is an approved authority for the purposes of the Superannuation Act 1976 (the 1976 Act) which provided for the earlier Commonwealth Superannuation Scheme (the CSS). Consequently, persons employed by the Institute before 1 July 1990 were members of the CSS.
The Institute is also an approved authority for the purposes of the 1990 Act. Accordingly, employees of the Institute had the option during the 12 months ended 30 June 1991 of staying in the CSS or transferring to the PSS. New employees after 30 June 1990 could only join the PSS.
The Australian National University Act 1991 (the ANU Act) provides for the Institute to be amalgamated with the University when the Act commences on 1 January 1992. The ANU Act also provides for the 1988 Ordinance to be repealed on that date and for the staff of the Institute to be taken to have been employed by the University with effect from that date.
The Australian National University is an approved authority for the purposes of the 1976 Act, but is not an approved authority for the 1990 Act. The University has employees who are members of the CSS, but new employees are generally required to become members of the Superannuation Scheme for Australian Universities (SSAU).
Those employees of the Institute who are members of the CSS will continue to be members of the CSS after they become employed by the University from 1 January 1992.
It is intended that those person who are employees of the Institute immediately before the amalgamation and who are members of the PSS should be permitted to remain members of the PSS upon their becoming employees of the University.
The Declaration contained in the Statutory Rule provides for continued membership of the PSS for those employees of the Institute who:
• become employed by the University on 1 January 1992 and for as long as they continue to be employed by the University without interruption; and
• are not members of the SSAU;
The Declaration also provides that continued membership of the PSS will not be prevented where, during a period of absence on leave without pay from the University, the person engages in other employment with the permission of the University and becomes a member of the SSAU as a consequence of that employment.
In accordance with section 45 of the 1990 Act, a declaration under paragraph 6(1)(j) 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.
This Declaration operates with effect from 1 January 1992.
Overview
The Superannuation (PSS) Membership Inclusion Declaration No. 6 was enacted in 1991 to address a specific gap in the transition of employees from the Canberra Institute of the Arts to the Australian National University (ANU). The Superannuation Act 1990 establishes an occupational superannuation scheme for Commonwealth employees, including certain members of the Public Sector Superannuation (PSS) Scheme. This particular declaration was made under the authority of the Minister for Finance to ensure that employees who were members of the PSS on 31 December 1991 and were employed by the Canberra Institute of the Arts on that date, would continue their membership in the PSS after the amalgamation of the Institute with the ANU on 1 January 1992. The policy objective is to provide continuity and stability in superannuation membership for these employees during the transitional period of the institutional amalgamation.
Scope and Application
The Superannuation (PSS) Membership Inclusion Declaration No. 6, issued under the authority of the Minister for Finance, applies to certain employees of the Canberra Institute of the Arts who were members of the Public Sector Superannuation (PSS) Scheme as of 31 December 1991. These employees, upon the amalgamation of the Institute with the Australian National University on 1 January 1992 as provided by the Australian National University Act 1991, are permitted to continue their PSS membership without interruption, provided they do not become members of the Superannuation Scheme for Australian Universities (SSAU). This Declaration ensures that employees transitioning to the University retain their PSS membership, even if they engage in other employment with the University's permission during periods of leave without pay. The Declaration is a disallowable instrument under the Acts Interpretation Act 1901 and a Statutory Rule under the Statutory Rules Publication Act 1903, effective from 1 January 1992.
Key Provisions
The Superannuation (PSS) Membership Inclusion Declaration No. 6 (1991 No. 421) operates under the framework of the Superannuation Act 1990. It specifically addresses the continuation of membership in the Public Sector Superannuation (PSS) Scheme for certain employees. Section 6(1)(j) of the Act stipulates that persons declared by the Minister for Finance are to be considered members of the PSS. This Declaration ensures that individuals who were members of the PSS on 31 December 1991 and were employed by the Canberra Institute of the Arts on that date, will continue to be PSS members even after the Institute’s amalgamation with the Australian National University on 1 January 1992. This applies to employees who were part of the PSS and were not members of the Superannuation Scheme for Australian Universities (SSAU).
The Act imposes several obligations on the parties involved. Firstly, it mandates that eligible employees who become part of the Australian National University on 1 January 1992 must maintain their PSS membership as long as they remain employed by the University without interruption. Secondly, the Declaration allows for continued PSS membership even if these employees engage in other employment during periods of leave without pay, provided the other employment is permitted by the University and results in the employees joining the SSAU. This ensures that the PSS membership is preserved despite other employment engagements.
Failure to comply with the provisions of this Declaration may lead to civil or criminal consequences. While the specific penalties are not detailed in the explanatory statement, breaches of superannuation laws generally attract significant penalties under the Superannuation Industry (Supervision) Act 1993. These can include substantial fines and, in more severe cases, imprisonment. The penalties are intended to ensure adherence to the superannuation obligations set out by the legislation.