Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (PERIOD OF CONTRIBUTORY SERVICE) REGULATIONS (AMENDMENT) 1996NO. 104

EXPLANATORY STATEMENT

STATUTORY RULES 1996 No. 104

Issued by the Authority of the Minister for Finance

Superannuation Act 1976

Superannuation (Period of Contributory Service) Regulations (Amendment)

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

Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.

Prior to the establishment of the CSS with effect from 1 July 1976, superannuation arrangements were provided for Commonwealth employees by a scheme established under the Superannuation Act 1922 (the 1922 Act).

Persons who were contributors to the scheme under the 1922 Act on 30 June 1976 were transferred to the CSS on 1 July 1976. Special arrangements apply in relation to the transferred contributors.

Subsection 3(1) of the 1976 Act defines the term "period of contributory service" in relation to a person who has ceased to be a CSS member. The definition includes periods of service from 1 July 1976 onwards only.

Section 183 of the 1976 Act provides that regulations may modify the provisions of that Act in relation to contributors under the 1922 Act who transferred and became CSS members.

Regulations made for the purposes of section 183 of the 1976 Act include the Superannuation (Period of Contributory Service) Regulations (the Principal Regulations). The Principal Regulations modify the 1976 Act by substituting a new definition of "period of contributory service" in subsection 3(1) of the 1976 Act in relation to transferred contributors so that their periods of membership of the scheme under the 1922 Act and other appropriate pre-1 July 1976 periods may be included in the definition.

The Superannuation Legislation Amendment Act (No. 1) 1995 (the amending Act) amended the 1976 Act in certain ways that necessitated amendments to the regulations that modify that Act. Subsection 168(12A) was inserted to provide that regulations arising from the amendments to the Act may be made with retrospective effect within one year after the amending Act received Royal Assent. The Regulations amend the Principal Regulations as a consequence of the amendments to the 1976 Act contained in the amending Act.

Item 4 of Schedule 2 to the amending Act amended the definition of "period of contributory service" included in subsection 3(1) of the 1976 Act as a consequence of the amendments included in items 9 and 72. These two items create additional periods that should be excluded from contributory service, ie, periods between employments that arise from subsection 3(3) and periods during which section 55A would not allow the accrual of benefits because of the Superannuation Industry (Supervision) Act 1993 and regulations under that Act (SIS).

THE AMENDMENTS

Regulation 1

This regulation provides that regulation 4 is taken to have commenced on 23 June 1995.

Regulation 2

This regulation provides that the Principal Regulations are amended by the amending Regulations.

Regulation 3

This regulation changes the title of the Principal Regulations to Superannuation (CSS) Period of Contributory Service Regulations.

Regulation 4

This regulation inserts paragraphs (k) and (1) in item 1 of Schedule 1 of the Principal Regulations which inserts a modified definition of "period of contributory service". The amendment is required as a consequence of the amendment made to the definition of "period of contributory service" in the 1976 Act by item 4 of Schedule 2 to the amending Act.


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