SUPERANNUATION (PRODUCTIVITY BENEFIT) (QUALIFIED EMPLOYEES AND ALTERNATIVE ARRANGEMENTS) DECLARATION NO. 2 1994 NO. 304

SUPERANNUATION (PRODUCTIVITY BENEFIT) (QUALIFIED EMPLOYEES AND ALTERNATIVE ARRANGEMENTS) DECLARATION NO. 2 1994 NO. 304

STATUTORY RULES 1994 No. 304

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

DECLARATION UNDER SUBSECTIONS 3F(1), 4A (1) AND (2)

PERFORMANCE PAY SUPERANNUATION ARRANGEMENTS FOR OFFICERS OF THE AUSTRALIAN DEFENCE FORCE

The Superannuation (Productivity Benefit) Act 1988 (the Act) provides the mechanism by which the minimum level employer-sponsored superannuation contribution is made available to Commonwealth sector employees who have no other employer-sponsored superannuation coverage, as well as for APS staff who elect who elect to participate in the performance based pay (PBP) superannuation arrangements.

The designated employers of such employees are required to pay to either the superannuation fund nominated by the Minister for Finance or a fund approved by the Minister periodic contributions based on the salary of the employee as well as a once only payment of entitlements accrued under the Act in respect of service prior to the date when the employees join the fund.

Subsection 3F(1) of the Act allows the Minister to declare that a specified class of persons is a class of persons who are qualified employees.

Subsection 4A(1) of the Act allows the Minister to declare that a group of employees who come within the ambit of the Act (qualified employees) is a specified class of employees to which the normal provisions of the Act relating to fund membership and benefit accrual do not apply.

Subsection 4(A)2 of the Act allows the Minister to specify that particular superannuation arrangements apply to declared classes of qualified employees.

This Declaration provides that qualified employees (in this Declaration being certain senior full-time serving officers of the Australian Defence Force) who are entitled to receive performance pay are a class of employees (members) who may elect to have performance pay taken into account for superannuation purposes. If members wish to do so they must elect by written notice; if no election is made, superannuation is not provided. The Declaration provides that the superannuation payments of members who make such an election must be made to a fund approved under the Act.

Members who receive performance pay in respect of the financial year 1993-94 and who wish to take the superannuation option must elect to do so within 3 months of receiving that performance pay. Members receiving performance pay after that date must make an election before the performance pay is paid.

If a member makes an election, his or her designated employer must pay 5 per cent of the member's performance pay, together with an amount additional to the performance pay and equal to 15 per cent of the performance pay to an approved fund.

The PBP superannuation arrangement made for ADF officers in this Declaration mirrors the arrangement which has been provided for APS officers under a similar Declaration.

The declaration takes effect from 3 June 1994. The retrospective effect of this declaration does not affect in a prejudicial manner the rights of any person other than the Commonwealth.