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SUPERANNUATION (PSS) MEMBERSHIP INCLUSION AMENDMENT DECLARATION 2001 (NO. 1) 2001 NO. 231

STATUTORY RULES 2001 No. 231

Issued by the authority of the Minister for Finance and Administration

Superannuation Act 1990

Superannuation (PSS) Membership Inclusion Amendment Declaration 2001 (No. 1)

The Superannuation Act 1990 (the 1990 Act) makes provision for and in relation to the Public Sector Superannuation Scheme (PSS) for Commonwealth employees and for certain other persons.

Section 6 of the 1990 Act specifies the persons who are, or who may be, members of the PSS. In accordance with paragraph 6(1)(j), a person declared by the Minister for Finance and Administration to be a person to whom section 6 applies is a PSS member. Declarations made under paragraph 6(1)(j) are contained in the Superannuation (PSS) Membership Inclusion Declaration 1995 (the Principal Declaration).

Section 45 of the 1990 Act provides that a declaration made under paragraph 6(1)(j) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 and a Statutory Rule for the purposes of the Statutory Rules Publication Act 1903.

The purpose of the Declaration contained in the Statutory Rule and cited as the Superannuation (PSS) Membership Inclusion Amendment Declaration 2001 (No. 1) is to amend the Principal Declaration to provide continuing membership of the PSS for two classes of persons: (a) PSS members and PSS preserved benefits members who become employees of the Sydney Harbour Federation Trust (the Trust) during their employment with the Trust (Schedule 1) and (b) PSS members who become employees of Snowy Hydro Limited (SHL) upon corporatisation of the the Snowy Mountains Hydro-electric Authority (SMHEA), except in certain specified circumstances (Schedule 2).

SHL is a company incorporated under the Corporations Law and its shareholders are the Commonwealth, New South Wales and Victoria. The Commonwealth will hold 13 per cent of the shares and will not control the company.

The Declaration specifies the conditions that apply to continuing membership of affected PSS members. In the case of the Trust, PSS membership continues unless the person ceases employment with the Trust, joins another superannuation scheme (other than a supplementary scheme for top-up purposes) in relation to employment with the Trust or the Trust ceases to be a Commonwealth authority within the meaning of the Commonwealth Authorities and Companies Act 1997.

PSS membership for affected SHL employees continues unless employment with SHL ceases, or any person or entity other than the Commonwealth, New South Wales or Victoria becomes a shareholder of SHL, or the member becomes a member of another superannuation fund providing employer superannuation support greater than the minimum required applying generally under the Superannuation Guarantee. Membership is also contingent upon SHL paying the Commonwealth for the cost of benefits and administration in relation to its PSS members.

The Declaration commences on gazettal, except for Schedules 1 and 2. Schedule 1 relating to the Trust will commence on the commencement of the Sydney Harbour Federation Trust Act 2001. Schedule 2 relating to SHL commences on the corporatisation SMHEA. This will occur on the repeal of the Snowy Mountains Hydro-electric Power Act 1949, which is effected by the commencement of section 59 of the Snowy Hydro Corporatisation Act 1997 (the Corporatisation Act).

Details of the Declaration are explained in the Attachment.

SUPERANNUATION (PSS) MEMBERSHIP INCLUSION AMENDMENT DECLARATION 2001 (NO. 1) - (ATTACHMENT)

Clause 1

1. This clause provides that the name of the Declaration is the Superannuation (PSS) Membership Inclusion Amendment Declaration 2001(No. 1)

Clause 2

2. This clause provides for the commencement of the declaration. Clauses 1, 2 and 3 commence on gazettal. Schedule 1 relating to the Sydney Harbour Federation Trust commences on the commencement of the Sydney Harbour Federation Trust Act 2001. Schedule 2 relating to Snowy Hydro Limited commences upon the repeal of the Snowy Mountains Hydro-electric Power Act 1949, which is effected by the commencement of section 59 of the Snowy Hydro Corporatisation Act 1997.

Clause 3

2.       This clause provides that Schedule 1 and Schedule 2 amend the Superannuation (PSS) Membership Inclusion Declaration (the Principal Declaration).

Schedule 1

Item [1] amends subclause 3(1) as a consequence of the insertion of subclause 3(11) by item 2.

Item [2] inserts subclause 3(11) which describes circumstances which result in PSS membership of employees of the Trust ceasing and specifies when membership ceases in each circumstance.

Paragraph 3(11)(a) provides that membership continues by virtue of these amendments only while a member remains employed by the Trust.

Paragraph 3(11)(b) provides that membership ceases on the day immediately before the person joins another superannuation fund.

Paragraph 3(11)(c) provides that membership ceases if and when the Trust ceases to be a Commonwealth authority within the meaning of the Commonwealth Authorities and Companies Act 1997.

Item [3] inserts item 19 in the Schedule to the Principal Declaration.

Item 19 describes the class of persons who continue to be PSS members during their employment with the Sydney Harbour Federation Trust (the Trust). Affected persons are those who immediately before commencing employment with the Trust were PSS members; or persons who had preserved benefits under the 1990 Act and who are not members of an alternative superannuation scheme in relation to their employment with the Trust.

Schedule 2

Item [1] inserts a definition of SMHEA corporatisation date in subclause 2(1) that is linked to the date of corporatisation provided for in the Corporatisation Act.

Item [2] amends subclause 3(1) as a consequence of the insertion of subclause 3(12) by item 3.

Item [3] inserts subclauses 3(12) in the Principal Declaration. Subclause 3(12) describes circumstances which result in PSS membership ceasing and specifies when membership ceases in each circumstance.

Paragraph 12(a) provides that that membership continued only while a member remains employed by SHL.

Paragraph 12(b) provides that membership ceases on the day immediately before the person joins an alternative superannuation scheme, as defined in the Principal Declaration.

Paragraph 12(c) provides that membership ceases if a person or entity other that the Commonwealth, New South Wales or Victoria becomes a shareholder of SHL. This ensures that membership ceases if any part of SHL is sold.

Paragraphs 12(d) and (e) provide that continuing membership is contingent upon SHL continuing to make payments to the Commonwealth in respect of the benefits payable and costs of administration in respect of its PSS members. Should SHL cease to make these payments it would then be required to make separate arrangements for future superannuation entitlements for these employees in an alternative superannuation scheme that satisfies at least the minimum requirements applying generally under the Superannuation Guarantee.

Item [4] inserts item 20 in the Schedule to the Principal Declaration.

Item 20 describes the class of persons who continue to be PSS members after corporatisation occurs. Continuing membership is provided for persons who were PSS members immediately before corporatisation occurred and became employees of SHL on corporatisation. Continuing membership is not provided where a PSS member becomes a member of an alternative superannuation scheme. Alternative superannuation scheme is defined in clause 2 of the Principal Declaration and does not include a scheme that satisfies only the minimum requirements of the Superannuation Guarantee.