Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP INCLUSION DECLARATION NO. 9 1992 NO.420

STATUTORY RULES 1992 No. 420

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1990

DECLARATION UNDER PARAGRAPH 6(1)(j)

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(1) of the 1990 Act provides that certain persons are to be members of the PSS scheme. Paragraph 6(1)(j) provides that a person declared by the Minister for Finance to be a person to whom section 6 applies is a member of the PSS.

Where a person becomes an unattached Secretary, in practice, he or she continues to receive full salary and is able to 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 it is currently proposed that:

(a)       the mobility allowance would be payable at the maximum rate of pay applicable to on office 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 commencement of payment of the allowance, provided that the officer is not recalled to Commonwealth employment during that period;

(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 Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Inclusion Declaration No 9" provides that a person who is eligible to be paid a mobility allowance (irrespective of whether or not the, allowance payable to the person is reduced because of income earned) who was immediately before becoming eligible for the allowance, either

(a)       a member of the PSS, or

(b)       an eligible employee under the Superannuation Act 1976 who is eligible to make an election under subsection 244(1) of that Act to join the PSS.

The Declaration also contains a definition of 'mobility allowance'.

In accordance with section 45 of the 1990 Act, 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.

This Declaration operates with effect from the date of Gazettal.