Bills Digest No. 6 2005–06
Superannuation Legislation Amendment (Superannuation
Safety and Other Measures) Bill 2005
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
Superannuation
Legislation Amendment (Superannuation Safety and Other Measures)
Bill 2005
Date
Introduced: 23
June 2005
House: Representatives
Portfolio: Finance and
Administration
Commencement:
Royal Assent or 1
January 2006, depending on the particular provision.
To amend the:
-
Superannuation Act 1976 (the 1976 Act),
governing the operation of the Commonwealth Superannuation Scheme
(CSS)
-
Superannuation Act 1990 (the 1990 Act),
governing the operation of the Public Sector Superannuation Scheme
(PSS), and
-
Superannuation Act 2005 (the
2005 Act) applying to both the Public Sector Superannuation Scheme
and Commonwealth Superannuation Scheme.
The main purposes of the proposed amendments is to:
-
ensure that the operation of the PSS and CSS are consistent with
the requirements of the Superannuation Industry (Supervision)
Act 1993 (the SIS Act) concerning fitness and propriety
standards for superannuation fund trustees
-
allow negative crediting rates to be applied to member accounts
in the CSS, and
-
validate the payment of benefits from the CSS made in error to a
small group of members.
A number of recent developments form the background to this
Bill.
Section 29D(1)(d) of the SIS Act requires that the Australian
Prudential Regulation Authority (APRA) be satisfied that applicants
for Registrable Superannuation Entity licences be fit and proper
persons. The standards for meeting the fit and proper person test
are set out in Reg 4.14 of the Superannuation Industry
(Supervision) Regulations 1994 (the SIS Regulations).
These licensing requirements came into effect for all APRA
supervised superannuation trustees on 1 July 2004, subject to a
transitional period ending 30 June 2006.(1) Effectively,
all superannuation trustees have to hold the appropriate licence by
1 July 2006. The CSS and PSS Boards are in the process of applying
for a superannuation trustee s licence.(2) The majority
of CSS Board members are also PSS Board members.(3)
Part 7.9 of the Corporations Act 2001 requires that
superannuation fund members receive a wide range of information
about the operation of their fund. Additional information must be
provided to superannuation fund members under the SIS
Regulations.(4)
On 11 August 2004 the CSS Board decided to introduce investment
choice for the fund s members. CSS members are now able choose how
their own contributions are invested.(5) Initially, the
choice is between a balanced portfolio (where investments are made
in a wide range of assets classes, e.g. fixed interest, shares
property) and a cash portfolio (where investments are made in
highly secure and liquid instruments and markets such as the
overnight intra bank money market or short term fixed interest
investments such as bank accepted/bank endorsed commercial bills).
This approach was implemented between November and December 2004,
and is the first step in introducing a greater range of investment
choices for CSS members.
As a consequence of introducing investment choice for members,
the way in which investment earnings were allocated to the CSS
members accounts was also changed. Prior to 1 July 2003 the
earnings on members accounts was determined by the calculation of
the annual Crediting Rate . The Crediting Rate is the rate of
return on the members account for the previous financial
year.(6)
With effect from 1 July 2003 the members investment earnings are
determined on the basis of the Exit Rate . This is the estimated
investment performance of the particular members chosen investment
option between 1 July 2003 and the date on which they exit the CSS,
taking into account fees and taxes.(7) The Exit Rate is
applied to the members account balance, as at 1 July 2003, and to
any subsequent contributions.
When the Crediting Rate approach was used to calculate the
investment return on funds, if the CSS Fund made an investment
loss, and reserves were insufficient to cover that loss, the
government paid what was necessary to cover the losses to the
extent of the members own contributions (but not necessarily
interest) when the benefit was paid out. See below for an analysis
of the implications of situations when reserves were insufficient
to cover investment losses
To reduce the financial risk to both the government and the
members in the event of an investment loss an investment reserve of
5 per cent of the assets of the CSS fund was established. If the
CSS made a loss, portions of the reserve were allocated to the
members account. Once investment earnings recovered, the investment
reserve was gradually rebuilt to five per cent of the CSS s
assets.
While the investment reserve was being rebuilt the Crediting
Rate was reduced (including to zero) for that period of time. In
this way continuing CSS members shouldered a large proportion of
the CSS s investment risk, by foregoing investment earnings that
they might have otherwise earned.(8)
The Crediting Rate policy, and associated use of reserves, was
not without its problems. Where the CSS had made a loss, and a
member left, that member did not take the full extent of the losses
with them. The impact of rebuilding the investment reserve on the
balances of the remaining members accounts was, in these
circumstances, greater than it might otherwise have been.
This problem had the potential to have a significant impact in
coming years. The CSS was closed to new members in 1990. With no
new members the CSS membership profile has rapidly aged. This
situation, combined with the advantage that some CSS members may
have by resigning before they reach age 54 and 11
months(9), then claiming a CSS pension at or after age
55, may result in a comparatively rapid decline in CSS membership
over the coming years.(10) If the policy for allocating
investment losses and gains had not been changed the situation
might have arisen where a significant number of members exited the
CSS in a period when the CSS experienced an investment loss, not
taken a fair proportion of their investment losses with them, and
left the remaining members with a disproportionate impact on their
accounts (in terms of foregone investment earnings) during the
period over which the investment reserve were rebuilt.
A further problem with the Crediting Rate policy was that once
the investment reserve was rebuilt departing members did not take
their share of that reserve with them. Thus the benefits of members
who contributed to the rebuilding of the reserves and then left the
CSS were often less than they might otherwise have been.
The new Exit Rate policy addresses these problems by applying
the full extent of investment returns (and losses) continually to
members accounts. With the adoption of the Exit Rate as the basis
for allocating the investment earnings the operation of the
reserves is now limited to situations, should they occur, where
members total credited balances exceed the total assets of the CSS.
In such a situation, a negative reserve would be created and would
need to be replenished from future earnings.(11)
The difference between the Crediting Rate and the Exit Rate
approaches is that the under the former approach the investment
reserves smoothed the investment performance on a year by year
basis, and were replenished from future earnings. Under the Exit
Rate approach the negative reserve is created when investment
losses are of such size that they equal all the investment gains
since 1 July 2003. Between 1 July 2003 and 17 June 2005 the total
Exit Rate was 24.9%.(12) The CSS would have to
experience a loss of this magnitude before a negative reserve was
created, which would be replenished from future investment
earnings.
The full implementation of the Exit Rate approach is hindered by
the legal interpretation of the language used in the sections of
the 1976 Act (to be amended by Schedule 2 of the Bill) that the CSS
cannot declare a negative crediting rate to a members account.
Under the SIS Regulations a superannuation fund member cannot
receive their preserved benefits until they have met a condition of
release.(13) Until recently, such conditions required a
superannuation fund member to be retired from the workforce and
have reached, or passed, their preservation age.(14)
Section 110TB of the 1976 Act provides that a deferred benefit
is payable at either age 65 or upon provision of a written
statement to the CSS Board stating that the member has retired from
the work force. Section 111A of the 1976 Act provides that if a
benefit is payable under the provisions of that Act, but cannot be
paid under the provision of the SIS Act, then that benefit cannot
be paid.
CSS members, working for various approved authorities
(15) that offered alternative superannuation
arrangements to the CSS, became deferred benefit members of the
CSS. These members then claimed, and were paid, both lump sum and
pension benefits from the CSS. To receive these payments the
recipients should have exceeded their preservation age and retired
from the workforce. (i.e. met conditions of release under the SIS
regulations). However, the members concerned were still working,
therefore the payments should not have been permitted by virtue of
section 111A of the 1976 Act.
At the time the payment of these benefits was made, legal advice
indicated that payments in these circumstances did not breach the
law. That legal advice proved to be incorrect. Apparently, only a
small number of approved authorities , and a small number of
members, were involved.(16)
From 1 July 2005 a person who has reached their preservation age
(for those born before 1960, the preservation age is 55 years of
age), may access their superannuation benefits in the form of a
non-commutable income stream without having to retire or leave
their current employment.(17) These measures were
designed to cater for more flexible working arrangements at the end
of a person s working life. Under these new provisions a person may
receive a CSS pension, once they reach their preservation age,
without having to leave the workforce (once any necessary changes
to the 1976 Act receive Royal Assent).
Changes in the way the CSS operated were announced to CSS
members in their annual statements and reports in respect of the
2003 04 financial year. These documents were mailed to members in
the latter half of the 2004 calendar year. Further, the CSS Board s
press release of 3 September 2004 publicly announced changes to the
way in which the CSS Crediting and Exit Rates and reserving policy
operated.
A prominent Canberra financial consultant, Mr Daryl Dixon, has
strongly supported the removal of the restriction of the CSS
declaring a negative crediting rate and the already implemented
changes in the CSS s reserving policy.(18)
The application of the requirements of the SIS Act in respect of
the CSS and PSS Boards as provided for in the Bill, brings the
governance of these Schemes more into line with the standards that
will apply to most other Australian superannuation funds by 1 July
2006.
Further changes proposed in the Bill reduce the reliance of
these Boards on alternate or acting members and enable Board
members to participate in meetings while they are overseas. These
changes enable the CSS and PSS Board members to increase their
participation in the management of the fund, potentially improving
the consistency of decisions.
The Bill proposes changes to the information to be provided to
CSS and PSS members, bringing the operation of the PSS and CSS into
line with the operating standards required of other Australian
superannuation funds.
The removal of the restriction on the CSS declaring a negative
rate of return will support the current Exit Rate method of
allocating investment earnings to CSS members. This method enables
a more equitable allocation of investment returns (and losses)
between the continuing members of the CSS and the increasing number
of departing CSS members over the coming years.
The removal of this restriction may be perceived by members as
increasing the investment risk to which they are exposed.
The proposed changes to the 1976 Act validate the unauthorised
payments made to CSS members working for approved authorities and
authorises the continued payment of these benefits. This is in
conformity with the new regulations introduced in 2005 allowing a
person to commence receiving a non-commutable income stream if they
had reached their preservation age and have not retired from the
workforce. Further, these changes do not require the affected CSS
members to repay the unauthorised or unlawful benefits paid to them
in the past.
Should the proposed changes allowing the declaration of negative
crediting rates for the CSS not be passed it is unclear if the
current wording of the 1976 Act will cover the new Exit Rate policy
of allocating investment earnings and losses. This may have
significant consequences for the equity with which the CSS
investment earnings, and losses, are allocated in the coming years.
The retirement savings of continuing CSS members may be
significantly affected if the CSS experiences a large number of
exits and also experiences significant investment losses at the
same time.
Schedule 1 of the Bill amends the 1976, the
1990 Act and the 2005 Act to make changes to the qualifications for
appointment to the PSS and CSS Boards, and to allow Board members
to participate in Board meetings while overseas. Other changes in
Schedule 1 broaden the range of people to whom the
CSS and PSS Boards can delegate their powers, and allow these
Boards to require employers to distribute to their employees
information as required under the Corporations Act
2001.
Item 2 of Schedule 1 inserts new subsection
27F(1B) into the 1976 Act. It requires that the two part-time
members of the CSS Board to meet the SIS fitness and propriety
standards. Item 4 of Schedule 1
ensures that the SIS fitness and propriety standards applies to
people appointed as part-time members of the CSS Board after the
commencement of Item 2.
The other members of the CSS Board occupy that position by
virtue of their membership of the PSS Board.(19)
Amendments to the PSS Trust Deed will require PSS Board members to
meet the SIS fitness and propriety standards.(20)
Item 3 of Schedule 1 amends subsection
27H(1)(b) of the 1976 Act so that it is not necessary for the
Minister to appoint someone to act as a part-time CSS Board member
when a part-time member of the CSS Board (appointed pursuant to
section 27F(1)(b) of the 1976 Act) is away from Australia.
Item 5 of Schedule 1 inserts new subsection
27H(1C) into the 1976 Act ensuring that acting members of the CSS
Board also meet the SIS fitness and propriety standards.
Item 7 of Schedule 1 adds two new subsections
to section 27M of the 1976 Act and allows the
responsible Minister (in this case the Minister for Finance and
Administration) to terminate a part-time CSS Board members
appointment if they do not meet the SIS fitness and propriety
standards.
Item 8 of Schedule 1 adds two new subsections
to section 27N of the 1976 Act that allows a CSS
Board member to appoint a proxy to attend, and vote on their
behalf, a Board meeting which they cannot attend. A member
appointed as a proxy cannot vote on any motion on behalf of the
absent member unless: 1) specifically authorised in writing by the
absent Board member in respect of a particular issue and 2) that
the proxy attendee s vote is in accordance with the absent members
written instruction on that particular motion.
Items 9 to 14 of Schedule 1 outline how
attendance and voting by proxy attendees are to be treated in the
conduct of CSS Board meetings.
Item 15 of Schedule 1 adds a new sub-paragraph
to section 27Q that has the effect of widening the group of people
to which the CSS Board can delegate most of its powers to include
members of the staff of the CSS Board. Item 20 of Schedule
1 achieves the same outcome for the staff of the PSS
Board. Item 26 of Schedule 1 also achieves this
outcome for staff of the PSS Board in respect of the PSS
Accumulation Fund set up under the Superannuation Act
2005.
Item 18 of Schedule 1 amends section
163AB of the 1976 Act so that the Board can require
designated employers(21) of eligible employees (for
which read CSS members) to pass to these employees any required
information under any Commonwealth Act, including the
Corporations Act 2001. As noted above, the bulk of the
legislation governing information given to superannuation fund
members is now in the Corporations Act 2001. Under current
legislation the CSS Board can only require employers to pass to
employees information under the SIS Act. Item 23 of
Schedule 1 achieves the same outcome for employers of PSS
members under the 1990 Act.
Schedule 2 amends the 1976 Act to allow the CSS board to apply
negative interest rates to CSS member accounts.
Many of the amendments are to the particular language of various
subsections to allow for this to occur. For example in Item
1 of Schedule 2 the definition of accumulated basic
contributions in subsection 3(1) of the 1976 Act
is to be amended in the following manner:
-
the words interest that is payable in respect
of those contributions is to be removed, and
-
the words interest on those contributions put in their
place.
As can be seen the concept of payable is left out of the
proposed definition. Negative interest could not be applied to a
CSS members account if the current definition was left in place, as
negative interest cannot be said to be payable . Items 2,
15, 18, 21, 24, 26 of Schedule 2 have
similar effects.
Items 4 and 5 of Schedule 2 inserts new
definitions covering the terms interest and notional interest into
section 3(1) of the 1976 Act. The definition of these two terms
includes the concept of negative or zero interest.
Item 9 of Schedule 2 adds new
subsection 9 to section 3 of the
1976 Act. Under the proposed subsection 3(9) the
result of a calculation (irrespective of whether the expression
sum, total, plus or any other expression is used) which involves
negative interest or negative notional interest, cannot be less
than zero.
The importance of the proposed subsection 3(9)
can be seen in the proposed amendments in items
10, 11 and 12 of Schedule 2. These items deal with
the value of superannuation balances of members who either cease
receiving an invalidity pension or cease being deferred benefit
members (22) and again become eligible employees for CSS
purposes; that is, re-enter Commonwealth employment. In combination
with the proposed subsection 3(9) the proposed
amendments to subsections 7A(1), (2) and (3) of the 1976 Act ensure
that the amount of there superannuation balances after recommencing
work cannot be less than zero after negative interest is taken into
account.
Items 13 and 14 of Schedule 2 achieve a similar
outcome in respect of amounts transferred into the CSS from other
government superannuation schemes. That is, amounts transferred
into the CSS from these sources cannot be less than zero for CSS
purposes.
In combination with proposed section 3(9), item 23 of
Schedule 2 ensures that the value of an associated
deferred benefit cannot be less than zero after negative interest
rates are taken into account. An associated deferred benefit is a
benefit split under the provisions of the Family Law Act
1976 and preserved in the CSS until the member elects to take
or transfer that benefit under the provisions of the 1976 Act.
Item 28 of Schedule 2 ensure that the changes
in this Schedule do not effect any previous determinations made by
the CSS Board in respect of Crediting Rates prior to 1 January
2006.
Item 29 of Schedule 2 makes it
clear that zero interest rates could be determined before 1 January
2006. This last provision applies to those periods where the
Crediting Rates under the CSS were, in fact, zero.
Item 1 of Schedule 3 of the Bill validates the
unauthorised payment of pensions from the CSS, which have been made
in certain circumstances. It does this by:
-
defining the period during which these particular pensions were
paid (sub-item 1(1))
-
allowing for the recovery of these benefits (sub-item
1(2))
-
creating a new benefit payable equal to the total amount of
pension that would have been paid over the period defined in
sub-item 1(1) and (sub-item
1(4)), and
-
allowing for the debt due to the Commonwealth arising from
sub-item 1(2) to be recovered from the new benefit
payable under sub-item 1(4).
The result is that CSS members who received these pension
payments during the period defined in sub-item
1(1) do not have to make any payments back to the CSS
fund.
Sub-items 1(6) and following permit the
continued payment of pensions that arose in circumstances defined
in sub-item 1(1).
Item 2 of Schedule 3 validates the payment of
previously illegal or unauthorised lump sums from the CSS through a
similar mechanism to that mentioned above. Again, no lump sum paid
in these particular circumstances has to be repaid to the CSS
fund.
Concluding Comments
If passed, the enduring legacy of this Bill is that the
provisions of the SIS Act, relating to the fitness and propriety of
superannuation trustees and licences will apply to the CSS and PSS
boards. This brings the prudential supervision of these funds
further into line with arrangements applying to other Australian
superannuation funds and schemes.
-
Source: Australian Prudential Regulation Authority web site, at:
http://www.apra.gov.au/Superannuation/Superannuation-Licensing.cfm
accessed 28 June 2005.
-
Advice from Australian Prudential Regulation Authority staff; 28
June 2005.
-
Subsection 27F(1) Superannuation Act 1976
-
Part 2, Superannuation Industry (Supervision) Regulations
1994.
-
CSS members can contribute between 5 and 10 per cent of their
salary, on an after tax basis, to the CSS Fund. The Commonwealth
does not contribute until the benefit is taken. The Commonwealth s
contribution comes from consolidated revenue and is in the form of
either a CPI indexed pension or a un-taxed lump sum.
-
CSS web site, Investment Information Crediting Rate,
at: http://www.css.gov.au/css/investment/crediting.htm
accessed 28 June 2005.
-
CSS web site, Investment Information Exit rates, at:
http://www.css.gov.au/css/investment/exit_rates.htm
accessed 28 June 2005.
-
CSS crediting rates and investment returns for previous years
are shown in the following table. As can be seen from 1 July 2001
to 30 June 2003 the crediting rate was zero. This period was also
one of weak investment returns.
|
Year
|
Crediting Rate
|
Return % pa
|
|
1999-2000
|
15.1%
|
15.1
|
|
2000-2001
|
5.0%
|
1.8
|
|
2001-2002
|
0.0%
|
-5.6
|
|
2002-2003
|
0.0%
|
3.0
|
|
2003-2004
|
Exit rates applied
|
13.9
|
Source: CSS Web Site
- If a CSS member resigns from the Commonwealth Public Service
before reaching their 55th birthday their pension is calculated on
the basis of their accumulated basic contributions and interest. In
certain circumstances this can result in a higher pension then if
they had waited till turning 55 and having their pension calculated
on the basis of their years of services and their current final
average salary. For administrative convenience the CSS
administrator, Comsuper, prefers that members resign before
reaching 54 and 11 months.
- Around 18,500 APS employees who are CSS members will reach age
55 over the next 15 years. This is about 70% of all current CSS
members, many of whom may leave the APS before they reach age 54
and 11 months. Of the remaining 30% of current members, about half
are already aged 55 or older and half are aged less than 40.
Based on the 2000-01 and 2001-02 data, a trendline was projected
to estimate the number of 54 and 11 months exits over the next 15
years. This data is highly sensitive to factors including future
retrenchment trends, economic conditions (such as any future zero
or negative exit rates for the CSS) and any successful employer
retention strategies that might be implemented.
An estimate of 54 and 11 month exits assumes that about 40%, or
slightly more, of CSS members who are approaching age 55, will take
a 54 and 11 months exit. This would result in about 600 exits in
2004-05 then gradually fall to around 300 exits in 2016-17.
The above estimates were based on data for a period when the
retirement expectations for the general Australian population
perhaps showed a greater preference for early retirement. There is
some evidence that this preference is changing. This apparent
change in retirement age intentions may affect the retirement
intentions of the remaining CSS members. Source: Australian Public
Service Commission web based document, Superannuation and
mature-aged APS workers, p. 6. See:
http://www.apsc.gov.au/publications03/maturefinance.htm accessed 28
June 2005.
- Previously the CSS Board's investment policy included a
reserving mechanism, which gave effect to the legislative
requirement that members do not exit the CSS with less than what
they have contributed, even when the investment performance has
been below zero. Reserves were limited to no more than 5% of the
CSS s assets and were used to smooth annual returns. If the
value of reserves was not sufficient to offset completely any
negative investment returns then, because the CSS Board cannot
determine a negative interest rate for members, a negative reserve
was created. This negative reserve was replenished out of
future earnings.
With the changes to the CSS Crediting and Exit rate policies,
effective 13 August 2004 (applying from 1 July 2003), the CSS Board
has decided to limit the use of the reserving mechanism to those
situations, should they occur, where members credited balances
exceed the assets of the Fund. In such a situation, a negative
reserve would again be created and would need to be replenished
from future earnings.
Because the CSS is no longer determining annual crediting rates
but is instead allocating members their share of the Fund's assets
when they leave, the CSS may have a notional balance which
represents unallocated earnings. This balance is invested in
exactly the same way it would be if it were allocated to members,
and members earn a return on this balance in exactly the same way
they would if it were allocated to them. Source: CSS Web Site,
Key Investment Terms, at: http://www.css.gov.au/css/investment/terms.htm#reserves
accessed 28 June 2005.
-
CSS web site, Investment Information Exit Rates, at:
http://www.css.gov.au/css/investment/exit_rates.htm
accessed 28 June 2005.
-
Regulations 6.18 and 6.19 of the Superannuation Industry
(Supervision) Regulations 1994.
-
Regulations 6.01. 6.03, 6.07, 6.17, 6.18, and 6.19 and item 101
and 108 of Schedule 1, Superannuation Industry (Supervision)
Regulations 1994.
-
For CSS purposes Approved Authorities include:
-
Aboriginal and Torres Strait Islander Commercial Development
Corporation
Aboriginal Areas Protection Authority
Aboriginal Hostels
ACTEW Corporation Ltd
Adelaide Symphony Orchestra Pty Ltd
Airservices Australia
Albury Wodonga Development Corporation
Anglo Australian Telescope Board
Australia Council
Australian Broadcasting Corporation
Australian Capital Territory
Australian Dairy Corporation
Australian Film Commission
Australian Film, Television and Radio School
Australian Fisheries Management Authority
Australia Foundation for Culture and the Humanities Ltd
Australian Institute of Aboriginal and Torres Strait Islander
Studies
Australian Institute of Criminology
Australian Institute of Family Studies
Australian Institute of Marine Science
Australian International Hotel School
Australian Marine Science and Technology Limited
Australian Maritime College
Australian Maritime Safety Authority
Australian National Training Authority
Australian National University
Australian Nuclear Science and Technology Organisation
Australian Pork Corporation
Australian Sports Commission
Australian Sports Drug Agency
Australian Tourist Commission
Australian Trade Commission
Australian Wine and Brandy Corporation
Calvary Hospital ACT Incorporated
Canberra Theatre Trust
Centralian College
Civil Aviation Safety Authority
Conservation Commission of the Northern Territory
Commonwealth Scientific and Industrial Research Organisation
Cotton Research and Development Corporation
Dairy Research and Development Corporation
Export Finance and Insurance Corporation
Film Australia
Fisheries Research and Development Corporation
Forest and Wood Products Research and Development
Corporation
Grains Research and Development Corporation
Health Insurance Commission
Health Services Australia Ltd
High Court of Australia
Horticultural Research and Development Corporation
Indigenous Land Corporation
Katherine Rural College
Land and Water Resources Research and Development
Corporation
Law Courts Limited
Aid Commission (ACT)
Melbourne Symphony Orchestra
Menzies School of Health Research
Murray Darling Basin Commission
Museums and Art Galleries Board established by the Museums and
Art Galleries Ordinance 1965 (Northern Territory)
National Gallery of Australia
National Registration Authority of Agriculture and Veterinary
Chemicals
National Standards Commission
Northern Territory of Australia
Northern Territory Tourist Commission
Northern Territory University
Nuclear Safety Bureau
Pig Research and Development Corporation
Power and Water Authority
Private Health Insurance Administration Council
Private Health Insurance Complaints Commissioner
Queensland Orchestras Pty Ltd
Rural Industries Research and Development Corporation
Snowy Mountains Hydro-Electric Authority
Special Broadcasting Service
Sugar Research and Development Corporation
Sydney Symphony Orchestra Holdings Pty Limited
Symphony Australia Holdings Pty Ltd
Tasmania Symphony Orchestra Holdings Pty Ltd
Totalcare Industries Limited
Trade Development Zone Authority
University College, the College established by the University of
New South Wales within the Australian Defence Force Academy
University of Canberra
West Australian Symphony Orchestra Holdings Pty Ltd
Source: CSS Annual Report 2003 04, Appendix E Departments and
Approved Authorities.
-
CSS Media Release: Steve Gibbs, CSS Chief Executive Officer,
CEO provides clarification on benefit payments for CSS members
employed by approved authorities, April 2005, at: http://www.css.gov.au/css/news/index.html,
accessed 29 June 2005.
-
Superannuation Industry (Supervision) Amendment Regulations 2005
(No. 2) and Retirement Savings Accounts Amendment Regulations 2005
(No. 1). Any type of income stream can be taken under these
provisions, including allocated pensions or market linked pensions.
However, they are non-commutable until the person has reached 65
and retired.
-
Daryl Dixon, Labour throws spotlight on choice , Public
Sector Informant, 3 August 2004, p. 21.
-
Explanatory Memorandum to the Superannuation Legislation
Amendment (Superannuation Safety and Other Measures) Bill 2005, p.
6.8
-
ibid., p. 3.
-
A designated employer is defined in section 3C of the
Superannuation Act 1976. Briefly, a designated employer is
a Commonwealth Department or an Approved Authority (see endnote 11
above).
-
A deferred benefit member is one who resigns from Commonwealth
employment before reaching the age 55, and preserves their benefits
within the CSS.
Les Nielson
3 August 2005
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
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