Victorian Bills Explanatory Memoranda Victorian Bills Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
Superannuation Legislation (Governance
Reform) Bill
As Sent Print
EXPLANATORY MEMORANDUM
Clause Notes
PART 1--PRELIMINARY
Clause 1 states the purpose of the Bill is to amend the Emergency
Services Superannuation Act 1986 and make related
amendments to the Government Superannuation Act 1999,
the Parliamentary Salaries and Superannuation Act 1968,
the State Employees Retirement Benefits Act 1979, the State
Superannuation Act 1988, the Superannuation (Portability)
Act 1989 and the Transport Superannuation Act 1988 to--
· integrate the State Superannuation Fund into the
Emergency Services Superannuation Scheme by closing
the State Superannuation Fund and transferring the
assets and liabilities of the State Superannuation Fund to
the Emergency Services Superannuation Scheme;
· restructure and expand the role of the Emergency
Services Superannuation Board to administrator of
public sector superannuation schemes and administered
schemes;
· abolish the Government Superannuation Office and
provide for the Emergency Services Superannuation
Board to be successor in law;
· enable salary sacrifice by contributors to the Emergency
Services Superannuation Scheme;
· improve the administration of public sector
superannuation schemes.
Clause 2 provides that the Act comes into operation on 1 December 2005.
1
551375 BILL LA AS SENT 18/11/2005
PART 2--AMENDMENT OF EMERGENCY SERVICES
SUPERANNUATION ACT 1986
Clause 3 amends section 1 of the Emergency Services Superannuation
Act 1986 to include as the purpose of that Act to provide for the
Emergency Services Superannuation Board to be re-constituted
and empowered to administer public sector superannuation
schemes, and to improve the administration of public sector
superannuation schemes.
Clause 4 Sub-clause (1) inserts definitions of "administered scheme",
"appointed day", "eligible salary sacrifice contributor",
"governing body", "governing instrument", "public sector
superannuation scheme", "Superannuation Act", "State
Superannuation Fund" and "superannuation benefits" into
section 3(1) of the Emergency Services Superannuation Act
1986 to facilitate the expanded purpose of the Act and to enable
salary sacrifice by contributors to the Emergency Services
Superannuation Scheme.
Sub-clause (2) amends the definition of "benefit" in section 3(1)
of the Emergency Services Superannuation Act 1986 to limit
the definition to benefits from the Scheme under that Act.
Sub-clause (3) amends the definition of "contributor" in
section 3(1) of the Emergency Services Superannuation Act
1986 to refer to the new Part 3AA covering contributions and
benefits.
Sub-clause (4) amends the definition of "employee" in
section 3(1) of the Emergency Services Superannuation Act
1986 to include a person employed by the Emergency Services
Superannuation Board prior to 1 December 2005, or a person
employed under section 13 or 13A or to which section 13A(3)(b)
applies.
Sub-clause (5) inserts section 3(3) into the Emergency Services
Superannuation Act 1986 to provide that where the Act refers
to administration of a public sector superannuation schemes, it
encompasses the management and control of the policies of that
scheme.
Sub-clause (5) also inserts section 3(4) into the Emergency
Services Superannuation Act 1986 to provide that to the extent
of any inconsistency, any provision of the Emergency Services
Superannuation Act 1986 prevails over a governing instrument.
2
Clause 5 inserts section 3A into the Emergency Services
Superannuation Act 1986 to provide that the Minister may,
by notice published in the Government Gazette, declare a
contributor, or class of contributors, eligible to salary sacrifice
their contributions (i.e. be a eligible salary sacrifice contributor),
from a date specified in the notice.
Clause 6 inserts new sections 4B, 4C and 4D into the Emergency Services
Superannuation Act 1986.
New section 4B provides that the Act does not confer any power
on the Government of Victoria, the Minister or the Emergency
Services Superannuation Board to close the Emergency Services
Superannuation Scheme to new members.
New section 4C(1) provides a guarantee that no benefit or benefit
entitlement will be less than the benefit or benefit entitlement
applying prior to the commencement of the Superannuation
Legislation (Governance Reform) Act 2005. Sub-section (2)
provides that this section applies to a benefit or entitlement to a
benefit calculated or payable under Part 3A of the Act only to the
extent that the benefit is not impacted by investment decisions,
changes to the rate or amount of member contributions made at
the discretion of a member or matters at the discretion of the
Board.
New section 4D confers a right of review in relation to
section 4B.
Clause 7 Sub-clause (1) substitutes new sections 6(1), 6(2) and 6(2A) and
inserts new sections 6(2B) and 6(2C) in the Emergency Services
Superannuation Act 1986.
New section 6(1) provides that the objectives of the Emergency
Services Superannuation Board are to--
· collect contributions and other assets due to the
Emergency Services Superannuation Scheme or
administered scheme;
· manage and invest the assets of the Emergency Services
Superannuation Scheme or administered scheme, to
achieve optimal risk and return outcomes having regard
to payments out of the Scheme and the need to exercise
reasonable care and prudence; and
· administer the payment of benefits.
3
The change from "maximum returns" to "achieve optimal risk
and return outcomes" is to more accurately reflect the established
practice of balancing return against risk.
New section 6(2) provides that it is the duty of the Emergency
Services Superannuation Board to--
· establish policies for the administration of each
Superannuation Act and administered scheme and the
investment of associated monies and adopt strategies to
achieve those policies;
· determine, authorise and approve programs for the
administration of each Superannuation Act and
administered scheme;
· determine objectives for the investment of monies in the
Emergency Services Superannuation Scheme and each
administered scheme;
· establish and implement strategies for the investment of
monies in the Emergency Services Superannuation
Scheme and each administered scheme;
· ensure the assets of the administered scheme are
administered in accordance with the Emergency
Services Superannuation Act 1986 and the governing
instrument of the administered schemes;
· have regard to the interests of persons entitled to
benefits under the Emergency Services Superannuation
Scheme, a Superannuation Act or an administered
scheme;
· ensure the Emergency Services Superannuation Scheme
and each administered scheme are administered in
accordance with the Commonwealth's surcharge
legislation;
· ensure compliance with the Commonwealth's family
law legislation;
· ensure the decisions and operations of the Emergency
Services Superannuation Board and the skills, facilities
and resources obtained by the Board are directed to
meet its objectives;
4
· inform contributors and members about their rights and
their benefits and the management and investment of the
Emergency Services Superannuation Scheme or
administered scheme (this includes the provision, of at
least annually, a summary of information covering the
management and investment of the Scheme or
administered scheme);
· liaise with relevant industrial organisations regarding
the interests of contributors and members and the
management and investment of the Emergency Service
Superannuation Scheme or administered scheme;
· ensure it conducts its operations in an efficient manner.
New section 6(2A) provides that the Emergency Services
Superannuation Board is taken to have discharged its duties in
relation to the investment of all or part of the monies in the
Emergency Services Superannuation Scheme and administered
schemes, if the Board has appointed the Victorian Fund
Management Corporation under section 9A of the Victorian
Funds Management Corporation Act 1994 to perform
investment related functions on behalf of the Board on the terms
approved by Governor in Council under section 20 of the
Borrowing and Investment Powers Act 1987.
New section 6A(2B) provides that to the extent of any
inconsistency between the Commonwealth's surcharge legislation
and the Superannuation Act, regulations under the
Superannuation Act or the governing instrument of the
administered scheme, the Commonwealth's surcharge legislation
prevails. The Emergency Services Superannuation Board is
taken to comply with its State legislative requirements by
complying with the Commonwealth's surcharge legislation.
New section 6A(2C) provides that to the extent of any
inconsistency between the Commonwealth's family law
legislation and the Superannuation Act, regulations under the
Superannuation Act or the governing instrument of the
administered scheme, the Commonwealth's family law legislation
prevails. The Emergency Services Superannuation Board is
taken to comply with its State legislative requirements by
complying with the Commonwealth's family law legislation.
Sub-clause (2) amends section 6(3) of the Emergency Services
Superannuation Act 1986 to ensure correct cross-references.
Section 6(3) currently provides that in undertaking the duties set
out in sections 6(2)(e) and 6(2)(f), the Emergency Services
5
Superannuation Board must consider the need to protect
information that may adversely effect the financial position or
commercial or other operation of the Board. The current cross-
references in section 6(3) to sections 6(2)(e) and 6(2)(f) need to
be amended to sections 6(2)(k) and 6(2)(l) respectively.
Sub-clause (3) inserts new section 6(6) in the Emergency
Services Superannuation Act 1986 to provide the Minister with
a directions power in relation to--
· the closure of the State Superannuation Fund and the
transfer of its assets to the Emergency Services
Superannuation Scheme;
· the transfer of the Government Superannuation Office's
responsibilities to the Board; and
· the re-constitution of the Board.
Sub-clause (3) also inserts new sections 6(7) and 6(8) in the
Emergency Services Superannuation Act 1986 to provide that
the Board must give effect to the directions and publish them in
its next annual report.
Clause 8 inserts a new section 6A in the Emergency Services
Superannuation Act 1986. New section 6A(1) provides that in
addition to the Emergency Services Superannuation Board duties
outlined in section 6, the Board has the functions incurred or
imposed on it by a Superannuation Act and regulations under a
Superannuation Act, any other Act or regulations and the
governing instrument of an administered scheme.
New section 6A(2) provides that subject to the Emergency
Services Superannuation Act 1986, the Emergency Services
Superannuation Board has the power to do all things necessary or
convenient to enable it to perform its functions and duties and
achieve its objectives.
New section 6A(3)(a) provides that the Emergency Services
Superannuation Board has the power to enter into agreements or
arrangements with any other person or body to--
· carry out a function or power of the Board;
· arrange death and disability cover insurance for
individual members or classes of members;
· provide custodial or nominee services.
6
New section 6A(3)(b) provides that the Emergency Services
Superannuation Board has the power to engage any person or
body to act as agent on behalf of the Board.
New section 6A(4) provides that the Emergency Services
Superannuation Board may make arrangements with certain
superannuation fund administrators provided for in section 4(1)
of the Transport Superannuation Act 1988 or a Minister,
employer, employing authority, Government department, agency
or other statutory body.
New section 6A(5) deems arrangements made prior to the
commencement of the Superannuation Legislation
(Governance Reform) Act 2005 under section 26 of the
Transport Superannuation Act 1988 to be made under
section 6A(4).
New section 6A(6) provides that the Board may engage an
actuary to advise it about the administration of the Scheme or
an administered scheme.
Clause 9 substitutes new section 7--Membership of the Board in the
Emergency Services Superannuation Act 1986.
New section 7(1) provides--
· the members of the Emergency Services Superannuation
Board are to be appointed by the Governor in Council
and consist of--
· one contributor elected by contributors employed
under the Police Regulation Act 1958 or by
employee organisations representing those
contributors;
· one contributor elected by contributors who are
officers or employees of the Metropolitan Fire
and Emergency Services Board, who are persons
appointed under section 17 of the Country Fire
Authority Act 1958 or employees of the unions
representing those contributors;
· one contributor elected by contributors who are
employees of the Ambulance Services--Victoria
and all other contributors not covered by points
one and two above;
7
· three members of the Emergency Services
Superannuation Scheme elected by members of
the Scheme;
· six persons nominated by the Minister, one of
which is nominated by the Minister as an
independent member.
New section 7(2) requires the Governor in Council to appoint a
member nominated by the Minister to be the President of the
Board.
New section 7(3) provides the transitional arrangements after the
commencement of the Superannuation Legislation
(Governance Reform) Act 2005 for maintaining contributory
members on the Emergency Services Superannuation Board in
office for the remainder of the term for which they were elected.
The exceptions are outlined in section 8(1) or if the member is
suspended or removed from the office.
New section 7(4) provides transitional arrangements to ensure
that member-elected directors of the Board of the Government
Superannuation Office continue as Board members of the
reconstituted Emergency Services Superannuation Board until
31 December 2005. The exceptions are outlined in section 8(1)
or if the member is suspended or removed from the office.
New section 7(5) provides transitional arrangements to provide
for current Government appointed members of the Emergency
Services Superannuation Board and of the Government
Superannuation Office to be Government appointed members of
the Emergency Services Superannuation Board for the remainder
of their current terms of appointment.
New section 7(6) provides for the President to continue in office
for the remainder of the term of appointment.
New section 7(7) provides that a member of the Emergency
Services Superannuation Board is to be appointed for a term not
exceeding five years as specified in the member's instrument of
appointment.
New section 7(8) allows the term of office to exceed five years,
where it does not exceed six years and it is for the purpose of
filling a casual vacancy.
New section 7(9) provides that a member of the Emergency
Services Superannuation Board is eligible for re-appointment.
8
New section 7(10) requires election of members to the
Emergency Services Superannuation Board to be in accordance
with Board determined procedures.
New section 7(11) provides that if there is no candidate or no
person is elected at an election, the Governor-in Council may
appoint a person nominated by the relevant employee
organisation or union and approved by the Minister.
New section 7(12) deems the Emergency Services
Superannuation Board to be the same body as prior to the
commencement of the Superannuation Legislation
(Governance Reform) Act 2005.
New section 7(13) sets out the definitions for the purpose
of sections 7, 8(1)(d) and 12 and clarifies the meaning of
"contributor", "contributor member of the Board", "member
of the Scheme" and "Scheme member of the Board".
Clause 10 Sub-clause (1) substitutes new sections 8(1)(d), 8(1)(da) and
8(1)(db) in the Emergency Services Superannuation Act 1986
to provide that a member of the Emergency Services
Superannuation Board ceases to be a contributory or scheme
member of the Board once they cease to be a contributor or
member of the Emergency Services Superannuation Scheme or
if they become permanently incapable of performing the duties
of office.
Sub-clauses (2) and (3) make consequential amendments to
section 12B of the Emergency Services Superannuation Act
1986 to take account of the new employment arrangements and
to section 12C(3) of that Act to account for the additional
member-elected representatives.
Clause 11 substitutes a new section 12 of the Emergency Services
Superannuation Act 1986 relating to procedures of the
Emergency Services Superannuation Board to provide--
· Except where stated otherwise, all duties, functions and
powers of the Emergency Services Superannuation
Board can be performed or exercised where two thirds
of the Board members are present at a meeting;
· A decision requires at least two-thirds of the total
number of members of the Emergency Services
Superannuation Board;
· If there is a vacancy, the Emergency Services
Superannuation Board may act as if there were no
vacancy. This is provided that there is a quorum;
9
· The Emergency Services Superannuation Board may
hold its meetings at any time and place and may adjourn
a meeting;
· The Emergency Services Superannuation Board can
transact its business in any way (for example, by
telephone or closed-circuit television);
· The President of the Emergency Services
Superannuation Board must preside at all meetings at
which he or she is present;
· If the President of the Emergency Services
Superannuation Board is not present at a meeting, the
longest serving member is to act as the President for that
meeting;
· The President of the Emergency Services
Superannuation Board, or person presiding, has a
deliberative vote only;
· If a matter affects benefits entitlements of a contributory
or a member of the Emergency Services Superannuation
Scheme, it can only be resolved by two-thirds of the
total number of members of the Emergency Services
Superannuation Board and must include at least two
Board member representing the particular group
affected;
· The Emergency Services Superannuation Board is
required to keep minutes of each meeting and regulate
its own procedure;
· An act or decision of the Emergency Services
Superannuation Board is not invalid by reasons of a
vacancy, a defect or irregularity in connection with the
appointment.
Clause 12 substitutes a new section 13 and inserts a new section 13A in the
Emergency Services Superannuation Act 1986.
The new section 13 provides that--
· the Chief Executive Officer is subject to the direction or
control of the Emergency Services Superannuation
Board;
10
· the Minister appoints the Chief Executive Officer of the
Emergency Services Superannuation Board, on the
recommendation of the Board;
· the Chief Executive Officer is to be employed under
Part 3 of the Public Administration Act 2004;
· the period in which the Chief Executive Office holds
office is specified in the instrument of appointment and
shall not exceed a period of five years;
· the Chief Executive Officer is eligible for re-
appointment at the end of the period in office;
· if before the appointment the Chief Executive Officer
was an officer within the meaning of the State
Superannuation Act 1988, he or she will continue to
be regarded as such, while he or she remains in that
office;
· the Emergency Services Superannuation Board may
appoint a person, including a member of the Board, to
act as the Chief Executive Officer for a period not
exceeding sixty days;
· the Chief Executive Officer can delegate, by instrument,
to any employee refereed to in section 13A any
responsibility, power, authority, duty or function under
the Emergency Services Superannuation Act 1986 or
regulations (except the power of delegation).
New section 13A provides that--
· the Chief Executive Officer can appoint any persons
under Part 3 of the Public Administration Act 2004
for the purposes of the Emergency Services
Superannuation Act 1986;
· those persons employed in accordance with section 22
of the Government Superannuation Act 1999, under
Part 3 of the Public Administration Act 2004, are
taken to be employed by the Chief Executive Officer
under Part 3 of the Public Administration Act 2004
for the purposes of the Emergency Services
Superannuation Act 1986;
11
· those persons employed by the Emergency Services
Superannuation Board under section 13 of the
Emergency Services Superannuation Act 1986
(prior to the commencement of the Superannuation
Legislation (Governance Reform) Act 2005) are to
be provided with a choice to move to the new
arrangements should they desire;
· employees of the abolished Government
Superannuation Office and the Emergency Services
Superannuation Scheme are to be entitled to salary and
terms and conditions of employment, that are no less
favourable that what they were entitled to prior to the
commencement of the Superannuation Legislation
(Governance Reform) Act 2005. This includes
accrued benefits arising from his or her prior
employment;
· that employees of the abolished Government
Superannuation Office and the Emergency Services
Superannuation Scheme maintain their continued right
to membership of Victoria's defined benefit schemes
under the State Superannuation Act 1988, the State
Employees Retirement Benefits Act 1979 and the
Transport Superannuation Act 1988. Membership
rights are subject to the relevant Act;
· the transfer of an employee of the Government
Superannuation Office does not represent a resignation
or termination of employment. As such, the post
transfer service will be regarded as continuous
employment.
Clause 13 amends section 14 of the Emergency Services Superannuation
Act 1986 relating to delegations to ensure terminology is correct
and consistent with the new arrangements following the
integration of the State Superannuation Fund into the Emergency
Services Superannuation Scheme.
Clause 14 inserts section 17B into the Emergency Services
Superannuation Act 1986 to provide that the Emergency
Services Superannuation Board may establish and maintain group
accounts in respect of part or all of the Emergency Services
Superannuation Scheme and any administered scheme.
The group account must be credited with all member and
employer contributions and associated investment earnings and
12
must be debited with benefit payments for persons relevant to the
group account, management and other expenses, taxes or charges
attributable to the group account.
Clause 15 substitutes new sections 18(2) and 18(3) and inserts a new
section 18(4) into the Emergency Services Superannuation Act
1986 to provide that the Emergency Services Superannuation
Board must--
· credit to the Management Account any money
appropriated from the Emergency Services
Superannuation Scheme, reimbursement for costs for
the provision or administrative or other services to any
other superannuation fund or scheme, any Minister,
employer or employing authority as well as any money
standing to the credit of the Management Account
established under the State Superannuation Act 1988
immediately before the commencement of the
Superannuation Legislation (Governance Reform)
Act 2005;
· require re-imbursement of costs of administering any
other superannuation fund or providing services to any
Minister, employer or employing authority;
· debit to the Management Account, remuneration paid to
members of the Board, salary or other remuneration
paid to persons employed for the purposes of the
Emergency Services Superannuation Act 1986 and
expenses and other payments of the Board.
Clause 16 inserts a new Part heading--"Part 3AA--Contributions and
Benefits" into the Emergency Services Superannuation Act
1986.
Clause 17 Section 20 of the Emergency Services Superannuation Act
1986 provides that in the event the Emergency Services
Superannuation Scheme is not at a sufficient level to meet benefit
payments of certain persons, money may be appropriated from
the Consolidated Fund. Clause 17 amends section 20 to
specifically list the current relevant employee groups of the
ESSS.
13
Clause 18 inserts section 20A(2A) in the Emergency Services
Superannuation Act 1986 to provide that a person who is
eligible to be a salary sacrifice contributor, may by notice in
writing to his or her employer, elect to make his or her salary
sacrifice contributions by way of salary sacrifice in accordance
with a prescribed formula. This prescribed formula recognises
that contributions tax is applied to salary sacrifice contributions.
Inserts section 20A(2B) in the Emergency Services
Superannuation Act 1986 to provide that an election can only
be made if there is an agreement between the employer and
contributor that member contributions can be made by way of
salary sacrifice. This agreement can be subject to terms and
conditions, can only be made in respect of whole of the member
contributions, and cannot be made in respect of member
contributions in addition to those required under the Emergency
Services Superannuation Act 1986.
Inserts section 20A(2C) in the Emergency Services
Superannuation Act 1986 to clarify that member contributions
determined under section 20A(2A) are to be taken to be the
member contributions that would have been required if a salary
sacrifice election had not been made.
Inserts section 20A(2D) in the Emergency Services
Superannuation Act 1986 to provide that a member's salary for
superannuation purposes will not be affected by the member
making member contributions by salary sacrifice.
Clause 19 substitutes new sections 20Q(3) and 20Q(4) in the Emergency
Services Superannuation Act 1986 to provide that the
Emergency Services Superannuation Board must maintain a
separate group account for each employer or employer group in
existence prior to the integration.
Clause 20 inserts new Part 4AA--Transfer of the State Superannuation
Fund and Transfer of Administration of the MTA Superannuation
Fund and Related Matters (new sections 22DA to 22DE) in the
Emergency Services Superannuation Act 1986.
New section 22DA provides for the standard definitions in
relation to the transfer of the State Superannuation Fund and
Transfer of administration of MTA Superannuation Fund to the
Emergency Services Superannuation Schemes.
New section 22DB(1) provides for the transfer of the assets and
liabilities of the State Superannuation Fund to form part of the
Emergency Services Superannuation Scheme.
14
New section 22DB(2) provides for all employer contributions
and any other money received or recovered by the Board under
the State Superannuation Act 1988, the State Employees
Retirement Benefits Act 1979 and the Transport
Superannuation Act 1988, and member contributions are to
be paid into the Emergency Services Superannuation Scheme.
The benefit payments and administrative costs provided for in
the State Superannuation Act 1988, the State Employees
Retirement Benefits Act 1979 and the Transport
Superannuation Act 1988 are to be paid out of the Emergency
Services Superannuation Scheme.
New section 22DB(3) provides that the transfer does not affect
benefits and entitlements, or duties and obligations under the
State Superannuation Act 1988, the State Employees
Retirement Benefits Act 1979 or the Transport
Superannuation Act 1988.
New section 22DC(1) provides that administration, property,
rights, assets and liabilities of the MTA Superannuation Fund are
transferred to the Emergency Services Superannuation Board.
Further, the property, rights, assets and liabilities of the
Government Superannuation Office are to be transferred to the
Emergency Services Superannuation Board. The Emergency
Services Superannuation Board will be the successor in law of
the Government Superannuation Office. The Government
Superannuation Office will cease to exist and the Directors of the
Board of the Government Superannuation Office will go out of
office.
New section 22DC(2) provides that from the commencement of
the Superannuation Legislation (Governance Reform) Act
2005, the Emergency Services Superannuation Board is
substituted for the Government Superannuation Office in any
court or tribunal as a party to a proceedings in respect of the
State Superannuation fund or the MTA Superannuation Fund.
The Board has the same rights and obligations as the Government
Superannuation Office.
New section 22DC(3) provides that from the commencement of
the Superannuation Legislation (Governance Reform) Act
2005, the Emergency Services Superannuation Board is
substituted for the Government Superannuation Office in any
court or tribunal as a party to a proceedings in respect of the
Government Superannuation Office. The Emergency Services
Superannuation Board has the same rights and obligations as the
Government Superannuation Office.
15
New section 22DC(4) provides all references to the Victorian
Superannuation Board or Government Superannuation Office in
other Acts, regulation, subordinate instrument or other documents
is to be read as a reference to the Emergency Services
Superannuation Board, unless specifically stated otherwise.
New section 22DD provides that no stamp duty or other tax is
payable in respect of anything done under Part 4AA--Transfer of
the State Superannuation Fund and Transfer of Administration of
the MTA Superannuation Fund and Related Matters.
New section 22DE provides that the Registrar of Titles is
required to make amendments to the Register necessary to
achieve the operation of Part 4AA--Transfer of the State
Superannuation Fund and Transfer of Administration of the
MTA Superannuation Fund and Related Matters.
Inserts new Part 4AB--Transfer of Administration of Declared
Public Sector Superannuation Schemes (new sections 22DF
to 22DM) in the Emergency Services Superannuation Act
1986.
New section 22DF provides that Part 4AB applies to a public
sector superannuation scheme specified by the Minister, by
instrument in writing.
New section 22DG provides that the Governor in Council can
declare by Order in Council a public sector superannuation
scheme under section 22DF as an administered scheme for which
the Emergency Services Superannuation Board has
administrative responsibility from a day specified in the Order in
Council.
New section 22DH(1) provides that the administration, property,
rights, assets and liabilities are to be transferred to the Emergency
Services Superannuation Board. The Board is successor in law to
the administered scheme's governing body.
New section 22DH(2) provides that the Emergency Services
Superannuation Board has the same responsibilities, liabilities,
rights, powers, authorities, duties and functions conferred or
imposed on the governing body under the governing instrument.
New section 22DH(3) provides that the Emergency Services
Superannuation Board is substituted as the party to the
proceedings in respect of the administered scheme and has the
same rights and obligations in the proceedings as a governing
body.
16
New section 22DH(4) provides that all references to the
governing body in respect of the administered scheme in the
governing instrument, any Act, regulation, subordinate
instrument or other document is to be read as a reference to the
Emergency Services Superannuation Board, unless specifically
stated otherwise.
New section 22DH(5) provides that the governing body of the
administered scheme ceases to exist on the appointed day, which
is a day specified in the Order in Council in respect of the
transfer of the administered scheme.
New section 22DI provides that to the extent of any
inconsistency or conflict, the Emergency Services
Superannuation Board must perform or exercise the duty,
function or power conferred by the Emergency Superannuation
Scheme Act 1986 rather than the governing instrument of that
administered scheme. In doing so, the Board is deemed to
comply with the governing instrument.
New section 22DJ provides that the Governor in Council may by
Order in Council provide for any matter necessary or convenient
to enable the effective transfer of the administration of an
administered scheme to the Emergency Services Superannuation
Board.
New section 22DJ(2) provides for more specific matters that an
Order in Council could cover in respect of section 22DJ.
New section 22DK provides for the general rules and effect of
Orders in Councils made under Part 4AB.
New section 22DL provides that no stamp duty or other tax is
payable in respect of anything done under Part 4AB--Transfer
of Administration of Declared Public Sector Superannuation
Schemes.
New section 22DM provides that the Registrar of Titles is
required to make amendments to the Register necessary to
achieve the operation of the Part 4AB--Transfer of
Administration of Declared Public Sector Superannuation
Schemes.
17
PART 3--AMENDMENT OF GOVERNMENT
SUPERANNUATION ACT 1999
Clause 21 repeals section 1(a) of the Government Superannuation Act
1999 due to the Government Superannuation Office being
abolished.
Clause 22 Paragraph (a) substitutes a new definition of "Board" in
section 3(1) of the Government Superannuation Act 1999 as
the Emergency Services Superannuation Board established under
section 5 of the Emergency Services Superannuation Act 1986.
Paragraph (b) repeals the definitions of "Director" and "Officer"
in section 3(1) of the Government Superannuation Act 1999.
This section is redundant due to the Government Superannuation
Office being abolished.
Paragraph (c) amends the definition of "governing body" in
section 3(1) of the Government Superannuation Act 1999 to
refer to the Emergency Services Superannuation Board, rather
than the Government Superannuation Office.
Paragraph (d) amends the definition of "State Superannuation
Fund" in section 3(1) of the Government Superannuation Act
1999 to recognise the superannuation fund arrangements in place
prior to the commencement of the Superannuation Legislation
(Governance Reform) Act 2005.
Clause 23 repeals Part 2--Government Superannuation Office, of the
Government Superannuation Act 1999. This Part is redundant
due to the Government Superannuation Office being abolished.
Repeals Part 3 of the Government Superannuation Act 1999
relating to provisions covering the original transfer of the
administration of the State Superannuation Fund from the
Victorian Superannuation Board to the Government
Superannuation Office. This Part is redundant due to the
Government Superannuation Office being abolished.
Repeals Part 4 of the Government Superannuation Act 1999
which contains provisions covering the transfer of the
administration of declared public sector superannuation schemes
to the Government Superannuation Office. This Part is
redundant due to the Government Superannuation Office being
abolished.
Clause 24 repeals section 47 of the Government Superannuation Act
1999 relating to the making of and subject matter and application
of regulations under that Act. This section is redundant due to
the Government Superannuation Office being abolished.
18
PART 4--AMENDMENT OF PARLIAMENTARY SALARIES
AND SUPERANNUATION ACT 1968
Clause 25 Sub-clause (1) substitutes new sections 11B(2)(a), 11B(2)(aa),
11B(2)(ab) and 11B(2)(b) into the Parliamentary Salaries and
Superannuation Act 1968 to provide that it is the duty of the
Parliamentary Trustee to--
· establish policies for the administration of
Parliamentary Contributory Superannuation Fund and
adopt strategies to meet those policies;
· determine, authorise or approve programs for the
administration of the Parliamentary Contributory
Superannuation Fund;
· determine objectives and establish and implement
strategies for the investment of money in the
Parliamentary Contributory Superannuation Fund.
Sub-clause (2) insert section 11B(2A) into the Parliamentary
Salaries and Superannuation Act 1968 to provide that the
Parliamentary Trustee's investment duties are discharged, if the
Parliamentary Trustee has appointed the Victorian Fund
Management Corporation under section 9A of the Victorian
Funds Management Corporation Act 1994 to perform
investment related functions on behalf of the Parliamentary
Trustee on the terms approved by Governor in Council under
section 20 of the Borrowing and Investment Powers Act 1987.
Clause 26 amends section 11C(1)(b) of the Parliamentary Salaries and
Superannuation Act 1968 to provide that the functions of the
Parliamentary Trustee are to determine investment objectives for
the assets of the Parliamentary Contributory Superannuation
Fund so as to achieve optimal risk and return outcomes.
The change from "maximum returns" to "achieve optimal risk
and return outcomes" is to more accurately reflect the established
practice of balancing return against risk.
19
PART 5--AMENDMENT OF STATE EMPLOYEES
RETIREMENT BENEFITS ACT 1979
Clause 27 Sub-clause (1)(a) defines "Board" in section 2(1) of the State
Employees Retirement Benefits Act 1979 as the Emergency
Services Superannuation Board established under section 5 of the
Emergency Services Superannuation Act 1986.
Sub-clauses (1)(b) and (1)(c) substitute new definitions of
"contributor" and "Fund" in section 2(1) of the State Employees
Retirement Benefits Act 1979 to reflect new arrangements
following the integration of the State Superannuation Fund into
the Emergency Services Superannuation Scheme.
Sub-clause (1)(d) inserts a definition of "State Superannuation
Fund" into section 2(1) of the State Employees Retirement
Benefits Act 1979 to recognise the superannuation fund
arrangements in place prior to the commencement of the
Superannuation Legislation (Governance Reform) Act 2005.
Sub-clause (2) repeals section 2(5) of the State Employees
Retirement Benefits Act 1979. This section is redundant due to
the Government Superannuation Office being abolished.
Clause 28 repeals Part 2 of the State Employees Retirement Benefits Act
1979 to remove the need for an actuarial investigation of the
State Employees Retirement Benefits Fund to be conducted.
Part 2 is superfluous as an actuarial investigation is provided for
in section 19 of the Emergency Services Superannuation Act
1986.
Clause 29 amends section 29(1) of the State Employees Retirement
Benefits Act 1979 to provide that the Emergency Services
Superannuation Board approves the form of the medical report
and personal statement, needed for the purpose of classifying a
person under that Act. Section 29(1) currently provides that the
medical report and personal statement must be prescribed in
subordinate legislation. This is an unnecessary and onerous
requirement.
Clause 30 amends section 34A of the State Employees Retirement
Benefits Act 1979 to ensure terminology is correct and consistent
with the revised definition of "Fund" and new definition of "State
Superannuation Fund" under the Superannuation Legislation
(Governance Reform) Act 2005.
20
Clause 31 amends section 38(2)(a) of the State Employees Retirement
Benefits Act 1979 to enable members to claim their deferred
benefit at age 55, irrespective of whether they are still employed
by the Crown. This corrects an anomaly and ensures consistency
with other State Superannuation Fund Schemes.
Clause 32 amends section 41A(1) of the State Employees Retirement
Benefits Act 1979 to provide that the Board approves the form
by which a pension applies to the Board for a reduction in his or
her pension and a lump sum payment. Section 41A(1) currently
provides that the application must be prescribed in subordinate
legislation. This is an unnecessary and onerous requirement.
Clause 33 amends sections 51A(1) and 51A(4) of the State Employees
Retirement Benefits Act 1979 to ensure terminology is correct
and consistent with the revised definition of "Fund" and new
definition of "State Superannuation Fund" under the
Superannuation Legislation (Governance Reform) Act 2005.
Clause 34 amend sections 65(2) of the State Employees Retirement
Benefits Act 1979 to ensure terminology is correct and consistent
with the revised definition of "Fund" and new definition of "State
Superannuation Fund" under the Superannuation Legislation
(Governance Reform) Act 2005.
Clause 35 repeals Part VI of the State Employees Retirement Benefits
Act 1979 as it contains redundant provisions. This Part relates
to the Beneficiary Choice Program conducted in 2000 and 2001.
This was a once-off program that is now closed to members.
PART 6--AMENDMENT OF STATE SUPERANNUATION
ACT 1988
Clause 36 Sub-clause (1)(a) defines "Board" in section 3(1) of the State
Superannuation Act 1988 as the Emergency Services
Superannuation Board established under section 5 of the
Emergency Services Superannuation Act 1986.
Sub-clauses (1)(b), (1)(d), (1)(e) and (1)(f) amend the definitions
of "contributor", "new scheme member", "original scheme
member" and "recognised service" in section 3(1) of the State
Superannuation Act 1988 to ensure that terminology is
consistent with the new arrangements following the integration
of the State Superannuation Fund into the Emergency Services
Superannuation Scheme.
21
Sub-clauses 1(c) and (1)(g) insert definitions of "Fund" and
"State Superannuation Fund" into section 3(1) of the State
Superannuation Act 1988 to recognise the superannuation fund
arrangements in place prior to the commencement of the
Superannuation Legislation (Governance Reform) Act 2005.
Sub-clause (2) repeals section 3(7) of the State Superannuation
Act 1988. This section is redundant due to the Government
Superannuation Office being abolished.
Clause 37 amends section 3A of the State Superannuation Act 1988 to
ensure the terminology used for declarations for eligible salary
sacrifice contributors is correct and consistent with the new
arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 38 Sub-clause (1) amends the heading to Part 3 of the State
Superannuation Act 1988 to substitute "superannuation fund"
for "non-contributory schemes account". This amendment
is necessary to reflect that Part 3 will only relate to the
non-contributory schemes account of the State Superannuation
Fund. These accounts are used to pay judicial officers the
minimum superannuation guarantee contribution under the
Commonwealth's Superannuation Guarantee (Administration)
Act 1992, where they do not qualify for the pension.
Sub-clause (2) repeals sections 16, 16AA, 17 and 23 of the State
Superannuation Act 1988. These sections are superfluous as
the Emergency Services Superannuation Act 1986 will provide
for a definition of "Fund" (section 15), a Management Account
(section 18) and an actuarial investigation (section 19).
Clause 39 repeals Parts 3A and 9 of the State Superannuation Act 1988
which contain redundant provisions. These Parts relate to the
Beneficiary Choice Program conducted in 2000 and 2001.
This was a once-off program that is now closed to members.
Clause 40 amends section 25 of the State Superannuation Act 1988 to
ensure the terminology used for the provision relating to service
and prospective service of a part-time officer is correct and
consistent with the new arrangements following the integration of
the State Superannuation Fund into the Emergency Services
Superannuation Scheme.
22
Clause 41 amends section 43 of the State Superannuation Act 1988 to
ensure the terminology used for the provision relating to payment
of a death benefit in respect of a revised scheme member before
their retirement, is correct and consistent with the new
arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 42 Sub-clause (1) amends section 49(1)(b) of the State
Superannuation Act 1988 to provide for the new arrangements
after the commencement of the Superannuation Legislation
(Governance Reform) Act 2005 where the actuarial
investigation is under section 19 of the Emergency Services
Superannuation Act 1986.
Sub-clause (2) amends section 49(8) of the State
Superannuation Act 1988 to ensure the terminology used is
correct and consistent with the new arrangements following the
integration of the State Superannuation Fund into the Emergency
Services Superannuation Scheme.
Clause 43 amends section 50 of the State Superannuation Act 1988 to
ensure the terminology used for the contribution rates for a
new scheme member is correct and consistent with the new
arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 44 amends section 52 of the State Superannuation Act 1988 to
ensure the terminology used in the provisions relating to the
retirement benefit of a new scheme member is correct and
consistent with the new arrangements following the integration of
the State Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 45 amends section 53 of the State Superannuation Act 1988 to
ensure the terminology used for the provision relating to payment
of a death benefit in respect of a new scheme member before
their retirement, is correct and consistent with the new
arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
23
Clause 46 Sub-clause (1) amends section 59(1) of the State
Superannuation Act 1988 to provide for the new arrangements
after the commencement of the Superannuation Legislation
(Governance Reform) Act 2005 where the actuarial
investigation is under section 19 of the Emergency Services
Superannuation Act 1986.
Sub-clause (2) amends section 59(5) of the State
Superannuation Act 1988 to ensure the terminology used in
the provisions relating to intermittent service is correct and
consistent with the new arrangements following the integration
of the State Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 47 amends sections 67A(1) and 67A(4) of the State
Superannuation Act 1988 to ensure the terminology used in the
provisions relating to the entitlement of a former officer to a
pension is correct and consistent with the new arrangements
following the integration of the State Superannuation Fund into
the Emergency Services Superannuation Scheme.
Clause 48 amends sections 71(1) and 71(2) of the State Superannuation
Act 1988 to ensure the terminology used in the provisions
relating to the minimum benefit of a State Superannuation Fund
member is correct and consistent with the new arrangements
following the integration of the State Superannuation Fund into
the Emergency Services Superannuation Scheme.
Clause 49 repeals sections 99(4), 99(5), 99(6), 99(7) and 99(8) of the State
Superannuation Act 1988. These sections relate to the
transferring of liabilities between the Government
Superannuation Office Board and the Emergency Services
Superannuation Board and are unnecessary following the
integration of the State Superannuation Fund into the Emergency
Services Superannuation Scheme.
PART 7--AMENDMENT OF SUPERANNUATION
(PORTABILITY) ACT 1989
Clause 50 repeals section 5A of the Superannuation (Portability) Act
1989 as it is a redundant provision. This section relates to the
Beneficiary Choice Program conducted in 2000 and 2001.
This was a once-off program that is now closed to members.
24
PART 8--AMENDMENT OF TRANSPORT
SUPERANNUATION ACT 1988
Clause 51 Sub-clause (1)(a) defines "Board" in section 3(1) of the
Transport Superannuation Act 1988 as the Emergency
Services Superannuation Board established under section 5
of the Emergency Services Superannuation Act 1986.
Sub-clause (1)(b) substitutes a new definition of "Fund" in
section 3(1) of the Transport Superannuation Act 1988 to
reflect new arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
Sub-clause (1)(c) inserts a definition of "State Superannuation
Fund" into section 3(1) of the Transport Superannuation Act
1988 to recognise the superannuation fund arrangements in place
prior to the commencement of the Superannuation Legislation
(Governance Reform) Act 2005.
Sub-clause (2) repeals section 3(4) of the Transport
Superannuation Act 1988. This section is redundant due to
the Government Superannuation Office being abolished.
Clause 52 repeals Part 2 of the Transport Superannuation Act 1988.
This part is superfluous as it is provided for in section 19 of the
Emergency Services Superannuation Act 1986.
Repeals Part 5 of the Transport Superannuation Act 1988
relating to transfers from other superannuation funds. This Part
is no longer required as the Fund as currently defined ceases to
exist and accordingly assets will no longer be able to be
transferred in.
Clause 53 amends section 29(1) of the Transport Superannuation Act
1988 to ensure the terminology used in the provisions relating to
the age retirement benefit of a member is correct and consistent
with the new arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
Clause 54 amends sections 35A(1) and 35A(2) of the Transport
Superannuation Act 1988 to ensure the terminology used in the
provisions relating to the minimum benefit of a Transport
Superannuation Fund member is correct and consistent with the
new arrangements following the integration of the State
Superannuation Fund into the Emergency Services
Superannuation Scheme.
25
Clause 55 amends section 37(1) of the Transport Superannuation Act
1988 to provide for the new arrangements after the
commencement of the Superannuation Legislation
(Governance Reform) Act 2005 where the actuarial
investigation is under section 19 of the Emergency Services
Superannuation Act 1986.
Clause 56 repeals Part 9 of the Transport Superannuation Act 1988
as it contains redundant provisions. This Part relates to the
Beneficiary Choice Program conducted in 2000 and 2001.
This was a once-off program that is now closed to members.
26