Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS AMENDMENT 1995 NO. 438

STATUTORY RULES 1995 No. 438

Issued by the Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (CSS) Continuing Contributions for Benefits 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.

Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the 1976 Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" the term includes a person to whom section 14A applies. Section 14A of the 1976 Act provides that regulations may be made under that section. Regulations for the purposes of section 14A are contained in the Superannuation (CSS) Continuing Contributions for Benefits Regulations.

The amending regulations will allow CSS members to declare their intention to be members of the PSS and elect to cease to be members of the CSS during the period 1 March 1996 to 31 August 1996. Certain CSS members who may not be able, for various reasons, to take the actions to transfer during that period will have a period of at least three months from the date on which they became able to transfer. The opportunity to transfer is only to be made available to persons who are employed by bodies which have other employees who may already be members of the PSS.

The amendments contained in the regulations are explained in the Attachment.

The date of effect of the amendments is 1 March 1996.

ATTACHMENT

SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS (AMENDMENT)

BACKGROUND

Persons eligible to contribute to the CSS (ie, CSS members) are referred to in the 1976 Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" the term includes a person to whom section 14A applies. Section 14A of the 1976 Act provided that regulations made under that section may specify a class of persons to whom the section applies and may fix a time at which the section ceases to apply to a person. Regulations for the purposes of section 14A are contained in tile Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations).

Regulations 3A and 3B of the Principal Regulations describe classes of persons to whom section 14A of the 1976 Act applies. Only the classes described in paragraphs 3A(1)(e) and 3A(1)(l) and regulation 3B include persons who are employed by bodies which have employees who may already be members of the PSS. Persons included in those classes have the option to transfer to the PSS under the amending regulations. Other classes of persons to whom section 14A of the 1976 Act apply are not given the option to transfer.

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 inserts a new regulation 4A after regulation 4 of the Principal Regulations.

Subregulation 4A(1) provides for a person included in the classes described by paragraphs 3A(1)(e) and 3A(1)(1) and regulation 3B to be able to declare an intention to join the PSS and to elect to cease to be a member of the CSS. Persons may only take action under the subsection if they were not, when taking the action, precluded from membership of the PSS by a provision of the 1990 Act other than the provision that precludes CSS members from also being members of the PSS.

Subregulation 4A(2) provides, subject to subregulation 4A(3), that the period during which a person may make an election is 1 March 1996 to 31 August 1996.

Subregulation 4A(3) provides that if special circumstance exist in relation to a person, and the person has not taken action under subregulation 4A(1) during the six month period then he or she may take that action during an extended period. This amendment ensures that all persons covered by the amending regulations have at least a three month period in which to elect to transfer to the PSS.

The special circumstances are, where a person is:

(a)       absent from duty on leave without pay; or

(b)        precluded from membership of the PSS (by a provision of the 1990 Act other than the provision that precludes CSS members from also being members of the PSS).

If the special circumstances do not apply to the person on 31 August 1996 then the person may take action under subregulation 4A(1) during a period commencing on 1 September 1996 and ending at the end of a period of three months commencing on the last day before 1 September 1996 on which the special circumstances ceased to apply to the person. If the special circumstances do apply to the person on 31 August 1996 then the person may take action under subregulation 4A(1) during a period commencing on 1 September 1996 and ending at the end of a period of three months commencing on the first day after 31 August 1996 on which the special circumstances ceased to apply to the person.

Paragraph 4A(4)(a) provides that a person who has been in receipt of invalidity pension before 31 August 1996 may take action under subregulation 4A(1) either during the six month period or during a period ending on a date three months after returning to employment if that date would be later than 31 August 1996.

Paragraph 4A(4)(b) allows any person other than an invalidity pensioner who becomes a member of the CSS after 31 May 1996 to take action under subregulation 4A(1) within a three month period of becoming a member. Section 15A of the 1976 Act prohibits persons from becoming CSS members after 1 July 1990 unless they have a prior connection with the scheme, for example, persons who have made an election for preservation of rights under Part IX of that Act.