Superannuation Administration
Amendment Bill 2003

Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Superannuation Administration Act 1996
(the Principal Act) and certain regulations under that Act with respect to:

(a) the provision of information relating to the general administration of FSS
Trustee Corporation (FTC) and SAS Trustee Corporation (STC)
superannuation schemes and funds to the Minister administering the Acts
relating to those schemes and funds (currently the Special Minister of
State), and

(b) monitoring the activities of FTC and STC, and

(c) clarifying the role of various superannuation trustees in resolving disputes
concerning entitlements and obligations of members and former members
of certain superannuation funds, and

(d) quorums and voting procedures of the boards of FTC and STC.

The Bill also makes a number of amendments by way of statute law revision.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days
to be appointed by proclamation.

Clause 3 is a formal provision that gives effect to the amendments to the
Superannuation Administration Act 1996 set out in Schedule 1.

Clause 4 is a formal provision that gives effect to the amendments to the
Regulations set out in Schedule 2.

Schedule 1 Amendment of Superannuation
Administration Act 1996
Provision of information to Minister administering FTC and STC Acts
Sections 42 and 90 of the Principal Act provide that FTC and STC must furnish
to the Minister administering the Principal Act (currently the Treasurer) such
information relating to the general administration and operation of the FTC and
STC superannuation schemes and funds as that Minister may from time to time
require. Schedule 1 [9]–[12] and [17]–[20] amend sections 42 and 90 to provide
that the Minister administering the Acts under which the FTC and STC
superannuation schemes and funds are established or constituted (currently the
Special Minister of State) may also require that information.

Monitoring superannuation authorities
Schedule 1 [22] inserts proposed Part 4 (sections 96–99) into the Principal Act.

The proposed Part (which mirrors in certain respects sections 254–256 of the
Superannuation Industry (Supervision) Act 1993 of the Commonwealth) makes
provision for the monitoring of superannuation authorities (being FTC and
STC). Specific provision is made for written notices issued by the Minister
administering the Principal Act (currently the Treasurer) or an authorised person
requiring specified information, or reports on matters, to be supplied by the
superannuation authorities. That Minister or an authorised person is also given
the power to require the production of books relating to the affairs of a
superannuation authority and authorised persons are given the power to enter
business premises for the purpose of monitoring the superannuation authorities.

Quorum and voting of FTC and STC Boards
Schedule 1 [26] and [28] amend clause 10 of Schedule 1 and clause 11 of
Schedule 2 to the Principal Act to increase the quorum for a meeting of the
boards of FTC and STC from 5 members to 6 members.

Schedule 1 [27] and [29] amend clause 12 of Schedule 1 and clause 13 of
Schedule 2 to the Principal Act to provide that a decision supported by twothirds
of the members of the board of FTC or STC, respectively, is a decision of
the board concerned. Each board has 9 members. Therefore a decision must be
supported by 6 members to be a decision of the board of either of those
corporations.

Amendments by way of statute law revision
Schedule 1 [1]–[8], [13]–[16], [21], [23]–[25] and [31] make amendments by
way of statute law revision. The amendments are made for a variety of reasons
including redundancy of certain provisions relating to initial contracts or
arrangements with investment managers and administrators, the corporatisation
and sale of Axiom Funds Management Corporation, the abolition of the role of
Insurance and Superannuation Commissioner and the dissolution of the
Superannuation Administration Authority.

Savings and transitional provision
Schedule 1 [30] makes an amendment to Schedule 3 to the Principal Act to
allow savings and transitional regulations consequent on the enactment of the
the proposed Act to be made.

Schedule 2 Amendment of Regulations
Schedule 2.1 [1] inserts proposed clause 12 (3) into the Superannuation
Administration (Electricity Superannuation Scheme Transitional Provisions)
Regulation 1997. The amendment provides for the preservation of any right of
appeal available to a former member of or contributor to a FTC scheme or STC
scheme in respect of a matter involving a dispute with the trustee of that scheme,
and not finally dealt with before the transfer of assets and liabilities of the
scheme in respect of the former member or contributor to the electricity
superannuation scheme. Such an appeal is to be dealt with in accordance with
procedures under the electricity superannuation scheme as if the dispute were
with Energy Industries Superannuation Scheme Pty Ltd (that scheme’s trustee).

Schedule 2.2 [1] makes the equivalent amendment to the Superannuation
Administration (Local Government Superannuation Scheme Transitional
Provisions) Regulation 1997.

Schedule 2.1 [2]–[5] make amendments to clauses 40 and 41 of the
Superannuation Administration (Electricity Superannuation Scheme
Transitional Provisions) Regulation 1997 to clarify that a dispute concerning a
former member or beneficiary of a FTC or STC scheme arising in respect of
service by the former member with an employer before the transfer of the
employer’s employees to the electricity superannuation scheme is to be
determined, not by FTC or STC, but by the trustee of the electricity
superannuation scheme. Schedule 2.2 [2]–[5] makes the equivalent amendments
to clauses 41 and 42 of the Superannuation Administration (Local Government
Superannuation Scheme Transitional Provisions) Regulation 1997.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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