Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2)

Administered by Department of Finance

Legislation au F2013L00935 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by authority of the Minister for Finance and Deregulation

Superannuation Act 2005

Determination under subsection 34(1)

Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2)

On 29 June 2005, the Minister for Finance and Deregulation, for and on behalf of the Commonwealth, made a deed (the Trust Deed) under section 10 of the Superannuation Act 2005 (the 2005 Act) to, among other things, establish a superannuation scheme, to be known as the Public Sector Superannuation Accumulation Plan (PSSAP) and the PSSAP Fund from 1 July 2005. The Schedule to the Trust Deed includes rules for the administration of PSSAP (the Rules).

The PSSAP is established for the benefit of most new Australian Government employees and statutory office holders. The Commonwealth Superannuation Corporation (CSC) is the trustee for the PSSAP.

Subsection 34(1) of the 2005 Act provides that the costs of the administration of the Act and the Trust Deed for the PSSAP are to be paid as the Minister determines in accordance with that subsection. These costs include the costs of and incidental to the management of the PSSAP Fund by CSC and the investment of its money.

Subsection 34(2) of the 2005 Act provides that a determination made under subsection 34(1) must identify, by amount or otherwise those costs that are payable by the Commonwealth and those costs that are payable by CSC out of the PSSAP Fund.

The relevant determination is the Superannuation (PSSAP) (Division of Costs) Determination 2005 (the Principal Determination).

Amending Determination

The Minister amended the Principal Determination by signed instrument. That instrument is called the Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2) (the Amending Determination).

The Amending Determination is intended to update the division of costs payable by the Commonwealth and out of the PSSAP Fund upon the introduction of the PSSAP Ninth Amending Deed. This Amending Deed allows contributory Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) members to salary sacrifice into the PSSAP, and allows for transfers of certain amounts from the CSS and PSS into the PSSAP.

The updated division of costs are to allow for fees to be deducted from the PSSAP Fund in relation to administering PSS and CSS salary sacrifice accounts and the accounts of CSS and PSS members who have transferred certain amounts into the PSSAP.

Background information on the changes and the details of the Amending Determination are set out in Attachment A.

Consultation

Section 17 of the LIA specifies that rule-makers should consult before making legislative instruments. ComSuper have been consulted on the amendments contained in the Amending Determination.

CSC Approval

Although section 34 of the 2005 Act allows the Minister to amend the Principal Determination, section 32 of 2005 Act requires CSC to consent to the amendments in most circumstances. CSC has consented to the amendments contained in the Amending Determination.

Legislative Instruments Act 2003

The Amending Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). However, in accordance with subsection 34(5) of the 2005 Act, the Amending Determination is not subject to disallowance.

Commencement

This Determination commences immediately after the commencement of clause 4 of the Ninth Amendment of the Superannuation (PSSAP) Trust Deed.

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights is at Attachment B.


ATTACHMENT A

BACKGROUND TO AND DETAILS OF THE AMENDING DETERMINATION

Background

The PSSAP Ninth Amending Deed (PSSAP Amending Deed) allows contributory Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) members to salary sacrifice into the PSSAP. In conjunction with the PSS Thirty‑seventh Amending Deed, the PSSAP Amending Deed also allows certain accumulated funded amounts to be transferred from the PSS to the PSSAP. Additionally, the PSSAP Amending Deed allows PSSAP members to transfer any CSS and PSS lump sum benefits into the PSSAP for the purpose of purchasing a PSSAP pension product.

New Part 2, Division 5 of the PSSAP Trust Deed requires CSC to determine the fees to be paid from the personal accumulation accounts of PSS and CSS members who elect to pay amounts into the PSSAP under the provisions introduced by the PSSAP Amending Deed (that is, Australian government superannuation scheme members and former Australian government superannuation scheme members).

The Amending Determination amends the Principal Determination to ensure that fees applicable under Part 2, Division 5 are paid by CSC out of the PSSAP Fund.

Name of Determination

Section 1 provides that the name of the instrument is the Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2).

Commencement

2.                      Section 2 specifies the commencement of the Amending Determination to be immediately after the commencement of clause 4 of the PSSAP Amending Deed.

Amendment of Superannuation (PSSAP) (Division of Costs) Determination 2005

3.                      Section 3 provides that Schedule 1 of the Amending Determination amends the Superannuation (PSSAP) (Division of Costs) Determination 2005.

Description of Amendments

4.                      Item 1 of Schedule 1 to the Amending Determination inserts a new item 4 into Schedule 1 to the Principal Determination, to provide that fees determined under Part 2, Division 5 of the PSSAP Trust Deed are to be paid out of the PSSAP Fund.


ATTACHMENT B

 

Overview

The Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2) amends the existing Superannuation (PSSAP) (Division of Costs) Determination 2005, which was enacted under the Superannuation Act 2005. The primary purpose of this amendment is to adjust the division of administrative costs between the Commonwealth and the Commonwealth Superannuation Corporation (CSC) in relation to the Public Sector Superannuation Accumulation Plan (PSSAP). This change was necessitated by the introduction of the PSSAP Ninth Amending Deed, which allows for salary sacrifice contributions and transfers from the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS) into the PSSAP. The enacting body is the Minister for Finance and Deregulation, on behalf of the Commonwealth, and the policy objective is to ensure a clear and updated division of costs associated with the administration of the PSSAP, including fees related to the management of salary sacrifice accounts and transferred amounts.

Scope and Application

The Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2) amends the original Superannuation (PSSAP) (Division of Costs) Determination 2005 to adjust the division of costs associated with the administration of the Public Sector Superannuation Accumulation Plan (PSSAP). The PSSAP is a superannuation scheme established under the Superannuation Act 2005 for most new Australian Government employees and statutory office holders, with the Commonwealth Superannuation Corporation (CSC) acting as trustee. This determination applies to the costs associated with the management of the PSSAP Fund by CSC and the investment of its money. The updated division of costs allows for fees to be deducted from the PSSAP Fund in relation to administering salary sacrifice accounts and accounts of members who have transferred certain amounts from the Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) into the PSSAP. This amendment comes into effect immediately after the commencement of clause 4 of the Ninth Amendment of the Superannuation (PSSAP) Trust Deed. The Commonwealth Minister for Finance and Deregulation made this determination under subsection 34(1) of the 2005 Act, and it is not subject to disallowance under the Legislative Instruments Act 2003. The determination has been made in consultation with ComSuper and has received approval from CSC as required by section 32 of the 2005 Act.

Key Provisions

The Superannuation (PSSAP) (Division of Costs) Amendment Determination 2013 (No. 2) (the "Amending Determination") amends the Superannuation (PSSAP) (Division of Costs) Determination 2005 (the "Principal Determination") to update the division of costs associated with the administration of the Public Sector Superannuation Accumulation Plan (PSSAP) and the PSSAP Fund, in light of the PSSAP Ninth Amending Deed. The Ninth Amending Deed, which allows for salary sacrifice contributions and transfers of certain amounts from other schemes into the PSSAP, necessitates changes to the way in which administrative fees are paid. Specifically, the Amending Determination inserts a new item into Schedule 1 of the Principal Determination, ensuring that fees applicable under Part 2, Division 5 of the PSSAP Trust Deed, which govern the payment of fees by PSS and CSS members who elect to contribute to the PSSAP under the provisions of the Ninth Amending Deed, are to be paid out of the PSSAP Fund. The obligations imposed by the Amending Determination primarily concern the Commonwealth Superannuation Corporation (CSC) as the trustee of the PSSAP Fund. Section 32 of the Superannuation Act 2005 requires that CSC consent to the amendments contained in the Amending Determination, which it has done. The Amending Determination also mandates that the updated division of costs should reflect the fees to be deducted from the PSSAP Fund for the administration of salary sacrifice accounts and transfers from the Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation Scheme (PSS) into the PSSAP. These changes are intended to ensure that the administrative costs associated with these new functionalities are appropriately managed and funded. The Amending Determination does not directly impose criminal or civil penalties for non-compliance. However, the failure to properly implement the updated division of costs as stipulated by the Amending Determination could potentially lead to financial mismanagement within the PSSAP Fund. Such mismanagement could attract scrutiny from regulatory bodies and lead to administrative or financial repercussions for the CSC, although specific penalties are not outlined in the determination itself. The overarching legislative framework, such as the Superannuation Act 2005, would provide the context for any subsequent actions taken in the event of non-compliance. The Amending Determination is a legislative instrument made under the authority of the Legislative Instruments Act 2003, though it is not subject to disallowance as per subsection 34(5) of the Superannuation Act 2005. The Minister for Finance and Deregulation issued the Amending Determination to ensure that the updated division of costs aligns with the changes introduced by the PSSAP Ninth Amending Deed. This process underscores the importance of timely and accurate updates to administrative arrangements in response to changes in the legislative and operational environment of the PSSAP.

Legal classification tags

Area of Law
Superannuation Law
Instrument
Determination
Concepts
Commencement Provisions
Offence Provisions
Enforcement Powers

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.