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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales
State Authorities Non-contributory
Superannuation Amendment Bill 2013
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Overview of Bill
The main object of this Bill is to require employers of NSW public sector employees in `defined
benefit' superannuation schemes, and who are subject to the 2.5% wages cap under the NSW
Public Sector Wages Policy, to pay the 0.25% increase in the superannuation guarantee charge for
the 2013-14 financial year (provided for in the Superannuation Guarantee (Administration) Act
1992 of the Commonwealth) by means of a compulsory employer contribution under the State
Authorities Non-contributory Superannuation Act 1987.
The Bill also updates the compulsory employer contributions payable for various financial years
under the First State Superannuation Act 1992 in line with the increases in the superannuation
guarantee charge for those years provided for in the Superannuation Guarantee (Administration)
Act 1992 of the Commonwealth.
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to be appointed
by proclamation.
b2013-109-43.d12
State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Explanatory note
Schedule 1 Amendment of State Authorities
Non-contributory Superannuation Act 1987
No 212
The Government's NSW Public Sector Wages Policy 2011 applies a wages cap of 2.5% in respect
of employees of public sector agencies to which it applies. The application of the 2.5% wages cap
for the 2013-14 financial year takes into account the 0.25% increase in the superannuation
guarantee charge payable by all employers for that financial year under the Superannuation
Guarantee (Administration) Act 1992 of the Commonwealth.
In the case of employees subject to the wages cap who are members of the First State
Superannuation Fund (which is an `accumulation' superannuation fund), the increase in the
superannuation guarantee charge is to be paid to employees by way of a 0.25% increase in the
compulsory employer superannuation contributions payable under the First State Superannuation
Act 1992 for that financial year (see Schedule 2 below).
However, to account for the increase in the case of such employees who are in `defined benefit'
superannuation schemes in the NSW public sector, the proposed Act amends the State Authorities
Non-contributory Superannuation Act 1987 (the principal Act) to require the employer to make
an additional superannuation contribution for such employees, being the equivalent of 0.25% of
their salary for each financial year, or part, for which they are employees. Schedule 1 [3] provides
for these additional employer superannuation contributions (termed section 16A employer
contributions) and includes provision for replacement of the percentage amount by regulation in
relation to a financial year (or years).
Schedule 1 [2] requires the trustee of the superannuation scheme established under the principal
Act (known as STC) to establish, for each employee in respect of whom section 16A employer
contributions must be paid, an account (an additional employer contributions account) within the
fund established under the principal Act, and to credit the account with the section 16A employer
contributions paid for the employee.
Schedule 1 [7] provides for an additional employer contributions benefit for a person in respect
of whom section 16A employer contributions are made, being (generally) an amount equal to the
balance of the person's additional employer contributions account at the time the benefit is paid
or preserved.
Schedule 1 [1] inserts various definitions for the purposes of the principal Act.
Schedule 1 [4] makes a consequential amendment to a regulation-making power.
Schedule 1 [5] and [8]-[11] extend provisions dealing with the circumstances in which benefits
under the principal Act are payable, and those in which they are to be preserved, to apply also in
relation to additional employer contributions benefits. Schedule 1 [5] also extends provisions
relating to the treatment of benefits under the principal Act on transfer of employment, and on
attaining the age of 65, to apply also in relation to additional employer contributions benefits.
Schedule 1 [6] excludes section 16A employer contributions from contributions that STC may
vary under the principal Act, and from contributions that may be taken into account in determining
the net liability of an employer for the purposes of certain provisions relating to privatisation of
employers and other Government initiatives.
Schedule 1 [12] excludes section 16A employer contributions from a provision requiring the
transfer of employer contributions made under the principal Act to the First State Superannuation
Scheme in certain circumstances.
Schedule 1 [13] amends a heading to a Schedule.
Schedule 1 [14] contains a power to make regulations containing provisions of a savings or
transitional nature consequent on the enactment of the proposed Act or any other Act that amends
the principal Act.
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State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Explanatory note
Schedule 1 [15] provides that the first financial year in relation to which proposed section 16A
applies is the year starting on 1 July 2013 and that the section is taken to apply on and from that
date.
Schedule 2 Amendment of First State Superannuation Act
1992 No 100
Schedule 2 [1] replaces the current employee salary contribution percentage (of 9%) on which
compulsory employer superannuation contributions under the First State Superannuation Act
1992 (the FSS Act) are based, with a table of percentages that are to apply for the financial year
starting on 1 July 2013 through to the financial year starting on or after 1 July 2019. The proposed
percentages are in line with the increases in the superannuation guarantee charge for those
financial years provided for in the Superannuation Guarantee (Administration) Act 1992 of the
Commonwealth. The table of percentages may be amended by regulation.
Schedule 2 [2] contains a power to make regulations containing provisions of a savings or
transitional nature consequent on the enactment of the proposed Act or any other Act that amends
the FSS Act.
Schedule 2 [3] applies the proposed salary contribution percentage relating to the 2013-14
financial year, as from 1 July 2013.
Page 3
First print
New South Wales
State Authorities Non-contributory
Superannuation Amendment Bill 2013
Contents
Page
1 Name of Act 2
2 Commencement 2
Schedule 1 Amendment of State Authorities Non-contributory Superannuation
Act 1987 No 212 3
Schedule 2 Amendment of First State Superannuation Act 1992 No 100 6
b2013-109-43.d12
New South Wales
State Authorities Non-contributory
Superannuation Amendment Bill 2013
No , 2013
A Bill for
An Act to amend the State Authorities Non-contributory Superannuation Act 1987 and the First
State Superannuation Act 1992 in relation to superannuation contributions to be made by
employers under those Acts.
State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
The Legislature of New South Wales enacts: 1
1 Name of Act 2
This Act is the State Authorities Non-contributory Superannuation Amendment 3
Act 2013. 4
2 Commencement 5
This Act commences on a day or days to be appointed by proclamation. 6
Page 2
State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Schedule 1 Amendment of State Authorities Non-contributory Superannuation Act 1987 No 212
Schedule 1 Amendment of State Authorities 1
Non-contributory Superannuation Act 1987 2
No 212 3
[1] Section 3 Definitions 4
Insert in alphabetical order in section 3 (1): 5
additional employer contributions account means an account established and 6
maintained under section 10C. 7
additional employer contributions benefit means the additional employer 8
contributions benefit referred to in section 22B. 9
section 16A employer contribution means a contribution made by an 10
employer under section 16A. 11
[2] Section 10C 12
Insert after section 10B: 13
10C Additional employer contributions accounts 14
STC must: 15
(a) establish and maintain, within a fund managed by STC to which 16
section 16A employer contributions are paid, a separate account in 17
respect of each employee in respect of whom such contributions are 18
paid to the fund, and 19
(b) credit the section 16A employer contributions paid in respect of the 20
employee to that account. 21
[3] Section 16A 22
Insert after section 16: 23
16A Additional contributions by certain public sector employers 24
(1) A relevant employer must pay to a fund managed by STC, for each relevant 25
employee, a contribution equivalent to 0.25% of the salary of the employee for 26
each financial year, or part of a financial year, for which the employee is an 27
employee. 28
(2) A contribution under this section is in addition to any other contribution 29
payable by an employer under this or any other Act. 30
(3) The regulations may prescribe a percentage to replace the percentage in 31
subsection (1). When such a replacement percentage is prescribed, it applies 32
for the purposes of subsection (1) in place of the percentage that it replaces, 33
from the start of the financial year (or years) specified in the regulation. 34
(4) In this section: 35
relevant employee means an employee: 36
(a) who is subject to a limitation on wage increases under section 146C of 37
the Industrial Relations Act 1996 or section 6AA of the Statutory and 38
Other Offices Remuneration Act 1975, or 39
(b) who is or is of a class declared by the regulations to be a relevant 40
employee for the purposes of this definition. 41
However, relevant employee does not include an employee: 42
(a) while covered by a State industrial instrument under which payments by 43
the employer to a superannuation fund of the employee as a 44
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State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Schedule 1 Amendment of State Authorities Non-contributory Superannuation Act 1987 No 212
consequence of the enactment of, or amendments to, the 1
Superannuation Guarantee (Administration) Act 1992 of the 2
Commonwealth do not form part of the salaries or wages provided for 3
in the industrial instrument, or 4
(b) who is or is of a class declared by the regulations not to be a relevant 5
employee for the purposes of this definition. 6
relevant employer means an employer: 7
(a) who employs a relevant employee in the employee's capacity as a 8
relevant employee, or 9
(b) who is or is of a class declared by the regulations to be included in this 10
definition. 11
[4] Section 17 Contributions for irregular employees 12
Omit "or 16" from section 17 (2). Insert instead ", 16 or 16A". 13
[5] Sections 19 (2), 23 (3), 23A (1), 24 (2) and 27AA (4) 14
Insert ", any additional employer contributions benefit" after "basic benefit" wherever 15
occurring. 16
[6] Sections 19A (1) and 27AB (5) 17
Insert "(other than section 16A employer contributions)" after "contributions" wherever 18
occurring. 19
[7] Section 22B 20
Insert after section 22A: 21
22B Additional employer contributions benefit 22
The additional employer contributions benefit provided by this Act for a 23
person is an amount equal to the balance at credit in the person's additional 24
employer contributions account at the time the benefit is paid or preserved, as 25
the case may be, except as provided by or under this Act. 26
[8] Section 23 When benefits are payable 27
Insert ", any additional employer contributions benefit (and any preserved additional 28
employer contributions benefit)" after "basic benefit)" in section 23 (1). 29
[9] Section 24 Benefit to be preserved 30
Omit "in respect of a person and any Commonwealth co-contribution benefit in respect of 31
the person" from section 24 (1). 32
Insert instead ", any additional employer contributions benefit and any Commonwealth 33
co-contribution benefit in respect of a person". 34
[10] Section 24 (1A) and (1AA) 35
Omit section 24 (1A). Insert instead: 36
(1A) Any section 16A employer contribution or Commonwealth co-contribution 37
received by STC in respect of a former employee while a basic benefit is 38
preserved by STC in respect of the former employee must be preserved by 39
STC and is taken to be a preserved additional employer contributions benefit 40
or a preserved Commonwealth co-contribution benefit (as the case may be). 41
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State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Schedule 1 Amendment of State Authorities Non-contributory Superannuation Act 1987 No 212
(1AA) Any existing preserved additional employer contributions benefit in respect of 1
a former employee is to be increased by the amount of a section 16A employer 2
contribution preserved under subsection (1A) in respect of the former 3
employee. 4
[11] Section 24 (4) 5
Insert ", any preserved additional employer contributions benefit" after "basic benefit". 6
[12] Section 26H Transfers of contributions to FSS Scheme 7
Insert "(other than a section 16A employer contribution)" after "contribution" in 8
section 26H (1). 9
[13] Schedule 5, heading 10
Omit "and transitional provisions". Insert instead ", transitional and other provisions". 11
[14] Schedule 5, clause 1 (1) 12
Insert at the end of the subclause: 13
any other Act that amends this Act 14
[15] Schedule 5, Part 8 15
Insert after clause 8: 16
Part 8 State Authorities Non-contributory Superannuation 17
Amendment Act 2013 18
9 First financial year for section 16A employer contributions 19
The first financial year in relation to which section 16A applies is the year 20
starting on 1 July 2013 and section 16A is taken to apply on and from that date. 21
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State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Schedule 2 Amendment of First State Superannuation Act 1992 No 100
Schedule 2 Amendment of First State Superannuation Act 1
1992 No 100 2
[1] Section 8 Compulsory employer superannuation contributions 3
Omit section 8 (2). Insert instead: 4
(2) The salary contribution percentage for a person, in relation to a financial year 5
referred to in Column 1 in the table to this subsection, is the percentage of the 6
salary or wages of the person specified in Column 2 for that financial year. 7
Column 1 Column 2
Year Percentage
Year starting on 1 July 2013 9.25
Year starting on 1 July 2014 9.5
Year starting on 1 July 2015 10
Year starting on 1 July 2016 10.5
Year starting on 1 July 2017 11
Year starting on 1 July 2018 11.5
Year starting on or after 1 July 2019 12
(2A) The regulations may prescribe a period or a percentage to replace, or in 8
addition to, any period or percentage in the table to subsection (2) to reflect 9
any changes to the superannuation guarantee charge percentage prescribed by 10
section 19 (2) of the relevant Commonwealth legislation. 11
(2B) When a period or percentage is prescribed under subsection (2A), it applies for 12
the purposes of subsection (2) in place of the period or percentage that it 13
replaces or (if additional) as if it formed part of the table to that subsection. 14
[2] Schedule 3 Savings, transitional and other provisions 15
Insert at the end of clause 1 (1): 16
any other Act that amends this Act 17
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State Authorities Non-contributory Superannuation Amendment Bill 2013 [NSW]
Schedule 2 Amendment of First State Superannuation Act 1992 No 100
[3] Schedule 3, Part 4 1
Insert after clause 19: 2
Part 4 Provision consequent on enactment of State 3
Authorities Non-contributory Superannuation 4
Amendment Act 2013 5
20 Application of section 8 6
Section 8 (as amended by the State Authorities Non-contributory 7
Superannuation Amendment Act 2013), in its application in relation to the 8
financial year starting on 1 July 2013, is taken to apply on and from 9
1 July 2013. 10
Page 7
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