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This is a Bill, not an Act. For current law, see the Acts databases.
GOVERNANCE OF AUSTRALIAN GOVERNMENT SUPERANNUATION SCHEMES BILL 2011
2010-2011
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Governance of Australian Government
Superannuation Schemes Bill 2011
No. , 2011
(Finance and Deregulation)
A Bill for an Act to provide for the administration
of certain Australian Government superannuation
schemes by a single body, and for related purposes
i Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
Contents
Part 1--Preliminary
1
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
2
3 Objects
...............................................................................................
2
4 Definitions
.........................................................................................
2
Part 2--Commonwealth Superannuation Corporation
6
Division 1--Establishment and constitution of CSC
6
5 Establishment
.....................................................................................
6
6
Modification of the Commonwealth Authorities and
Companies Act 1997 .......................................................................... 6
7 CSC's
constitution
.............................................................................
6
8 CSC's
functions
.................................................................................
7
Division 2--Board of CSC
8
Subdivision A--Establishment and function
8
9 Establishment
.....................................................................................
8
10 Function
.............................................................................................
8
11 Membership
.......................................................................................
8
Subdivision B--Appointment etc. of directors
9
12
Appointment of directors ................................................................... 9
13
Term of appointment ....................................................................... 10
14 Remuneration
and
allowances ......................................................... 10
15
Leave of absence .............................................................................. 10
16 Resignation
......................................................................................
10
17 Termination
of
appointment ............................................................ 11
18 Acting
appointments
........................................................................
12
Subdivision C--Meetings of the Board
14
19 Holding
of
meetings......................................................................... 14
20
Presiding at meetings ....................................................................... 14
21 Quorum
............................................................................................
14
22
Disclosure of interests to the Board ................................................. 15
23
Voting at meetings ........................................................................... 16
24 Decisions
without meetings ............................................................. 16
25
Minutes of meetings......................................................................... 17
Division 3--Staff of CSC
18
26 Staff
of
CSC
.....................................................................................
18
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011 ii
27 Consultants
......................................................................................
18
Part 3--Finance and reporting requirements
19
Division 1--Provisions relating to finance
19
28 Banking
............................................................................................
19
29 Accounting
records
..........................................................................
19
Division 2--Reporting requirements
20
30
Annual report and financial statements ............................................ 20
Part 4--Miscellaneous
23
Division 1--Application of other laws
23
31
Trustee Act of ACT to apply ........................................................... 23
32 Exemption
from
taxation--CSC ...................................................... 23
33
Exemption from taxation--superannuation schemes and
superannuation funds administered by CSC .................................... 23
Division 2--Provisions relating to the Board
25
34
Source of funds for paying remuneration and allowances ............... 25
35 Indemnification
of
directors etc. ...................................................... 25
Division 3--Miscellaneous
27
36 Delegation
by
CSC
..........................................................................
27
37
Review of operation of Act .............................................................. 29
38 Regulations
......................................................................................
29
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011 1
A Bill for an Act to provide for the administration
1
of certain Australian Government superannuation
2
schemes by a single body, and for related purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act may be cited as the Governance of Australian
8
Government Superannuation Schemes Act 2011.
9
Part 1 Preliminary
Section 2
2 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
2 Commencement
1
This Act commences on 1 July 2011.
2
3 Objects
3
The objects of this Act are:
4
(a) to provide for the administration of certain Australian
5
government superannuation schemes, including military
6
schemes, by a single body; and
7
(b) to ensure that when performing a function under:
8
(i) a determination made under Part IIIAA of the Defence
9
Act 1903; or
10
(ii)
the
Defence Force Retirement and Death Benefits Act
11
1973; or
12
(iii)
the
Defence Forces Retirement Benefits Act 1948; or
13
(iv)
the
Military Superannuation and Benefits Act 1991;
14
CSC has regard to the unique nature of military service, as
15
recognised by the schemes established by or under those
16
Acts.
17
4 Definitions
18
In this Act:
19
1922 scheme means the scheme established under the
20
Superannuation Act 1922.
21
Act administered by CSC means:
22
(a)
the
Defence Act 1903, to the extent that the Act deals with
23
superannuation benefit in Part IIIAA; or
24
(b)
the
Defence Force Retirement and Death Benefits Act 1973;
25
or
26
(c)
the
Defence Forces Retirement Benefits Act 1948; or
27
(d)
the
Military Superannuation and Benefits Act 1991; or
28
(e)
the
Papua New Guinea (Staffing Assistance) Act 1973, to the
29
extent that the Act deals with superannuation; or
30
(f)
the
Superannuation Act 1922; or
31
Preliminary Part 1
Section 4
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
3
(g)
the
Superannuation Act 1976; or
1
(h)
the
Superannuation Act 1990; or
2
(i)
the
Superannuation Act 2005.
3
bank has the same meaning as in the Commonwealth Authorities
4
and Companies Act 1997.
5
Board means the Board of CSC, established by section 9.
6
Chair means the Chair of the Board.
7
CSC (short for Commonwealth Superannuation Corporation)
8
means the body corporate continued in existence by section 5.
9
CSS (short for Commonwealth Superannuation Scheme) has the
10
same meaning as in the Superannuation Act 1976.
11
CSS Fund has the same meaning as Fund has in the
12
Superannuation Act 1976.
13
Defence Minister means the Minister who administers the Defence
14
Act 1903.
15
DFRB (short for Defence Forces Retirement Benefits Scheme)
16
means the scheme provided for by the Defence Forces Retirement
17
Benefits Act 1948.
18
DFRDB (short for Defence Force Retirement and Death Benefits
19
Scheme) means the scheme provided for by the Defence Force
20
Retirement and Death Benefits Act 1973.
21
DFSPB (short for Defence Force (Superannuation) (Productivity
22
Benefit) Scheme) means the scheme established by determinations
23
made under Part IIIAA of the Defence Act 1903.
24
director means a director of the Board, and includes the Chair.
25
disqualified person has the same meaning as in Part 15 of the
26
Superannuation Industry (Supervision) Act 1993.
27
governing deed means:
28
(a) in relation to the MSB--the Trust Deed (within the meaning
29
of the Military Superannuation and Benefits Act 1991); or
30
Part 1 Preliminary
Section 4
4 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(b) in relation to the PSS--the Trust Deed (within the meaning
1
of the Superannuation Act 1990); or
2
(c) in relation to the PSSAP--the Trust Deed (within the
3
meaning of the Superannuation Act 2005).
4
military schemes means:
5
(a) the DFRB, DFRDB, DFSPB or MSB; or
6
(b) the DFRB, DFRDB, DFSPB and MSB.
7
modifications includes additions, omissions and substitutions.
8
MSB (short for Military Superannuation and Benefits Scheme) has
9
the same meaning as Scheme has in the Military Superannuation
10
and Benefits Act 1991.
11
MSB Fund has the same meaning as Fund has in the Military
12
Superannuation and Benefits Act 1991.
13
PNG (short for Papua New Guinea Scheme) means the scheme
14
provided for by regulations made under the Papua New Guinea
15
(Staffing Assistance) Act 1973.
16
PSS (short for Public Sector Superannuation Scheme) has the same
17
meaning as Public Sector Superannuation Scheme has in the
18
Superannuation Act 1990.
19
PSSAP (short for Public Sector Superannuation Accumulation
20
Plan) has the same meaning as in the Superannuation Act 2005.
21
PSSAP Fund has the same meaning as in the Superannuation Act
22
2005.
23
PSS Fund has the same meaning as in the Superannuation Act
24
1990.
25
relevant organisation means:
26
(a)
an
organisation:
27
(i) a substantial number of whose members are members of
28
a superannuation scheme administered by CSC or
29
eligible employees within the meaning of the
30
Superannuation Act 1976; and
31
Preliminary Part 1
Section 4
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
5
(ii) whose principal purpose is to protect and promote the
1
interest of its members in matters concerning their
2
employment; or
3
(b) an organisation that has as one of its principal purposes the
4
protection and promotion of beneficiaries under a
5
superannuation scheme administered by CSC in matters
6
concerning their entitlements as beneficiaries.
7
SIS fitness and propriety standard means a standard prescribed
8
under Part 3 of the Superannuation Industry (Supervision) Act
9
1993 relating to fitness and propriety for trustees of funds (within
10
the meaning of that Act) and RSE licensees (within the meaning of
11
that Act).
12
superannuation fund administered by CSC means:
13
(a) the CSS Fund; or
14
(b) the MSB Fund; or
15
(c) the PSS Fund; or
16
(d) the PSSAP Fund.
17
superannuation scheme administered by CSC means:
18
(a) the 1922 scheme; or
19
(b) the CSS; or
20
(c)
the
DFRB;
or
21
(d) the DFRDB; or
22
(e) the DFSPB; or
23
(f) the MSB; or
24
(g) the PNG; or
25
(h) the PSS; or
26
(i)
the
PSSAP.
27
superannuation scheme and superannuation fund administered
28
by CSC means:
29
(a) each superannuation scheme administered by CSC; and
30
(b) each superannuation fund administered by CSC.
31
32
Part 2 Commonwealth Superannuation Corporation
Division 1 Establishment and constitution of CSC
Section 5
6 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Part 2--Commonwealth Superannuation
1
Corporation
2
Division 1--Establishment and constitution of CSC
3
5 Establishment
4
The board established by section 20 of the Superannuation Act
5
1990 as the Australian Reward Investment Alliance continues in
6
existence by force of this section as a body corporate, under and
7
subject to the provisions of this Act, under the name
8
Commonwealth Superannuation Corporation (CSC).
9
Note 1:
See also section 25B of the Acts Interpretation Act 1901.
10
Note 2:
Subject to section 6 of this Act, the Commonwealth Authorities and
11
Companies Act 1997 applies to CSC. That Act deals with matters
12
relating to Commonwealth authorities, including reporting and
13
accountability, banking and investment, and the conduct of officers.
14
6 Modification of the Commonwealth Authorities and Companies Act
15
1997
16
(1) Despite section 5 of this Act:
17
(a) section 15 of the Commonwealth Authorities and Companies
18
Act 1997; and
19
(b) any other provision of that Act prescribed by the regulations;
20
do not apply in relation to CSC's management and investment of
21
money that forms part of a superannuation fund administered by
22
CSC.
23
(2) If, at any time, CSC does not hold money on its own account, then,
24
despite section 7 of the Commonwealth Authorities and Companies
25
Act 1997, CSC is treated as if it were a Commonwealth authority
26
for the purposes of that Act.
27
7 CSC's constitution
28
(1)
CSC:
29
(a) must have a seal; and
30
Commonwealth Superannuation Corporation Part 2
Establishment and constitution of CSC Division 1
Section 8
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
7
(b) may acquire, hold and dispose of real and personal property;
1
and
2
(c) may sue and be sued in its corporate name.
3
(2) The seal of CSC is to be kept in such custody as the Board directs
4
and must not be used except as authorised by the Board.
5
(3) All courts, judges and persons acting judicially must:
6
(a) take judicial notice of the imprint of the seal of CSC
7
appearing on a document; and
8
(b) presume that the document was duly sealed.
9
8 CSC's functions
10
(1) CSC has the following functions:
11
(a) such functions as are conferred on CSC by this Act and each
12
Act administered by CSC;
13
(b) to be responsible for the general administration of this Act
14
and each Act administered by CSC;
15
(c) to do anything incidental to, or conducive to, the performance
16
of the above functions.
17
(2) To avoid doubt, when performing a function under an Act
18
administered by CSC, CSC is performing the function under the
19
relevant Act and not this Act.
20
(3) When performing a function under:
21
(a) a determination made under Part IIIAA of the Defence Act
22
1903; or
23
(b)
the
Defence Force Retirement and Death Benefits Act 1973;
24
or
25
(c)
the
Defence Forces Retirement Benefits Act 1948; or
26
(d)
the
Military Superannuation and Benefits Act 1991;
27
CSC must have regard to the unique nature of military service, as
28
recognised by the schemes established by or under those Acts.
29
(4) CSC has power to do all things necessary or convenient to be done
30
for or in connection with the performance of its functions.
31
32
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 9
8 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Division 2--Board of CSC
1
Subdivision A--Establishment and function
2
9 Establishment
3
There is to be a Board of CSC.
4
10 Function
5
(1) The function of the Board is to ensure that CSC performs its
6
functions in a proper, efficient and effective manner.
7
(2) The Board has the power to do all things necessary or convenient
8
to be done for or in connection with the performance of its
9
function.
10
(3) All acts and things done in the name of, or on behalf of, CSC by
11
the Board are taken to have been done by CSC.
12
11 Membership
13
(1) The Board consists of:
14
(a) a Chair; and
15
(b) 10 other directors.
16
Note:
See also subsection 38(2).
17
(2) Subject to subsection (4), of the 10 other directors:
18
(a) the President of the Australian Council of Trade Unions may
19
nominate, in writing, 3 persons; and
20
(b) the Chief of the Defence Force may nominate, in writing, 2
21
persons.
22
Note:
The Minister chooses the remaining 5 other directors.
23
(3) However, a person is not eligible for nomination if the person's
24
appointment would result in a contravention of a SIS fitness and
25
propriety standard.
26
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 12
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
9
(4) Before nominating a person, the President of the Australian
1
Council of Trade Unions must consult with one or more relevant
2
organisations.
3
(5) Before nominating a person, the Chief of the Defence Force must
4
consult with one or more relevant organisations.
5
(6) A nomination must specify the period for which the nominee is to
6
be appointed. The period may not be more than 3 years.
7
(7) The performance of a function or the exercise of a power of the
8
Board is not affected by a vacancy in the membership of the Board.
9
Subdivision B--Appointment etc. of directors
10
12 Appointment of directors
11
(1) A director is to be appointed by the Minister by written instrument,
12
on a part-time basis.
13
Note:
A director is eligible for reappointment: see the Acts Interpretation
14
Act 1901.
15
(2) A person is not eligible for appointment as a director if the
16
person's appointment would result in a contravention of a SIS
17
fitness and propriety standard.
18
(3) In the case of a director who has been nominated by the President
19
of the Australian Council of Trade Unions or the Chief of the
20
Defence Force, the Minister must:
21
(a) appoint a person who has been nominated; and
22
(b) appoint the person for the period specified in the nomination.
23
(4) In the case of any other director, the Minister must consult the
24
Defence Minister before making an appointment.
25
(5) The Minister must obtain the Board's agreement to a person whom
26
the Minister proposes to appoint as the Chair (other than for the
27
appointment of a person as the first Chair).
28
Note:
For obtaining the Board's agreement, see section 23.
29
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 13
10 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(6) A person's appointment as a director is not invalid because of a
1
defect or irregularity in connection with the person's appointment.
2
13 Term of appointment
3
(1) A director holds office for the period specified in the instrument of
4
appointment. The period must not exceed 3 years.
5
(2) A director must not hold office continuously for more than 9 years.
6
14 Remuneration and allowances
7
(1) A director is to be paid the remuneration that is determined by the
8
Remuneration Tribunal. If no determination of that remuneration
9
by the Tribunal is in operation, a director is to be paid the
10
remuneration that is prescribed by the regulations.
11
(2) A director is to be paid the allowances that are prescribed by the
12
regulations.
13
(3) This section has effect subject to the Remuneration Tribunal Act
14
1973.
15
15 Leave of absence
16
(1) The Minister may grant leave of absence to the Chair on the terms
17
and conditions that the Minister determines.
18
(2) The Chair may grant leave of absence to another director on the
19
terms and conditions that the Chair determines.
20
16 Resignation
21
(1) A director may resign his or her appointment by giving the
22
Minister a written resignation.
23
(2) The resignation takes effect on the day it is received by the
24
Minister or, if a later day is specified in the resignation, on that
25
later day.
26
(3) If a director nominated by the President of the Australian Council
27
of Trade Unions or the Chief of the Defence Force resigns, the
28
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 17
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
11
director must also give a copy of the resignation to the President or
1
Chief, as appropriate.
2
17 Termination of appointment
3
Grounds for termination relating to financial circumstances etc.
4
(1) The appointment of a director terminates if he or she becomes a
5
disqualified person.
6
(2) The Minister may terminate the appointment of a director if the
7
director is not a disqualified person, but the director:
8
(a) applies to take the benefit of any law for the relief of
9
bankrupt or insolvent debtors; or
10
(b) compounds with his or her creditors; or
11
(c) makes an assignment of his or her remuneration for the
12
benefit of his or her creditors.
13
(3) The Minister may terminate the appointment of a director if:
14
(a) the director's continuation in office would contravene a SIS
15
fitness and propriety standard; or
16
(b) the director fails, without reasonable excuse, to comply with
17
an obligation imposed on him or her by section 27F or 27J of
18
the Commonwealth Authorities and Companies Act 1997.
19
Other grounds for termination
20
(4) Subject to subsections (7), (8) and (9), the Minister may terminate
21
the appointment of a director:
22
(a) for misbehaviour or physical or mental incapacity; or
23
(b) if the director is absent, except on leave of absence, from 3
24
consecutive meetings of the Board; or
25
(c) if the director fails, without reasonable excuse, to comply
26
with section 22.
27
(5) Subject to subsections (7), (8) and (9), if the Minister is of the
28
opinion that the directors have failed to comply with paragraph
29
16(1)(a) or (b) of the Commonwealth Authorities and Companies
30
Act 1997, the Minister may terminate the appointment of all
31
directors or particular directors.
32
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 18
12 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Consultation with the Defence Minister
1
(6) If the circumstances mentioned in subsection (2), (3), (4) or (5)
2
exist in relation to a director (other than one covered by
3
subsections (7) to (9)), the Minister must consult the Defence
4
Minister before terminating the appointment of the director.
5
Consent to termination
6
(7) The Minister must not terminate the appointment of a director
7
nominated by the President of the Australian Council of Trade
8
Unions on a ground mentioned in subsection (4) or (5) unless the
9
President consents to the termination.
10
(8) The Minister must not terminate the appointment of a director
11
nominated by the Chief of the Defence Force on a ground
12
mentioned in subsection (4) or (5) unless the Chief consents to the
13
termination.
14
(9) However, if the President of the Australian Council of Trade
15
Unions or the Chief of the Defence Force consents to the
16
termination of a director, the Minister must terminate the director's
17
appointment.
18
18 Acting appointments
19
(1) The Minister may, by written instrument, appoint a person to act as
20
a director:
21
(a) during a vacancy in the office of the director (whether or not
22
an appointment has previously been made to the office); or
23
(b) during any period, or during all periods, when the director:
24
(i) is absent from duty or from Australia; or
25
(ii) is, for any reason, unable to perform the duties of the
26
office.
27
(2) A person is not eligible for appointment to act as a director if the
28
person's appointment would result in a contravention of a SIS
29
fitness and propriety standard.
30
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 18
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
13
(3) In the case of an appointment under subsection (1), the Minister
1
must consult the Defence Minister before appointing a person to
2
act as a director.
3
(4) The Minister must consult the Board about the person whom the
4
Minister proposes to appoint to act as the Chair.
5
(5)
If:
6
(a) a director is appointed following a nomination made by the
7
President of the Australian Council of Trade Unions; and
8
(b) a nomination is made by the President for a person to act in
9
place of that director;
10
the Minister must:
11
(c) appoint the person who has been nominated to act as a
12
director; and
13
(d) appoint the person for the period specified in the nomination.
14
(6)
If:
15
(a) a director is appointed following a nomination made by the
16
Chief of the Defence Force; and
17
(b) a nomination is made by the Chief for a person to act in place
18
of that director;
19
the Minister must:
20
(c) appoint the person who has been nominated to act as a
21
director; and
22
(d) appoint the person for the period specified in the nomination.
23
(7) Anything done by or in relation to a person purporting to act under
24
an appointment is not invalid merely because:
25
(a) the occasion for the appointment had not arisen; or
26
(b) there was a defect or irregularity in connection with the
27
appointment; or
28
(c) the appointment had ceased to have effect; or
29
(d) the occasion to act had not arisen or had ceased.
30
Note: See
the
Acts Interpretation Act 1901.
31
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 19
14 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Subdivision C--Meetings of the Board
1
19 Holding of meetings
2
(1) The Board is to hold such meetings as are necessary for the
3
performance of its function.
4
(2)
The
Chair:
5
(a) may convene a meeting at any time; and
6
(b) must convene a meeting within 30 days after receiving a
7
written request from another director.
8
Note:
Section 33B of the Acts Interpretation Act 1901 provides for
9
participation in meetings by telephone etc.
10
20 Presiding at meetings
11
(1) The Chair presides at all meetings of the Board at which he or she
12
is present.
13
(2) If the Chair is not present at a meeting:
14
(a) a director nominated by the Chair presides; or
15
(b) if a director is not nominated--the directors present must
16
elect one of themselves to preside.
17
21 Quorum
18
(1) At a meeting of the Board, 9 directors constitute a quorum.
19
(2) Despite subsection (1), if:
20
(a)
either:
21
(i) section 22 of this Act; or
22
(ii) section 27J of the Commonwealth Authorities and
23
Companies Act 1997;
24
prevents a director from being present during the
25
deliberations, or taking part in any decision, of the Board
26
with respect to a particular matter; and
27
(b) as a result, there is no longer a quorum present; and
28
(c) there are present at least 8 other directors who would be
29
counted in determining whether a quorum is present;
30
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 22
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
15
the remaining directors constitute a quorum for the purpose of any
1
deliberation or decision at the meeting with respect to that matter.
2
(3) For the purposes of subsections (1) and (2), if a matter being
3
considered, or about to be considered, at a meeting of the Board
4
concerns only the military schemes, the quorum must include a
5
director nominated by the Chief of the Defence Force.
6
(4) If an issue arises about whether a matter being considered, or about
7
to be considered, at a meeting of the Board concerns only the
8
military schemes, the Chair must determine the issue.
9
(5) A determination made under subsection (4) is not a legislative
10
instrument.
11
22 Disclosure of interests to the Board
12
(1) This section only applies to the extent that the Board does a thing
13
relating to CSC's management and investment of money that forms
14
part of a superannuation fund administered by CSC.
15
(2) A director who has any interest, pecuniary or otherwise, in a matter
16
being considered or about to be considered by the Board must
17
disclose the nature of the interest to a meeting of the Board.
18
(3) The disclosure must be made as soon as possible after the relevant
19
facts have come to the director's knowledge.
20
(4) The disclosure must be recorded in the minutes of the meeting.
21
(5) Unless the Minister or the Board otherwise determines, the
22
director:
23
(a) must not be present during any deliberation by the Board on
24
the matter; and
25
(b) must not take part in any decision of the Board with respect
26
to the matter.
27
(6) For the purposes of making a determination of the Board under
28
subsection (5), the director:
29
(a) must not be present during any deliberation of the Board for
30
the purpose of making the determination; and
31
Part 2 Commonwealth Superannuation Corporation
Division 2 Board of CSC
Section 23
16 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(b) must not take part in making the determination.
1
(7) A determination under subsection (5) must be recorded in the
2
minutes of the meeting.
3
23 Voting at meetings
4
At a meeting of the Board:
5
(a) if subsection 21(2) applies--a question is decided by the
6
agreement of 8 directors; and
7
(b) in any other case--a question is decided by the agreement of
8
9 directors.
9
24 Decisions without meetings
10
(1) The Board is taken to have made a decision at a meeting if:
11
(a) without meeting, 9 directors indicate agreement with the
12
proposed decision in accordance with the method determined
13
by the Board under subsection (2); and
14
(b)
either:
15
(i) if the proposed decision concerns only the military
16
schemes--all directors were informed of the proposed
17
decision; or
18
(ii) in any other case--all directors were informed of the
19
proposed decision, or reasonable efforts were made to
20
inform all directors of the proposed decision.
21
(2) Subsection (1) applies only if the Board has determined, in writing:
22
(a) that it may make decisions without meeting; and
23
(b) the method by which directors are to indicate agreement with
24
proposed decisions.
25
(3) Paragraph (1)(a) does not apply to:
26
(a) a director who is prevented by subsection 22(5) from
27
deliberating on the proposed decision; or
28
(b) to the extent that the Commonwealth Authorities and
29
Companies Act 1997 applies--a director who is prevented by
30
section 27J of that Act from deliberating on the proposed
31
decision.
32
Commonwealth Superannuation Corporation Part 2
Board of CSC Division 2
Section 25
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
17
25 Minutes of meetings
1
The Board must keep minutes of its meetings.
2
3
Part 2 Commonwealth Superannuation Corporation
Division 3 Staff of CSC
Section 26
18 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Division 3--Staff of CSC
1
26 Staff of CSC
2
(1) CSC may employ such persons as it considers necessary for the
3
performance of its functions.
4
(2) An employee is to be employed on the terms and conditions that
5
the Board determines in writing.
6
27 Consultants
7
CSC may engage consultants to assist in the performance of its
8
functions.
9
10
Finance and reporting requirements Part 3
Provisions relating to finance Division 1
Section 28
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
19
Part 3--Finance and reporting requirements
1
Division 1--Provisions relating to finance
2
28 Banking
3
CSC must pay all money received by it in respect of each
4
superannuation fund administered by CSC into an account
5
maintained by it with a bank.
6
29 Accounting records
7
(1) CSC must keep proper accounts and records of the transactions and
8
affairs of each superannuation fund administered by CSC, in
9
accordance with the accounting principles generally applied in
10
commercial practice.
11
(2) CSC must take reasonable steps to ensure that:
12
(a) all payments out of each superannuation fund administered
13
by CSC are correctly made and properly authorised; and
14
(b) adequate control is maintained over:
15
(i) the assets of each superannuation fund administered by
16
CSC; and
17
(ii) the incurring of liabilities by CSC in respect of each
18
superannuation fund administered by CSC.
19
(3) A director commits an offence if:
20
(a) the director causes a requirement of this section to be
21
breached; or
22
(b) the director fails to take reasonable steps to comply with the
23
requirement, or secure compliance with the requirement.
24
Penalty: Imprisonment for 6 months or 30 penalty units, or both.
25
26
Part 3 Finance and reporting requirements
Division 2 Reporting requirements
Section 30
20 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Division 2--Reporting requirements
1
30 Annual report and financial statements
2
(1) CSC must, by a date prescribed by the regulations, or, if no date is
3
prescribed, as soon as practicable after the end of:
4
(a) the financial year starting on 1 July 2011; and
5
(b) each later financial year;
6
prepare and give to the Minister:
7
(c) a report dealing with:
8
(i) the performance of its functions in relation to each
9
superannuation scheme and superannuation fund
10
administered by CSC (other than the 1922 scheme,
11
DFRB, DFRDB, DFSPB and PNG) during the year; and
12
(ii) the general administration of the Acts and provisions
13
mentioned in subsection (2) during the year; and
14
(iii) the performance of its functions in relation to the
15
DFSPB during the year; and
16
(d) financial statements in respect of the management of each
17
superannuation fund administered by CSC in a form agreed
18
between the Minister and the Board.
19
(2) For the purpose of subparagraph (1)(c)(ii), the Acts and provisions
20
are:
21
(a)
the
Defence Force Retirement and Death Benefits Act 1973;
22
and
23
(b)
the
Defence Forces Retirement Benefits Act 1948 (other than
24
Part III of that Act); and
25
(c) provisions of the Papua New Guinea (Staffing Assistance)
26
Act 1973 that deal with superannuation; and
27
(d)
the
Superannuation Act 1922.
28
(3) Before giving the financial statements to the Minister, CSC must
29
submit them to the Auditor-General, who must audit and report to
30
the Minister:
31
(a) whether the statements are based on proper accounts and
32
records; and
33
Finance and reporting requirements Part 3
Reporting requirements Division 2
Section 30
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
21
(b) whether the statements are in agreement with the accounts
1
and records and show fairly the financial transactions and the
2
state of each superannuation fund administered by CSC; and
3
(c) whether the receipt of money into, the payment of money out
4
of, and the investment of money standing to the credit of,
5
each superannuation fund administered by CSC during the
6
year have been in accordance with:
7
(i) this Act and the relevant Acts administered by CSC; and
8
(ii) the relevant governing deeds; and
9
(d) as to such other matters arising out of the statements as the
10
Auditor-General considers should be reported.
11
(4) The Minister must cause a copy of:
12
(a) the report prepared by CSC; and
13
(b) the financial statements prepared by CSC; and
14
(c) the report of the Auditor-General in respect of the financial
15
statements;
16
to be tabled in each House of the Parliament within 15 sitting days
17
of that House after the receipt of whichever of those documents
18
was last received by the Minister.
19
(5) If the Board has not complied with subsection (1) within a period
20
of 6 months after the end of a financial year, CSC must, within 14
21
days after the end of that period, give to the Minister:
22
(a) an interim report on the performance of its functions in
23
relation to each superannuation scheme and superannuation
24
fund administered by CSC during that year; and
25
(b) interim financial statements in respect of the management of
26
each superannuation fund administered by CSC during that
27
year.
28
Note:
See also subsection 38(4).
29
(6) The financial statements given to the Minister under subsection (5)
30
must be in the form agreed between the Minister and the Board for
31
the purposes of subsection (1), but need not be accompanied by a
32
report of the Auditor-General.
33
(7) If CSC gives a report and financial statements to the Minister
34
under subsection (5), the Minister must:
35
Part 3 Finance and reporting requirements
Division 2 Reporting requirements
Section 30
22 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(a) cause a copy of the report and a copy of the financial
1
statements to be tabled in each House of the Parliament
2
within 15 sitting days of that House after their receipt by the
3
Minister; and
4
(b) make the report and financial statements available to the
5
public.
6
(8) A report given under paragraph (5)(a) is not a legislative
7
instrument.
8
9
Miscellaneous Part 4
Application of other laws Division 1
Section 31
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
23
Part 4--Miscellaneous
1
Division 1--Application of other laws
2
31 Trustee Act of ACT to apply
3
Except in so far as it is inconsistent with a law of the
4
Commonwealth, the Trustee Act 1925 of the Australian Capital
5
Territory applies to, and in relation to, the directors acting in the
6
performance of their functions, or the exercise of their powers,
7
under a governing deed.
8
32 Exemption from taxation--CSC
9
(1) CSC is not subject to:
10
(a) taxation under a law of the Commonwealth other than:
11
(i)
the
A New Tax System (Goods and Services Tax) Act
12
1999; or
13
(ii)
the
Fringe Benefits Tax Assessment Act 1986; or
14
(iii)
the
Income Tax Assessment Act 1936; or
15
(iv)
the
Income Tax Assessment Act 1997; or
16
(b) taxation under a law of a State or Territory.
17
(2) The regulations may provide that subsection (1) does not apply in
18
relation to taxation under a specified law.
19
33 Exemption from taxation--superannuation schemes and
20
superannuation funds administered by CSC
21
(1) Subject to this section:
22
(a) CSC, when performing functions, or exercising powers, in
23
relation to a superannuation scheme and superannuation fund
24
administered by CSC; and
25
(b) a superannuation fund administered by CSC;
26
are not subject to:
27
(c) taxation under a law of the Commonwealth other than:
28
(i)
the
A New Tax System (Goods and Services Tax) Act
29
1999; or
30
Part 4 Miscellaneous
Division 1 Application of other laws
Section 33
24 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(ii)
the
Income Tax Assessment Act 1936; or
1
(iii)
the
Income Tax Assessment Act 1997; or
2
(iv)
the
Superannuation Contributions Tax (Assessment and
3
Collection) Act 1997; or
4
(d) taxation under a law of a State or Territory, if the
5
Commonwealth is not subject to the taxation.
6
(2) The regulations may provide that subsection (1) does not apply in
7
relation to taxation under a specified law.
8
(3) The regulations may specify different laws for different
9
superannuation funds administered by CSC.
10
(4) In relation to the PSSAP and the PSSAP Fund:
11
(a) this section has effect subject to such modifications (if any)
12
as are prescribed by the regulations; and
13
(b) the regulations may provide that this section ceases to have
14
effect at a specified time.
15
16
Miscellaneous Part 4
Provisions relating to the Board Division 2
Section 34
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
25
Division 2--Provisions relating to the Board
1
34 Source of funds for paying remuneration and allowances
2
(1) The Chair is to be paid remuneration and allowances as follows:
3
(a) when performing functions relating to a particular Fund--out
4
of that Fund;
5
(b) when performing functions relating to the 1922 scheme,
6
DFRB, DFRDB, DFSPB or PNG--out of the Consolidated
7
Revenue Fund, which is appropriated accordingly.
8
(2) A director (other than the Chair) is to be paid remuneration and
9
allowances as follows:
10
(a) when performing functions relating to a particular Fund--
11
from one of the following (according to the relevant Act
12
administered by CSC):
13
(i)
that
Fund;
14
(ii) the Consolidated Revenue Fund;
15
(iii) partly out of that Fund and partly out of the
16
Consolidated Revenue Fund;
17
(b) when performing functions relating to the 1922 scheme,
18
DFRB, DFRDB, DFSPB or PNG--out of the Consolidated
19
Revenue Fund, which is appropriated accordingly.
20
(3) In relation to the PSSAP and the PSSAP Fund:
21
(a) this section has effect subject to such modifications (if any)
22
as are prescribed by the regulations; and
23
(b) the regulations may provide that this section ceases to have
24
effect at a specified time.
25
35 Indemnification of directors etc.
26
(1) Anything done, or omitted to be done, in good faith by a director or
27
a delegate of the Board, in the performance of his or her functions
28
under this Act, an Act administered by CSC or a governing deed,
29
does not subject him or her personally to any action, liability, claim
30
or demand.
31
Part 4 Miscellaneous
Division 2 Provisions relating to the Board
Section 35
26 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
(2) Subsection (1) does not preclude CSC from being subject to any
1
action, liability, claim or demand.
2
(3) Except in cases where the Superannuation Industry (Supervision)
3
Act 1993 or regulations under that Act do not so permit, any money
4
becoming payable by CSC in respect of an action, liability, claim
5
or demand that relates to an Act administered by CSC, regulations
6
made under such an Act, or a governing deed, is to be paid out of:
7
(a) in the case of the 1922 scheme, DFRB, DFRDB, DFSPB or
8
PNG--the Consolidated Revenue Fund, which is
9
appropriated accordingly; and
10
(b) in any other case--the superannuation fund administered by
11
CSC to which the action, liability, claim or demand relates.
12
(4) If an amount is paid out of a superannuation fund administered by
13
CSC under paragraph (3)(b), an equivalent amount is to be paid to
14
the relevant superannuation fund administered by CSC out of the
15
Consolidated Revenue Fund, which is appropriated accordingly.
16
(5) In relation to the Superannuation Act 2005 and the Trust Deed
17
(within the meaning of that Act):
18
(a) this section has effect subject to such modifications (if any)
19
as are prescribed by the regulations; and
20
(b) the regulations may provide that this section ceases to have
21
effect at a specified time.
22
23
Miscellaneous Part 4
Miscellaneous Division 3
Section 36
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
27
Division 3--Miscellaneous
1
36 Delegation by CSC
2
Delegations by CSC
3
(1) CSC may, by writing, delegate to:
4
(a) a director; or
5
(b) a member of the staff of CSC; or
6
(c) the CEO of ComSuper; or
7
(d) a member of the staff of ComSuper; or
8
(e) an APS employee in the Department or in the Department
9
responsible for the administration of the Defence Act 1903; or
10
(f) a member of the Australian Defence Force; or
11
(g) an officer or employee of a person who is responsible for
12
investing money forming part of a superannuation fund
13
administered by CSC; or
14
(h) any other person who performs duties in connection with the
15
operation of a governing deed, an Act administered by CSC
16
or regulations made under such an Act; or
17
(i) a committee consisting of 2 or more persons each of whom is
18
a person referred to in any of the above paragraphs;
19
all or any of its powers under an Act administered by CSC or
20
regulations made under such an Act.
21
(2) Despite subsection (1), CSC may only delegate its power to
22
reconsider its own decisions or decisions made by its delegates
23
under an Act mentioned in column 1 of the following table to a
24
Committee mentioned in column 2 of the table in relation to the
25
item:
26
27
Delegation of power to reconsider decisions
Item
If the decision was made by
CSC or its delegate under ...
then, CSC may delegate its
power to reconsider the decision
to ...
1 the
Defence Force Retirement
and Death Benefits Act 1973, the
the Defence Force Case
Assessment Panel established
Part 4 Miscellaneous
Division 3 Miscellaneous
Section 36
28 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
Delegation of power to reconsider decisions
Item
If the decision was made by
CSC or its delegate under ...
then, CSC may delegate its
power to reconsider the decision
to ...
Defence Forces Retirement
Benefits Act 1948 or regulations
made under either of those Acts
under section 100 of the Defence
Force Retirement and Death
Benefits Act 1973.
2 the
Papua New Guinea (Staffing
Assistance) Act 1973 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 55 of that Act.
3 the
Superannuation Act 1922 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 127 of that Act.
4 the
Superannuation Act 1976 or
regulations made under that Act
a Reconsideration Advisory
Committee established under
section 153AB of that Act.
Sub-delegations
1
(3) If CSC delegates a power under subsection (1) to a director, the
2
director may, by writing, sub-delegate the power to:
3
(a) another director; or
4
(b) a person referred to in paragraph (1)(b), (c), (d), (e), (f), (g)
5
or (h).
6
(4) If CSC delegates a power under subsection (1) to the CEO of
7
ComSuper, the CEO may, by writing, sub-delegate the power to a
8
person referred to in paragraph (1)(d), (e), (f), (g) or (h).
9
(5) If CSC delegates a power under subsection (1) to a person referred
10
to in paragraph (1)(b), (d), (e), (f), (g) or (h), the delegate may, by
11
writing, sub-delegate the power to:
12
(a) another person referred to in the same paragraph; or
13
(b) a person referred to in another of those paragraphs.
14
(6) Section 34AA and paragraphs 34AB(a), (b) and (d) of the Acts
15
Interpretation Act 1901 apply in relation to a sub-delegation in a
16
corresponding way to the way in which they apply to a delegation.
17
Miscellaneous Part 4
Miscellaneous Division 3
Section 37
Governance of Australian Government Superannuation Schemes Bill 2011 No. , 2011
29
(7) Section 34A and paragraphs 34AB(c) and (d) of the Acts
1
Interpretation Act 1901 apply to a sub-delegation as if it were a
2
delegation.
3
37 Review of operation of Act
4
(1) The Minister must cause a review to be undertaken of the first 5
5
years of the operation of this Act.
6
(2) Before the review is undertaken, the Minister must consult the
7
Defence Minister about the terms of the review.
8
(3) The persons undertaking the review must give the Minister a
9
written report of the review within 6 months after the end of the 5
10
year period.
11
(4) The Minister must cause a copy of the report of the review to be
12
laid before each House of the Parliament within 15 sitting days of
13
that House after its receipt by the Minister.
14
38 Regulations
15
(1) The Governor-General may make regulations prescribing matters:
16
(a) required or permitted by this Act to be prescribed; or
17
(b) necessary or convenient to be prescribed for carrying out or
18
giving effect to this Act.
19
(2) Without limiting subsection (1), the regulations may prescribe a
20
different number of other directors for the purpose of paragraph
21
11(1)(b).
22
(3) If regulations allowed by subsection (2) are made, regulations must
23
also be made that prescribe different numbers, consistent with the
24
proportions set out in this Act, for the purposes of:
25
(a) how many persons may be nominated by the President of the
26
Australian Council of Trade Unions and the Chief of the
27
Defence Force; and
28
(b) quorum and voting requirements.
29
(4) Without limiting subsection (1), the regulations may prescribe
30
different time periods for the purpose of subsection 30(5).
31
Part 4 Miscellaneous
Division 3 Miscellaneous
Section 38
30 Governance of Australian Government Superannuation Schemes Bill 2011 No. ,
2011
However, the regulations may not extend the 6 month period
1
referred to in that subsection.
2