Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION DECLARATION NO. 5 1992 NO.419

STATUTORY RULES 1992 No. 419

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1990

DECLARATION UNDER PARAGRAPH 6(2)(c)

The Superannuation Act 1990 (the 1990 Act) provides for an occupational superannuation scheme (the Public Sector Superannuation (PSS) Scheme) for persons employed by the Commonwealth, and for certain other persons.

Subsection 6(2) of the 1990 Act provides that certain persons are not to be members of the PSS scheme. Paragraph 6(2)(c) provides that a person, declared by the Minister for Finance not to be a person to whom section 6 applies, is not a member of the PSS.

Where a person becomes an unattached Secretary he or she currently is able to continue receiving full salary and continue membership of his or her superannuation scheme until retiring age.

On 25 September 1992 the Minister Assisting the Prime Minister for Public Service Matters, Senator Cook, announced new arrangements to apply to unattached Secretaries which will enable them to take leave to take up outside employment and to receive a "mobility allowance" during that employment. However, such persons would be subject to recall to Commonwealth employment at any time during the period of entitlement to the mobility allowance.

Under the new arrangement:

(a)       the mobility allowance would be payable at the rate of pay for a person at the top of Senior Executive Band 3 (Deputy Secretary level) but the amount would be reduced for earnings from private sector employment;

(b)       the mobility allowance would be payable until the earliest of

(i)       the date five years after becoming an unattached Secretary;

(ii)       attaining age 60; or

(iii)       resigning or retiring from Commonwealth employment: and

(c)       the person would be able to continue contributions to the relevant Commonwealth superannuation scheme while entitled to the mobility allowance on the basis of the updated salary of his or her former position.

It is intended that amendments to the Public Service Act 1922 and determinations under section 82D of that Act will be made in order to reflect, and to provide, for the necessary arrangements for the payment of the mobility allowance.

Special superannuation arrangements are required in order to ensure that persons who are entitled to receive the allowance continue to be members of the PSS.

The Superannuation (PSS) Membership Exclusion Declaration No 4 (Declaration No 4) provides that certain persons will cease to be members of the P SS if they join another superannuation scheme connected with their employment. As it is intended that persons who are eligible to be paid a mobility allowance should be permitted to join a separate superannuation scheme in connection with their employment while continuing to be members of the PSS, it is proposed to amend the Declaration to ensure that the exclusions do not effect them.

The amendments contained in the proposed Statutory Rule are explained in the Attachment. .

The Determination has effect from the date of gazettal.

ATTACHMENT

THE AMENDING STATUTORY RULE

ITEM 1

This provides that the Statutory Rule should be cited as Superannuation (PSS) Membership Exclusion Declaration No. 5.

ITEM 2

This provides that the Statutory Rule amends the Superannuation (PSS) Membership Exclusion Declaration No. 4.

ITEM 3

This inserts a definition of 'mobility allowance' in Declaration No 4.

ITEM 4

This amends the Schedule to Declaration No 4. The Schedule provides a list of persons to whom section 6 of the Act does not apply and who are therefore excluded from membership of the PSS

ITEM 4.1

Item 1 of the Schedule describes a person who is employed by an approved authority and who joins, or is required to join, the superannuation scheme applying to persons employed by that approved authority. The amendment provides that a person who is not eligible for mobility allowance is included. Persons who are eligible for the allowance are therefore not included and may join the superannuation scheme of an approved authority by which they are employed while continuing to be members of the PSS.

ITEM 4.2

Item 2 of the Schedule describes a person who holds a statutory office and who is a member, or is required to be a member, of a superannuation scheme applying to a holder of that office. The amendment restricts the provision to a person who is not eligible for mobility allowance. Persons who are eligible for the allowance are therefore able to join the superannuation scheme that applies to holders of that office while continuing to be members of the PSS.

ITEM 4.3

Item 7 of the Schedule describes a person who is a members of a superannuation scheme where the Commonwealth, or other body by which they are employed contributes towards the employer cost on their behalf. The amendment restricts the provision to a person who is not eligible for mobility allowance. Persons who are eligible for the allowance are therefore able to be members of the PSS despite the exclusion in this item.

ITEM 4.4

Item 21 of the Schedule provides a list of Acts. Any person who hold a statutory office under one of these Acts is a person to whom section 6 of the Act does not apply. The amendment provides that the exclusion only applies to a person who is not eligible for the mobility allowance. Persons who are eligible for the allowance may therefore be members of the PSS despite the exclusion in this item.

ITEM 4.5

Item 22 of the Schedule provides that a person who holds a statutory office under a law of the Northern Territory of Australia is not a person to whom section 6 of the Act applies. The amendment restricts the provision to a person who is not eligible for the mobility allowance. A person who is eligible for the mobility allowance is therefore able to continue to be a member of the PSS despite the exclusion in this item.

ITEM 4.6

Item 27 of the Schedule provides that a person who is employed by the Australian National Railways Commission (as an office, an employee or as the holder of a statutory office) and was not so employed and a member of the PSS prior to 17 October 1990 is not a person to whom section 6 of the Act applies. The amendment restricts the provision to a person who is not eligible for the mobility allowance. A person who is eligible for the mobility allowance may therefore be a member of the PSS despite the exclusion in the item.

ITEM 4.7

Item 29 of the Schedule provides that a person to whom Division 2 or 3 of Part IV of the Public Service Act applies and who joins a superannuation scheme applying to his or her employment is a person to whom section 6 of the Act does not apply. The amendment restricts the provision to a person who is not eligible for the mobility allowance. A person who is eligible for the mobility allowance may therefore be a member of the PSS despite the exclusion in the item.