Overview

The Superannuation (PSSAP) Membership Eligibility (Inclusion) Amendment Declaration 2009 (No. 1) was enacted to amend the eligibility criteria for membership in the Public Sector Superannuation Accumulation Plan (PSSAP) under the Superannuation Act 2005. This legislative instrument was introduced to respond to a specific request from Medibank, aiming to exclude its employees from becoming PSSAP members. The Superannuation Act 2005, enacted by the Australian Parliament, establishes the framework for the PSSAP, and section 13(1)(b) allows the Minister for Superannuation and Corporate Law to declare eligibility criteria for PSSAP membership. The policy objective of this amendment was to align the superannuation arrangements for Medibank employees with the broader policy intent, ensuring that they do not inadvertently become members of the PSSAP. The amendment took effect on 1 April 2009, and no existing Medibank employees who were PSSAP members were affected by this change.

Scope and Application

The Superannuation Act 2005, administered by the Minister for Superannuation and Corporate Law, provides for the Public Sector Superannuation Accumulation Plan (PSSAP) which includes certain public sector employees and other specified persons. This Act grants the Minister the authority to declare eligibility for PSSAP membership, as stipulated in section 13. The Superannuation (PSSAP) Membership Eligibility (Inclusion) Declaration 2005 (the Principal Declaration) was made under this authority, identifying eligible individuals, including some employees of Medibank, as members of the PSSAP. However, the Superannuation (PSSAP) Membership Eligibility (Inclusion) Amendment Declaration 2009 (No. 1) was enacted to amend the Principal Declaration by removing Medibank employees from the list of eligible PSSAP members, effective from 1 April 2009. This amendment was made in response to a request from Medibank, and it does not affect the superannuation arrangements for existing Medibank staff, as there are no current PSSAP members among them. The Declaration is a legislative instrument under the Legislative Instruments Act 2003 and it specifically omits item 4 from Schedule 1 of the Principal Declaration, thereby altering the eligibility criteria for PSSAP membership for Medibank employees.

Key Provisions

The main operative sections of the Superannuation (PSSAP) Membership Eligibility (Inclusion) Amendment Declaration 2009 (No. 1) are outlined in the attached schedule, which amends the earlier Superannuation (PSSAP) Membership Eligibility (Inclusion) Declaration 2005. Specifically, section 3 of the Declaration removes item 4 from Schedule 1 of the Principal Declaration, effectively disqualifying employees of Medibank from becoming members of the Public Sector Superannuation Accumulation Plan (PSSAP) (section 3). This change takes effect from the commencement date of the Declaration, which is 1 April 2009, as specified in section 2. The obligations imposed by this Declaration on the relevant parties primarily revolve around the eligibility criteria for PSSAP membership. Medibank, and by extension its employees, are no longer eligible to join the PSSAP as a result of this amendment. The Declaration ensures that this change is clearly communicated and understood by all affected parties. The amendment process also involved consultation with Medibank, ensuring that the entity had an opportunity to provide input and feedback on the changes. Any breach of the provisions set out in the Superannuation Act 2005 or the related legislative instruments could result in various civil or criminal consequences. While the specific penalties are not detailed in the Declaration itself, breaches of superannuation legislation generally carry significant fines and potential imprisonment. For example, under section 123A of the Superannuation Industry (Supervision) Act 1993, an individual can be fined up to $132,000 or imprisoned for up to 5 years, or both, for dishonestly contravening certain provisions related to superannuation. Similarly, corporations can face penalties of up to $660,000 for such breaches. These penalties underscore the importance of compliance with the legislative requirements governing PSSAP membership.