EXPLANATORY STATEMENT

STATUTORY RULES 1985 NO. 355

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (RETIRING AGE) REGULATIONS (AMENDMENT)

LEGISLATIVE BASIS FOR THE REGULATIONS

Section 168 of the Superannuation Act 1976 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all 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.

Sub-section 3(1) of the Act defines “maximum retiring age” as 65 years or such lesser age as, under the regulations made under the Act, is the maximum retiring age applicable to a person or class of persons.

Regulation 4 of the Superannuation (Retiring Age) Regulations specifies age 60 years as the “maximum retiring age” applicable to certain classes of persons.

BACKGROUND

The invalidity and death benefits payable to, or in respect of, a contributor under the Act have regard, in most cases, to the contributor’s period of prospective service. “Period of prospective service” refers to the aggregate of the period of contributory service at the date the person ceases to be an eligible employee and the period from that date until the person’s “maximum retiring age”.

Maximum retiring ages lower than age 65 that are applicable to certain contributors under their terms and conditions of employment do not apply automatically for the purposes of the Act. It is therefore necessary for those lesser maximum retiring ages to be prescribed in regulations to enable invalidity and death benefits, where based on years of prospective service, to be determined by reference to those lesser ages.

CONTENT

The Superannuation (Retiring Age) Regulations previously prescribed a maximum retiring age of 60 years for all officers of the Australian Security Intelligence Organization. However, under their terms and conditions of employment some officers and employees have a maximum retiring age of 60 years and others have a maximum retiring age of 65 years. The amendments reflect these terms and conditions of employment and enable the payment of appropriate invalidity and death benefits to, or in respect of officers and employees of the Organization where the benefits are based on years of prospective service.

The Regulations operate from the date of notification in the Gazette.