SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS 1994 NO. 116

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS 1994 NO. 116

STATUTORY RULES 1994 No. 116

Issued by the authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Continuing Contributions for Benefits) Regulations

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme (known as the CSS) for certain Commonwealth employees and other persons. Persons eligible to contribute to the CSS are referred to in the Act as eligible employees.

Section 168 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A applies. Subsection 14A(1) lists the categories of persons to whom the section applies including persons specified in regulations made under the section. Regulations under section 14A may also modify the Act in respect of persons to whom the section applies.

Regulations for the purposes of section 14A are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations).

The Act was recently amended by the Prime Minister and Cabinet (Miscellaneous Provisions) Act 1994. The amendments introduced new provisions in relation to involuntary retirement benefits for persons appointed for a fixed term. However, the new provisions do not extend to persons who contribute to the CSS only because they are persons to whom section 14A of the Act applies.

The Regulations modify the Act so that the new involuntary retirement provisions can apply also to persons who contribute to the CSS only because they are persons to whom section 14A of the Act applies. The amendments contained in the Regulations are explained in the Attachment.

The Regulations operate with effect from the date of gazettal.

ATTACHMENT

SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT)

The details of the Regulations are as follow:

Regulation 1

This provides that the Superannuation (Continuing Contributions for Benefits) Regulations (the Principal Regulations) are amended as set out in the Regulations.

The Regulations commence on the date of gazettal.

Regulation 2

This amends regulation 5 of the Principal Regulations by inserting subregulation 5(3). Subregulation 5(3) provides that, subject to the modifications to the Act made by Schedule 3 of the Regulations, the Act applies to a person included in the class of persons who are appointed or employed on a fixed term basis and are CSS members because they are:

(a)       persons to whom Division 3 of Part IV of the Public Service Act 1922 applies; or

(b)       persons to whom paragraph 14A(1)(b) or (e) of the Superannuation Act 1976 (the Act) refers.

Regulation 3

This inserts a new Schedule 3 after Schedule 2. Schedule 3 modifies the Act in respect of certain fixed-term office holders and employees. The Schedule provides as follows:

Item 1 - Section 57B (Definition)

This amends the definition of "fixed-term employee" in subsection 57B(1) of the Act by providing, by the insertion of a new paragraph (f), that the definition includes a person who is appointed or employed on a fixed term basis and who is a CSS member because he or she is:

(a)       a person to whom Division 3 of Part IV of the Public Service Act 1922 applies; or

(b)       a person to whom paragraph 14A(1)(b) or (e) of the Act refers.

Item 2 - Section 58A (Special provision regarding certain holders of statutory offices)

This amends subparagraph 58A(1) as a consequence of the amendment to the definition of "fixedterm employee" in item 1.

Subsection 58A(1) describes those statutory office holders who will automatically qualify for entitlement to involuntary retirement benefits on cessation as a CSS member where the person has come to the end of his or her term, is eligible for re-appointment and wishes to be re-appointed but is not re-appointed.

The amendment will make it clear that persons described in the new paragraph 57B(1)(f), or who have been such persons, will be treated on the same basis as other CSS members who are statutory office holders. That is, they will have automatic entitlement to involuntary retirement benefits if, immediately before taking up the appointment to the statutory office or the latest term of that appointment, they were:

(a)       employed, otherwise than on a fixed term basis, in the organisation which pays their remuneration as a statutory office holder;

(b)        employed under the Public Service Act 1922 otherwise than on a fixed term basis;

(c)       employed on a fixed term basis either as an employee of the organisation which pays their remuneration as a statutory office holder or under the Public Service Act 1922 or held a statutory office and at the end of that appointment or employment would have been entitled to involuntary retirement benefits had they not taken up their current appointment or term of appointment.

Item 3 - Section 58B (Special provision regarding certain fixed-term employees)

This amends subparagraph 58B(1) as a consequence of the amendment to the definition of "fixedterm employee" in item 1.

Subsection 58B(1) describes those fixed term employees who will automatically qualify for entitlement to involuntary retirement benefits on cessation as a CSS member where the person has come to the end of his or her term, is eligible for re-appointment and wishes to be reappointed but is not re-appointed.

The amendment will make it clear that persons described in the new paragraph 57B(1)(f), or who have been such persons, will be treated on the same basis as other CSS members who are fixed term employees. That is, they will have automatic entitlement to involuntary retirement benefits if, immediately before taking up the fixed term employment or the latest term of that employment, they were:

(a)       employed, otherwise than on a fixed term basis, in the same organisation;

(b)        employed under the Public Service Act 1922 other-wise than on a fixed term basis;

(c)       employed on a fixed term basis either as an employee of the same organisation or under the Public Service Act 1922 or held a statutory office and at the end of that appointment or employment would have been entitled to involuntary retirement benefits had they not taken up their current employment or term of employment.