Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PSS) MEMBERSHIP EXCLUSION DECLARATION NO. 7 1994 NO. 270

STATUTORY RULES 1994 No. 270

Issued by the authority of the Minister for Finance

Superannuation Act 1990

Declaration under paragraph 6 (2)(c)

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

Section 6 of the Act specifies the persons who may be members of the PSS scheme. In accordance with paragraph 6(2)(c) of the Act, 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.

The Declaration cited as "Superannuation (PSS) Membership Exclusion Declaration No. 4" (the Principal Declaration) provides that section 6 of the Act does not apply to persons described in the Schedule to the Declaration. Such persons may not therefore be members of the PSS scheme. Some items in the Schedule have the effect of excluding from the PSS scheme certain persons who are members of another superannuation scheme to which the person's employer makes contributions.

Some PSS scheme members are employed on flexible remuneration arrangements which enable them to receive part of their remuneration as non-cash benefits. Under such arrangements some members may sacrifice a portion of their cash salary in favour of employer superannuation contributions to an alternative superannuation scheme in addition to contributions already being made to the PSS scheme. It is intended that, where a PSS member is entitled to such arrangements as part of his or her remuneration package, selection of this option should not exclude the person from membership of the PSS scheme.

The Declaration contained in the Statutory Rules and cited as "Superannuation (PSS) Membership Exclusion Declaration No. 7" amends the Principal Declaration to give effect to this intention. The Declaration also amends the Principal Declaration to clarify that a reference to membership of a superannuation scheme does not include a reference to the scheme under the Superannuation Act 1976 (known as the CSS) where the person's membership of that scheme relates to employment other than that in respect of which the person is a member of the PSS scheme. The details of the Declaration are set out in the attachment.

Section 45 of the Act provides that such a declaration 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.

The Declaration commences on gazettal.