Superannuation (PSS) Productivity Contribution (2009-2010) Determination 2009 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2009-2010) Determination 2009.
2 Commencement
This determination takes effect on 1 July 2009.
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 2009.
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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2009 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 (2009-2010) Determination 2009 was enacted to set new productivity contribution rates for the Public Sector Superannuation (PSS) scheme for the financial year commencing on 1 July 2009. This determination is part of the legislative framework established under the Superannuation Act 1990, with amendments over the years, including the most recent amendment by the Twenty-Eighth Amending Trust Deed in 2007. The PSS scheme is overseen by the Australian Reward Investment Alliance (ARIA), which has delegated its authority to relevant officers within the Commonwealth Superannuation Administration. The objective of this determination is to adjust the productivity contribution rates to maintain their real value in relation to the overall salaries of PSS members. Given its internal administrative nature, no external consultation was required, in accordance with sections 17 and 18 of the Legislative Instruments Act 2003.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2009-2010) Determination 2009 applies to the Public Sector Superannuation (PSS) scheme, established under the Superannuation Act 1990, a Trust Deed and Rules. This determination sets the productivity contribution rates for the financial year beginning on 1 July 2009, reflecting changes in general salary levels of PSS members to maintain the real value of the contributions. The productivity contribution rates are set by the Australian Reward Investment Alliance (ARIA), which has delegated its powers to relevant officers in Commonwealth Superannuation Administration. The determination applies nationally and is effective from 1 July 2009, with no exclusions or exemptions specified in the explanatory statement. Subordinate instruments may further extend or restrict the application of this determination.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2009-2010) Determination 2009 (section 1) sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme applicable from 1 July 2009. This determination (section 2) took effect on the same date, aligning with the commencement of the financial year it governs. The primary objective (section 3) is to establish these rates for the PSS scheme, ensuring they reflect changes in the general salary levels of members, thereby maintaining the real value of productivity contributions in relation to overall salaries.
The PSS scheme is governed by the Superannuation Act 1990, a Trust Deed, and Rules (section 4). Rule 4.3.2 outlines a table of productivity contribution rates that were applicable from 1 July 1995 until amended. Rule 4.3.3 allows for these rates to be adjusted annually by the Australian Reward Investment Alliance (ARIA), with the most recent adjustment being delegated to relevant officers in Commonwealth Superannuation Administration. From 1 July 1996 to 30 July 2005, productivity contribution rates were set through consecutively-numbered determinations, which were subsequently replaced by annual determinations beginning 1 July 2005.
Parties governed by this Act, including the ARIA and relevant Commonwealth officers, are required to ensure that the new productivity contribution rates are correctly implemented and maintained (section 4). This includes updating the PSS scheme’s rules and ensuring that these new rates are reflective of salary changes within the scheme. Compliance with these rates is essential for maintaining the integrity and fairness of the superannuation contributions within the PSS scheme.
Failure to comply with the provisions of this determination could result in civil or administrative penalties, though specific penalties are not outlined in the explanatory statement. The Act itself, however, may provide for enforcement actions, including potential fines or other administrative measures to ensure adherence to the new productivity contribution rates. The PSS scheme’s governance framework ensures that any breaches are addressed to maintain the scheme’s efficacy and fairness.