Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION DECLARATION (AMENDMENT) 1996 NO.4

STATUTORY RULES 1996 No. 4

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.

The Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS) provide for a regulatory system for superannuation schemes which are regulated superannuation funds under that Act. The PSS is a regulated superannuation fund.

To ensure that the PSS complies with SIS requirements, the Declaration amends the Superannuation (PSS) Membership Exclusion Declaration (the Principal Declaration) to provide that a regulated superannuation fund not accept contributions made by or in respect of a member over age 65, or allow an additional benefit accrual after that age, other than in special. circumstances.

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 Principal Declaration.

Section 45 of the 1990 Act provides that a declaration under paragraph 6(2)(c) 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.

SIS does not permit the payment of contributions by or on behalf of a member of a regulated superannuation fund in certain circumstances.

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)" amends the Schedule to the Principal Declaration by adding item 36.

Clause 1 provides that the Principal Declaration is amended as set out in the amending Declaration.

Clause 2 adds item 36 to the end of the Schedule of persons to whom section 6 of the Act does not apply. A person included in the new class of person is described as "a contributions-barred person" and, because of SIS, is a person from whom a regulated superannuation fund may not accept contributions.

The amendment further provides for persons who are PSS members at the commencement of this declaration and who remain members to be excluded from the effect of this declaration. Also excluded are persons who become PSS members after the commencement of this declaration and who later become persons included in the class. This ensures that the existing members (who continue to be members) or future members who join the scheme while still permitted by SIS to contribute are not affected by the amendment.

This Declaration operates with effect from the date of gazettal.