Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (FORMER CONTRIBUTORS FOR UNITS OF PENSION) REGULATIONS (AMENDMENT) 1993 NO. 349

STATUTORY RULES 1993 No. 349

Issued by the authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Former Contributors for Units of Pension) Regulations (Amendment)

The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons. That superannuation scheme has operated since 1 July 1976, having replaced the scheme provided for under the Superannuation Act 1922 (the 1922 Act).

Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act. Section 183 of the 1976 Act provides that the regulations may modify the provisions of that Act in relation to a person who, immediately before becoming a contributor to that scheme, was a member of the superannuation scheme provided for under the 1922 Act. The regulations for the purposes of section 183 are contained in the Superannuation (Former Provident Account Contributors) Regulations and the Superannuation (Former Contributors for Units of Pension) Regulations.

The 1922 Act scheme comprised a Pension Scheme for those who met the required medical standard for entry to that scheme and a lump sum Provident Account for those who did not. Persons who were contributors to the 1922 Act Pension Scheme or Provident Account on 30 June 1976 were transferred to the 1976 Act scheme on 1 July 1976.

Special arrangements apply in relation to the transferred contributors. The special arrangements applicable to the transferred Pension Scheme contributors are provided by way of modifications to the 1976 Act contained in the Superannuation (Former Contributors for Units of Pension) Regulations (the Principal Regulations) made under section 183 of that Act.

The Superannuation Legislation Amendment Act 1992 (the Amending Act) amended the 1976 Act to provide for additional benefits in certain limited circumstances that are required as a result of the Superannuation Guarantee (Administration) Act 1992 and to provide for certain other changes to Commonwealth superannuation schemes. The amending Regulations amend the Principal Regulations as a consequence of amendments to the 1976 Act by the Amending Act. The amendment is outlined in the Attachment.

The Amending Act amended the 1976 Act by inserting a new subsection 168(12) which provides that regulations for the purposes of section 183 made within a period of 12 months after that amendment may be expressed to have taken effect from and including the day on which that amendment was made. In accordance with subsection 168(12) of the 1976 Act, the amending Regulations operate with effect from and including 18 December 1992, the date of commencement of that subsection. The retrospectivity will not affect the lights of any person (other than the Commonwealth) in a manner prejudicial to that person, nor will it impose any liability on such a person. The amending Regulations are, therefore, in accord with the Acts Interpretation Act 1901 and do not contravene subsection 48(2) of that Act.

ATTACHMENT

SUPERANNUATION (FORMER CONTRIBUTORS FOR UNITS OF PENSION) REGULATIONS (AMENDMENT)

THE AMENDMENT

The Amending Act made a number of amendments to section 128 of the 1976 Act, which provides for the treatment of transfer values from other superannuation schemes to the CSS. Subsection 128(4) - which provides for the payment, on cessation of CSS membership and in certain circumstances, of an additional lump sum benefit based on the employer component of the transfer value - was amended to provide that the additional lump sum benefit should also include an amount equal to the interest that would have accrued on that amount if it had been paid into the CSS Fund and not the Consolidated Revenue Fund. (Amounts in the CSS Fund accrue interest in accordance with determinations made by the CSS Board of Trustees.)

The Principal Regulations modify the 1976 Act by inserting a new section 130B, which provides for the payment of an additional lump sum benefit in circumstances similar to those under subsection 128(4), except that it relates to transfer values paid in under the 1922 Act.

The regulations amend inserted section 130B to provide that the additional lump sum benefit provided for under those arrangements also includes an interest component. That interest would be calculated from 1 July 1976 or the day the transfer value was paid to the Commonwealth, whichever is the later.

In accordance with subsection 168(12) of the 1976 Act, the amendment is expressed as being taken to have commenced on 18 December 1992.