Superannuation (PSS) Productivity Contribution (2010-2011) Determination 2010 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2010-2011) Determination 2010.
2 Commencement
This determination takes effect on 1 July 2010.
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 2010.
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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2010 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 (2010-2011) Determination 2010 was enacted to address the need for setting new productivity contribution rates for the Public Sector Superannuation (PSS) scheme, specifically for the financial year starting on 1 July 2010. This determination was established under the authority of the Australian Reward Investment Alliance (ARIA), which has the power to adjust these rates annually to reflect changes in the general salary levels of PSS members. The PSS scheme itself is governed by the Superannuation Act 1990, a Trust Deed, and the PSS Rules, which have been subject to amendments over the years to adapt to evolving circumstances. The primary policy objective of this determination is to ensure that the productivity contributions maintain their real value in relation to the overall salaries of PSS members.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2010-2011) Determination 2010 applies to the Public Sector Superannuation (PSS) scheme established under the Superannuation Act 1990. This determination sets out new productivity contribution rates for the PSS scheme, effective from 1 July 2010. The productivity contribution rates are set annually by the Australian Reward Investment Alliance (ARIA) to maintain the real value of the productivity contributions in relation to the overall salaries of PSS members. The application of this determination is limited to the Commonwealth jurisdiction, and it does not require consultation with external parties as it pertains to internal government machinery. The productivity contribution rates for the period from 1 July 2005 onwards are set out in annual determinations, and the rates in force from 1 July 2010 are specified in this determination.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2010-2011) Determination 2010, referred to in the explanatory statement as the Determination, sets forth the new productivity contribution rates applicable to the Public Sector Superannuation (PSS) scheme for the financial year starting on 1 July 2010 (section 5). The Determination took effect on the same date, as stated in section 2. The primary aim of the Determination, as outlined in section 3, is to establish these new rates for the PSS scheme. The explanatory statement provides a background to the PSS scheme, which was established by the Superannuation Act 1990, a Trust Deed, and Rules, with the rules being renumbered in 1995 and further amended in 2007.
Under the PSS scheme, productivity contribution rates are set out in PSS Rule 4.3.2, with these rates being updated annually by the Australian Reward Investment Alliance (ARIA) to reflect changes in the general salary levels of PSS members (section 4). This update ensures that the real value of the productivity contributions is maintained in relation to the overall salaries of PSS members. ARIA has delegated its power to amend these rates to relevant officers in the Commonwealth Superannuation Administration. From 1 July 2005, these productivity contribution rates have been set out in annual determinations for each financial year. The new rates for the financial year commencing on 1 July 2010 are specified in the Determination.
The Determination imposes obligations on the entities it governs, primarily the Commonwealth Superannuation Administration and relevant officers, to update the productivity contribution rates annually to maintain the real value of the contributions in relation to the overall salaries of PSS members (section 4). Additionally, since the instrument is for internal machinery of Government purposes only, no consultation was deemed necessary with other persons, as stated in section 6. This reflects sections 17 and 18 of the Legislative Instruments Act 2003.
There are no explicit offences, penalties, or civil/criminal consequences mentioned for breach of the Determination in the explanatory statement. However, failure to comply with the Determination's requirement to update the productivity contribution rates annually could potentially result in the loss of the intended maintenance of the real value of the contributions in relation to the overall salaries of PSS members, which could have financial implications for the members involved.