Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT) 1991 NO. 466

STATUTORY RULES 1991 No. 466

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT)

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

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

The rates of contribution payable under the Act by members of the scheme are expressed in the Act as a percentage of the member's fortnightly rate of salary. The rates of pension payable are expressed as a percentage of the member's final annual rate of salary. The terms "fortnightly rate of salary" and "final annual rate of salary" are both defined in subsection 3(1) of the Act by reference to the member's annual rate of salary.

Subsection 5(1) defines salary for the purposes of the Act. In accordance with subsection 5(2) of the Act, a member's annual rate of salary for the purposes of the Act on a particular day is the amount per annum of his or her salary payable on that day. However, subsection 5(3) provides that, in a case specified in the regulations, a member's annual rate of salary is to be as specified in the regulations.

Regulations for the purposes of section 5 are contained in the Superannuation (Salary) Regulations (the Principal Regulations).

Part IIA of the Principal Regulations (regulations 8A to 8E) contains provisions in relation to members in receipt of shift allowance.

Part IV of the Principal Regulations (regulations 12 to 17) contains provisions in relation to the salary for the purposes of the Act of members who are on leave without pay.

The amending Regulations amend the Principal Regulations as outlined in the attachment.

The amending Regulations operate from the date of Gazettal.

ATTACHMENT

SUPERANNUATION (SALARY) REGULATIONS (AMENDMENT)

Regulation 1

This provides that the Superannuation (Salary) Regulations are the Principal Regulations.

Regulations 2 and 3

These regulations amend regulations 8D and 8E of the Principal Regulations which provide for the calculation of the annual rate of salary for certain persons who are, or have been, in receipt of shift allowance.

Subparagraph 8D(2)(a)(i) of the Principal Regulations provides that, in calculating the annual rate of salary of an eligible employee who has received shift allowance on a regular basis during a period of 12 months, that calculation has regard to the person's salary for the purposes of the Act but excludes, in certain cases, any partial invalidity pension received by the person.

Subparagraph 8E(5)(a)(i) of the Principal Regulations provides that, in calculating the annual rate of salary on the last day of service of certain former eligible employees who have been in receipt of shift allowance that calculation has regard to the person's salary for the purposes of the Act but excludes, in certain cases, any partial invalidity pension received by the person.

It was originally necessary to exclude partial invalidity pension from the meaning of "salary" as used in the determination of annual rate of salary in regulation 8D and 8E because, at the time those provisions were included in the Principal Regulations, partial invalidity pension was treated as salary for the purposes of the Act. If partial invalidity pension had continued to be taken into account for the purposes of the calculation, certain part-time employees in receipt of shift allowance would have been advantaged over other part-time employees and also over full-time employees.

Since regulations 8D and 8E were inserted in the Principal Regulations the Act has been amended to provide that partial invalidity pension is no longer to be treated as salary for the purposes of the Act. Separate arrangements have been made in relation to the annual rate of salary of a person in receipt of partial invalidity pension.

As a consequence of the amendment to the Act to exclude partial invalidity pension from salary for the purposes of the Act, the words in subparagraphs 8D(2)(a)(i) and 8E(5)(a)(i) of the Principal Regulations excluding partial invalidity pension from the meaning of the term "salary" as used in certain provisions of regulations 8D and 8E are superfluous.

Regulations 2 and 3 of the proposed Regulations amend subparagraphs 8D(2)(a)(i) and 8E(5)(a)(i) of the Principal Regulations respectively to omit the words which exclude partial invalidity pension from the amount of salary described in those subparagraphs.

Regulation 4

This amends regulation 14 which provides for a maximum annual rate of salary for the purposes of the Act for eligible employees who are permitted to continue to contribute to the scheme while on leave without pay to work with certain employee organisations and related bodies (called "approved organizations").

The amendments do not vary the maximum rates but take account of the changed titles of Australian Public Service (APS) classifications.

The maximum annual rate of salary in relation to a person holding an office with an approved organization, other than within a branch of that organization, is pegged at the annual rate of salary payable to an officer in the APS occupying an office classified as Senior Executive Level 3. Because of changes to APS classifications it is necessary for the regulation to be amended to provide that that salary be pegged instead at the annual rate of salary payable to an officer in the APS occupying an office classified as Senior Executive Band 2 that attracts the minimum rate of salary for that band.

The maximum annual rate of salary in relation to a person holding an office within a branch of an approved organization is pegged at the annual rate of salary payable to an officer in the APS occupying an office classified as Clerical Administrative Class 11. Because of changes to APS classifications it is necessary for the regulation to be amended to provide that that salary be pegged instead at the annual rate of salary payable to an officer in the APS occupying an office classified as Senior Officer Grade B.