EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO 207
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 of less than 60 years for the purposes of the Act in relation to certain persons and classes of persons.
Included in Regulation 5 are those persons who are employees within the meaning of the Commonwealth Employees (Redeployment and Retirement) Act 1979 (the CE(RR) Act). This includes persons who are employed in a permanent capacity by authorities or bodies which are prescribed Commonwealth authorities for the purposes of the CE(RR) Act. It also includes persons employed by a prescribed Commonwealth authority otherwise than in a permanent capacity once they become subject to the provisions of that Act on being employed for the immediately preceding period of one year.
The Statutory Rule amends sub-regulation 5(5) to specify a minimum retiring age of 55 to 59 years for a person employed in otherwise than a permanent capacity by a prescribed Commonwealth authority within the meaning of the CE(RR) Act, who is not an employee within the meaning of that Act through not having been employed for the immediately preceding period of one year.
The Statutory Rule enables payment of early retirement superannuation pensions to the class of persons prescribed in the Statutory Rule who take advantage of the early retirement provisions of their conditions of service by retiring voluntarily between the ages of 55 to 59 years provided they have at least one year’s contributory service for the purposes of the Act.
The Regulations operate from the date of gazettal.
Overview
The Superannuation (Retiring Age) Regulations (Amendment) was enacted in 1986 to amend the Superannuation Act 1976, addressing the issue of providing early retirement pension entitlements to certain categories of Commonwealth employees. This amendment was introduced by the Parliament of Australia to ensure that individuals employed by prescribed Commonwealth authorities, but not classified as permanent employees under the Commonwealth Employees (Redeployment and Retirement) Act 1979, could also qualify for early retirement pensions. The policy objective of this amendment is to provide equitable superannuation benefits to a broader range of Commonwealth employees, recognising their contributions and facilitating their transition to retirement. The regulation came into effect on the date of its gazettal, ensuring immediate applicability to the affected individuals.
Scope and Application
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rule amends the existing Superannuation (Retiring Age) Regulations under the Superannuation Act 1976, modifying the minimum retiring age for specific classes of individuals employed by prescribed Commonwealth authorities. The Act applies to contributors who have completed at least one year of contributory service and are entitled to retirement benefits upon reaching a certain age. The amendment specifically targets individuals who are employed by a Commonwealth authority in a non-permanent capacity, who have not been employed for the immediately preceding period of one year, and who therefore do not fall under the Commonwealth Employees (Redeployment and Retirement) Act 1979. The regulation now sets the minimum retiring age for this class of employees between 55 to 59 years, enabling them to receive early retirement superannuation pensions if they retire voluntarily within this age range. The amendment applies nationally and extends the eligibility for early retirement benefits to a previously excluded group of Commonwealth employees, ensuring a consistent approach across the Commonwealth in the application of retirement provisions.
Key Provisions
The Superannuation (Retiring Age) Regulations (Amendment) Statutory Rule primarily amends sub-regulation 5(5) to adjust the minimum retiring age for a specific class of employees. Under section 168 of the Superannuation Act 1976, these regulations are made to enforce the provisions of the Act, ensuring they are applied correctly and effectively. The amendments specify a minimum retiring age ranging from 55 to 59 years for individuals employed by a prescribed Commonwealth authority who are not permanent employees and have not been employed for the preceding year, thus not qualifying under the Commonwealth Employees (Redeployment and Retirement) Act 1979.
These regulations impose specific obligations on the relevant parties, particularly those employed by Commonwealth authorities who fall within the new age bracket. Employees in this category must ensure they have at least one year of contributory service to qualify for the early retirement pension. The regulations also necessitate that employers verify the eligibility criteria of their employees before allowing them to retire under these provisions, ensuring compliance with the Act and the new regulations.
Failure to comply with the requirements set forth by these regulations can lead to significant legal consequences. While the explanatory statement does not detail specific penalties, breaches of superannuation laws generally can result in civil penalties and criminal charges. The maximum penalties for non-compliance can include substantial fines and, in some cases, imprisonment. These measures underscore the importance of adhering to the regulations to avoid potential legal repercussions.