Commonwealth Numbered Regulations - Explanatory Statements

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Issued by Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Former Eligible Employees) Regulations (Amendment)

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

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

Persons eligible to contribute under the Act are referred to as eligible employees. The term "eligible employee" is defined in subsection 3(1) of the Act.

Section 126A of the Act provides that the Regulations may modify the Act in its application to or in respect of a person who ceases to be an eligible employee and who immediately after ceasing, becomes a member of another superannuation scheme. Regulations for the purposes of section 126A of the Act are contained in the Superannuation (Former Eligible Employees) Regulations (the Regulations).

The Australian Postal Corporation (APC) has for many years made employer contributions in respect of its eligible employees under section 159 of the Act. These contributions were paid into Consolidated Revenue. other Commonwealth agencies make like contributions. The rate at which contributions are made is determined individually for each agency by the Minister for Finance on actuarial advice. For this purpose, an actuarial analysis is undertaken as if each agency's employer contributions were paid into a continuing fund, invested and that "notional fund" used to pay benefits.

Eligible employees employed by the APC had the option of transferring to the Australia Post Superannuation Scheme (APSS) during the period from 1 July 1990 to 28 February 1991. Following the close of the transfer period an actuarial assessment of estimated liabilities has been made. After taking into account all liabilities and after assuming that there will not be any contributions paid, there is a residual amount of the "notional fund" still standing to the APC's credit.

The amended regulations empower the Minister for Finance to determine (and re-determine as necessary) a schedule of payments to the APSS to return this residual amount. It is intended to return the amount by way of regular payments over a number of years.

The specific details of these proposed amendments to the Regulations are set out in the attachment.

The proposed Regulations would commence on gazettal.



Proposed Regulation 8

This regulation provides that the amendments set out in new schedule 5A will apply in respect of those persons who are employees of, and holders of statutory office in, the Australian Postal Corporation (APC).

Proposed New Schedule 5

Paragraphs 1 to 4 modify the Act by omitting those provisions that would otherwise conflict with the payments from Consolidated Revenue Fund to the Australia Post Superannuation Scheme (APSS) in respect of persons who were eligible employees employed by the APC and elected to transfer to be members of the APSS.

Paragraph 5 modifies subsection 241(1) so that the Minister may determine that payments be made to the person or body administering the APSS, the amounts of which are in respect of payments made under section 159 by the APC (referred to as employer contributions in this memorandum).

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