Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 306
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 306
Issued by the authority of the Assistant Treasurer
Superannuation (Resolution of Complaints) Act 1993
Superannuation (Resolution of Complaints) Regulations (Amendment)
The Superannuation (Resolution of Complaints) Act 1993 (the Act) establishes the Superannuation Complaints Tribunal, which commenced operations on 1 July 1994. The Tribunal has the objectives of providing a fair, economical, informal and quick mechanism for:
* the conciliation of complaints made by members of certain regulated superannuation funds and approved deposit funds; and
* if conciliation is not successful at resolving the complaint - the review of the fund trustee decision to which the complaint relates.
Section 68 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
Section 10 of the Superannuation Industry (Supervision) Act 1993 (SIS Act) provides that an exempt public sector superannuation scheme (EPSSS) means a public sector superannuation scheme (a scheme established by or under a Commonwealth, State or Territory Act of Parliament) that is specified in regulations made for the purposes of this definition.
Section 4A of the Act enables regulations to be made to provide that a specified EPSSS is taken to be a regulated superannuation fund for the purposes of this Act. This enables State and Territory Governments to opt to allow members of an EPSSS to access the Tribunal in preference to the existing appeal rights of the scheme.
The Western Australian State Government has requested that superannuation schemes established by or under the Superannuation and Family Benefits Act 1938 (WA) and Government Employees Superannuation Act 1987 (WA) be specified under section 4A of the Act so that the members of these schemes, without previous access, now have access to the Tribunal.
As required by section 4A of the Act, the nominated schemes are EPSSSs under the SIS Act, SIS Regulation 1.04(4A), and comply with subsections 19(2) and (3) of the SIS Act, ie, that the schemes must have a trustee that is a constitutional corporation pursuant to a requirement contained in the governing rules (defined in section 10 of the SIS Act to include legislation governing the establishment and operation of the scheme).
The Regulations insert a new Regulation 4A and Schedule 1 into the Superannuation (Resolution of Complaints) Regulations. Regulation 4A provides that an EPSSS specified in Schedule 1 is taken to be a regulated superannuation fund for the purposes of the Act. Schedule 1 specifies that EPSSSs established by or under the Superannuation and Family Benefits Act 1938 (WA) and Government Employees Superannuation Act 1987 (WA) are taken to be regulated superannuation funds for the purposes of the Act.
The Regulations will commence on 3 February 1997.
Overview
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 306, enacted by the authority of the Assistant Treasurer, amended the Superannuation (Resolution of Complaints) Act 1993. This Act was introduced to address the need for a streamlined and accessible mechanism for resolving complaints related to certain regulated superannuation funds and approved deposit funds. The Act established the Superannuation Complaints Tribunal to provide fair, economical, informal, and swift resolution of such complaints. The policy objective was to offer an alternative to existing appeal rights, particularly for members of exempt public sector superannuation schemes who previously lacked access to the Tribunal. The amendment facilitated the inclusion of specific Western Australian superannuation schemes under the Act, allowing their members to access the Tribunal for complaints resolution. The Regulations, which include a new Regulation 4A and Schedule 1, specify which exempt public sector superannuation schemes are recognised as regulated superannuation funds under the Act, thereby expanding the Tribunal's jurisdiction. These Regulations were set to commence on 3 February 1997.
Scope and Application
The Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 306 amends the Superannuation (Resolution of Complaints) Regulations to specify certain exempt public sector superannuation schemes (EPSSS) as regulated superannuation funds for the purposes of the Superannuation (Resolution of Complaints) Act 1993. This Act facilitates the establishment of the Superannuation Complaints Tribunal, which aims to provide a fair and efficient mechanism for conciliating and reviewing complaints from members of certain regulated superannuation funds. The amendment applies to EPSSSs established under the Superannuation and Family Benefits Act 1938 (WA) and the Government Employees Superannuation Act 1987 (WA), allowing members of these schemes access to the Tribunal. The specified EPSSSs must comply with certain conditions, including having a trustee that is a constitutional corporation as required under the Superannuation Industry (Supervision) Act 1993. The Regulations, which include a new Regulation 4A and Schedule 1, come into effect on 3 February 1997.
Key Provisions
The main operative sections of the Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 306 (the Regulations) involve the insertion of a new Regulation 4A and the addition of Schedule 1 into the existing Superannuation (Resolution of Complaints) Regulations. Regulation 4A specifies that certain exempt public sector superannuation schemes (EPSSS) are to be treated as regulated superannuation funds for the purposes of the Act. Schedule 1 details which EPSSSs are included in this specification, namely those established under the Superannuation and Family Benefits Act 1938 (WA) and the Government Employees Superannuation Act 1987 (WA). These provisions allow members of these specified schemes to access the Superannuation Complaints Tribunal for the resolution of their complaints, a right they did not previously have.
The Regulations impose certain obligations and requirements on the parties and entities they govern. For instance, the EPSSSs specified in Schedule 1 must meet certain criteria to be eligible for treatment as regulated superannuation funds under the Act. These criteria include being exempt public sector superannuation schemes as defined under the Superannuation Industry (Supervision) Act 1993 and having a trustee that is a constitutional corporation, as required by the governing rules. Additionally, these schemes must comply with specific provisions of the Superannuation Industry (Supervision) Act 1993, such as those outlined in subsections 19(2) and (3) of the SIS Act.
Breaches of the provisions within the Superannuation (Resolution of Complaints) Regulations (Amendment) 1996 No. 306 may lead to various consequences, though the specific penalties are not detailed in the explanatory statement. Generally, non-compliance with the Act or its Regulations can result in civil or criminal penalties, depending on the nature and severity of the breach. For example, failure to comply with the requirements for conciliation and review of complaints can result in civil penalties, including fines. In more serious cases, criminal penalties may apply, which could include imprisonment. However, the exact penalties are not specified in the explanatory statement and would need to be referred to within the relevant sections of the primary Act or other relevant legislation.