EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 333
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
SUPERANNUATION ACT 1976 - SUPERANNUATION (RETIRING AGE) REGULATIONS (AMENDMENT)
LEGISLATIVE BASIS FOR THE REGULATIONS
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 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.
BACKGROUND
Under the Act a contributor with at least 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. A contributor whose terms and conditions of employment provide for voluntary retirement upon 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 Statutory Rule amends sub-regulation 5(1) to specify age 55 as the minimum retiring age applicable to the following classes of persons:
• a member of the staff of Calvary Hospital A.C.T. Incorporated
• a person employed under Section 34 of the Australian Film and Television School Act 1973. (All staff of the Australian Film and Television School are employed under section 34.)
The Statutory Rule enables the payment of early retirement superannuation pensions to the classes of persons prescribed in the Statutory Rule who take advantage of the early retirement provisions of their conditions of service by retiring voluntarily on or after attaining age 55.
The Regulations operate from the date of gazettal.
Overview
The Superannuation (Retiring Age) Regulations (Amendment) 1996, issued under the authority of the Minister for Finance, were enacted to amend the existing Superannuation (Retiring Age) Regulations made under the Superannuation Act 1976. This amendment specifically addresses the retirement age requirements for certain classes of persons, enabling them to access early retirement pensions. The policy objective of these regulations is to provide flexibility in retirement provisions for specified categories of employees, allowing them to retire and receive their superannuation benefits at an earlier age than the general minimum retiring age of 60 years. The changes are intended to accommodate the unique employment conditions of certain professions and roles, ensuring that they are not disadvantaged in terms of accessing their superannuation entitlements.
Scope and Application
The Superannuation (Retiring Age) Regulations, as amended by the Statutory Rule, apply to certain persons who meet specific criteria under the Superannuation Act 1976. These regulations define the minimum retiring age for the purposes of receiving an early retirement pension and lump sum payment, setting it at 55 years for the specified classes of persons. Specifically, the amendment applies to members of the staff of Calvary Hospital A.C.T. Incorporated and persons employed under Section 34 of the Australian Film and Television School Act 1973, thereby allowing them to retire voluntarily and receive their superannuation benefits at age 55. The regulations are a legislative instrument that extends the application of the Superannuation Act by prescribing the minimum retiring age for these particular groups, ensuring they are not excluded from early retirement benefits. The amendment is effective from the date of gazettal, and the regulations themselves are part of a broader legislative framework aimed at providing retirement benefits to eligible contributors.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rule (1996) introduces specific changes to the minimum retiring age for certain classes of individuals under the Superannuation Act 1976. Section 5(1) of the regulations has been amended to specify that the minimum retiring age is now 55 years for members of the staff of Calvary Hospital A.C.T. Incorporated and for individuals employed under Section 34 of the Australian Film and Television School Act 1973 (SR 1996 No. 333). This amendment effectively allows these individuals to access early retirement benefits, including age retirement pensions and lump sums, if they retire voluntarily at age 55 or later.
The amended regulations impose specific obligations on the parties involved. Employers of the affected classes must ensure that their conditions of employment are updated to reflect the new minimum retiring age of 55. Employees within these classes must be informed about their eligibility to retire early and the associated benefits, such as the early retirement pension and lump sum payments. Additionally, these employers and employees must comply with the provisions outlined in Divisions 2 and 3 of Part V of the Superannuation Act 1976 to ensure proper administration and payment of the retirement benefits.
Failure to comply with the requirements set forth in the amended regulations may result in legal consequences. The Superannuation Act 1976 and the associated regulations are enforced through various civil and criminal penalties. For example, non-compliance could lead to fines or legal action against the employer for underpaying or incorrectly administering retirement benefits. The maximum penalties for such breaches can include significant financial penalties and potential criminal charges, depending on the severity and intent of the non-compliance. These consequences underscore the importance of adhering to the regulatory requirements to avoid adverse legal outcomes.