Federal Register of Legislation - Australian Government

Primary content

Other as made
This instrument amends the Public Sector Superannuation Scheme Trust Deed to make minor and technical amendments, including to remove provisions that have no continuing application, and to establish an interest arrangement to apply where amounts payable to the Commonwealth are not immediately due.
Administered by: Finance
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 06
Registered 14 Dec 2021
Tabling HistoryDate
Tabled HR08-Feb-2022
Tabled Senate08-Feb-2022
Date of repeal 08 Sep 2022
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

Commonwealth Coat of Arms of Australia

 

Superannuation Amendment (PSS Trust Deed) Instrument 2021 (No. 2)

I, Simon Birmingham, Minister for Finance, make the following instrument.

Dated   5 December 2021

Simon Birmingham

Minister for Finance

 


Contents

1  Name........................................................................................................................................ 1

2  Commencement........................................................................................................................ 1

3  Authority.................................................................................................................................. 1

4  Schedules................................................................................................................................. 1

Schedule 1—Amendment of the PSS Trust Deed                                                      2

 

 


1  Name

                   This instrument is the Superannuation Amendment (PSS Trust Deed) Instrument 2021 (No. 2).

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 4 and anything in this instrument not elsewhere covered by this table

The day after this instrument is registered on the Federal Register of Legislation.

 

2. Schedule 1

The day after this instrument is registered on the Federal Register of Legislation.

 

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under section 5 of the Superannuation Act 1990.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1Amendment of the PSS Trust Deed

1  Rule 3.5.1

Repeal the table, substitute:

 

Average Salary Factors

Cessation otherwise than on involuntary retirement

Cessation on involuntary retirement

NOTE:  The factors defined for the case of not ceasing on involuntary retirement are used to calculate average salary on cessation on involuntary retirement, if the date of cessation is an anniversary of the regular member’s birth, or is treated as such under Rule 3.5.4.

Three or more anniversaries of birth in period of membership  (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

where:

D  is 1 plus the number of days between the date of the regular member’s cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation; and

O  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement; and

P  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in B2  below.

B1   is 
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

B1   is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

B2  is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of B1.

B3  is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of B2.

B3  is 0.

 

E  is 0.

n  is 3.

Two anniversaries of birth in period of membership (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

where:

D  is 1 plus the number of days between the date of the regular member’s cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation; and

O  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement; and

P  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

B1   is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

B1   is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

B2  is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the anniversary in the definition of B1.

B3   is 0.

E is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n  is 3.

One anniversary of birth in period of membership (see also Rule 3.5.5)

X is 0.

X is the amount calculated by the following formula:

where:

D  is 1 plus the number of days between the date of the regular member’s cessation on involuntary retirement and the date of the anniversary of his/her birth immediately preceding the date of cessation; and

O  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement; and

P  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

B1   is 
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the day at which the calculation is made, or on that day if it is an anniversary of his/her birth.

B1   is
the regular member’s salary for average salary purposes (see Rule 3.5.2) on the anniversary of his/her birth immediately preceding the date of cessation on involuntary retirement.

B2  is 0.

B3  is 0.


E is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n  is 2.

No anniversaries of birth in period of membership (see also Rule 3.5.5)

X  is 0.

X is the amount calculated by the following formula:

where:

D  is 1 plus the number of days between the date of the regular member’s cessation on involuntary retirement and the date of his/her first day of membership; and

O  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on the date of his/her cessation on involuntary retirement; and

P  is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

B1    is 0.

B2  is 0.

B3  is 0.

E is the regular member’s salary for average salary purposes (see Rule 3.5.2) on his/her first day of membership.

E  is 0.

n  is 1.

2  Rule 5.2.1

Omit “under this Division”.

3  Rule 5.2.1

Repeal the table, substitute:

 

Quick Guide to the Components of a Benefit Accrual Multiple

 

Possible Components

Results from

See

 

On‑going Multiple

Paying fortnightly contributions

Rule 5.2.2

 

Additional Cover
Multiple

An amount received from a life office in respect of a policy for extra death and invalidity cover

Rule 5.2.10

 

Preserved Multiple

A preserved benefit from a previous period of PSS membership

Rule 5.2.12

 

Restoration Multiple

A former invalidity pensioner again becoming a member

Rule 5.2.14

 

Excess Contribution Multiple

Paying fortnightly contributions above the maximum average rate that attract employer benefits

Rule 5.2.16

 

Unfunded Transfer
Multiple

An amount transferred on entry to the PSS scheme  that is exclusively productivity benefit

Rule 5.2.18

 

Membership Transfer Multiple

Combining benefits from previously concurrent periods of membership

Rule 5.2.20

 

CSS Transfer Multiple

Transferring entitlements from the CSS scheme

Division 2 of Part 14

 

Non‑Cash Transfer Multiple

An amount that would otherwise have been payable to an approved superannuation scheme in respect of a person who had transferred to that scheme from the PSS scheme or the CSS scheme

Rule 5.2.23

 

Reduction Multiple

The application of a splitting agreement or splitting order under Part 16.

Rule 16.4.3

 

Former MBL Multiple

A member who was a maximum benefits member immediately before 1 January 2008

Rule 5.6.8

4  Rule 5.2.22

Repeal the rule, including the heading “CSS Transfer Multiple”.

5  After Rule 5.2.25

Insert:

Additional Multiples may be Applicable to a Regular Member

Note 1: The applicability of, and method for calculating, a CSS Transfer Multiple is set out in Division 2 of Part 14.

Note 2: A Reduction Multiple applies to a member to whom Part 16 applies and is calculated under Rule 16.4.3. The multiple is to be used to reduce the Benefit Accrual Multiple.

Note 3: A Former MBL Multiple applies to a member who, immediately before 1 January 2008, was a maximum benefits member and is calculated under Rule 5.6.8.

6  Rule 5.2.26

Repeal the rule, including the heading “Reduction Multiple”.

7  Rule 5.2.27

Repeal the rule, including the heading “Former MBL Multiple”.

8  Rule 5.3.1

Omit “under this Division”.

9  Rule 5.3.1

Repeal the table, substitute:

 

Quick Guide to the Components of a Benefit Accrual Multiple

 

Possible Components

Results from

See

 

On‑going Multiple

Paying fortnightly contributions

Rule 5.3.2

 

Additional Cover Multiple

An amount received from a life office in respect of a policy for extra death and invalidity cover

Rule 5.3.10

 

Preserved Multiple

A preserved benefit from a previous period of PSS membership

Rule 5.3.12

 

Restoration Multiple

A former invalidity pensioner again becoming a member

Rule 5.3.14

 

Excess Contribution Multiple

Paying fortnightly contributions above the maximum average rate that attract employer benefits

Rule 5.3.16

 

Unfunded Transfer Multiple

An amount transferred on entry to the PSS scheme that is exclusively productivity benefit

Rule 5.3.18

 

Membership Transfer Multiple

Combining benefits from previously concurrent periods of membership

Rule 5.3.20

 

CSS Transfer Multiple

Transferring entitlements from the CSS scheme

Division 2 of Part 14

 

Non‑Cash Transfer Multiple

An amount that would otherwise have been payable to an approved superannuation scheme in respect of a person who had transferred to that scheme from the PSS scheme or the CSS scheme.

Rule 5.3.23

 

Reduction Multiple

The application of a splitting agreement or splitting order under Part 16

Rule 16.4.3

 

Former MBL Multiple

A member who was a maximum benefits member immediately before 1 January 2008

Rule 5.6.8

10  Rule 5.3.22

Repeal the rule, including the heading “CSS Transfer Multiple”.


 

11  After Rule 5.3.25

Insert:

Additional Multiples may be Applicable to a Casual Member

Note 1: The applicability of, and method for calculating, a CSS Transfer Multiple is set out in Division 2 of Part 14.

Note 2: A Reduction Multiple applies to a member to whom Part 16 applies and is calculated under Rule 16.4.3. The multiple is to be used to reduce the Benefit Accrual Multiple.

Note 3: A Former MBL Multiple applies to a member who, immediately before 1 January 2008, was a maximum benefits member and is calculated under Rule 5.6.8.

12  Rule 5.3.26

Repeal the rule, including the heading “Reduction Multiple”.

13  Rule 5.3.27

Repeal the rule, including the heading “Former MBL Multiple”.

14  Rule 6.2.3

Repeal the rule, including the heading “Benefit options – certain other cases”.

15  Rule 6.2.4

Repeal the rule.

16  Rule 6.8.3

Repeal the rule, substitute:

6.8.3                        The Minister and CSC may at any time terminate an agreement related to the declaration of an eligible superannuation scheme made by the Minister and the Board.

17  Rule 6.8.4

Repeal the rule, substitute:

6.8.4            The variation or termination of an agreement in relation to an eligible superannuation scheme must be notified in the annual report of CSC under section 30 of the Governance of Australian Government Superannuation Schemes Act 2011.

18  Paragraph 8.1.1(f)

Omit “; or”, substitute “.”

19  Rule 8.1.1

Repeal paragraph (g) and the note.

20  Rule 8.2.5

Repeal the rule, including the heading “Transitional benefit options for certain pre‑1 July 1996 preserved benefits members”.

21  Rule 9.2.2

Omit “This rule also applies to the calculation of an annual pension payable under Rule 6.2.4 to a member who, on retirement before 1 July 1996, was suffering from a terminal medical condition.”

22  Rule 12.2.3

Repeal the rule, including the heading “Payment of benefits to eligible roll-over fund where no instructions”.

23  After Part 17

Insert:

PART 17A – AMOUNTS PAYABLE TO THE COMMONWEALTH

 

Division 1   Arrangements where amounts payable to the Commonwealth are not yet due

 

17A.1.1                       Where the Minister, following consultation with CSC:

(a)               agrees, on behalf of the Commonwealth, that amounts which become payable to the Commonwealth under paragraph 16(1)(a), paragraph 16(4)(a) and/or subsection 16A(2) of the Superannuation Act 1990 are not due until a later time, and

(b)               gives CSC written notice of this agreement, specifying a time at which amounts become due, or a mechanism for giving reasonable notice of that time,

then:

(c)               those amounts accumulate with interest in the PSS Fund in accordance with a determination or determinations made by CSC as to the rate and method of allocation of interest, taking into account the after tax-earnings and/or losses from investment of the amounts, and

(d)               CSC must pay the accumulated interest in relation to those amounts to the Commonwealth from the PSS Fund when those amounts become due.