Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (CONTINUING CONTRIBUTIONS FOR BENEFITS) REGULATIONS (AMENDMENT) 1991 NO. 446

STATUTORY RULES 1991 No. 446

Issued by authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Continuing Contributions for Benefits) Regulations (Amendment)

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

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

Persons eligible to contribute under the Act are referred to as "eligible employees". The term "eligible employee" is defined in subsection 3(i) of the Act. In accordance with paragraph (ea) of the definition, the term includes a person to whom section 14A of the Act applies.

Regulations under section 14A may specify persons to whom the section applies and may modify the Act in respect of such persons. These provisions are contained in the Superannuation (Continuing Contributions for Benefits) Regulations (the Regulations).

The Commonwealth provides health services to veterans and their dependants through the repatriation hospitals and other facilities. These repatriation hospitals and some other repatriation institutions are to be transferred to State control as part of the integration of veterans' health services with those of the States.

On transfer of the repatriation hospitals and other repatriation institutions to State control, staff employed at these institutions may transfer to State employment. These staff are at present employed under the Public Service Act 1922 and include persons who are eligible employees under the Act.

Staff who transfer to State employment will be taken, by virtue of the Repatriation Institutions (Staff) Act, to have resigned from the Commonwealth Public Service. Rather than superannuation resignation benefits becoming payable, it is intended that any Commonwealth Superannuation Scheme members who transfer may continue to be eligible employees for the purposes of the Act, subject to negotiations with the respective States, including negotiation on recovery of the relevant employer superannuation costs.

The amendments to the regulations provide that staff of an institution who transfer to State employment shall be eligible employees if, immediately before transfer, they were eligible employees and do not become members of a superannuation scheme applying to employment with the State. In accordance with the provisions of the Act, the amended regulations exclude persons who become casual employees or part-time temporary employees from remaining eligible employees.

The amended regulations also provide that the staff will continue as eligible employees unless the Minister for Finance signs a certificate to the effect that satisfactory arrangements have not been made in respect of payments by the States for the staff. This provision is primarily to ensure that the States meet the cost to the Commonwealth of continuing to provide superannuation benefits for those staff.

The amendments will come into effect on commencement of the Repatriation Institutions (Staff) Act.