EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO: 264
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976 - SUPERANNUATION (RETIRING AGE) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which the Act requires or permits to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Sub-section 3(1) of the Act defines “minimum retiring age” as 60 years or such lesser age as, under regulations made under the Act, is the minimum retiring age applicable to a person or class of persons.
A contributor with more than one year’s contributory service who retires voluntarily on or after attaining age 60, is entitled to be paid an age retirement pension in accordance with Division 1 and, if appropriate, a lump sum in accordance with Division 3 of Part V of the Act. A contributor who, under his terms and conditions of employment, is able to retire voluntarily after attaining an age less than 60 is entitled upon such voluntary retirement to be paid an early retirement pension in accordance with Division 2 and, if appropriate, a lump sum in accordance with Division 3 of Part V, provided that lesser age has been prescribed in the Superannuation (Retiring Age) Regulations as the minimum retiring age in respect of the class of persons within which the contributor falls.
Regulation 5 of the Superannuation (Retiring Age) Regulations already specifies age 55 as the “minimum retiring age” for the purposes of the Act in relation to certain persons and classes of persons.
Officers equivalent to former officers of the Second Division of the Public Service (to be known from 1 October 1984 as the Senior Executive Service) are entitled to receive early retirement superannuation pensions if retirement occurs at ages 55 to 59 through the prescription in the Superannuation (Retiring Age) Regulations of a minimum retiring age of 55 years for persons who, in accordance with the provisions of the Commonwealth Employees (Redeployment and Retirement) Act 1979 (the CE(RR) Act), have a minimum retiring age of 55 years. However, provisions of the Public Service Reform Act 1984 (Act No. 63 assented to 25 June 1984) which operate from 1 October 1984 amend the CE(RR) Act with effect from that date by removing
officers of the Senior Executive Service from the scope of that Act. Those provisions also amend the Public Service Act 1922 with effect from 1 October 1984 to include a new Division 8B in Part 111 of the Act which provides a minimum retiring age of 55 years for officers of the Senior Executive Service other than those appointed on a fixed term basis.
The Regulations amend the Superannuation (Retiring Age) Regulations to prescribe a minimum retiring age for the purposes of the Act of 55 years for officers of the Senior Executive Service other than those appointed on a fixed term basis. This continues the entitlement that existed prior to 1 October 1984 for such persons to receive early retirement pensions where they take advantage of the early retirement provisions of their conditions of service by retiring voluntarily at ages 55 to 59.
The Regulations operate from 1 October 1984.
Overview
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rules 1984 No: 264, issued under the authority of the Minister for Finance, amends the Superannuation (Retiring Age) Regulations to address a legislative gap introduced by the Public Service Reform Act 1984. Enacted by the Australian Parliament, the Superannuation Act 1976 was initially designed to provide a framework for the regulation of superannuation schemes, including the setting of minimum retiring ages for pension eligibility. However, the Public Service Reform Act 1984 altered the retirement provisions for certain public service officers, necessitating an update to the Superannuation Regulations to ensure continuity of pension entitlements. The policy objective of these amendments is to maintain the eligibility for early retirement pensions for officers of the Senior Executive Service, aligning their retirement age provisions with the changes effected by the Public Service Reform Act 1984.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) under the Superannuation Act 1976 establish a minimum retiring age of 55 years for certain officers within the Senior Executive Service, excluding those appointed on a fixed term basis. These regulations apply to individuals who are part of the Senior Executive Service and who are not bound by a fixed term of appointment, ensuring their eligibility for early retirement pensions if they retire voluntarily between the ages of 55 and 59. The amendment is effective from 1 October 1984, aligning with changes introduced by the Public Service Reform Act 1984, which redefined the conditions for the Senior Executive Service under the Public Service Act 1922. These regulations do not extend to individuals outside the specified class or to those who have a different retiring age prescribed by other regulations or legislative provisions.
Key Provisions
The main operative sections of the Superannuation (Retiring Age) Regulations (Amendment) concern the amendment of the minimum retiring age for officers of the Senior Executive Service. Specifically, Regulation 5 of the Superannuation (Retiring Age) Regulations sets out the minimum retiring age for certain persons and classes of persons, and this regulation has been amended to specify a minimum retiring age of 55 years for officers of the Senior Executive Service other than those appointed on a fixed term basis. This amendment aligns with the changes introduced by the Public Service Reform Act 1984, which set the minimum retiring age for these officers at 55 years, effective from 1 October 1984. The purpose of this regulation is to ensure continuity in the entitlement of early retirement pensions for these officers, allowing them to retire voluntarily at ages 55 to 59 and receive the benefits they were previously entitled to under the Commonwealth Employees (Redeployment and Retirement) Act 1979.
The obligations imposed by these regulations primarily concern the officers of the Senior Executive Service who are not appointed on a fixed term basis. These officers must adhere to the conditions of service that permit voluntary retirement at ages 55 to 59, thereby maintaining their entitlement to early retirement pensions. Additionally, the regulations require the officers to meet the eligibility criteria stipulated by the Superannuation Act 1976, including having more than one year of contributory service. The regulations also impose a duty on the relevant authorities to administer the pension entitlements accurately and in accordance with the prescribed minimum retiring age.
The regulations do not explicitly outline specific offences or penalties for breach, but any failure to comply with the conditions for early retirement pensions could result in legal consequences under the Superannuation Act 1976. Any breach of the eligibility criteria or the terms of retirement could potentially lead to disputes over pension entitlements. Furthermore, while the regulations do not specify maximum penalties, any misconduct or fraudulent claims could be subject to the general penalties provided under the Superannuation Act 1976, which could include fines and, in severe cases, criminal prosecution. The precise nature and extent of any penalties would depend on the specific circumstances of the breach and the applicable provisions of the Superannuation Act 1976.