EXPLANATORY STATEMENT

Statutory Rules 1989 No. 181

Issued by the authority of the Minister for Finance.

Subject -          Superannuation Benefit (Interim Arrangement) Act 1988

Superannuation Benefit (Interim Arrangement)

(Continuous Service) Regulations (Amendment)

Section 10 of the Superannuation Benefit (Interim Arrangement) Act 1988 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters which the Act requires or permits to be prescribed or which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.

The Act makes provision for superannuation benefits under an interim arrangement for certain employees of the Commonwealth and Commonwealth authorities that are approved authorities under the Superannuation Act 1976. The superannuation benefits are those that were agreed to by the Government following the Conciliation and Arbitration Commission’s June 1986 decision that it would ratify consent superannuation agreements costing no more than 3 per cent of ordinary time earnings (a 3 per cent benefit).

Subsection 5(1) of the Act provides for the completion of a three month period of service by a qualified employee for eligibility to receive a benefit under the Act.

It was recognised that certain classes of employees have recurring patterns or short employment and may not qualify for a benefit because they may never complete 3 months continuous service.

Pararaph 5(2) (a) provides that a break in employment for a period not exceeding 6 months by a person included in a prescribed class shall be ignored for the purpose of determining whether the person has had a continuous period of service and an employer.

Following gazettal of the principal regulations in November 1988, the Department of Defence has now advised some classes of employees with recurring patterns of employment, which should be prescribed.

The Superannuation (Interim Arrangement) Continuous Service Regulations prescribe the classes of employees with recurring patterns of short employment, and operate from the date of gazettal.