Superannuation (PSS) Membership Inclusion Declaration No. 9 1992 No.
420
EXPLANATORY STATEMENT
STATUTORY RULES 1992 No. 420
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.
Where a person becomes an unattached Secretary, in practice, he or she continues to receive full salary and is able to continue membership of his or her superannuation scheme until retiring age.
On 25 September 1992 the Minister Assisting the Prime Minister for Public Service Matters, Senator Cook, announced new arrangements to apply to unattached Secretaries which will enable them to take leave to take up outside employment and to receive a "mobility allowance" during that employment. However, such persons would be subject to recall to Commonwealth employment at any time during the period of entitlement to the mobility allowance.
Under the new arrangement it is currently proposed that:
(a) the mobility allowance would be payable at the maximum rate of pay applicable to on office of Senior Executive Band 3 (Deputy Secretary level) but the amount would be reduced for earnings from private sector employment;
(b) the mobility allowance would be payable until the earliest of:
(i) the date five years after commencement of payment of the allowance, provided that the officer is not recalled to Commonwealth employment during that period;
(ii) attaining age 60; or
(iii) resigning or retiring from Commonwealth employment; and
(c) the person would be able to continue contributions to the relevant Commonwealth superannuation scheme while entitled to the mobility allowance on the basis of the updated salary of his or her former position.
It is intended that amendments to the Public Service Act 1922 and determinations under section 82D of that Act will be made in order to reflect, and to provide, for the necessary arrangements for the payment of the mobility allowance.
Special superannuation arrangements are required in order to ensure that persons who are entitled to receive the allowance continue to be members of the PSS.
The Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Inclusion Declaration No 9" provides that a person who is eligible to be paid a mobility allowance (irrespective of whether or not the, allowance payable to the person is reduced because of income earned) who was immediately before becoming eligible for the allowance, either
(a) a member of the PSS, or
(b) an eligible employee under the Superannuation Act 1976 who is eligible to make an election under subsection 244(1) of that Act to join the PSS.
The Declaration also contains a definition of 'mobility allowance'.
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 the date of Gazettal.
Overview
The Superannuation (PSS) Membership Inclusion Declaration No. 9, enacted in 1992, addresses a gap in the existing superannuation arrangements for unattached Secretaries in the Commonwealth public service. This Statutory Rule was issued under the authority of the Minister for Finance, in accordance with the Superannuation Act 1990. The policy objective of this Declaration is to ensure that individuals who are eligible for a mobility allowance, even if their allowance is reduced due to private sector income, remain members of the Public Sector Superannuation (PSS) Scheme. This is critical in maintaining the continuity of their superannuation benefits and contributions while they are on leave and potentially employed outside the Commonwealth. The Declaration defines who qualifies for the mobility allowance and specifies the conditions under which they will remain eligible for the PSS, thereby facilitating a seamless transition and ensuring the integrity of their superannuation entitlements.
Scope and Application
The Superannuation (PSS) Membership Inclusion Declaration No. 9 1992 applies to individuals who become eligible for a mobility allowance under specific arrangements outlined by the Minister Assisting the Prime Minister for Public Service Matters. These individuals are either unattached Secretaries or those who were previously members of the Public Sector Superannuation (PSS) Scheme or eligible employees under the Superannuation Act 1976, who have the option to join the PSS. The Declaration ensures that such individuals can continue to be members of the PSS while receiving the mobility allowance, provided they meet the criteria specified in the Declaration. This includes being able to continue superannuation contributions based on the updated salary of their former position. The geographic and jurisdictional reach of this Declaration is limited to the Commonwealth of Australia, specifically applying to the PSS Scheme established under the Superannuation Act 1990. The Declaration does not specify any exclusions or exemptions but operates under the authority granted by the Minister for Finance and is subject to the provisions of the Acts Interpretation Act 1901 and the Statutory Rules Publication Act 1903.
Key Provisions
The main operative sections of the Superannuation (PSS) Membership Inclusion Declaration No. 9 (Statutory Rule 1992 No. 420) revolve around the inclusion of certain individuals in the Public Sector Superannuation (PSS) Scheme. Section 6(1)(j) of the Superannuation Act 1990 is the foundation for these provisions, stipulating that individuals declared by the Minister for Finance are members of the PSS. This declaration specifically includes individuals eligible for a mobility allowance, who were previously members of the PSS or eligible employees under the Superannuation Act 1976 with the option to join the PSS. The mobility allowance is defined as a payment to certain unattached Secretaries who are on leave to take up outside employment, with the allowance potentially reduced based on private sector earnings.
This legislation imposes obligations on several parties. The Minister for Finance is responsible for declaring individuals eligible for the PSS under the new arrangements. The unattached Secretaries, who are the beneficiaries of the mobility allowance, must adhere to the conditions of their employment, including the possibility of recall to Commonwealth employment at any time. The Commonwealth is obligated to provide the mobility allowance and ensure the continuity of superannuation contributions for eligible individuals. The PSS Scheme itself must maintain the membership of these individuals and facilitate their ongoing contributions.
There are no explicit offences, penalties, or consequences for breach outlined in the Declaration. However, the implications of non-compliance could be significant. The Minister for Finance could face scrutiny for not properly declaring eligible individuals, potentially leading to legal challenges. Unattached Secretaries might face difficulties in maintaining their superannuation benefits if they do not meet the eligibility criteria. The Commonwealth might incur financial liabilities if the mobility allowance is improperly paid or if superannuation contributions are not correctly processed. The PSS Scheme could face operational challenges if it fails to accurately maintain the membership and contributions of eligible individuals.