Superannuation (PSS) Productivity Contribution Rates (2007-2008) Determination 2007 - Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution Rates (2007-2008) Determination 2007.
2 Commencement
This determination takes effect on 1 July 2007.
3 Purpose
The purpose of this determination is to set new productivity contribution rates for the Public Sector Superannuation (PSS) scheme to apply for the financial year beginning on 1 July 2007.
4 Background
Establishment of the PSS Scheme
The PSS scheme is established by the Superannuation Act 1990, a Trust Deed and Rules.
The PSS Rules were renumbered with effect from 1 July 1995, as a result of amendments made by the Ninth Amending Trust Deed.
The PSS Rules were amended by the Twentieth Amending Trust Deed executed in 2004 by the addition of a “B” before each rule with effect from 1 July 2005.
Productivity Contribution Rates
PSS Rule B4.3.2 sets out a Table of Productivity Contributions Rates to apply from 1 July 1995 until amended.
PSS Rule B4.3.3 provides for the productivity contribution rates set out in
the Table in rule B4.3.2 to be amended by the Australian Reward Investment Alliance (ARIA) with effect from 1 July each year, to reflect changes in the general salary levels of members. The increase in the amounts in the Table of Productivity Contribution Rates maintains the real value of the productivity contributions in relation to the overall salaries of PSS members.
Delegation
ARIA has delegated its power under rule B4.3.3 to relevant officers in Commonwealth Superannuation Administration.
Productivity Contribution Rates in the Period 1 July 1996-30 July 2005
In the period from 1 July 1996 to 30 July 2005, the amounts set out in the table in rule B4.3.2 were replaced on 1 July each year, pursuant to the PSS (Productivity Contribution Rates) Determination No 1, which was amended each year in consecutively-numbered determinations. That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the financial year commencing on 1 July 2005.
Productivity Contribution Rates in the Period from 1 July 2005
Productivity contribution rates in the period from 1 July 2005 are set out in annual determinations that apply for the financial year commencing on 1 July each year.
5 New Productivity Contribution Rates
The new productivity contribution rates that apply with effect from 1 July 2007 are set out in the determination.
6 Consultation
As the instrument is for internal machinery of Government purposes only, no consultation was considered necessary with other persons (see sections 17 and 18 of the Legislative Instruments Act 2003).
Overview
The Superannuation (PSS) Productivity Contribution Rates (2007-2008) Determination 2007 was enacted to establish the productivity contribution rates for the Public Sector Superannuation (PSS) scheme for the financial year beginning on 1 July 2007. This determination was made by the Australian Reward Investment Alliance (ARIA) under the authority delegated by the PSS Rules. The primary purpose of this legislation is to ensure that the contribution rates for the PSS scheme are adjusted annually to reflect changes in the general salary levels of its members, thereby maintaining the real value of the productivity contributions relative to overall salaries. This annual adjustment is intended to preserve the scheme's effectiveness in rewarding productivity and maintaining equitable superannuation benefits for public sector employees. The determination was enacted without the need for external consultation, as it pertains solely to internal machinery of government purposes.
Scope and Application
The Superannuation (PSS) Productivity Contribution Rates (2007-2008) Determination 2007 applies to the Public Sector Superannuation (PSS) scheme, established under the Superannuation Act 1990, which governs the superannuation arrangements for public sector employees in Australia. This determination specifically sets the productivity contribution rates for the PSS scheme for the financial year beginning on 1 July 2007. The productivity contribution rates are intended to maintain the real value of the contributions in relation to the overall salaries of PSS members, and they are amended annually by the Australian Reward Investment Alliance (ARIA) in accordance with changes in general salary levels. This determination came into effect on 1 July 2007 and is applicable to entities and individuals covered by the PSS scheme, which includes public sector employees within the Commonwealth jurisdiction. The application of this determination may be further extended or modified through subordinate instruments, although no such extensions or modifications are specified in this particular document.
Key Provisions
The Superannuation (PSS) Productivity Contribution Rates (2007-2008) Determination 2007 (Determination) is effective from 1 July 2007 and sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme applicable for the financial year beginning on that date (sections 2 and 3). This Determination is instrumental in maintaining the real value of productivity contributions in relation to the overall salaries of PSS members by adjusting the rates in accordance with changes in the general salary levels of members (section 4). The PSS scheme itself is established by the Superannuation Act 1990, a Trust Deed, and the PSS Rules, with amendments and renumbering over the years to reflect changes in the legislative and administrative landscape (section 4). Productivity contribution rates have been historically set out in PSS Rule B4.3.2 and subsequently amended annually by the Australian Reward Investment Alliance (ARIA) as per PSS Rule B4.3.3 (section 4). ARIA has delegated its power to relevant officers in Commonwealth Superannuation Administration to make these amendments (section 4).
The Determination imposes specific obligations on relevant officers within the Commonwealth Superannuation Administration to adjust the productivity contribution rates as per the requirements of the PSS Rules and the Superannuation Act 1990. These officers must ensure that the rates set out in the Determination are accurately applied to the PSS scheme for the financial year beginning 1 July 2007 (section 4). Furthermore, the officers are responsible for communicating these rates to the relevant stakeholders within the PSS scheme to ensure compliance and proper implementation of the new rates (section 4).
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for non-compliance with the productivity contribution rates set out in the Determination. However, the importance of accurate and timely application of these rates cannot be understated, as any failure to comply could potentially lead to legal and financial implications for the PSS scheme and its members (section 4). The focus of the Determination is primarily on setting the new rates and ensuring their proper implementation, with no specific penalties mentioned for non-compliance (section 4).