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SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS AMENDMENT REGULATIONS 2002 (NO. 2) 2002 NO. 341

STATUTORY RULES 2002 No. 341

Issued by the authority of the Minister for Finance and Administration

Superannuation Act 1976

Superannuation (CSS) Continuing Contributions for Benefits Amendment Regulations 2002 (No. 2)

The Superannuation Act 1976 (the Act) makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is 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.

Subsection 3(1) of the Act contains the definition of "eligible employee" which describes persons who may contribute to the CSS (ie CSS members), including those persons specified in the Superannuation (CSS) Continuing Contributions for Benefits Regulations 1981 (the Principal Regulations) pursuant to section 14A of the Act. Section 14A of the Act describes the classes of persons to whom the section applies including a class of persons specified in the Regulations as a class of persons to which the section applies. The section also provides that Regulations may modify the Act in relation to a person to whom the section applies.

The purpose of the Regulations is to amend the Principal Regulations to provide that CSS members commencing employment with the PSS Board, the CSS Board or both Boards ("the PSS/CSS Board") continue to be CSS members subject to certain conditions set out in the Regulations. Also certain former CSS members and members of the superannuation scheme established under the Superannuation Act 1922 who have rights of return to the CSS would resume or continue their membership or could elect to resume their membership on becoming employed by the PSS/CSS Board, subject to those same conditions. The conditions of CSS membership include the nature of employment (eg precludes casual and temporary part-time employment) and restrictions on contributions to other schemes.

The Regulations ensure continued membership of the CSS for employees of the PSS/CSS Board who commence employment with the PSS/CSS Board on or after the commencement of the Regulations. The Regulations also provide that CSS membership for PSS/CSS Board employees ceases in the circumstances set out in the Regulations. For example, membership ceases when the person ceases to be employed by the PSS/CSS Board.

The Regulations commence on gazettal.

Details of the Regulations are set out in the Attachment.

ATTACHMENT

SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS AMENDMENT REGULATIONS 2002 (NO. 2)

Regulation 1

Regulation 1 provides that the Regulations are called the Superannuation (CSS) Continuing Contributions for Benefits Amendment Regulations 2002 (No. 2).

Regulation 2

Regulation 2 provides for the commencement of the Regulations.

The Regulations commence on gazettal.

Regulation 3

Regulation 3 provides that the Superannuation (CSS) Continuing Contributions for Benefits Regulations 1981 (the Principal Regulations) are amended in accordance with Schedule 1.

Schedule 1

Item 1 inserts a definition of PSS/CSS Board in subregulation 2(1).

Item 2 corrects a technical punctuation error in the Regulations.

Item 3 amends Schedule 1 of the Principal Regulations to change punctuation to allow for the inclusion of the amendment in item 4.

Item 4 inserts paragraph 3A(1)(zd) which describes a class of persons who continue to be CSS members during their employment with the PSS/CSS Board. The class comprises persons who are or become employees of the PSS/CSS Board on or after the commencement of the Regulations and who were either CSS members immediately before commencing that employment or fall into one of the other classes of persons who are generally entitled to rejoin the CSS, eg, former members with preserved entitlements. The class does not include persons employed on a casual or temporary part-time basis or persons who are members of another superannuation scheme in relation to their employment with the PSS/CSS Board (except for top-up purposes). Where the person is employed by the PSS/CSS Board on a full time temporary basis and was not contributing to the CSS immediately before that employment commenced they will have the option of rejoining the CSS except where they were an invalidity pensioner.

Item 5 amends subregulation 3A(1A) as a consequence of the insertion of paragraph 3A(1)(zd) by item 4.

Item 6 inserts subregulation 4(30) which describes the circumstances which result in CSS membership for employees of the PSS/CSS Board ceasing and specifies when membership ceases in each circumstance.

Paragraph 4(30)(a) provides that membership continues by virtue of these amendments only while a member remains employed by the PSS/CSS Board.

Paragraph 4(30)(b) provides that membership ceases on the day immediately before the person becomes a casual or temporary part-time employee of the PSS/CSS Board.

Paragraph 4(30)(c) provides that membership ceases on the day immediately before the person joins another superannuation scheme, as defined in the Principal Regulations, other than a scheme for top-up purposes (also described in the Principal Regulations).

Item 7 amends subregulation 4(1A) as a consequence of the insertion of subregulation 4(30) by item 6.

Item 8 amends Schedule 1 of the Principal Regulations by making a technical amendment to correct punctuation.

Item 9 amends Schedule 1 of the Principal Regulations to change punctuation to allow for the inclusion of the amendment in item 10.

Item 10 amends Schedule 1 of the Principal Regulations which contains modifications of the 1976 Act that apply to certain persons who are members of the CSS by virtue of section 14A of that Act. The amendment ensures that the PSS/CSS Board can be required to make payments to the Commonwealth in respect of benefits to be paid from the CSS to its employees who are CSS members or the administration of the CSS.