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Governance of Australian Government Superannuation Schemes Bill 2010

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6143

2008-2009-2010

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

 

Governance of Australian Government Superannuation Schemes Bill 2010

 

 

 

(1)     Page 2 (after line 2), after clause 2, insert:

2A  Objects

                   The objects of this Act are:

                     (a)  to establish a single body to administer Australian Government superannuation schemes, but maintain within that body two Boards to deal separately with military and civilian superannuation matters; and

                     (b)  to ensure that appropriate safeguards remain in place to recognise the unique nature of military service.

(2)     Clause 3, page 2 (after line 21), after the definition of Chair , insert:

Civilian Board means the Civilian Board established within the Board by paragraph 8(b).

Civilian Board director means a director appointed as a Civilian Board director under section 11.

[separate boards for military and civilian matters]

(3)     Clause 3, page 3 (after line 16), after the definition of governing deed , insert:

Military Board means the Military Board established within the Board by paragraph 8(a).

Military Board director means a director appointed as a Military Board director under section 11.

[separate boards for military and civilian matters]

 

(4)     Clause 8, page 8 (lines 3 and 4), omit the clause, substitute:

8   Establishment

                   There is to be a Board of CSC, and within that Board there is to be:

                     (a)  a Military Board; and

                     (b)  a Civilian Board.

[separate boards for military and civilian matters]

(5)     Clause 9, page 8 (after line 10), after subclause (2), insert:

          (2A)  All acts and things done in the name of, or on behalf of, the Board:

                     (a)  by the Military Board; or

                     (b)  by the Civilian Board;

are taken to have been done by the Board.

[separate boards for military and civilian matters]

(6)     Clause 10, page 8 (line 13) to page 9 (line 9), omit the clause, substitute:

10   Membership

Composition of the Board

             (1)  The Board consists of:

                     (a)  a Chair; and

                     (b)  5 other directors appointed as Miliary Board directors; and

                     (c)  5 other directors appointed as Civilian Board directors.

Note:       See also subsection 36(2).

Membership of the Military Board

             (2)  The Military Board consists of:

                     (a)  the Chair; and

                     (b)  5 other directors.

             (3)  Of the 5 other Military Board directors:

                     (a)  the Chief of the Defence Force may nominate, in writing, 2 persons; and

                     (b)  at least 1 person must be appointed by the Minister as a representative of the veteran community.

             (4)  Before nominating a person, the Chief of the Defence Force must consult with one or more relevant organisations.

             (5)  A person is not eligible for nomination under paragraph (3)(b) if the person’s appointment would result in a contravention of a SIS fitness and propriety standard.

             (6)  A nomination must specify the period for which the nominee is to be appointed. The period may not be more than 3 years.

Membership of the Civilian Board

             (7)  The Civilian Board consists of:

                     (a)  the Chair; and

                     (b)  5 other directors, appointed by the Minister, no more than 2 of whom may be members of trade union associations.

General provisions

             (8)  A person, other than the Chair, must not be appointed as a director on both the Military Board and the Civilian Board concurrently.

             (9)  The performance of a function or the exercise of a power of the Board is not affected by a vacancy in the membership of the Board.

[separate boards for military and civilian matters]

nb: (7) and (8) will not be needed if (6) is successful

(7)     Clause 10, page 8 (lines 19 and 20), paragraph (2)(a) TO BE OPPOSED .

[remove ACTU references]

(8)     Clause 10, page 9 (lines 1 to 3), subclause (4) TO BE OPPOSED .

[remove ACTU references]

(9)     Clause 11, page 9 (after line 15), after subclause (1), insert:

          (1A)  Other than the Chair, each director is to be appointed either as a Civilian Board director or as a Military Board director.

[separate boards for military and civilian matters]

(10)   Clause 11, page 9 (lines 19 to 25), omit subclauses (3) and (3A), substitute:

             (3)  Before making an appointment, the Minister:

                     (a)  may consult relevant organisations; and

                     (b)  may consult prescribed organisations.

          (3A)  Before making an appointment to the Military Board, the Minister must consult the Defence Minister.

nb: (11) will not be moved if (10) is successful

(11)   Clause 11, page 9 (lines 19 and 20), omit “the President of the Australian Council of Trade Unions or”.

[remove ACTU references]

(12)   Clause 15, page 10 (lines 25 and 26), omit “the President of the Australian Council of Trade Unions or”

[remove ACTU references]

(13)   Clause 15, page 10 (lines 27 and 28), omit “President or Chief, as appropriate”, substitute “Chief”.

[remove ACTU references]

(14)   Clause 16, page 12 (lines 2 to 5), subclause (5) TO BE OPPOSED .

[remove ACTU references]

(15)   Clause 16, page 12 (lines 10 and 11), omit “the President of the Australian Council of Trade Unions or”

[remove ACTU references]

(16)   Clause 17, page 12 (line 31) to page 13 (line 8), subclause (4) TO BE OPPOSED .

[remove ACTU references]

(17)   Page 13 (after line 26), before clause 18 (in Subdivision C), insert:

17A  Decision making

             (1)  Decisions concerning only the military schemes are to be made by the Military Board.

             (2)  Decisions concerning only the other schemes administered by the CSC are to be made by the Civilian Board.

             (3)  Subject to subsections (1) and (2), the Board has the responsibility for:

                     (a)  decisions jointly affecting superannuation schemes administered by the CSC; and

                     (b)  all other functions specified in section 7.

             (4)  If an issue arises about whether a matter concerns:

                     (a)  only the military schemes; or

                     (b)  only the other schemes administered by the CSC;

the Chair must determine the issue.

             (5)  A determination made under subsection (4) is not a legislative instrument.

[separate boards for military and civilian matters]

(18)   Clause 18, page 13 (line 28), omit “The Board”, substitute “Each of the Boards”.

[separate boards for military and civilian matters]

(19)   Clause 19, page 14 (line 6), omit “the Board”, substitute “each Board”.

[separate boards for military and civilian matters]

(20)   Clause 20, page 14 (line 13), omit subclause (1), substitute:

             (1)  At a meeting of the Board, 9 directors constitute a quorum, provided that those 9 directors include the Chair, at least 4 Military Board directors and at least 4 Civilian Board directors.

          (1A)  At a meeting of the Military Board or the Civilian Board, 5 directors constitute a quorum.

[separate boards for military and civilian matters]

(21)   Clause 20, page 14 (line 14), omit “subsection (1)”, substitute “subsections (1) and (1A).

[separate boards for military and civilian matters]

(22)   Clause 20, page 14 (lines 23 and 24), omit paragraph (2)(c), substitute:

                     (c)  there are present:

                              (i)  in the case of the Board—at least 8 other directors, including at least 4 Military Board directors and at least 4 Civilian Board directors; or

                             (ii)  in the case of the Military Board or the Civilian Board—at least 4 other directors;

                            who would be counted in determining whether a quorum is present;

[separate boards for military and civilian matters]

 

(23)   Clause 21, page 15 (after line 28), at the end of the clause, add:

             (8)  A reference in this section to the Board includes a reference to the Military Board or the Civilian Board, as the case may be.

[separate boards for military and civilian matters]

(24)   Clause 22, page 15 (line 30), before “At”, insert “(1)”.

[separate boards for military and civilian matters]

(25)   Clause 22, page 16 (after line 4), at the end of the clause, add:

             (2)  For the purposes of subsection (1), a question is taken not to be agreed to unless it has the agreement of the Chair, at least 4 Military Board directors and at least 4 Civilian Board directors.

             (3)  At a meeting of the Military Board or the Civilian Board, a question is decided by the agreement of at least 4 directors.

[separate boards for military and civilian matters]

(26)   Clause 23, page 16 (lines 6 to 16), omit subclause (1), substitute:

             (1)  The Board is taken to have made a decision at a meeting if:

                     (a)  without meeting, the Chair, at least 4 Military Board directors and at least 4 Civilian Board directors indicate agreement with the proposed decision in accordance with the method determined by the Board under subsection (2); and

                     (b)  all directors were informed of the proposed decision, or reasonable efforts were made to inform all directors of the proposed decision.

          (1A)  The Military Board is taken to have made a decision at a meeting if:

                     (a)  without meeting, at least 4 other directors indicate agreement with the proposed decision in accordance with the method determined by the Board under subsection (2); and

                     (b)  all Military Board directors were informed of the proposed decision.

          (1B)  The Civilian Board is taken to have made a decision at a meeting if:

                     (a)  without meeting, at least 4 other directors indicate agreement with the proposed decision in accordance with the method determined by the Board under subsection (2); and

                     (b)  all Civilian Board directors were informed of the proposed decision, or reasonable efforts were made to inform all Civilian Board directors of the proposed decision.

[separate boards for military and civilian matters]

(27)   Clause 23, page 16 (line 17), omit “Subsection (1) applies only if the Board”, substitute “Subsections (1), (1A) and (1B) apply only if the relevant Board”.

[separate boards for military and civilian matters]

(28)   Clause 23, page 16 (line 21), omit “Paragraph (1)(a) does not apply”, substitute “Paragraphs (1)(a), (1A)(a) and (1B)(a) do not apply”.

[separate boards for military and civilian matters]

(29)   Clause 24, page 16 (line 29), omit “The Board”, substitute “Each Board”.

[separate boards for military and civilian matters]

 

(30)   Page 25 (after line 22), at the end of Division 2, add:

34A   Review of the operation of the Board

             (1)  The Minister must cause an independent review of the operation of the Board, including the operation of the Military Board and the Civilian Board, to be undertaken:

                     (a)  by 1 July 2015; and

                     (b)  each 5 years after that date.

             (2)  The Minister must ensure that public submissions are sought in relation to each review.

             (3)  The Minister must cause a copy of a written report of each review to be tabled in each House of the Parliament within 15 sitting days of receiving the report.

[review of operation of Act]

(31)   Clause 36, page 28 (lines 10 and 11), after “paragraph 10(1)(b)”, insert “or (c)”.

[separate boards for military and civilian matters]