Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PRODUCTIVITY BENEFIT) ALTERNATIVE ARRANGEMENTS DECLARATION NO. 3 1991 NO. 126

STATUTORY RULES 1991 No. 126

SUPERANNUATION (PRODUCTIVITY BENEFIT) ACT 1988 (THE ACT)

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

DECLARATION UNDER SECTION 4A OF THE ACT

The Superannuation (Productivity Benefit) Act 1988 (the Act) is the mechanism by which a 3 per cent benefit is provided to Commonwealth employees without other superannuation coverage. The benefit is funded by contributions made by employers.

The amount to be contributed in respect of an employee is related to the weekly rate of salary for that employee. Where the employee is employed on a part-time basis, the amount to be contributed is calculated by pro-rating either salary or hours worked against a full-time equivalent in accordance with section 3C of the Act.

Statutory Rules 1990 No 415 addressed the problem of highly casual and short term employees by allowing individuals earning less than $110 per week, or whose expected period of employment is less than 3 months, to elect to have no contributions made to a fund on their behalf. Instead such employees receive an equivalent cash benefit on retirement. Employees who choose to make this election do not receive invalidity or death cover. In addition, if their total benefit is $500 or more, the normal preservation arrangements apply.

The declaration replaces the previous salary threshold ($110) for highly casual employees with a new threshold of $113. The $113 figure, like its predecessor, represents one-quarter of the minimum amount at which graduated 3 per cent contributions are required to be paid (currently $452 per week).

The declaration commences on 1 July 1991.