Superannuation (PSS) Productivity Contribution (2014-2015) Determination 2014 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2014-2015) Determination 2014.
2 Commencement
This determination takes effect on 1 July 2014.
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 2014.
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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2014 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).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
Overview
The Superannuation (PSS) Productivity Contribution (2014-2015) Determination 2014 was enacted to set new productivity contribution rates for the Public Sector Superannuation (PSS) scheme, which applies to the financial year starting on 1 July 2014. The determination was made by the Commonwealth Superannuation Corporation (CSC), which has the authority to amend the productivity contribution rates annually to reflect changes in the general salary levels of PSS members. This annual adjustment ensures that the real value of the productivity contributions remains consistent with the overall salaries of PSS members. The determination is consistent with the human rights and freedoms recognised or declared in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011, as it does not engage any of the applicable rights or freedoms.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2014-2015) Determination 2014 applies to the Public Sector Superannuation (PSS) scheme, which is established under the Superannuation Act 1990, and is intended to set the productivity contribution rates for this scheme for the financial year starting on 1 July 2014. This determination is made under the authority delegated by the Commonwealth Superannuation Corporation (CSC) to relevant officers in Commonwealth Superannuation Administration. It follows a series of determinations made annually to adjust the productivity contribution rates to reflect changes in the general salary levels of PSS members, thereby maintaining the real value of the contributions. The determination is effective from 1 July 2014 and is part of a continuing process that commenced in 1996. There are no exclusions, exemptions, or thresholds specified in this determination, and it does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, making it compatible with human rights as it does not raise any human rights issues.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2014-2015) Determination 2014 (the Determination) sets new productivity contribution rates for the Public Sector Superannuation (PSS) scheme for the financial year commencing on 1 July 2014 (section 1). The Determination came into effect on 1 July 2014 (section 2). The purpose of the Determination is to establish these rates for the PSS scheme, ensuring they reflect changes in general salary levels of members to maintain the real value of the contributions (section 3).
The Determination outlines that the PSS scheme is governed by the Superannuation Act 1990, a Trust Deed, and the PSS Rules, which have been amended over time (section 4). PSS Rule 4.3.2 contains a Table of Productivity Contributions Rates that apply from 1 July 1995 until amended. PSS Rule 4.3.3 allows the Commonwealth Superannuation Corporation (CSC) to adjust these rates annually to reflect salary changes. The CSC has delegated this authority to relevant officers in Commonwealth Superannuation Administration. Productivity contribution rates for the period from 1 July 2005 onwards are set out in annual determinations for each financial year commencing on 1 July (section 4).
The Determination imposes obligations on the Commonwealth Superannuation Corporation to review and set new productivity contribution rates each year. It also mandates the relevant officers to implement these rates within the PSS scheme. The Determination further ensures that the adjustments maintain the real value of contributions in relation to the overall salaries of PSS members. It also details that any references to the Australian Reward Investment Alliance (ARIA) in instruments made before 1 July 2011 should be construed as references to the CSC (section 6).
Under the Determination, any breach of the obligations set forth could lead to civil or administrative consequences. However, the Determination itself does not specify explicit offences, penalties, or consequences for non-compliance. It is important to note that the legislative instrument is compatible with human rights as it does not raise any human rights issues (section 7).