EXPLANATORY STATEMENT

STATUTORY RULES 1988 NO 41

ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE

SUPERANNUATION ACT 1976

SUPERANNUATION (ELIGIBLE EMPLOYEES) REGULATIONS (AMENDMENT)

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 that the Act requires or permits to be prescribed, or that are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.

The Act provides a contributory superannuation scheme for Commonwealth employees. Persons eligible to contribute under the Act are referred to in the Act as “eligible employees”.

Subsection 3(1) of the Act defines the term “eligible employee”. In accordance with paragraph (j) of the definition, the term does not include a person included in a prescribed class of persons. Thus, certain classes of persons may be excluded by regulation from becoming, or remaining, contributors. The classes of persons so excluded are prescribed in the Superannuation (Eligible Employees) Regulations (the Regulations).

The Victorian domestic meat inspection function and associated staff are to be transferred to the Commonwealth on 3 April 1988. The transferred staff are to be appointed as officers for the purposes of the Public Service Act 1922 on that date.

The transferees are to have the following options in relation to superannuation:

(a)        for those who are members of a State superannuation scheme immediately before the date of transfer, the option of:

(i)         remaining members of the State scheme; or

(ii)        ceasing membership of the State scheme and becoming members of the Commonwealth scheme established under the Act; and

(b)        for those who are not members of a State superannuation scheme immediately before the date of transfer, the option of becoming members of the Commonwealth scheme at, or at any time after, the date of transfer.

Under the Act, permanent employees, including officers for the purposes of the Public Service Act 1922, are required to become eligible employees for the purposes of the Act. Thus, all of the transferees will be required to become eligible employees unless excluded from doing so by the Regulations.

The existing paragraph 4(o) of the Regulations will operate to exclude from becoming eligible employees those in group (a) above who elect to remain members of the State scheme. Amendment of the Regulations is, however, necessary in relation to those in group (b) to exclude them from becoming eligible employees unless they elect to do so.

The Statutory Rule amends the Regulations accordingly.

The amendments are to come into operation on 3 April 1988.