Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT) 1992 NO.458

STATUTORY RULES 1992 No. 458

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

Superannuation Act 1976

SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)

The Superannuation Act 1976 (the Act) makes provision for and in relation to an occupational superannuation scheme (the CSS) for Commonwealth employees and certain other persons. Persons eligible to contribute to the CSS are referred to in the Act as eligible employees.

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

The term "eligible employee" is defined in subsection 3(1) of the Act. In accordance with paragraph (j) of the definition, the term does not include a person included in a prescribed class of persons. Thus, certain classes of persons may be excluded by regulation from becoming, or remaining, contributors to the CSS. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).

The Regulations provide, with certain exceptions, that persons who become members of another superannuation scheme, fund or arrangement are excluded from becoming, or remaining, contributors to the CSS.

Under the industrial agreement of 4 December 1992 between the Commonwealth and public sector unions, Senior Officers employed by the Commonwealth may be eligible to receive performance pay.

It is possible that superannuation could be provided on performance based pay at some time in the future with contributions being paid to a scheme other than the CSS. In such circumstances, it would be intended that persons who make superannuation contributions on the basis of performance pay to a separate scheme not be excluded from becoming, or remaining, members of the CSS. Accordingly, the Regulations are amended to ensure that the existing exclusions would not affect such persons.

Details of the Regulations are as follows.

Regulation 1 provides that the Regulations are amended as set out in the Amending Regulations.

Regulation 2 inserts a definition of "performance pay" in the Interpretation provisions of the Regulations.

Subregulations 3.1, 3.2 and 3.3 amend the specific provisions in the Regulations which exclude persons from the definition of "eligible employee" by virtue of being members of another superannuation scheme. The effect of the amendments is to provide that persons who become members of a superannuation scheme to which contributions are made in respect of those persons only in relation to performance pay are not to be excluded from membership of the CSS.

The Regulations commence on gazettal.