EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 480
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 the “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 whose terms and conditions of employment provide for voluntary retirement 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 minimum retiring ages less than 60 years for the purposes of the Act in relation to certain persons and classes of persons.
The Regulations amend the Superannuation (Retiring Age) Regulations by prescribing the age of 50 years as the minimum retiring age for the purposes of the Act for persons who are employees within the meaning of the Commonwealth Employees (Redeployment and Retirement) Act 1979 (the CE(RR) Act) and whose minimum retiring age under that Act is the age of 50 years. This enables the payment of early retirement superannuation pensions where such employees take advantage of the early retirement provisions of their conditions of service by retiring voluntarily on or after attaining age 50.
The Regulations operate from the date of gazettal.
Overview
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rules 1996, issued by the authority of the Minister for Finance, aim to address the retirement age discrepancies for Commonwealth employees under the Superannuation Act 1976. The Superannuation Act 1976 provides for the payment of superannuation pensions upon retirement, with the minimum retiring age typically set at 60 years. However, the Commonwealth Employees (Redeployment and Retirement) Act 1979 allows for an earlier retirement age of 50 years for certain Commonwealth employees, which was not previously aligned with the superannuation provisions. By amending the Superannuation (Retiring Age) Regulations, the policy objective is to ensure that these employees are eligible for early retirement superannuation pensions when they retire voluntarily at age 50, aligning their superannuation entitlements with their retirement provisions under the CE(RR) Act. The Regulations were enacted to ensure consistency and fairness in superannuation entitlements for this class of employees.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rules 1984 No. 480, issued under the authority of the Minister for Finance, amend the existing Superannuation (Retiring Age) Regulations to align the minimum retiring age for Commonwealth employees under the Superannuation Act 1976 with their minimum retiring age as defined in the Commonwealth Employees (Redeployment and Retirement) Act 1979. The amendment specifies that the minimum retiring age for eligible Commonwealth employees is 50 years, allowing them to receive early retirement superannuation pensions if they retire voluntarily on or after this age. This amendment applies to individuals who are employees within the meaning of the CE(RR) Act and whose employment terms permit retirement at age 50. The Regulations ensure consistency in the retiring age criteria across relevant acts, facilitating the payment of appropriate superannuation benefits to eligible individuals. The regulations are effective from the date of their gazettal.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) (No. 1) 2019, under section 168 of the Superannuation Act 1976, amend the existing regulations by setting the minimum retiring age at 50 years for specific employees governed by the Commonwealth Employees (Redeployment and Retirement) Act 1979 (sections 3 and 5). This amendment allows these employees to access early retirement superannuation pensions if they retire voluntarily at or after this age, provided their employment conditions permit early retirement at this age. The new regulations apply from the date of their gazette.
These regulations impose specific obligations on the parties involved. For employees under the Commonwealth Employees (Redeployment and Retirement) Act 1979, the new regulations mean they must be aware of their eligibility for early retirement pensions if they choose to retire at 50 years of age or older. Employers, on the other hand, must ensure that the retirement conditions of their employees are aligned with the stipulations of both the Superannuation Act 1976 and the amended regulations. They are also responsible for facilitating the payment of the appropriate superannuation benefits to eligible employees.
Breaches of the regulations may result in civil or criminal consequences. Although the specific penalties are not detailed within the regulations themselves, general principles under the Superannuation Act 1976 suggest that non-compliance could lead to legal actions, fines, or other penalties as prescribed by the Act. The exact penalties would depend on the nature and severity of the breach, but they could include financial penalties or even imprisonment for serious offences. It is crucial for all parties to adhere to these regulations to avoid such repercussions.