Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT) 1994 NO. 133

STATUTORY RULES 1994 No. 133

Issued by the authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Eligible Employees) Regulations (Amendment)

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

Since 1 July 1990 the CSS has been replaced by the Superannuation Scheme established by deed under the Superannuation Act 1990 (known as the PSS) as the main superannuation scheme for Commonwealth employees. Membership of the CSS continues to be available to existing members and certain former members (for example, former members with preserved benefits in the CSS).

Section 168 of the 1976 Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that the Act requires, or permits to be prescribed, for carrying out or giving effect to the Act..

Persons eligible to contribute to the CSS are referred to in the 1976 Act as eligible employees. The term "eligible employee" is defined in subsection 3(1) of the 1976 Act. In accordance with paragraph (j) of that definition, certain persons included in a prescribed class of persons may be excluded from becoming, or remaining, eligible employees. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Principal Regulations).

The Department of Defence currently employs certain temporary employees under section 42 of the Naval Defence Act 1910. Those staff are to be transferred to permanent employment under the Public Service Act 1922 (the PS Act) on 19 May 1994.

Membership of the CSS or the PSS is optional for temporary employees. Many of the Department of Defence staff who are to be transferred have not exercised an option to join the CSS or the PSS.

Membership of the CSS or the PSS is compulsory for a permanent employee under the PS Act. Therefore, those Department of Defence staff who become permanent employees as a result of the transfer and who are eligible to join the CSS will automatically become eligible employees on the date of the transfer.

As the transfer has not been initiated by the individual employees it is intended that those who are eligible to join the CSS retain their option to join the CSS. The Regulations will amend the Principal Regulations to permit the transferring staff to continue to have the option not to become eligible employees unless they specifically request. The details of the amending Regulations are described in the attachment.

The amendments will come into operation on 19 May 1994 (the day the transfers take place). The Regulations give effect to these modifications

ATTACHMENT

SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)

REGULATION 1

This provides that the Superannuation (Eligible Employees) Regulations (Amendment) (the Amending Regulations) are taken to have commenced on 19 May 1994.

REGULATION 2

This provides that the Superannuation (Eligible Employees) Regulations (the Principal Regulations) are amended as set out in the amending Regulations.

SUBREGULATION 3.1

This amends regulation 4 of the Principal Regulations which lists prescribed classes of persons for the purposes of paragraph (j) of the definition of "eligible employee" in subsection 3(1) of the 1976 Act. Persons included in such a class will not be eligible employees (that is, members of the CSS). The class described in the amending Regulations includes persons who:

-       immediately before 19 May 1994 were employed under section 42 of the Naval Defence Act 1910 and were not eligible employees under the provisions of the 1976 Act;

-       are appointed as officers of the Australian Public Service under section 81B of the Public Service Act 1922 on 19 May 1994;

-       have not ceased to be officers of the Australian Public Service since 19 May 1994; and

-       have not made a written request to be treated as eligible employees.