Superannuation (PSS) Productivity Contribution (2008-2009) Determination 2008 - Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2008-2009) Determination 2008.
2 Commencement
This determination takes effect on 1 July 2008.
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 2008.
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 further amended by the Twenty-Eighth Amending Trust Deed executed in 2007 by the deletion of a “B” before each rule with effect from 29 June 2007.
Productivity Contribution Rates
PSS Rule 4.3.2 sets out a Table of Productivity Contributions Rates to apply from 1 July 1995 until amended.
PSS Rule 4.3.3 provides for the productivity contribution rates set out in
the Table in rule 4.3.2 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 4.3.3 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 4.3.2 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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2008 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 (2008-2009) Determination 2008 was enacted to address the need for updating the productivity contribution rates for the Public Sector Superannuation (PSS) scheme. This determination was made by the Australian Reward Investment Alliance (ARIA) and came into effect on 1 July 2008. The primary objective of this legislation is to establish new productivity contribution rates that maintain the real value of contributions relative to the general salary levels of PSS members. This determination is part of the ongoing adjustments to ensure that the PSS scheme remains fair and relevant in light of changing economic conditions.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2008-2009) Determination 2008 applies to the Public Sector Superannuation (PSS) scheme, which is established under the Superannuation Act 1990 and governed by a Trust Deed and Rules. The Act applies to Commonwealth public sector employees participating in the PSS scheme, which includes entities such as federal government departments, agencies, and statutory bodies. The determination sets new productivity contribution rates for the PSS scheme for the financial year beginning on 1 July 2008. It is a Commonwealth instrument, thus its jurisdictional reach is national. This determination is an annual instrument, and the application of its provisions extends or is restricted through subsequent annual determinations for each financial year. There are no exclusions or exemptions outlined in the text, and no specific thresholds are mentioned.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2008-2009) Determination 2008 sets out new productivity contribution rates for the Public Sector Superannuation (PSS) scheme, effective from 1 July 2008. The new rates are outlined in the determination itself (section 5). This determination is established under the Superannuation Act 1990 and is governed by a Trust Deed and Rules, specifically PSS Rule 4.3.3, which allows for annual amendments to productivity contribution rates by the Australian Reward Investment Alliance (ARIA) (section 4).
The obligations under this Determination include the requirement for the Australian Reward Investment Alliance (ARIA) to annually adjust the productivity contribution rates based on changes in general salary levels of PSS members, as stipulated in PSS Rule 4.3.3 (section 4). ARIA has delegated its power under this rule to relevant officers in Commonwealth Superannuation Administration, ensuring that the annual adjustments are implemented effectively (section 4).
Breaches of the provisions in this Determination are not explicitly detailed in the Explanatory Statement. However, under the general legislative framework, non-compliance with superannuation legislation can lead to civil or criminal penalties, depending on the severity and intent of the breach. For instance, knowingly providing false or misleading information could result in fines or imprisonment, as outlined in other sections of the Superannuation Act 1990 or related regulations. The maximum penalties for such offences would typically be determined by the specific legislation governing the breach.