Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION DECLARATION (AMENDMENT) 1996 NO.172

STATUTORY RULES 1996 No. 172

Issued by the Authority of the Minister for Finance

Superannuation Act 1990

Declaration under paragraph 6(2)(c)

The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to an occupational superannuation scheme known as the Public Sector Superannuation Scheme (the PSS) for Commonwealth employees and certain other persons.

Section 6 of the 1990 Act specifies the persons who are, or who may be, members of the PSS. In accordance with paragraph 6(2)(c), a person declared by the Minister for Finance to be a person to whom section 6 does not apply is not a member of the scheme. Declarations made under paragraph 6(2)(c) are contained in the Superannuation (PSS) Membership Exclusion Declaration (the Principal Declaration).

The Schedule to the Principal Declaration describes persons for whom PSS membership is not available. The Declaration contained in the Statutory Rule and cited as "Superannuation (PSS) Membership Exclusion Declaration (Amendment)" (the Amending Declaration) amends the Principal Declaration to allow certain members of the ACT Government Service (ACTGS) to continue to have an option to join the PSS rather than being required to be members.

Members of the ACTGS are employees of the ACT. The ACT is an approved authority for the purposes of the PSS and, as such, permanent employees of the ACT are required to contribute to the PSS. Membership is optional for temporary ACT employees.

The ACTGS was established on 1 July 1994 and Commonwealth Public Servants working for the ACT Government and ACT employees were transferred to the ACTGS on or after that date. Section 19 of the Public Sector Management (Consequential and Transitional Provisions) Act 1994 (PSM Act) of the Australian Capital Territory (the ACT) enabled the Commissioner for Public Administration to appoint certain existing ACT employees to the ACTGS.

In some cases persons appointed to the ACTGS under that section of the PSM Act who were previously classified as "temporary employees" for the purposes of the 1990 Act became classified as "permanent employees".

Assurances were given to these employees that their existing terms and conditions would be maintained on appointment to the ACTGS. However, on appointment to the ACTGS and becoming permanent employees of the ACT these employees were required to be PSS members, whereas prior to their appointment PSS membership was optional.

To ensure that these employees have the same option with regards to PSS membership that they had prior to appointment to the ACTGS, they have been given the choice to be excluded from compulsory membership. A number of employees appointed under section 19 of the PSM Act have elected in writing that their preference is to be excluded from PSS membership with the option to join at a later time. Although excluded from the date of effect of the Amending Declaration, these employees will continue to have a period of PSS membership apply to them from date of appointment to the ACTGS until the date of effect of the Membership Exclusion Declaration.

The Amending Declaration adds item 37 to the Schedule of persons to whom section 6 of the 1990 Act does not apply. The new class of persons are those employees appointed to the ACTGS under section 19 of the PSM Act who were not members of the PSS immediately before their appointment under that Act, and have elected in writing their preference to be excluded from PSS membership (before the commencement of the Membership Exclusion Declaration). These employees have the option to join the PSS at any time after the Declaration takes effect.

Section 45 of the 1990 Act provides that a declaration under paragraph 6(2)(c) of that Act is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.

This Declaration operates with effect from the date of gazettal.