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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Clause 2 provides for the commencement of the proposed Act on assent,
except for certain specified provisions.
Clause 3 is a formal provision giving effect to the amendments to the Acts
set out in Schedule 1.
Clause 4 amends the Public Sector Executives Superannuation Regulation
1995 by omitting unnecessary provisions.
Schedule 1
Amendment of Acts
1.1 First State Superannuation Act 1992 No 100
Amendments relating to Commonwealth legislation
The FSS Trustee Corporation, trustee of the First State Superannuation
Scheme, is required to disclose information to members that is required for
compliance with a Commonwealth occupational superannuation standard. As
a result of changes made by the Superannuation Industry (Supervision) Act
1993 of the Commonwealth (the Commonwealth Act), the trustee will now
be required to disclose such information as it determines, having regard to the
requirements for a regulated superannuation fund under the Commonwealth
Act. (See Schedule 1.1 [2].)
Currently, provisions of the Principal Act require aspects of the First State
Superannuation Scheme to comply with Commonwealth occupational
superannuation standards. The amendments remove references to
Commonwealth occupational superannuation standards which have now been
replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.1 [3], [4], [7], [9], [12] and [14].)
The provision enabling the reduction of benefits in order to avoid incurring a
penalty under Commonwealth taxation law is no longer necessary and is to
be repealed. (See Schedule 1.1 [5] and [6].)
Currently, provisions of the Principal Act allow employers' obligations to
contribute to superannuation under Commonwealth legislation to be met by
contributing to other complying superannuation schemes. Also, benefits may
be paid to the First State Superannuation Fund from other complying
superannuation schemes. The amendments substitute references to complying
superannuation schemes for references to complying superannuation funds
for consistency with the Commonwealth Act. (See Schedule 1.1 [l], [8] and
[13].)
Explanatory note page 2
Schedule 1.1 [11] updates a definition so that it is consistent with the
Commonwealth Act.
Savings and transitional provisions
Schedule 1.1 [10] enables savings and transitional regulations to be made.
1.2 Parliamentary Contributory Superannuation Act 1971
No 53
Amendments relating to Commonwealth legislation
Currently, provisions of the Principal Act require aspects of the Parliamentary
Contributory Superannuation Scheme to comply with Commonwealth
occupational superannuation standards. The amendments remove references
to Commonwealth occupational superannuation standards which have now
been replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.2 [1], [2], [7], [8], [9], [10], [11], [13], [15] and [16].)
The Commonwealth Act requires trustees of regulated superannuation funds
to formulate investment strategies for the management of funds and reserves
strategies for the prudential management of any reserves of the funds.
Proposed section 8 imposes similar requirements on the trustees of the
Parliamentary Contributory Superannuation Scheme. (See Schedule 1.2 [4].)
Schedule 1.2 [3] makes a consequential amendment.
The provision requiring the consent of the Insurance and Superannuation
Commissioner of the Commonwealth to the extension of the period within
which an actuarial investigation of the Parliamentary Contributory
Superannuation Fund must be carried out is to be omitted, as such a power is
not required. (See Schedule 1.2 [5].)
The State has agreed, under the Heads of Government Agreement
commenced on 1 July 1996, to ensure the compliance of its public sector
superannuation schemes with standards applicable to funds under the
Commonwealth Act. The amendments require the trustees to have regard to
the Agreement and the future liabilities of the Parliamentary Contributory
Superannuation Fund in exercising their functions. (See Schedule 1.2 [6].)
The trustees will also be required to furnish to the Insurance and
Superannuation Commissioner of the Commonwealth information required
for the purpose of monitoring the Agreement. (See Schedule 1.2 [19].)
The provision enabling the reduction of benefits in order to avoid incurring a
penalty under Commonwealth taxation law is no longer necessary and is to
be repealed. (See Schedule 1.2 [12], [14] and [17].)
Explanatory note page 3
The trustees of the Parliamentary Contributory Superannuation Fund are
required to disclose information to members or other persons that is required
for compliance with a Commonwealth occupational superannuation standard.
As a result of changes made by the Commonwealth Act, the trustees will now
be required to disclose such information as they determine, having regard to
the requirements for a regulated superannuation fund under the
Commonwealth Act. (See Schedule 1.2 [18].)
1.3 Police Association Employees (Superannuation) Act 1969
No 33
Amendment relating to benefits for surviving spouses
Currently, a surviving spouse of a former employee of the Police Association
is entitled to a superannuation allowance (that is, a pension) if the spouse was
the spouse of the former employee when the former employee retired (if the
allowance was granted before age 60) or reached age 60 (if the retirement
occurs after age 60). Proposed section 3 (10AA) entitles the surviving spouse
of a former employee who retired because of disablement to a superannuation
allowance, additionally to those circumstances, if the spouse was the spouse
at the time of the former employee's death, had been the spouse for the
preceding 3 years and became the spouse before the former employee
reached age 60. (See Schedule 1.3 [l] and [2].)
1.4 Police Regulation (Superannuation) Act 1906 No 28
Amendments relating to Commonwealth legislation
Currently, provisions of the Principal Act require aspects of the Police
Superannuation Scheme to comply with Commonwealth occupational
superannuation standards. The amendments remove references to
Commonwealth occupational superannuation standards which have now been
replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.4 [l], [2], [3], [7], [8], [16], [18] and [20].)
The provisions enabling the reduction of benefits in order to avoid incurring
a penalty under Commonwealth taxation law are no longer necessary and are
to be repealed. Consequential amendments are made to other provisions of
the Principal Act. (See Schedule 1.4 [4], [5], [6], [9], [11], [12], [13], [15],
[17], [19], [22], [23] and [24].)
Schedule 1.4 [14] and [21] remove a superseded
Explanatory note page 4
The SAS Trustee Corporation, trustee of the Police Superannuation Scheme,
is required to disclose information to contributors that is required for
compliance with a Commonwealth occupational superannuation standard. As
a result of changes made by the Commonwealth Act, the trustee will now be
required to disclose such information as it determines, having regard to the
requirements for a regulated superannuation fund under the Commonwealth
Act. (See Schedule 1.4 [25].)
The provision requiring the consent of the Insurance and Superannuation
Commissioner of the Commonwealth to the extension of the period within
which an actuarial investigation of the Police Superannuation Fund must be
carried out is to be omitted, as such a power is not required. (See Schedule
1.4 [26].)
Amendment relating to benefits for surviving spouses
Currently, a surviving spouse of a former member of the Police
Superannuation Scheme is entitled to a superannuation allowance (that is, a
pension) if the spouse was the spouse of the former member when the former
member retired and when the former member died. Proposed section 11AA
entitles the surviving spouse of a former member who retired because of
disablement to a superannuation allowance, additionally to that circumstance,
if the spouse was the spouse at the time of the former member's death, had
been the spouse for the preceding 3 years and became the spouse before the
former member reached age 60. (See Schedule 1.4 [10].)
Savings and transitional provisions
Schedule 1.4 [27] enables savings and transitional regulations to be made.
1.5 Public Sector Executives Superannuation Act 1989 No 106
Amendments relating to Commonwealth legislation
Schedule 1.5 [l] and [3] update definitions so that they are consistent with
the Commonwealth Act.
Currently, provisions of the Principal Act require aspects of the Public Sector
Executives Superannuation Scheme to comply with Commonwealth
occupational superannuation standards. The amendments remove references
to Commonwealth occupational superannuation standards which have now
been replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.5 [2], [4], [5] and [8].)
Explanatory note page 5
The FSS Trustee Corporation, trustee of the Public Sector Executives
Superannuation Scheme, is required to disclose information to members that
is required for compliance with a Commonwealth occupational
superannuation standard. As a result of changes made by the Commonwealth
Act, the trustee will now be required to disclose such information as it
determines, having regard to the requirements for a regulated superannuation
fund under the Commonwealth Act. (See Schedule 1.5 [6].)
The provisions enabling the reduction of benefits in order to avoid incurring
a penalty under Commonwealth taxation law are no longer necessary and are
to be repealed. Consequential amendments are made to other provisions of
the Principal Act. (See Schedule 1.5 [9], [10], [11], [12], [13], [17] and [18].)
Actuarial investigation
Schedule 1.5 [7] omits an unnecessary provision requiring actuarial
investigations to be carried out.
Preserved benefits
Currently, the Principal Act sets out the circumstances when a benefit
preserved under the Act, and consisting of employer-financed contributions,
may be paid. These circumstances reflect those provided for under the
Commonwealth Act. The amendments provide for the preserved benefit to be
payable in the same circumstances as it would be payable under the
Commonwealth Act for a regulated superannuation fund under that Act,
rather than setting out each circumstance. (See Schedule 1.5 [16].)
The amendments also enable a member entitled to a benefit before retirement
age to have it paid to the member's account in another complying
superannuation fund within the meaning of the Commonwealth Act. (See
Schedule 1.5 [14] and [15].)
Savings and transitional provisions
Schedule 1.5 [19] enables savings and transitional regulations to be made.
1.6 State Authorities Non-contributory Superannuation Act
1987 No 212
Amendments relating to Commonwealth legislation
Schedule 1.6 [ l ] and [3] update definitions so that they are consistent with
the Commonwealth Act.
Explanatory note page 6
Currently, provisions of the Act require aspects of the State Authorities
Non-contributory Superannuation Scheme to comply with Commonwealth
occupational superannuation standards. The amendments remove references
to Commonwealth occupational superannuation standards which have now
been replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.6 [2], [4], [5] and [7].)
The provision requiring the consent of the Insurance and Superannuation
Commissioner of the Commonwealth to the extension of the period within
which an actuarial investigation of the State Authorities Non-contributory
is Superannuation Fund must be carried out is to be omitted, as such a power
[6].) not required. (See Schedule 1.6
The provisions enabling the reduction of benefits in order to avoid incurring
a penalty under Commonwealth taxation law are no longer necessary and are
to
of
be repealed. Consequential amendments are made to other provisions
[18].) the Principal Act. (See Schedule 1.6 [9], [17] and
The SAS Trustee Corporation, trustee of the State Authorities
Non-contributory Superannuation Scheme, is required to disclose information
to employees that is required for compliance with a Commonwealth
occupational superannuation standard. As a result of changes made by the
Commonwealth Act, the trustee will now be required to disclose such
information as it determines, having regard to the requirements for a
regulated superannuation fund under the Commonwealth Act. (See Schedule
1.6 [22].)
Non-contributing employees
When the First State Superannuation Scheme was commenced, the State
Authorities Non-contributory Superannuation Scheme was closed to new
employees and irregular employees were dealt with as having ceased to be
employees on 30 June 1992. The amendments clarify the treatment of such
employees by making it clear that these employees are taken to have been
employees on that date but that for any duties after that date the employees
are to be taken to have commenced employment as employees for the
purposes of becoming members of the First State Superannuation Scheme.
The amendments also validate the actions of the trustee in relation to such
employees. (See Schedule 1.6
[S] and [24].)
Payment of benefits
Currently, the Principal Act sets out the circumstances when the basic benefit
and a benefit preserved under the Act may be paid. These circumstances
reflect those provided for under the Commonwealth Act. The amendments
provide for the basic benefit and a preserved benefit to be payable in the
Explanatory note page 7
same circumstances as it would be payable under the Commonwealth Act for
a regulated superannuation fund under that Act, rather than setting out each
circumstance. (See Schedule 1.6 [10], [11], [12], [13], [14], [15], [16], [19]
and [21].)
Preservation of deferred accrued benefits
When the First State Superannuation Scheme was commenced, the State
Authorities Non-contributory Superannuation Scheme was closed to new
employees and existing employees (other than contributors to other public
sector superannuation schemes) were given a deferred accrued benefit instead
of the basic benefit under the Scheme. The amendments treat employees who
are entitled to this benefit as having ceased to be employees for the purposes
of the Principal Act, on and from 29 June 1997. The effect of this is that the
non-contributing employees' deferred accrued benefit becomes payable and
is preserved under the Principal Act. The amendments also require any such
preserved benefit to be transferred to a person's account in the First State
Superannuation Scheme, if the person is a member under that Scheme.
Otherwise the benefit will be payable in the same way as any other preserved
benefit. For the purposes of calculating the amount of the benefit to be
preserved, the employees' final average salary (for persons who are not
irregular employees) is taken to be their salary as at 31 December 1996. (See
Schedule 1.6 [20].)
Savings and transitional provisions
Schedule 1.6 [23] enables savings and transitional regulations to be made.
1.7 State Authorities Superannuation Act 1987 No 211
Amendments relating to Commonwealth legislation
Currently, provisions of the Principal Act require aspects of the State
Authorities Superannuation Scheme to comply with Commonwealth
occupational superannuation standards. The amendments remove references
to Commonwealth occupational superannuation standards which have now
been replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.7 [l], [2], [4], [16] and [17].)
The provision requiring the consent of the Insurance and Superannuation
Commissioner of the Commonwealth to the extension of the period within
which an actuarial investigation of the State Authorities Superannuation Fund
must be carried out is to be omitted, as such a power is not required. (See
Schedule 1.7 [3].)
Explanatory note page 8
The provisions enabling the reduction of benefits in order to avoid incurring
a penalty under Commonwealth taxation law are no longer necessary and are
to be repealed. Consequential amendments are made to other provisions of
the Principal Act. (See Schedule 1.7 [5], [7], [9], [11], [12], [14], [15], [18]
and [19].)
The SAS Trustee Corporation, trustee of the State Authorities
Superannuation Scheme, is required to disclose information to contributors
that is required for compliance with a Commonwealth occupational
superannuation standard. As a result of changes made by the Commonwealth
Act, the trustee will now be required to disclose such information as it
determines, having regard to the requirements for a regulated superannuation
fund under the Commonwealth Act. (See Schedule 1.7 [20].)
Schedule 1.7 [21] updates definitions.
Calculation of benefits
The amendments change the component of salary used to calculate certain
benefits under the State Authorities Superannuation Scheme from the
contributor's final salary on exit from the scheme to the higher of the final
salary and the contributor's final average salary (which is calculated over a
period of up to 3 years preceding exit). The change will apply to benefits on
death before early retirement, total and permanent invalidity before early
retirement, partial and permanent invalidity before reaching early retirement
age and on retrenchment before early retirement age. (See Schedule 1.7 [6],
[8], [10] and [13].)
Savings and transitional provisions
Schedule 1.7 [22] enables savings and transitional regulations to be made.
1.8 Superannuation Act 1916 No 28
Amendments relating to Commonwealth legislation
Schedule 1.8 [ l ] and [3] update definitions so that they are consistent with
the Commonwealth Act.
Currently, provisions of the Principal Act require aspects of the State
Superannuation Scheme to comply with Commonwealth occupational
superannuation standards. The amendments remove references to
Commonwealth occupational superannuation standards which have now been
replaced by requirements relating to consistency with requirements for
regulated superannuation funds under the Commonwealth Act. (See
Schedule 1.8 [2], [4], [6], [16], [17], [21], [22] and [23].)
Explanatory note page 9
The provision requiring the consent of the Insurance and Superannuation
Commissioner of the Commonwealth to the extension of the period within
which an actuarial investigation of the State Superannuation Fund must be
carried out is to be omitted, as such a power is not required. (See Schedule
1.8 [5].)
The provisions enabling the reduction of benefits in order to avoid incurring
a penalty under Commonwealth taxation law are no longer necessary and are
to be repealed. Consequential amendments are made to other provisions of
the Principal Act. (See Schedule 1.8 [7][15], [18][20], and [24].)
The SAS Trustee Corporation, trustee of the State Superannuation Scheme, is
required to disclose information to members that is required for compliance
with a Commonwealth occupational superannuation standard. As a result of
changes made by the Commonwealth Act, the trustee will now be required to
disclose such information as it determines, having regard to the requirements
for a regulated superannuation fund under the Commonwealth Act. (See
Schedule 1.8 [25].)
Savings and transitional provisions
Schedule 1.8 [26] enables savings and transitional regulations to be made.
1.9 Superannuation Administration Act 1996 No 39
Amendments relating to Commonwealth legislation
The SAS Trustee Corporation and the FSS Trustee Corporation are required
to disclose information to members of or contributors to schemes for which
they are the trustee that is required for compliance with a Commonwealth
occupational superannuation standard. As a result of changes made by the
Commonwealth Act, the trustees will now. be required to disclose such
information as they determine, having regard to the requirements for a
regulated superannuation fund under the Commonwealth Act. The trustees
will also be required to furnish to the Insurance and Superannuation
Commissioner of the Commonwealth information required for the purpose of
monitoring the Heads of Government Agreement. (See Schedule 1.9 [2] and
[3].)
Schedule 1.9 [ 1 ] makes a consequential amendment.
Other superannuation schemes
Schedule 1.9 [4] makes it clear that superannuation schemes may be
established for non-public sector employees who are currently in State public
sector superannuation schemes and who are involved in or associated with
local government or the electricity industry. A consequence of the
amendment is that transitional regulations may be made.
Explanatory note page 10