Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (TRANSFER ARRANGEMENTS) REGULATIONS (AMENDMENT) 1991 NO. 169

STATUTORY RULES 1991 No. 169

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (TRANSFER ARRANGEMENTS) REGULATIONS (AMENDMENT)

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons.

Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

Section 126 of the Act provides that the regulations may modify the provisions of the Act in relation to a person who, before becoming a member of the superannuation scheme provided under the Act, was a member of a superannuation scheme. Section 168(9) of the Act provides that regulations made within a period of 12 months after 1 July 1990 by virtue of section 126 may be expressed to have taken effect from and including a day not earlier than 1 July 1990. Regulations for the purposes of section 126 are contained in the Superannuation (Transfer Arrangements) Regulations (the Principal Regulations).

The Regulations will amend the Principal Regulations as a consequence of certain amendments to the Act by the Superannuation Legislation Amendment Act 1990. The amendments contained in the Regulations are explained in the Attachment.

In accordance with subsection 168(9) of the Act, the Regulations will operate with effect from and including 1 July 1990, the date of commencement of the amendments to the Act.

ATTACHMENT

SUPERANNUATION (TRANSFER ARRANGEMENTS) REGULATIONS (AMENDMENT)

REGULATION 1

This provides for the Superannuation (Transfer Arrangements) Regulations (Amendment) (the Amending Regulations) to operate with effect from and including 1 July 1990.

REGULATION 2

This provides that the Superannuation (Transfer Arrangements) Regulations (the Principal Regulations) are amended as set out in the Amending Regulations.

REGULATION 3

This amends Schedule 8 to the Principal Regulations which contains modifications to the Superannuation Act 1976 (the Act) in relation to persons described in regulation 11 of the Principal Regulations. That is, it applies to certain TAFE teachers who transferred from New South Wales to Commonwealth employment on 31 March 1977.

Section 56

Schedule 8 modified section 56 of the Act by inserting new paragraphs 56(2)(c) and 56(3)(c) with effect from 31 March 1977. Paragraphs 43(a) and (b) of the Superannuation Legislation Amendment Act 1990 (the Amending Act) inserted new paragraphs 56(2)(c) and 56(3)(c) in the Act with effect from 1 July 1990.

Subregulation 3.1 of the amending Regulations rectifies this duplication in the paragraph numbering by renumbering paragraphs 56(2)(c) and 56(3)(c) as inserted by Schedule 8 to paragraphs 56(2)(ba) and 56(3)(ba) respectively.

Sections 127, 130C, 130H and 130I

Schedule 8 to the Principal Regulations substitutes a new Division 2 in Part IX of the Act comprising sections 127 to 130J. Sections 130C, 130H and 130I reduce the rate of pension payable in certain circumstances. The reduction is abated with each complete year of contributory service after 31 March 1977 and is extinguished after 30 years of such service.

The Amending Act amended a number of provisions of the Act with effect from 1 July 1990 so that the levels of pension payable under the Act would be related to years and part years, rather than completed years, of contributory service.

As a consequence, subregulation 3.2 of the amending Regulations amends subsection 127(1) by inserting a definition of "prescribed period" for the purposes of sections 130C, 130H and 130I and subregulation 3.3 amends sections 130C, 130H and 130I. These amendments enable both complete years and a part of a year of contributory service to be taken into account in abating the reduction in pension.

REGULATION 4

This amends Schedule 10 to the Principal Regulations which contains modifications to the Act in relation to persons described in regulation 13 of the Principal Regulations. That is, it applies to certain persons to whom deferred benefits are applicable under the Superannuation Act 1922 and who have become members of the superannuation scheme established by the Act.

Schedule 10 to the Principal Regulations substituted a modified definition of "period of contributory service" in subsection 3(1) of the Act to apply in relation to the persons concerned.

Both the definition in the Act and the modified definition exclude certain periods of leave of absence without pay from the ambit of the term.

Paragraph 8(1)(j) of the Amending Act amended the definition of "period of contributory service" in the Act by making changes to the periods that are excluded.

Regulation 4 of the amending Regulations amends paragraph (d) of the modified definition so that the periods to be excluded will be the same as those excluded from the definition in the Act.