Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (RETIRING AGE) REGULATIONS (AMENDMENT) 1996 NO. 105

STATUTORY RULES 1996 No. 105

Issued by the Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Retiring Age) Regulations (Amendment)

The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme for Commonwealth employees and for certain other persons. That scheme is known as the Commonwealth Superannuation Scheme (CSS).

Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.

Subsection 3(1) of the 1976 Act, prior to the amendments made by Superannuation Legislation Amendment Act (No. 1) 1995 (the amending Act), included definitions of "maximum, retiring age" and "minimum retiring age" which provided that the maximum retiring age is 65 and the minimum retiring age is 60 unless otherwise prescribed in regulations.

Regulation have been made for the purposes of the definitions in subsection 3(1) of the 1976 Act of "maximum retiring age" and "minimum retiring age" in the Superannuation (Retiring Age) Regulations (the Principal Regulations).

Regulation 4 of the Principal Regulations provides that, where a person's maximum retiring age is less than 65, the maximum retiring age for the person should be the maximum retiring age applicable under the terms and conditions of the person's employment. This was intended to allow a maximum retiring age lower than 65 to apply to the person, if so provided by the terms and conditions of employment. However, the provision as currently worded lacks clarity.

Regulation 5 of the Principal Regulations provides that where a person's minimum retiring age is less than 60, the applicable retiring age will be that which applies under the terms and conditions of the person's employment.

The amending Act amended the 1976 Act by replacing the existing definition of "minimum retiring age" with a revised definition. The revised definition provides that the minimum retiring age is 55 unless another age is specified in the terms and conditions of employment or appointment of the CSS member or former CSS member in respect of the position held on his or her last day of membership of the CS S.

Subsection 168(12A) was inserted to provide that regulations arising from the amendments to the Act may be made with retrospective effect within one year after the amending Act received Royal Assent. The Regulations amend the Principal Regulations as a consequence of the amendments to the 1976 Act contained in the amending Act

THE AMENDMENTS

Regulation 1

This regulation provides that regulation 5 is taken to have commenced on 23 June 1995.

Regulation 2

This regulation provides that the Principal Regulations are amended by the amending Regulations.

Regulation 3

This regulation provides that the name of the Principal Regulations be changed to Superannuation (CSS) Retiring Age Regulations.

Regulation 4

This regulation modifies regulation 4 of the Principal Regulations which relates to maximum retiring age.

Subregulation 4.1

This subregulation omits and replaces subregulation 4(1) of the Principal Regulations and inserts a new subregulation 4(1A). The replacement subregulation 4(1) provides that if an eligible employee's terms and conditions of employment provide a maximum retiring age of less than 65, then that age is the person's maximum retiring age for the purposes of the 1976 Act. The new subregulation 4(1A) provides that if a person is no longer a CSS member and, under the person's terms and conditions of employment before they last ceased to be a CS S member, the maximum age for retirement of the person was less than 65, then that age is the person's maximum retiring age for the purposes of the 1976 Act.

Subregulation 4.2

This subregulation inserts a reference to subregulation 4(1A) into subregulation 4(3) of the Principal Regulations.

Regulation 5

This regulation omits regulation 5 of the Principal Regulations, as a consequence of the revised definition inserted in the 1976 Act by the amending Act.