Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP INCLUSION DECLARATION (AMENDMENT) 1998 NO. 244

STATUTORY RULES 1998 NO. 244

Issued by the authority of the Minister for Finance and Administration

Superannuation Act 1990

Declaration under paragraph 6(1)(j)

The Superannuation Act 1990 (1990 Act) makes provision for, and in relation to, an occupational superannuation scheme known as the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and certain other persons.

Section 6 of the 1990 Act specifies the persons who are, or who may be, members of the PSS. In accordance with paragraph 6(1)(j), a person declared by the Minister for Finance and Administration to be a person to whom section 6 applies is a member of the scheme. Declarations made under paragraph 6(1)(j) are contained in the Superannuation (PSS) Membership Inclusion Declaration (the Principal Declaration).

Section 45 of the 1990 Act provides that a declaration under paragraph 6(1)(j) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.

Subsection 45(4) of the 1990 Act provides that regulations for the purposes of paragraph 6(1)(j) may commence on a day not earlier than 12 months before their making.

The purpose of the Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Inclusion Declaration (Amendment)" is to amend the Principal Declaration to provide continuing PSS membership for certain employees of the Australian Wheat Board (AWB) who transferred to the wholly AWB owned holding company called AWB Limited during the period from 1 June 1998 to 30 June 1999 (inclusive). The PSS membership of these persons will cease when Commonwealth control of AWB Limited ceases.

The retrospectivity of the Declaration does not contravene subsection 48(2) of the Acts Interpretation Act 1901 in that the rights of employees are not affected in a manner prejudicial to them nor are liabilities imposed on them.

Details of the amendments are explained in the Attachment.

ATTACHMENT

SUPERANNUATION (PSS) MEMBERSHIP INCLUSION DECLARATION (AMENDMENT)

Clause 1

This clause provides that the Declaration is taken to have commenced on 1 June 1998, which is the date of commencement for AWB Limited.

Clause 2

This clause provides that the Declaration is amending the Superannuation (PSS) Membership Inclusion Declaration (the Principal Declaration).

Clause 3

This clause provides for a definition of AWB Limited to be inserted in subclause 2(1) of the Principal Declaration.

Clause 4

This clause amends clause 3 of the Principal Declaration which specifies persons to whom section 6 of the 1990 Act applies and who are therefore members of the PSS. Subclause 3(1) of the Declaration states that section 6 of the 1990 Act applies to a person described in the Schedule.

Subclause 4.1 of the Declaration amends subclause 3(1) of the Principal Declaration to provide that subclause 3(1) is subject to the new subclause 3 (9) of the Principal Declaration.

Subclause 4.2 of the Declaration adds new subclause 3(9) to the Principal Declaration to ensure that persons employed by the AWB Limited who are members because of the new item 17 of the schedule to the Principal Declaration will cease to be members on the earliest of the following days:

(a)       the day on which the person ceases to be employed by AWB Limited; or

(b)       the day immediately before the day the person joins another superannuation scheme in relation to that employment, other than a scheme relating only to performance pay superannuation or for top-up purposes; or

(c)       if Commonwealth control of AWB Limited ceases, the last day on which AWB is Commonwealth controlled.

The term "top-up arrangement" is defined in subclause 2(1) of the Principal Declaration.

Clause 5

The schedule to the Principal Regulations specifies persons to whom section 6 of the 1990 Act applies and who are therefore members of the PSS.

Subclause 5.1 of the Declaration inserts a new item 17 to provide PSS membership to people who became employees of AWB Limited during the period from 1 June 1998 to 30 June 1999 (inclusive) and who were PSS members employed by the Australian Wheat Board (AWB) immediately before becoming employees of AWB Limited. PSS membership is not provided to a person who is a member of a superannuation scheme in relation to employment with AWB Limited, other than a scheme relating only to performance pay superannuation or a "top up arrangement", or a person who is covered by the "mobility provisions" contained in Division 2 or 3 of Part IV of the Public Service Act 1922.

As outlined above, any person who becomes a PSS member under item 17 will have their membership cease if the new subclause 3(9) applies to the person.