EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 339
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 I 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 of 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:
• an employee of the Northern Territory Tourist Commission; and
• an employee of the Northern Territory Electricity Commission.
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 address the need for flexibility in the retirement age provisions of the Superannuation Act 1976. This legislation amends the existing regulations to specify age 55 as the minimum retiring age for certain classes of employees, namely those working for the Northern Territory Tourist Commission and the Northern Territory Electricity Commission. The overarching aim of this amendment is to facilitate the payment of early retirement superannuation pensions to eligible individuals who retire voluntarily on or after reaching the age of 55, provided that their conditions of employment allow for such early retirement. This adjustment was made to cater to the unique circumstances of these specific classes of employees and to provide them with the opportunity to access their superannuation benefits earlier than the standard retirement age of 60.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rule 1986 amends the existing Superannuation (Retiring Age) Regulations under the Superannuation Act 1976 to adjust the minimum retiring age for certain classes of persons. Specifically, it sets the minimum retiring age at 55 for employees of the Northern Territory Tourist Commission and the Northern Territory Electricity Commission, thereby enabling these individuals to access early retirement pensions. The Act applies to these specific entities and classes of employees within the Northern Territory, thereby impacting the retirement benefits available to them. The amendment is effective from the date of its gazette, ensuring that the revised regulations are promptly implemented. This change is confined to the specified entities and does not alter the retirement provisions for other employees or industries outside the Northern Territory Tourist Commission and the Northern Territory Electricity Commission.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rules 1986 No 339 (the Rules) amend sub-regulation 5(1) of the Superannuation (Retiring Age) Regulations. Specifically, the Rules specify that the minimum retiring age for certain employees is 55 years, rather than the general minimum age of 60 years (Section 168). The classes of persons affected by this change are employees of the Northern Territory Tourist Commission and the Northern Territory Electricity Commission. These amendments mean that individuals in these categories who retire voluntarily at age 55 or later can receive an early retirement pension under Division 2 of Part V of the Superannuation Act 1976, alongside any applicable lump sum payments from Division 3 of Part V (Sub-section 3(1)).
Under the amended Regulations, the obligations on the affected employees include ensuring that they meet the new minimum retiring age of 55 years, as defined by the Rules. Employers of the Northern Territory Tourist Commission and the Northern Territory Electricity Commission must also comply with these Regulations by recognising the eligibility of their employees for early retirement pensions and lump sum payments if they retire at 55 or later. These obligations are in addition to any existing employment conditions that may provide for voluntary retirement at an earlier age.
Failure to comply with the Regulations could result in legal consequences for both the employees and the employers. While the specific consequences are not detailed in the Explanatory Statement, it is reasonable to infer that breaches of the Regulations could lead to disputes over entitlement to early retirement pensions and lump sum payments. The Act does not specify the exact penalties for non-compliance, but breaches of superannuation laws can generally lead to civil or criminal penalties, including fines and imprisonment, depending on the severity and intent of the breach. The maximum penalties for such offences can be found in the Superannuation Industry (Supervision) Act 1993, where serious breaches may attract substantial fines and lengthy prison sentences.