Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CSS) CONTINUING CONTRIBUTIONS FOR BENEFITS REGULATIONS(AMENDMENT) 1996 NO. 297

STATUTORY RULES 1996 No. 297

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 Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (the CSS), for certain Commonwealth employees and other persons, including employees of approved authorities.

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

Persons eligible to contribute to the CSS are referred to in the Act as eligible employees. In accordance with paragraph (ea) of the definition of "eligible employee" in subsection 3(1), the term includes a person to whom section 14A applies.

Section 14A of the Act provides 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. Paragraph 168(15)(b) provides that Regulations for the purposes of section 14A may commence on a day not earlier than 12 months before the making of the regulations. Regulations for the purposes of section 14A are contained in the Superannuation (CSS) Continuing Contributions for Benefits Regulations (the Principal Regulations).

On 1 July 1996, the ACT Totalizator Administration Board (ACTTAB) was corporatised and became ACTTAB Limited. ACTTAB Limited is a wholly owned company of the ACT Government. On corporatisation, ACTTAB staff ceased employment with the ACT Government Service (ACTGS) and became employees of ACTTAB Limited. In accordance with arrangements between the ACT and Commonwealth Governments, it is appropriate that ACTTAB Limited staff should continue to have access to the CSS from the date of corporatisation provided that the ACT Government has a controlling interest in the company.

The Amending Regulations amend the Principal Regulations to provide continuing access to the CSS to those continuing employees who were CSS members before 1 July 1996. The Amending Regulations also extend access to certain other persons (described in the Regulations) who since 1 July 1996 have become employees of, or who may become employed by, ACTTAB Limited in the future.

The amendments contained in the Amending Regulations are explained in the Attachment.

The Amending Regulations apply only as long as the ACT Government has control of ACTTAB Limited. Should the ACT Government lose control of the company the amending amendments cease to apply.

To ensure continuing membership of the scheme for those CSS members employed by ACTTAB Limited, the Amending Regulations operate with retrospective effect from 1 July 1996, the day of corporatisation.

ATTACHMENT

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

The details of the Amending Regulations are as follows:

Regulation 1

The Amending Regulations commence retrospectively on 1 July 1996.

Regulation 2

This provides that the Superannuation (CSS) Continuing Contribution for Benefits Regulations (the Principal Regulations) are amended as set out in the Amending Regulations.

Regulation 3

This amends Regulation 2 of the Principal Regulations, the interpretation provisions.

Subregulation 3.1 inserts a definition of' "ACT Government control". The term is defined because the amendment to Regulation 4 provides that one of the circumstances in which section 14A will no longer apply to CSS members employed by ACTTAB Limited, is when the company ceases to be controlled by the ACT Government.

The term is defined, in terms of a controlling interest by the ACT Government, or any of the following:

*       an authority or body established for a public purpose by or under a law of the ACT; or

*       another company, or other body corporate, that is under ACT Government control (within the meaning of the definition).

Regulation 4

Regulation 3A of the Principal Regulations lists certain classes of persons to which section 14A of the Superannuation Act 1976 (the Act) applies. Such persons are eligible employees by virtue of paragraph (ea) of the definition of "eligible employee" in subsection 3(1) of the Act.

Subregulation 4.1 of the Amending Regulations inserts a new paragraph 3A(1)(o) which provides for a new class of persons to which section 14A applies. The new class includes a person who on, or after, 1 July 1996 became an employee of ACTTAB Limited and who was, immediately before that employment, either:

*       an eligible employee under the Act; or,

*       a person to whom an invalidity pension was, or would, but for the suspension of payment, have been, payable to him or her under the Act; or

*       a person to whom deferred benefits were applicable to him or her under the Act; or

*       a person who becomes a re-employed former contributor with preserved rights under the Act by virtue of their employment, or appointment, to ACTTAB Limited.

A person who is a member of another employment related superannuation scheme may not generally be included in the new class of persons unless that arrangement is purely in respect of contributions relating to performance pay. Also, certain persons employed on flexible remuneration arrangements, which allow them to salary sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative superannuation scheme, may still be included in the new class of persons. A person who has such an arrangement is referred to in the Principal Regulations as being taken to be a member of a superannuation scheme for "top up purposes".

Subregulation 4.2 of the Amending Regulations amends subregulation 3A(1A) as a consequence of the new paragraph 3A(1)(o) to ensure that certain persons described in the new class are not prohibited from having section 14A apply to them because they are a member of a superannuation scheme for top-up purposes.

Regulation 5

Regulation 4 of the Principal Regulations sets a time when section 14A ceases to apply to a person.

Subregulation 4.1 of the Amending Regulations provides that section 14A ceases to apply to a person described in the new class at the end of the day that ACTTAB Limited ceases to be under the control of the ACT Government. "ACT Government control" in relation to the company is defined in regulation 2 of the Principal Regulations.