Superannuation (PSS) Productivity Contribution (2012-2013) Determination 2012 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2012-2013) Determination 2012.
2 Commencement
This determination takes effect on 1 July 2012.
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 2012.
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 Commonwealth Superannuation Corporation (CSC) 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
CSC 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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2012 are set out in the determination.
6 References to CSC
Section 5 of the Governance of Australian Government Superannuation Schemes Act 2011, provides that “the board established by section 20 of the Superannuation Act 1990 as the Australian Reward Investment Alliance continues in existence by force of that section as a body corporate, under and subject to the provisions of this Act, under the name Commonwealth Superannuation Corporation (CSC)”.
In accordance with section 25B of the Acts Interpretation Act 1901, any reference to Australian Reward Investment Alliance (ARIA) in an instrument made prior to 1 July 2011 shall be construed as a reference to CSC.
7 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 (2012-2013) Determination 2012 was enacted to address the need for setting new productivity contribution rates for the Public Sector Superannuation (PSS) scheme, effective from the financial year beginning on 1 July 2012. This determination was introduced by the Australian Parliament to ensure that the productivity contributions for PSS members are adjusted in line with the general salary levels, thereby maintaining the real value of these contributions. The determination is governed under the Superannuation Act 1990 and was executed by the Commonwealth Superannuation Corporation (CSC), now known as the Australian Reward Investment Alliance, following amendments in 2011. Given the internal nature of the instrument, no external consultation was deemed necessary under sections 17 and 18 of the Legislative Instruments Act 2003.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2012-2013) Determination 2012 is a legislative instrument designed to set new productivity contribution rates for the Public Sector Superannuation (PSS) scheme, which applies to the financial year commencing on 1 July 2012. The determination is made under the authority of the Superannuation Act 1990, which establishes the PSS scheme, and is administered by the Commonwealth Superannuation Corporation (CSC), as referenced in the Governance of Australian Government Superannuation Schemes Act 2011. The PSS scheme applies to members of the public sector superannuation scheme in Australia, impacting employees and employers within the public sector who are contributors to the PSS scheme. The determination sets out specific rates for productivity contributions which are designed to maintain the real value of contributions relative to the general salary levels of PSS members. The productivity contribution rates are established annually and reflect changes in the salary levels of PSS members, ensuring that the scheme remains equitable and sustainable. As this determination pertains to the internal machinery of government and does not involve external consultation, it is implemented without the need for external consultation processes.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2012-2013) Determination 2012 (the Determination) sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme to apply for the financial year beginning on 1 July 2012 (sections 1 and 2). The Determination became effective on 1 July 2012 (section 2). The purpose of the Determination is to establish new rates for productivity contributions for the PSS scheme, which are designed to maintain the real value of these contributions relative to the overall salaries of PSS members (section 3). The PSS scheme itself is established by the Superannuation Act 1990, a Trust Deed, and Rules, which were amended and renumbered over time (section 4). Productivity contribution rates are determined annually by the Commonwealth Superannuation Corporation (CSC) under PSS Rule 4.3.3, which allows for adjustments to the rates to reflect changes in general salary levels of members (section 4). The new productivity contribution rates that apply from 1 July 2012 are detailed within the Determination (section 5).
The Determination imposes specific obligations on the parties involved, primarily focusing on the accurate calculation and payment of the newly set productivity contribution rates. Employers and employees within the PSS scheme must ensure that these rates are applied correctly in accordance with the Determination. The Commonwealth Superannuation Corporation (CSC), now known as the Australian Reward Investment Alliance under the Governance of Australian Government Superannuation Schemes Act 2011, retains the responsibility to delegate the necessary powers to relevant officers for implementing these rates (section 6). The Determination does not require consultation with external parties as it pertains to internal government machinery (section 7).
Breaches of the provisions set out in the Determination could potentially lead to administrative and financial consequences. While the Determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences, the underlying legislation and associated rules might impose such measures. Any failure to comply with the productivity contribution rates or other obligations could lead to financial discrepancies and potential audits or investigations. The exact penalties would depend on the specific breaches and the applicable rules under the Superannuation Act 1990 or other relevant legislation.