Superannuation (PSS) Productivity Contribution (2019-2020) Determination 2019 – Explanatory Statement
1 Name of Determination
This determination is the Superannuation (PSS) Productivity Contribution (2019-2020) Determination 2019
2 Commencement
This determination commences on 1 July 2019.
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 2019.
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 organisation.
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 That Determination was revoked on 1 July 2005 by the Superannuation (PSS) Productivity Contribution (2006-2007) Determination 2006, which set out the productivity contribution rates for the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 2019 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 (2019-2020) Determination 2019, enacted to align with the Superannuation Act 1990, was introduced to address the need for updated productivity contribution rates for the Public Sector Superannuation (PSS) scheme, applicable from 1 July 2019. This determination was issued by the Commonwealth Superannuation Corporation (CSC), reflecting its role in managing the PSS scheme. The policy objective is to ensure the productivity contribution rates maintain the real value relative to the overall salaries of PSS members, as stipulated in PSS Rule 4.3.3. The determination follows a long-standing practice of annually updating the productivity contribution rates to keep pace with changes in general salary levels, ensuring the scheme's sustainability and fairness.
Scope and Application
The Superannuation (PSS) Productivity Contribution (2019-2020) Determination 2019 applies to the Public Sector Superannuation (PSS) scheme established under the Superannuation Act 1990. The determination sets out new productivity contribution rates applicable for the financial year beginning on 1 July 2019, affecting the Commonwealth Superannuation Corporation (CSC) and its relevant officers who are tasked with implementing these rates as per the PSS Rules. The rates themselves are meant to reflect changes in the general salary levels of PSS members, thereby maintaining the real value of the productivity contributions in relation to their salaries. The determination is a Commonwealth instrument and applies nationally across Australia, with no exclusions or exemptions specified within the explanatory statement. This determination extends the application of productivity contribution rates set forth in the PSS scheme, ensuring they are updated annually to account for changes in salary levels.
Key Provisions
The Superannuation (PSS) Productivity Contribution (2019-2020) Determination 2019 sets forth new productivity contribution rates for the Public Sector Superannuation (PSS) scheme to apply from 1 July 2019 (section 5). This determination is crucial for the administration of the PSS scheme, which is governed by the Superannuation Act 1990, a Trust Deed, and Rules (section 4). The productivity contribution rates are designed to maintain the real value of contributions in relation to the overall salaries of PSS members (section 4). The determination specifies that these rates will be amended annually by the Commonwealth Superannuation Corporation (CSC), a body corporate established under the Governance of Australian Government Superannuation Schemes Act 2011 (section 6).
The obligations imposed by this determination include the annual amendment of productivity contribution rates by the CSC. The CSC is mandated to adjust these rates to reflect changes in the general salary levels of PSS members, ensuring that the contribution rates maintain their purchasing power relative to the members' salaries (section 4). The CSC has delegated its power under PSS Rule 4.3.3 to relevant officers within the organisation, facilitating the timely and accurate implementation of these amendments (section 4).
Breach of the provisions set out in this determination could lead to regulatory action, although specific offences, penalties, or consequences are not detailed within the explanatory statement. However, the legislation generally adheres to the framework established by the Superannuation Act 1990 and associated rules, which would likely impose penalties for non-compliance with superannuation requirements. Given that this is an internal machinery of Government instrument, no consultation was considered necessary with other persons, as per sections 15J(2) and 17 of the Legislation Act 2003 (section 7). Additionally, the determination is compatible with human rights as it does not engage any of the applicable rights or freedoms, as per the Human Rights (Parliamentary Scrutiny) Act 2011 (section 7).