Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 (No. 1)

Overview

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (1) was enacted to amend the Superannuation (PSSAP) Unit Pricing Determination 2005, addressing the need to adjust the pricing of units in the Private Sector Superannuation Account Program (PSSAP). This amendment was made by the PSS Board in accordance with the PSSAP Rules 5.2.1, 5.4.2, and 5.4.3, which allow for member investment choice from a total of eleven investment options. The Determination aims to establish the buy and sell prices for these units, which are critical in determining the number of units allocated to a member when contributions are made and the value of units redeemed upon withdrawal. This legislative amendment updates the unit prices listed in Schedule 2 of the principal instrument, specifically for the dates from 25 July 2005 to 27 July 2005 inclusive, ensuring that the pricing structure remains current and reflective of market conditions.

Scope and Application

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (1) is a legislative instrument that applies to the administration and operation of the Public Sector Superannuation Accumulation Plan (PSSAP). The PSSAP is a superannuation scheme for employees of the Commonwealth and certain entities, and this Determination amends the unit pricing rules that apply to investments within this scheme. The Amendment Determination is an amendment to the Superannuation (PSSAP) Unit Pricing Determination 2005, which sets out the rules for the calculation of unit prices for investments under the PSSAP. This Determination specifically amends the unit pricing schedule to insert new buy and sell prices for each investment option applicable for specified dates. The application of this Determination is confined to the PSSAP and its members, which include Commonwealth employees and members of certain other eligible entities, and it does not extend beyond the boundaries of the PSSAP's jurisdiction. Any changes in unit pricing pursuant to this Determination are limited to the specified dates and investment options, and do not affect other aspects of the PSSAP or other superannuation arrangements.

Key Provisions

The Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (1) amends the Superannuation (PSSAP) Unit Pricing Determination 2005. It primarily modifies the unit pricing schedules for the PSS Board’s investment options. Specifically, the Determination updates the buy and sell prices for the period from 25 July 2005 to 27 July 2005, as set out in Schedule 2 of the principal instrument. This is in addition to the initial unit prices provided for the period from 1 July 2005 to 22 July 2005, as detailed in Schedule 1. These unit prices determine how many units a member receives when contributing to the fund and the value of units when withdrawing from the fund. The Determination also introduces the concept of investment choice, allowing members to select from 11 available investment options. This choice is governed by PSSAP Rules 5.2.1, 5.4.2, and 5.4.3. Each investment option has specific buy and sell prices that dictate the number of units allocated or the value of units redeemed. These buy and sell prices are crucial for the accurate calculation of contributions and withdrawals, ensuring that the member’s investment is correctly valued and managed. Entities governed by this Determination, such as the PSS Board and superannuation fund managers, must ensure that the updated unit prices are accurately applied to all transactions within the specified dates. This involves calculating and recording the number of units allocated for contributions and the value of units for withdrawals based on the amended buy and sell prices. Accurate record-keeping and compliance with these updated prices are essential to maintain transparency and fairness in the fund’s operations. Failure to comply with the provisions of the Determination, including the accurate application of the updated unit prices, may result in significant legal and financial repercussions. The consequences of non-compliance can include civil penalties, corrective actions, and potential legal proceedings. While the specific penalties are not detailed in the Determination, breaches of superannuation laws can typically lead to substantial fines and other enforcement actions, highlighting the importance of adhering to these requirements. In summary, the Superannuation (PSSAP) Unit Pricing Amendment Determination 2005 No. (1) updates the unit pricing schedules for a specified period, introduces investment choice for members, and imposes obligations on the PSS Board and fund managers to accurately apply these prices. Non-compliance with these provisions can result in significant legal and financial consequences.