Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CSS) PRODUCTIVITY EMPLOYEE EXCLUSION DECLARATION NO. 3 1993 NO. 87

STATUTORY RULES 1993 No. 87

Issued by the authority of the Minister for Finance

Superannuation Act 1976

Declaration under section 110E

The Superannuation Act 1976 (the Act) provides for a superannuation scheme for Commonwealth employees and certain other persons. That scheme is referred to as the Commonwealth Superannuation Scheme (CSS).

Part VIA (comprising sections 110A to 110S) of the Act provides, with effect from 1 July 1990, a funded productivity superannuation benefit for members of the CSS.

Section 110P provides that a productivity benefit is payable to a person who ceases to be a member of the CSS and who immediately before so ceasing, or earlier, was a "productivity employee" for the purposes of the Act. The term "productivity employee" is defined in section 110A as a member of the CSS with certain exceptions. These exceptions include persons included in a class of persons specified in a declaration by the Minister for Finance under section 110E.

Section 110E provides that the Minister for Finance may declare that a specified class of members of the CSS are not to be productivity employees if the Minister is satisfied that those persons are entitled to benefits that consist of, or include, amounts like the productivity benefits provided for in the Act. Section 110E also provides that a declaration under the section takes effect from such day, not earlier than 1 July 1990, as is specified in the declaration.

Section 110G provides that a declaration under section 110E is a statutory rule for the purposes of the Statutory Rules Publication Act 1903 and a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

The Australian and Overseas Telecommunications Corporation (AOTC) was formed on 1 February 1992 by the merger of the Australian Telecommunications Corporation (Telecom) and OTC Limited. AOTC has its own superannuation scheme. Staff of AOTC include a number of persons who were CSS members with Telecom and OTC Limited and who have been permitted to continue their CSS membership with AOTC.

In 1990 the Minister for Finance declared members of the CSS who were employed by Telecom at that time not to be productivity employees under the Act. As a consequence, those members who transferred from Telecom to AOTC have productivity contributions paid to, and productivity benefits provided from, AOTC's own superannuation scheme. On the other hand, CSS members employed by OTC Limited continued to be productivity employees under the Act and have continued to have productivity contributions paid to, and productivity benefits paid from, the CSS.

AOTC wishes to provide all its staff with productivity benefits through the Corporation's superannuation scheme. The Minister for Finance is satisfied that those productivity benefits are amounts like the productivity benefits provided for in the Act.

It is therefore appropriate that former staff of OTC Limited be excluded from the Commonwealth's productivity superannuation arrangements.

The Declaration contained in the Statutory Rule, and cited as "Superannuation (CSS) Productivity Employee Exclusion Declaration No 3" specifies persons who are members of the CSS and who are employees of or statutory office-holders with AOTC, having been members of the CSS and employees or statutory office-holders with OTC Limited immediately before transferring to AOTC on 1 February 1992, as a class of persons who are not to be "productivity employees".

The Declaration will take effect on 1 July 1993, the date from which all AOTC staff who are members of the CSS will be covered for productivity benefits under the AOTC scheme.