EXPLANATORY STATEMENT
ISSUED BY AUTHORITY OF THE MINISTER FOR FINANCE AND ADMINISTRATION
SUBJECT: THIRTEENTH AMENDING DEED TO THE DEED TO ESTABLISH AN OCCUPATIONAL SUPERANNUATION SCHEME FOR COMMONWEALTH EMPLOYEES AND CERTAIN OTHER PERSONS PURSUANT TO SECTION 5 OF THE SUPERANNUATION ACT 1990
Authority
The Minister for Finance, for and on behalf of the Commonwealth, established an occupational superannuation scheme to provide benefits for certain of the Commonwealth’s employees and for certain other people by Deed dated 21 June 1990 under section 4 of the Superannuation Act 1990. In this statement the Deed is called “the Trust Deed”. The occupational superannuation scheme is known as the Public Sector Superannuation Scheme (PSS).
2. Section 5 of the Superannuation Act 1990 provides that the Minister for Finance and Administration may amend the Trust Deed by signed instrument, subject to obtaining the PSS Board’s consent to the amendment where necessary.
3. The Minister has amended the Trust Deed and the Rules for the Administration of the Superannuation Scheme set out in the Schedule to the Trust Deed by the following signed instruments:
Trust Deed | Date |
First Amending Deed | 21 June 1990 |
Second Amending Deed | 1 July 1991 |
Third Amending Deed | 30 June 1992 |
Fourth Amending Deed | 21 December 1992 |
Fifth Amending Deed | 16 June 1993 |
Sixth Amending Deed | 24 January 1994 |
Seventh Amending Deed | 7 March 1994 |
Eighth Amending Deed | 28 June 1994 |
Ninth Amending Deed | 22 June 1995 |
Tenth Amending Deed | 29 January 1996 |
Eleventh Amending Deed | 10 December 1996 |
Twelfth Amending Deed | 25 March 1998 |
4. On 5 December 1999 the Minister for Finance and Administration amended the Rules for the Administration of the PSS set out in the Schedule to the Trust Deed by signed instrument. That instrument is called the Thirteenth Amending Deed in this statement. The PSS Board has consented to these amendments.
Date of Effect of the Thirteenth Amending Deed
5. Clause 1 specifies that the amendments of the Rules made by the Thirteenth Amending Deed come into effect on the later of:
(a) the date of gazettal; and
(b) the time when the Public Service Act 1999 commences.
Amendments to the Rules
Background
6. The Public Service Act 1999 (PS Act) replaced the previous legislative framework for the establishment and management of the Australian Public Service (APS), which was principally contained in the Public Service Act 1922 (1922 PSA).
7. The Public Employment (Consequential and Transitional) Amendment Act 1999 (PECTA Act) deals with the consequential and transitional matters arising from the repeal of the 1922 PSA and the enactment of replacement legislation, namely, the PS Act. The PECTA Act includes amendments to the Superannuation Act 1976, which established the Commonwealth Superannuation Scheme (CSS).
8. The amendments included in the Thirteenth Amending Deed are designed to mirror the changes made to the Superannuation Act 1976 by the PECTA Act. The amendments do not have any effect on the operation of the PSS; they are simply designed to ensure that the PSS provisions continue to operate in the same way following the establishment of the new legal framework for APS employees set out in the PS Act. The amendments do not adversely affect members’ benefits or rights.
Amendments - Overview
9. The Thirteenth Amending Deed contains amendments which:
(a) replace references to “Public Service Act 1922” with “Public Service Act 1999”;
(b) update references to specific sections of the 1922 PSA with references to the corresponding provisions in the PS Act;
(c) ensure that the Rules reflect the terminology of the PS Act;
(d) protect the entitlements of members where the Rules refer to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act.
10. The Thirteenth Amending Deed does not amend references to the 1922 PSA where those references are purely historical in nature, in other words, where the circumstances described in the Rule can only have occurred before the commencement of the PS Act.
AMENDMENTS TO THE RULES – DETAILED DESCRIPTION
Words and phrases used in the Rules
11. Division 2 of Part 1 defines words and phrases and some concepts used in the Rules.
12. Subclause 2.1 inserts the definitions of “APS agency” and “APS employee” to reflect the terminology of the PS Act.
13. Subclause 2.2 replaces the definition of “Department” to ensure that it reflects the terminology of the PS Act.
14. Subclause 2.3 replaces the definition of “fixed term employee” to:
(a) update a reference to a specific section of the 1922 PSA with a reference to the corresponding provision in the PS Act (first dot point);
(b) ensure that the definition reflects the terminology of the PS Act (second dot point);
(c) replace a reference to “Public Service Act 1922” with “Public Service Act 1999” (fourth dot point);
(d) protect the entitlements of members, as the definition refers to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act (sixth dot point).
15. Subclause 2.4 replaces the definition of “involuntary retirement” to:
(a) protect the entitlements of members, as the definition refers to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act (second, fourth and fifth dot points);
(b) update a reference to a specific section of the 1922 PSA with a reference to the corresponding provision in the PS Act (sixth dot point).
16. Subclause 2.5 replaces the definitions of “permanent full-time employee” and “permanent part-time employee” to protect the entitlements of members, as the definitions refer to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act (third dot points).
17. Subclause 2.6 replaces the definition of “Secretary” to replace a reference to “Public Service Act 1922” with “Public Service Act 1999”.
Continuation of membership
18. Division 2 of Part 2 deals with the circumstances where people can be deemed not to have ceased membership of the PSS.
19. Subclause 2.7 replaces Rule 2.2.4 to protect the entitlements of members, as the Rule refers to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act.
Contributions on Leave Without Pay
20. Division 2 of Part 4 sets out the circumstances when a member must pay contributions while on leave without pay.
21. Subclause 2.8 replaces paragraph (e) of Rule 4.2.1 to ensure that it reflects the terminology of the PS Act.
22. Subclause 2.9 replaces Rule 4.2.6 to protect the entitlements of members, as the Rule refers to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act.
Eligibility of Fixed-term Employees for Involuntary Retirement Benefits
23. Division 4 of Part 6 describes the circumstances where fixed-term employees are eligible for involuntary retirement benefits.
24. Subclause 2.10 replaces the table in Rule 6.4.1 to:
(a) ensure that the table reflects the terminology of the PS Act;
(b) replace references to “Public Service Act 1922” with “Public Service Act 1999”;
(c) protect the entitlements of members, as the table refers to provisions of the 1922 PSA that do not have exactly corresponding provisions in the PS Act.
25. Subclause 2.9 replaces Rule 6.4.6 to:
(a) replace a reference to “Public Service Act 1922” with “Public Service Act 1999”;
(b) update a reference to a specific section of the 1922 PSA with a reference to the corresponding provision in the PS Act.