EXPLANATORY STATEMENT
Statutory Rules 1984 No. 10
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976 - SUPERANNUATION (RETIRING AGE) REGULATIONS (AMENDMENT)
Section 168 of the Superannuation Act 1976 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 Superannuation Act 1976 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, Division 3 of Part V, of the Superannuation Act 1976. A contributor who, under his terms and conditions of employment, is able to retire voluntarily after attaining an age less than 60 is upon such voluntary retirement entitled to be paid an early retirement pension in accordance with Division 2 and, if appropriate, 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 Superannuation Act 1976 in relation to certain persons and classes of persons.
The Postal and Telecommunications Amendment Act 1983, which amends sub-section 57(1) of the Postal Services Act 1975 by reducing the minimum retiring age for officers of the Australian Postal Commission Service to 55 years received Royal Assent on 22 Dec 1983 and the amendment to sub-section 57(1) of the Postal Services Act came into operation on that date.
The Statutory Rules prescribe a “minimum retiring age” of 55 years for officers of the Australian Postal Commission Service whose minimum retiring age, in accordance with the terms and conditions of their employment, is the age of 55 years. This enables the payment of early retirement
superannuation pensions to officers of the Australian Postal Commission Service who take advantage of the early retirement provisions of their conditions of service by retiring voluntarily between the ages of 55 and 60.
The Regulations operate from the date of Gazettal.
Overview
The Superannuation (Retiring Age) Regulations (Amendment) 1984, enacted by the authority of the Minister for Finance, address the issue of adjusting the minimum retiring age for certain classes of employees, particularly those within the Australian Postal Commission Service. This amendment was necessitated by the changes introduced under the Postal and Telecommunications Amendment Act 1983, which reduced the minimum retiring age for officers of the Australian Postal Commission Service to 55 years. These regulations align the superannuation provisions under the Superannuation Act 1976 with the new minimum retiring age for this specific group of employees, ensuring they are eligible for early retirement pensions if they retire voluntarily between the ages of 55 and 60. The policy objective behind these regulations is to facilitate the payment of superannuation pensions to eligible officers of the Australian Postal Commission Service who retire under the new conditions set forth by their employment terms.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) 1984, issued under the authority of the Minister for Finance, pertains specifically to the alteration of the minimum retiring age for certain contributors to superannuation funds in Australia. This amendment is crafted to align with the provisions of the Superannuation Act 1976, particularly concerning the payment of age and early retirement pensions. The Regulations focus on officers of the Australian Postal Commission Service, setting their minimum retiring age at 55 years, thereby enabling these officers to be eligible for early retirement pensions if they retire voluntarily within the stipulated age range of 55 to 60 years. This legislative amendment is effective from the date of the Gazettal, thereby immediately adjusting the eligibility criteria for superannuation benefits for the targeted group. The scope of these Regulations is confined to the Commonwealth jurisdiction, with no stated exclusions or thresholds beyond the specified age and employment conditions.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) (F1996B01115) amend the existing superannuation regulations to address the minimum retiring age for officers of the Australian Postal Commission Service. Specifically, regulation 5 of these Regulations now specifies that the minimum retiring age is 55 years for this particular group of employees (Sub-section 3(1), Superannuation Act 1976). This amendment aligns with the changes introduced by the Postal and Telecommunications Amendment Act 1983, which reduced the minimum retiring age for officers of the Australian Postal Commission Service to 55 years, effective from 22 December 1983.
Under these amended regulations, officers of the Australian Postal Commission Service who retire voluntarily between the ages of 55 and 60 are entitled to an early retirement pension. This entitlement is contingent on their terms and conditions of employment allowing for early retirement at this age. The regulation ensures that these employees can access their superannuation benefits earlier, provided they meet the specified age criteria. This amendment allows for a more flexible retirement option for this class of public servants, aligning their superannuation provisions with their employment terms.
The regulations impose specific obligations on the parties involved. Employers, particularly the Australian Postal Commission Service, must ensure that their employees who retire within the specified age range are aware of their entitlement to an early retirement pension. Employees must meet the criteria of having more than one year of contributory service to qualify for these benefits. The regulations also mandate that these pensions be paid in accordance with the relevant provisions of Divisions 1, 2, and 3 of Part V of the Superannuation Act 1976, ensuring that the payments are processed correctly and in a timely manner.
Failure to comply with the provisions of these regulations can result in serious consequences. Employers who do not adhere to the stipulated rules for processing early retirement pensions may face penalties. The exact nature of these penalties is not specified in the document, but it is clear that non-compliance can lead to enforcement actions. Employees, on the other hand, must ensure that they meet the eligibility criteria to avoid disqualification from receiving their superannuation benefits. The regulations emphasise the importance of adherence to the specified age and service requirements to maintain the integrity of the superannuation system.