SUPERANNUATION FUNDS MANAGEMENT CORPORATION OF SOUTH AUSTRALIA (MISCELLANEOUS) AMENDMENT BILL 2002

Short title

1. (1) This Act may be cited as the Superannuation Funds Management Corporation of South Australia (Miscellaneous) Amendment Act 2002.

(2) The Superannuation Funds Management Corporation of South Australia Act 1995 is referred to in this Act as "the principal Act".

Commencement

2. This Act will come into operation on a day to be fixed by proclamation.

Amendment of s. 3—Interpretation

3. Section 3 of the principal Act is amended—

(a)by inserting before the definition of "associate" in subsection (1) the following definition:

"approved authority" means a public authority to which an approval has been granted by the Minister under section 5A(3);;

(b)by inserting after the definition of "director" in subsection (1) the following definition:

"eligible superannuation fund" means a superannuation fund that is not a public sector superannuation fund but consists of money contributed by the Crown to provide a group of its employees with superannuation benefits;;

(c)by inserting in the definition of "the funds" in subsection (1) "and the nominated funds of each approved authority" after "superannuation funds";

(d)by inserting after the definition of "liability" in subsection (1) the following definition:

"nominated funds" means funds of an approved authority nominated by the Minister and transferred to the Corporation in accordance with an approval under section 5A(3);;

(e)by inserting after the definition of "prescribed interest" in subsection (1) the following definition:

"public authority" means—

(a)a government department;

(b)a Minister;

(c)a statutory authority—

(i)that is an agency or instrumentality of the Crown; or

(ii)the accounts of which the Auditor‑General is required by law to audit,

and includes any body or person responsible for the management of an eligible superannuation fund and any other body or person brought within the ambit of this definition by the regulations;;

(f)by striking out paragraph (e) of the definition of "public sector superannuation funds" in subsection (1);

(g)by striking out subsections (3), (4) and (5).

Amendment of s. 5—Functions of the corporation

4. Section 5 of the principal Act is amended by striking out paragraph (a) and substituting the following paragraph:

(a)to invest and manage—

(i)the public sector superannuation funds; and

(ii)the nominated funds of approved authorities,

pursuant to strategies formulated by the Corporation;.

Insertion of s. 5A

5. The following section is inserted after section 5 of the principal Act:

Investment and management of public funds

5A. (1) A public authority may apply to the Minister for approval to transfer certain of its funds to the Corporation for the purpose of investment and management of those funds on behalf of the authority.

(2) The Minister may determine the form and the manner in which an application is made under subsection (1).

(3) On receipt of an application under subsection (1), the Minister may—

(a)grant an approval to the applicant for transfer to the Corporation of such of the applicant's funds referred to in the application as are nominated by the Minister for the purposes of this section; or

(b)refuse the application.

(4) The Minister must give written notice of a decision under subsection (3) to the applicant and the Corporation.

(5) The Corporation must invest and manage the funds of a public authority transferred to the Corporation following an approval by the Minister under subsection (3).

(6) The Corporation must, at the request of the public authority, transfer back to the public authority any funds of the public authority held by the Corporation pursuant to an approval under this section.

Amendment of s. 7—Object of the Corporation in performing its functions

6. Section 7 of the principal Act is amended by striking out "public sector superannuation".

Amendment of s. 10—Conditions of membership

7. Section 10 of the principal Act is amended by inserting after paragraph (c) of subsection (6) the following word and paragraph:

(d)if the director has been appointed by the Governor on the nomination of the Minister—on the recommendation of the Minister for such reason as the Minister thinks fit.

Amendment of s. 20—The performance plan

8. Section 20 of the principal Act is amended—

(a)by inserting in subsection (2)(a) "public sector superannuation" after "management of the";

(b)by inserting in subsection (2)(d) "public sector superannuation" after "management of the";

(c)by striking out subsection (6).

Insertion of s. 20A

9. The following section is inserted after section 20 of the principal Act:

Performance plan in relation to approved authority

20A. (1) The Corporation must prepare separate draft plans in respect of the investment and management of the nominated funds of each approved authority for each financial year.

(2) The plan for an approved authority must set out—

(a)a target for the rate of return on investment and management of the nominated funds of the approved authority; and

(b)strategies for the achievement of that target; and

(c)the anticipated operating costs to be incurred by the Corporation during the financial year in relation to the investment and management of the nominated funds of the approved authority; and

(d)the factors that, in the opinion of the Corporation, will affect or influence the investment and management of the nominated funds of the approved authority during the year; and

(e)such other matters as the Corporation thinks should be included in the plan.

(3) The draft plan must be prepared and copies submitted to the Minister and the approved authority to which the plan relates—

(a)if the plan is the initial plan in relation to the approved authority—as soon as practicable after the plan has been prepared;

(b)in any other case—before the commencement of the financial year to which the plan relates.

(4) The Corporation must have regard to any comments made by the Minister or the approved authority in relation to the draft plan and, if it thinks necessary or desirable to do so, amend the plan as a result of the comments.

(5) However, if the approved authority requests an amendment to the plan, the Corporation must amend the plan in accordance with the request unless the Corporation considers, after consulting with the approved authority, that the amendment should not be made.

(6) If the Corporation considers that a requested amendment should not be made, it must provide the approved authority with written advice of the Corporation's reasons for not amending the plan in accordance with the request.

(7) The Corporation must provide a copy of the final plan to the Minister and the approved authority to which the plan relates.

Substitution of s. 21

10. Section 21 of the principal Act is repealed and the following section is substituted:

Direction of Minister

21. (1) In the performance of its functions, the Corporation is subject to the direction and control of the Minister.

(2) A Ministerial direction under this section—

(a)must be—

(i)communicated to the Corporation in writing; and

(ii)included in the annual report of the Corporation; and

(b)must not include a direction to the Corporation in relation to an investment decision, dealing with property or the exercise of a voting right.

Repeal of s. 25

11. Section 25 of the principal Act is repealed.

Amendment of s. 26—Accounts

12. Section 26 of the principal Act is amended by striking out subsection (2) and substituting the following subsection:

(2) The Corporation must keep proper accounts of receipts and payments in relation to—

(a)each of the public sector superannuation funds; and

(b)the nominated funds of each approved authority,

and must prepare separate financial statements in a form approved by the Minister in respect of each fund or authority in respect of each financial year.

Amendment of s. 27—Internal audits and audit committee

13. Section 27 of the principal Act is amended—

(a)by striking out from subsection (1) "public sector superannuation";

(b)by striking out from subsection (4)(a) "public sector superannuation".

Amendment of s. 28—External audit

14. Section 28 of the principal Act is amended by striking out "public sector superannuation".

Substitution of s. 29

15. Section 29 of the principal Act is repealed and the following section is substituted:

Progress reports in relation to performance plan

29. (1) Within 1 month after 31 December in each financial year the Corporation must prepare and give to the Minister—

(a)a report on its progress in achieving the target for the rate of return on investment and management of the public sector superannuation funds set out in the relevant performance plan for that year; and

(b)separate reports in relation to each approved authority on its progress in achieving the target for the rate of return on investment and management of the nominated funds of the approved authority set out in the performance plan for the authority for that year.

(2) Within 1 month after the end of each financial year the Corporation must prepare and give to the Minister—

(a)a report on the extent to which it has achieved the target for the rate of return on investment and management of the public sector superannuation funds set out in the relevant performance plan for that year; and

(b)separate reports in relation to each approved authority on the extent to which it has achieved the target for the rate of return on investment and management of the nominated funds of the approved authority set out in the performance plan for the authority for that year.

(3) The Corporation must give a copy of each report prepared under subsections (1)(a) and (2)(a) to each of the superannuation boards.

(4) The Corporation must give a copy of each report prepared in respect of an approved authority under subsections (1)(b) and (2)(b) to the approved authority to which the report relates.

(5) If, during a financial year, the Corporation is of the opinion that the target in relation to the public sector superannuation funds or the nominated funds of an approved authority for that year is not achievable or a strategy set out in a performance plan should be modified or abandoned because a factor affecting or influencing the investment or management of the public sector superannuation funds or the nominated funds of an approved authority has changed or a new factor has arisen, the Corporation must prepare a report in relation to the matter.

(6) A report under subsection (5) must—

(a)describe the factor concerned; and

(b)explain why the target is not achievable or the strategy should be modified or abandoned; and

(c)be prepared and given to—

(i)the Minister; and

(ii)if the report relates to the public sector superannuation funds—each of the superannuation boards; and

(iii)if the report relates to an approved authority—the relevant approved authority,

as soon as practicable after the Corporation forms its opinion on those matters.

Amendment of s. 30—Annual reports

16. Section 30 of the principal Act is amended—

(a)by striking out from subsection (2)(a) "the performance" and substituting "each performance";

(b)by striking out paragraph (b) of subsection (2);

(c)by striking out from subsection (2)(c) "public sector superannuation";

(d)by striking out from subsection (2)(d) "public sector superannuation";

(e)by striking out from subsection (2)(e) "public sector superannuation";

(f)by inserting in subsection (3) "and each approved authority" after "superannuation boards".

Amendment of s. 39—Regulations

17. Section 39 of the principal Act is amended by—

(a)inserting in subsection (2)(a) ", or the nominated funds of an approved authority," after "superannuation funds";

(b)inserting after paragraph (b) of subsection (2) the following paragraph:

(c)prescribe fees payable to the Corporation in relation to an application under this Act or in relation to anything to be done by the Corporation under this Act.

By Authority: J. D. Ferguson, Government Printer, South Australia

South Australian Bills

SUPERANNUATION FUNDS MANAGEMENT CORPORATION OF SOUTH AUSTRALIA (MISCELLANEOUS) AMENDMENT BILL 2002