Superannuation (PSS) Productivity Contribution (2016-2017) Determination 2016 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2016-2017) Determination 2016
2 Commencement
This determination takes effect on 1 July 2016.
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 2016.
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 of the scheme administrator, Commonwealth Superannuation Corporation (CSC).
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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2016 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 15J(2) and 17 of the Legislation 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 (2016-2017) Determination 2016 was enacted to establish new productivity contribution rates for the Public Sector Superannuation (PSS) scheme applicable for the financial year beginning on 1 July 2016. This Determination was introduced to ensure that the contribution rates are updated in line with changes in the general salary levels of PSS members, thereby maintaining the real value of the productivity contributions relative to overall salaries. The determination was made by the Commonwealth Superannuation Corporation (CSC) under delegation from PSS Rule 4.3.3, which empowers the CSC to amend productivity contribution rates annually. The purpose of this legislation is to provide clear and updated productivity contribution rates for the PSS scheme, reflecting the economic conditions and salary adjustments of the relevant financial year.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2016-2017) Determination 2016 applies to the Public Sector Superannuation (PSS) scheme, established under the Superannuation Act 1990, and pertains to the productivity contribution rates for the financial year commencing on 1 July 2016. This determination sets the rates that will be used to maintain the real value of the productivity contributions in relation to the overall salaries of PSS members, reflecting changes in the general salary levels of members. The productivity contribution rates are established by the Commonwealth Superannuation Corporation (CSC), which has the power to amend these rates annually. This instrument applies nationally, as it governs the operations of the PSS scheme, which covers public sector employees across the Commonwealth. The determination does not extend its application through subordinate instruments but rather sets the specific rates for the mentioned financial year directly. No consultation was necessary for this internal government instrument, and it is compatible with human rights as it does not engage any of the applicable rights or freedoms.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2016-2017) Determination 2016 sets the productivity contribution rates for the Public Sector Superannuation (PSS) scheme for the financial year starting on 1 July 2016 (section 3). The determination provides for new rates to be applied to the scheme, reflecting changes in the general salary levels of PSS members, and ensures the real value of productivity contributions is maintained in relation to the overall salaries of PSS members (section 4). These rates are established by the Commonwealth Superannuation Corporation (CSC) and are set out in the determination. The Commonwealth Superannuation Corporation (CSC) has the authority to amend the productivity contribution rates each year, pursuant to PSS Rule 4.3.3 (section 4). The determination came into effect on 1 July 2016 (section 2).
The determination imposes specific obligations on the parties involved, primarily the Commonwealth Superannuation Corporation (CSC). It mandates the CSC to set new productivity contribution rates for the PSS scheme annually, as outlined in the determination (section 4). This is to ensure the productivity contribution rates are updated in line with changes in general salary levels, thereby maintaining the real value of the contributions relative to the overall salaries of PSS members (section 4). The CSC is also responsible for ensuring the rates are implemented effectively within the PSS scheme, reflecting the adjustments set out in the determination (section 3).
The Superannuation (PSS) Productivity Contribution (2016-2017) Determination 2016 does not explicitly outline specific offences, penalties, or consequences for breach. However, any failure to comply with the productivity contribution rates set out in the determination could potentially result in civil or administrative consequences, as governed by the broader PSS scheme and related legislation. The determination is primarily a directive for internal governance purposes, aimed at maintaining the integrity and functionality of the PSS scheme, rather than establishing punitive measures for non-compliance (section 7). The compatibility with human rights, as stated in the explanatory statement, indicates that this determination does not impose any human rights implications, thereby avoiding any related legal consequences (section 7).