Superannuation (Transfer Arrangements) Regulations Amendment 1995 No. 439
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 439
Issued by the Authority of the Minister for Finance
Superannuation Act 1976
Superannuation (Transfer Arrangements) Regulations Amendment
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (CSS), for certain Commonwealth employees and other persons, including employees of approved authorities.
The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) which replaced the CSS as the main occupational superannuation scheme for a similar group of persons. The PSS commenced on 1 July 1990 and the CSS was closed to new members from that date other than certain persons who had prior membership of the scheme and had retained certain connections with it.
From 1 July 1990 to 30 June 1991, CSS members whose employers provided for PSS membership as well were able to elect to transfer to the new scheme.
The purpose of these regulations is to provide for an additional opportunity for CSS members to elect to transfer to the Public Sector Superannuation Scheme (PSS).
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Section 126A of the 1976 Act provides that the regulations may modify the Act in relation to persons to whom the section applies. Regulations made for the purposes of this section are contained in the Superannuation (Transfer Arrangements) Regulations.
The amending regulations modify the 1976 Act in respect of those persons who declare their intention to become members of the PSS and elect to cease to be members of the CSS under paragraph 4(1)(zo) of the Superannuation (CSS) Eligible Employees Regulations or subsection 4A(1) of the Superannuation (CSS) Continuing Contributions for Benefits Regulations.
The amendments contained in the regulations are explained in the Attachment.
The date of effect of the amendments is 1 March 1996.
ATTACHMENT
SUPERANNUATION (TRANSFER ARRANGEMENTS) REGULATIONS (AMENDMENT)
BACKGROUND
Section 126A of the 1976 Act provides that the regulations may modify the 1976 Act in respect of former members who became members of a superannuation scheme (other than the CSS) when they ceased to be members of the CSS. The section also provides for modifications in respect of members who will become members of a superannuation scheme (other than the CSS) on ceasing to be members of the CSS. The modifications made under this provision are included in the Superannuation (Transfer Arrangements) Regulations (the Principal Regulations).
Part XIV of the 1976 Act makes various arrangements in relation to persons who declared an intention to join the PSS and cease to be members of the CSS during the first transfer period of 1 July 1990 to 30 June 1991.
AMENDMENTS
Regulation 1
This provides that the amending regulations commence on 1 March 1996.
Regulation 2
This provides that the Principal Regulations are amended by the amending Regulations.
Regulation 3
This makes an amendment to the citation of the Principal Regulations.
Regulation
This provides that the Act is modified in accordance with Schedule 12 in relation to persons who become members of the PSS as a result of:
(a) declaring an intention to join the PSS; and
(b) electing to cease to be members of the CSS;
under paragraph 4(1)(zo) of the Superannuation (CSS) Eligible Employee Regulations or subsection 4A(1) of the Superannuation (CSS) Continuing Contributions for Benefits Regulations.
Regulation 5
This inserts Schedule 12 in the Principal Regulations.
Item 1 of the Schedule modifies section 246 of the 1976 Act to apply it to persons who take action to transfer to the PSS under the amending regulations. Section 246 ensures that a person transferring to the PSS is not entitled to benefits under the 1976 Act as a result of that transfer.
Item 2 of the Schedule omits section 247, which provides for the revocation of an election to transfer to the PSS in certain circumstances, and inserts a new section. The inserted section applies to persons who transfer to the PSS under the amending regulations and allows those persons to revoke a declaration and election where the PSS Board notifies the person that:
(a) that Board has exercised its discretion in relation to the person's CSS average salary; or
(b) that rate of CSS average salary previously advised to the person was incorrect.
Item 3 of the Schedule modifies section 248 (which provides for the transfer of assets and liabilities from the CSS Fund to the PSS Fund on behalf of transferring members) to change the date from which such transfers may occur to a date applicable to the transfer option provided for by the amending regulations. It further modifies the section to apply it to members transferring under the amending regulations.