EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO: 241
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 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 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.
Prior to 1 July 1984, Secretaries of Departments (then known as Permanent Heads of Departments) were entitled to receive early retirement superannuation pensions if retirement occurred 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), had a minimum retiring age of 55 years. However, those provisions of the Public Service Reform Act 1984 that came into operation on 1 July 1984 amended the CE(RR) Act with effect from that date to remove Secretaries of Departments from the scope of that Act. Those provisions also amended the Public Service Act 1922 with effect from 1 July 1984 to include a new Division 8A in Part 111 of that Act which provides a minimum retiring age of 55 years for Secretaries of Departments 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 Secretaries of Departments other than those appointed on a fixed term basis. This would continue the entitlement that existed prior to 1 July 1984 for such persons to receive early retirement superannuation pensions where they took advantage of the early retirement provisions of their conditions of service by retiring voluntarily at ages 55 to 59.
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.
The Regulations operate from the date of gazettal.
Overview
The Superannuation Act 1976, enacted by the Australian Parliament, was introduced to provide a framework for the regulation of superannuation funds, ensuring that benefits are preserved and administered in a fair and efficient manner. The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rules 1984, issued by the Minister for Finance, address a gap in the superannuation provisions for certain public servants, specifically Secretaries of Departments, by maintaining their eligibility for early retirement pensions. Before the 1 July 1984 amendments to the Public Service Reform Act 1984 and the Commonwealth Employees (Redeployment and Retirement) Act 1979, these Secretaries were entitled to early retirement pensions if they retired between the ages of 55 and 59. The new regulations reinstate this entitlement by prescribing a minimum retiring age of 55 years for Secretaries of Departments, except those appointed on a fixed term basis, thus continuing the pre-existing pension benefits for this class of public servants.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) pertain to the eligibility of contributors for early retirement pensions under the Superannuation Act 1976. Specifically, these regulations address the minimum retiring age for certain classes of persons, including Secretaries of Departments, who are entitled to receive early retirement superannuation pensions if they retire voluntarily between the ages of 55 and 59. This amendment aims to maintain the eligibility that existed prior to 1 July 1984 for Secretaries of Departments to receive such pensions, despite the changes introduced by the Public Service Reform Act 1984. These Regulations apply to contributors who fall within the specified classes and who have more than one year's contributory service, ensuring they can access the appropriate pension benefits in line with their employment terms and conditions. The regulations are effective from the date of their gazettal and are subject to any further amendments made through subordinate instruments.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) provide a specific amendment to the existing regulations under the Superannuation Act 1976. The primary change introduced by these regulations is the specification of a minimum retiring age of 55 years for Secretaries of Departments who are not appointed on a fixed term basis (Reg. 5). This amendment is intended to ensure that certain individuals who were previously eligible for early retirement pensions under the Commonwealth Employees (Redeployment and Retirement) Act 1979 continue to have this entitlement. Prior to the changes introduced by the Public Service Reform Act 1984, these individuals could retire voluntarily between the ages of 55 and 59 and receive an early retirement pension. The new regulations seek to restore this eligibility for those who meet the specified criteria.
Under the amended regulations, Secretaries of Departments who are not on fixed-term appointments and who retire voluntarily at age 55 or older can now claim an early retirement pension. This is in line with the historical entitlement that was in place before 1 July 1984. The changes aim to ensure continuity of benefits for those who were previously covered by the earlier legislation but lost their eligibility due to subsequent amendments. The regulations explicitly state that they will apply from the date of their gazettal, ensuring that the new provisions are immediately effective.
Entities and individuals governed by these regulations must adhere to the specified minimum retiring age for Secretaries of Departments. Those who fall within the class of persons defined by the regulations and retire at age 55 or later will be entitled to an early retirement pension, provided they meet all other eligibility criteria under the Superannuation Act 1976. This includes having more than one year of contributory service and complying with any other conditions set out in the Act. It is essential for employers and superannuation funds to be aware of these changes to correctly process pension claims from eligible retirees.
Failure to comply with the provisions of these regulations could result in legal consequences for the parties involved. If an employer does not allow a Secretary of Departments to retire at the specified age or if a superannuation fund refuses a valid claim, they could face legal action. While the regulations themselves do not specify penalties, breaches of the Superannuation Act 1976 can result in civil or criminal penalties. For instance, under section 168A of the Act, individuals found guilty of certain breaches can be subject to fines of up to $22,200 for individuals and $111,000 for bodies corporate, along with potential imprisonment terms. Therefore, adherence to these regulations is crucial to avoid such consequences.