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Superannuation Act 1976 - Commissioner for Superannuation - Report, incorporating report on the administration of the Commonwealth Superannuation Administration and/or Retirement Benefits Office pursuant to the Public Service Act, for - 1992-93


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M M I S S I O N E R

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A N N U A L R E P O R T 1 9 9 2 - 9 3

Retirement Benefits Office

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C O M M ISSIO N E R

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SU PE R A N N U A T IO N

A N N U A L R EPO R T

1992-93

® Commonwealth of Australia 1993 ISSN 1031-8585

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601.

Previously published as:

• Annual Report o f the Superannuation Fund Management Board, from 1922-23 to 1928-29;

• Annual Report o f the Superannuation Board, from 1929-30 to 1975-76;

• Annual Reports o f the Superannuation Fund Investment Trust and the Commissioner fo r Superannuation, from 1976-77 to 1988-89 (also Interim Reports, from 1976-77 to date).

See also the annual reports of the: Commonwealth Superannuation Board of Trustees No. 1 Commonwealth Superannuation Board of Trustees No. 2 Military Superannuation and Benefits Board of Trustees No. 1 Defence Force Retirement and Death Benefits Authority and

Commonwealth Funds Management Ltd.

All of the aforementioned reports are tabled before Parliament.

Published for the Commissioner for Superannuation by the Australian Government Publishing Service, Canberra.

Printed for AGPS by Better Printing Service, 1 Foster Street, Queanbeyan, NSW 2620

The Hon. Ralph Willis, MP Minister for Finance Parliament House Canberra ACT 2600

Dear Minister

In accordance with section 162 of the Superannuation Act 1976 and section 34C(2) of the Acts Interpretation Act 1901, I present to you my annual report on the general administration and operation of the Superannuation Act 1976 (other than Parts IIA, III and IVA and section 154A) and the superseded Superannuation Act 1922, during the year ended 30 June 1993.

This report also covers the general administration of the Retirement Benefits Office, thus fulfilling the reporting requirements of subsections 25(6-7) of the Public Service Act 1922 and section 8 of the Freedom o f Information Act 1982.

Yours sincerely,

K. A. Searson Commissioner for Superannuation and Chief Executive Officer of the Retirement Benefits Office 26 November 1993

Retirement Benefits Office (RBO)

Street Address:

Postal Address: Telephone: Facsimile: Annual Report inquiries:

Unit 1 Cameron Offices, Chandler Street, Belconnen ACT 2617 PO Box 22, Belconnen ACT 2616 (06) 252 7911

(06) 253 1116 Mr Kim Wilson, Scheme Promotions Group Telephone: (06) 252 6888

Note: All contribution, benefit, membership and exit statistics are based on events related to the annual reporting period as reflected in the records of the Commissioner at the time these statistics were compiled. The figures may vary from the records of these events as recorded by departments and authorities. Where historical statistics are quoted, these may vary from previously published

statistics due to the application of retrospective adjustments that are now reflected in this report.

Annual statistical tables are not published in the appendices of this report. Where readers require access to these statistics, they are available, upon request, from the Scheme Promotions Group (telephone (06) 252 6888, facsimile (06) 253 1116).

Any descriptions in this report relating to the provisions of the Acts administered is not definitive. These descriptions do not carry the authority of the Acts concerned. Consequently, the descriptions used shall not prevail over the actual provisions of the pertinent legislation.

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Foreword

In this year’s report we have tried to make further improvements by focussing on our strategic goals and enhanced methods of presentation. More relevant and quantifiable performance indicators present a difficult challenge and we have instituted measures that should enable us to demonstrate improvements in this area in future reports.

The Retirement Benefits Office (RBO) has undergone major changes and restructuring. As an evolving by-product of the process of change, both across the superannuation industry and within the RBO, the need has arisen to reassess and redefine the RBO’s performance indicators in terms of ‘best industry practice’ or benchmarking. A number of strategic projects are currently underway to develop appropriate benchmarks for the RBO. The outcomes of these projects and redefinition of RBO’s performance indicators will be reported in the Commissioner’s Annual Report for 1993-94.

This report has been produced in four parts.

Part A reports on the legislative responsibilities of the Commissioner for Superannuation in relation to his administration of the Commonwealth Superannuation Scheme (CSS) established under the Superannuation Act 1976 (and the superseded 1922 Act).

Part B highlights the activities of the RBO (as an organisation), for which the Commissioner is the Chief Executive Officer.

Part C reports on the RBO’s programs which relate principally to administrative support to the Commonwealth Board of Trustees No. 1 (‘PSS Board’), the Commonwealth Board of Trustees No. 2 (‘CSS Board’), the Military Superannuation and Benefits Board of Trustees No. 1 (‘MSB Board’) and the

Defence Force Retirement and Death Benefits (DFRDB) Authority in the performance of their separate functions. Each of the Boards and the DFRDB Authority produce their own annual reports covering their specific responsibilities.

Part D reports on the RBO’s responsibilities and commitment to government policies.

Certain activities may be reported in more than one part of the report, but the amount of overlap has been reduced as much as possible.

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Contents

F o r e w o r d .......................................................... v

C om m issioner’s O v e r v ie w ......................... ix

I n tr o d u c tio n .................................................... xi

Part A

Administration of the Commonwealth Superannuation Scheme . . . . 1

Key Statistics (CSS) ............................. 2

Commissioner as a Statutory Office Holder 3 Commissioner’s Obligations........ 3 Membership .................................... 3

Contributions.............................. 5

Benefits..................................... 5

Preservation .................................... 6

Classification of Contributors...... 6 Administrative Decisions of the Commissioner ............................. 6

Review of Invalidity Pensioners . . . . 7 Reconsideration of Decisions Made by Commissioner and Delegates . . . . 8 External Review of Decisions Made by

the Commissioner or his Delegates 9 Significant A AT Decisions .............. 10

Part B

Retirement Benefits Office Operations ............................... 13

The Retirement Benefits Office (RBO) 14 The RBO’s Corporate Goals ............ 15 The RBO Corporate Plan ................. 15

Organisational Structure........................ 23

Restructuring......................................... 25

Client Communications...................... 26

Business Operations........................... 27

Review and L egal............................. 32

Business Systems ............................. 35

Business Management ...................... 37

Part C

Retirement Benefits Office P r o g r a m s.................................. 45

Program One Delivery of Commonwealth Superannuation Schemes............................................ 46

Overview.............................................. 46

1.1 Primary Administration............ 49 CSS Activities................................. 57

PSS Activities ................................ 57

Membership ................................ 57

Contributions................................ 57

Benefits ....................................... 58

1.2 Reconsideration and Review . . . 59

Program Two Delivery of Defence Force Schemes . . . . 61

Overview.............................................. 61

2.1 Primary Administration............... 63 DFRDB Activities............................. 64

Contributions............................... 64

Membership ............................... 64

Benefits ....................................... 65

MSBS Activities............................... 66

Contributions............................... 66

Membership ............................... 66

Benefits ....................................... 67

2.2 Reconsideration and Review . . . . 68

Program Three Corporate Services ................................ 73

3.1 Management of Resources . . . . 73

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Part D

Retirement Benefits Office and Government P o lic y ................. 75

Policy Implementation.......................... 76

Occupational Health and Safety . . . . 76 Industrial Democracy........................ 77

Client Comments .............................. 78

Equal Employment Opportunity . . . . 79 EEO Program .............................. 80

EEO Resources ............................ 80

Freedom of Information Act Statement 81 Privacy Act Operations........................ 86

Fraud Control ................................... 87

Training........................................... 88

Purchasing ........................................ 92

Property Usage ................................. 93

Energy............................................... 93

A b b r e v ia tio n s ................................................. 95

Appendixes

A. LEGISLATION SUMMARY............ 96

B. PRIORITIES.................................. 108

C. RBO STAFFING INFORMATION . 110

D. USE OF CONSULTANTS............ 115

E. FINANCIAL STATEMENTS . . . . 116

F. INDEX OF REQUIREMENTS . . . 142

G. KEY STATISTICS (PSS, DFRDB and MSBS ........................................... 144

List of Figures

Figure 1: CSS Member Profile by Age, Number and Salary ............................................... 3

Figure 2: CSS Member Exits 1992-93 ............................................................................... 4

Figure 3: Retrenchments as a Percentage of CSS Exits (Excluding Transfers) 1988-93 . . . . 4

Figure 4: CSS Pension Commencements 1992-93 5

Figure 5: Graphical Representation of Performance P a y .................................................... 40

Figure 6: PSS Member Profile by Age, Number and Salary ............................................... 58

Figure 7: PSS Exits for 1992-93 ...................................................................................... 58

Figure 8: PSS Pension Commencements 1992-93 .............................................................. 59

Figure 9: DFRDB Member Profile by Age, Number and Salary........................................ 64

Figure 10: DFRDB Exits for 1992-93 ................................................................................. 65

Figure 11: DFRDB Pension Commencements 1992-93 ....................................................... 65

Figure 12: MSBS Member Profile by Age, Number and S alary........................................... 66

Figure 13: MSBS Exits 1992-93 ......................................................................................... 67

Figure 14: MSBS Pension Commencements ........................................................................ 67

Figure 15: Meeting Time Targets—Reconsideration and Review—DFRDB Scheme ............ 71

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List of Tables

Table 1: Administrative Appeals Tribunal Decisions 1988-89 to 1992-93 ......................... 10

Table 2: Details of Performance Payments ...................................................................... 39

Table 3: Personnel Training and Member Presentations 1992-93 ....................................... 55

Table 4: RBO Staff Participating in Eligible Training Programs by EEO Target Group and Classification During 1992-93 .......................................................................... 91

Table 5: Number of Person Days Spent in Formal Training Activities by All Staff in the RBO During 1992-93, by Gender and Classification............................................ 91

Table 6: Exceptions to Gazettal Procedures...................................................................... 92

Table 7: RBO Vehicle Fleet ............................................................................................ 94

Table Al: Statutory Rules under the Superannuation Act 1976 ............................................ 96

Table A2: Declarations by the Minister Gazetted 1992-93: 1922 Act ............................... 102

Table A3: Declarations by the Minister Gazetted 1992-93: 1976 Act ............................... 103

Table A4: Declarations under the Superannuation Act 1990 Made by Statutory Rules . . . . 103

Table A5: Declarations by the Minister Gazetted 1992-93: 1990 Act ............................... 105

Table A6: Determinations by the Minister Gazetted 1992-93: 1976 Act ........................... 106

Table Cl: Operative Staff as at 30 June 1993 ................................................................... 110

Table C2: Operative Staff: by Classification and Gender as at 30 June 1993 ..................... I ll

Table C3: Operative Staff: Classified by Age Group and Gender as at 30 June 1993 . . . . 112

Table C4: Permanent Staff: Recruitment 1992-93 ................................................... 113

Table C5: Permanent Staff: Separations 1992-93 ................................................... 113

Table C6: Permanent Staff: Promotions 1992-93 ................................................... 113

Table Cl: Part-time Staff as at 30 June 1993 .................................................................. 114

Table C8: Temporary Staff by Gender and Classification as at 30 June 1993 .................... 114

Table C9: Inoperative Full-time Staff as at 30 June 1993 ................................................... 114

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Commissioner's Overview

In my report last year I foreshadowed a significant shift in the RBO’s corporate culture and a review of our strategic direction. Progress on both these fronts is well advanced.

During the year there were two especially noteworthy outcomes for the RBO: firstly, the completion of a strategic planning process, and secondly, the successful development of a business case for an Information Technology (IT) modernisation program.

The cultural shift has been achieved through the development of a shared Corporate Vision, Mission Statement and Corporate Goals. The principal change strategy has been a ‘visioning’ process where staff were extensively consulted and participated in communication and planning workshops throughout the year. The workshops were designed to focus on the RBO’s corporate functions and objectives and to use this framework to achieve clarity, understanding and commitment to a new direction that recognises the dynamics of the superannuation industry.

The second notable achievement was the analysis and development of a business case for a redevelopment of RBO’s business systems and Information Technology. Since 1990 the changes in the area of public sector superannuation have been rapid and far-reaching, and have exposed serious shortcomings in RBO’s systems and technology. Existing systems

(some of which date from the early 1970s) are inflexible and increasingly difficult to maintain. This was highlighted in a program evaluation concluded late in 1992. Indeed, before the evaluation was completed, the need for a thorough overhaul of the existing

systems became apparent. As part of the program evaluation, consultants were engaged to undertake an assessment of the computer systems. They concluded that the existing systems had reached the end of their useful life. The Program Evaluation Steering Committee recommended that the case for RBO’s systems be examined by an Acquisition Council. The Acquisition Council supported the business case for implementing an IT modernisation program. The Government has since accepted the case for a systems upgrade and funds have been provided in the 1993-94 Budget.

In the interim, the RBO has been restructured to align the organisation with its new business direction. By 30 June a five-branch structure had been put in place, but decisions on the positioning of some of the lower level re-alignments were held over pending consultation with the unions and the affected staff. Key business committees have since been established

to enhance the horizontal lines of communication, and a system of strategic projects has been initiated to facilitate the orderly, practical implementation of measures designed to achieve our corporate goals.

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Overall, I am pleased with the enthusiastic way in which staff of the RBO have embraced the new strategic direction. I wish to place on record my appreciation of, and thanks to, RBO staff who continue to support the RBO’s transformation to high performance. With continuing strong commitment from staff and appropriate support from the Government, I am confident that RBO will seize the opportunity to successfully transform itself into a more business-like organisation with a clear client focus, offering the best of public and private sector standards of service.

The priorities for 1993-94 will be on re-engineering our business processes and on the first phase of the IT modernisation project as part of a continuous process of improvement.

My thanks also go to the Department of Finance, Department of Defence and the personnel areas of the many employing agencies on whom the RBO relies so heavily for support.

K. A. Searson Commissioner for Superannuation

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Introduction

Background

The Commissioner for Superannuation is a statutory office holder with the power and responsibility of the secretary of a department for the purposes of the staffing and financial administration of the Retirement Benefits Office (RBO).

The Commissioner is responsible for the general administration of the closed Commonwealth Superannuation Scheme (CSS) and certain closed Papua New Guinea (PNG) superannuation schemes. The Commissioner, through his role as Chief Executive of the RBO, also provides

administrative support to the DFRDB Authority in the general administration of the closed Defence Force Retirement Benefits (DFRB) Scheme and the closed Defence Force Retirement and Death Benefits (DFRDB) Scheme. Administrative support is also provided to the Commonwealth Superannuation Board of Trustees No. 1 in the general administration of the

Public Sector Superannuation (PSS) Scheme, to the Commonwealth Superannuation Board of Trustees No. 2 in respect of that Board’s limited responsibilities in relation to the CSS and to the Military Superannuation and Benefits Board of Trustees No. 1 in the general administration of the Military Superannuation and Benefits Scheme (MSBS).

For administrative purposes, the PSS Board has delegated the bulk of its general administrative powers and functions under the Trust Deed and Scheme Rules to the Commissioner for Superannuation and to the staff of the RBO. The Board has retained its principal powers of policy formulation (including investment) and reconsideration of primary

decisions made by delegates.

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ART A

A d m i n i s t r a t i o n

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Key S ta tistic s (CSS)

Contributors at 3 0 June 1 9 9 1 -9 2 1 9 9 2 -9 3

Males 87 3 8 4 75 9 3 9

Females 39 5 3 5 35 2 4 0

Total 126 919 111 179

Contributor exits 1 9 9 1 -9 2 1 9 9 2 -9 3

Age 1 7 1 3 1 4 5 9

R etrenchm ent 3 7 2 0 4 135

Invalidity 196 2 4 4

Death 107 95

Resignation and other 2 2 0 9 1 9 1 8

Total 7 945 7 851

Pensions in force at 3 0 June 1 9 9 1 -9 2 1 9 9 2 -9 3

Age 39 9 1 0 4 0 4 6 0

Invalidity 31 4 2 5 3 0 7 7 5

R etrenchm ent 3 3 8 9 5 2 5 2

S p o u se s and orphans 2 4 671 25 2 9 6

Total 9 9 3 9 5 101 7 8 3

A ve ra g e y e a rly adult pension $ 15 7 9 8 $ 15 9 0 4

P reserved ben efits at 3 0 June 1 9 9 1 -9 2 1 9 9 2 -9 3

N um ber 4 7 0 451

1 9 9 1 -9 2 1 9 9 2 -9 3

$ '0 0 0 $ '0 0 0

C ontributions receivable 3 3 4 2 5 9 3 1 0 5 7 6

A n n u a l pen sion liability 1 5 3 8 8 0 0 1 5 9 0 0 0 0

2

Commissioner as a Statutory Office Holder

Commissioner's Obligations The Superannuation Act 1976 requires the Commissioner to:

• collect contributions and pay them into the superannuation fund (No. 2); • pay benefits; • provide administrative support to the

Commonwealth Superannuation Board of Trustees No. 2 (CSS Board) • keep proper records of contributions and benefits paid; and

• furnish information to the CSS Board enabling it to maintain proper accounting records for the fund.

Membership The current contributory membership of the CSS is 111 179. This comprises 68.3 per cent males and 31.7 per cent females. The overall membership has decreased by 15 740, attributable to exits (7 851) and

transfers to other schemes (7 889).

Figure 1: CSS Member Profile by Age, Number and Salary

25000

20000

2 E 15000

> 10000

5000

25-29 I 35-39 I 45-49 I 55-59

<25 30-34 40-44 50-54 60-64

Age group

3

4

Figure 2: CSS Member Exits 1992-93

Age retirement (9.3%) ϋ Invalidity (1.6%) [_J Retrenchment (26.3%) ■ Death (1%) 0 Resignation (8.5%) Q] QBE transfers (32.4%) □ Preservation (3.7%) Q Other transfers (17.7%)

As Figure 2 shows, retrenchments and Government Business Enterprise (GBE) transfers dominated the modes of exit for 1992— 93. GBE transfers represent the single largest mode of exit at 32.4 per cent of all CSS exits, while retrenchments comprise 26.3 per cent of total exits. GBE transfers, unlike retrenchments, are a relatively temporary statistical aberration. Nonetheless, transfers have proven to be significant in terms of the demands on RBO’s resources.

Excluding transfers, retrenchments represented 52.7 per cent of CSS exits during the year and have been a major feature of CSS exits since 1990. Figure 3 highlights the increasing prominence of retrenchments as a mode of exit. Although the effect is more pronounced due to the significant decreases in other types of exit over the same period, it is still notable that, proportionally, retrenchments have grown from 9.3 per cent for 1988 to 52.7 per cent for 1993, averaging 4 640 retrenchments per year over the last five years.

Figure 3: Retrenchments as a Percentage of CSS Exits (Excluding Transfers) 1988-93

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A handful of employers collectively account for more than 75 per cent of the retrenchments during the 1992-93 year. These were the Department of Administrative Services, the Department of Defence, and GBEs including Telecom, Australian Defence Industries, Australia Post and Australian National

Railways Commission.

C o n t r i b u t i o n s The total contributions receivable during the year were $311 million. This represents a decrease of 7.1 per cent from last year’s total. This decrease reflects a membership drop of 15 740 and the fact that the

CSS was closed to new members on 1 July 1990.

During 1992-93 CSS contributions totalling $310.6 million were receivable and benefits totalling $311.3 million were payable from the

superannuation fund

Members of the CSS are required to contribute a minimum of 5 per cent of their salary. However, members can voluntarily elect to contribute up to 10 per cent and, in some special cases, contributions can be as high as 15 per cent. The most common contribution rates during the year were 5 per cent

(85.1 per cent of members) and 10 per cent (11.0 per cent of members).

Benefits

Figure 4: CSS Pension Commencements 1992-93

Q Age retirement (27.7%) ■ Invalidity (4.5%) [Π Retrenchments (36.6%) H Dependants (31.2%)

As at 30 June 1993 there were 101 783 CSS pensioners resulting in an annual pension liability of $1.59 billion. This liability comprises $320 million arising from the Superannuation Act 1922 and $1.27

billion from the Superannuation Act 1976. This represents a 3.6 per cent increase over last year’s result of which 1.6 per cent is due to indexation (i.e. $24 million).

Consistent with recent years, retrenchment benefits represent the most significant proportion of the pensions commenced. Retrenchments constitute 36.6 per cent of the pensions started (see Figure 4).

The average pension paid to adult pensioners is $15 904 p.a., which is an increase of 1.1 per cent on 1991-92. The net increase in the number of CSS pensioners was 2 388. The pension averaged over all

CSS pensioners (that is, including children) for the year was $15 669 p.a.

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There were 2 810 CSS members who received a lump sum rather than pension. Retrenchments accounted for approximately 98 per cent of lump sum benefits.

Preservation When members resign from the scheme they may elect to preserve their superannuation benefit. Preservation takes one of two forms—either:

1. a transfer value paid to another, eligible superannuation scheme; or

2. if ineligible for a transfer value, the preserved benefit will become a deferred benefit, payable from age 55 onwards.

Of the 5 037 members eligible to preserve their benefit (excluding age retirements), only 451 elected to do so. By not electing to preserve, exiting members received a refund of their accumulated member contributions but gave up their right to an employer-financed supplement equivalent to at least

12.5 per cent of their salary.

Classification of Contributors During the year, 47 requests to vary or revoke a Benefit Classification Certificate (BCC) were

considered. BCCs were issued to CSS members when there was a real risk of the member being unable, because of some pre-existing medical condition, to reach maximum retiring age. Conditions which may give rise to early retirement on medical grounds are specified in the certificate. Medical retirement on any of the grounds listed in a BCC with less than 20 years service will result in a reduced benefit.

During the year, of the requests to vary or revoke a BCC, five were refused, 39 were revoked, 11 lapsed and six were varied.

Administrative Decisions of

the Commissioner

Classification o f Former Members

If a contributor with less than 20 years contributory service is medically retired, the Commissioner must decide if the cause relates to a condition noted on a

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BCC. This decision is also made when a member dies or has salary reduced due to some mental or physical incapacity. Invalidity benefits accounted for 1.6 per cent of total exits from the CSS during the year.

Invalidity Retirement

There were 244 CSS invalidity exits during the year. Of these, 166 were retirees with less than 20 years service, of these, 36 had their benefit reduced due to the application of a BCC. Those members who had their benefits reduced comprised 14.8 per cent of the total CSS invalidity retirements for the year.

Partial Invalidity Pensions

If a member’s salary is reduced due to some medical condition, the member may be eligible to receive a partial invalidity pension. Eight partial invalidity pensions were granted during the year.

Review of Invalidity Pensioners

Continued payment of an invalidity pension is dependent on a periodic review of the pensioner’s circumstances. The Commissioner is obliged to consider the pensioner’s other earnings and the current level of incapacity from the condition

causing the retirement. Earnings exceeding a prescribed limit can result in some reduction of the benefit paid. An improvement in the member’s health can result in re-employment with appropriate

adjustments to the pension benefit.

$2.07 million p.a. in savings arising from suspended invalidity pensions

Pensions Suspended Because o f Earnings

As a result of review notices and information supplied by 5 039 CSS/PSS pensioners, 985 invalidity pensioners declared personal earnings. The number of invalidity pensioners subject to full or partial

suspension (due to increased earnings) fell from 260 to 230. The reductions applied to these members’ pension payments yield savings to the Consolidated Revenue Fund (CRF) of $2.07 million per annum.

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Pensions Suspended Because o f Restored Health

A total of 51 medical examinations were arranged to review some pensioners continued level of incapacity. Of these, 21 were found to be fit to resume duty and were re-employed, thereby enabling cancellation of their pensions. Five pensions (previously suspended for 12 months for failure to respond to a review notice) were cancelled. Another 40 pensions were suspended because members failed to respond to requests for information or failed to attend a medical examination.

There were 14 pensions (combined CSS/PSS) cancelled because the member had been reappointed to the Australian Public Service (APS). These included ten cases where the reappointment had taken place in previous financial years.

Reconsideration of Decisions Made by Commissioner and Delegates

The Superannuation Act 1976 provides for reconsideration of decisions made by the Commissioner or his delegates. A person dissatisfied with a decision may request the matter be reconsidered. The request can be lodged within 30 days of notice of the decision. Disputed decisions are thoroughly investigated (concerning fact and law) by officers not associated with the original decision. The Commissioner is required to make a new

decision and provide a statement of reasons.

Requests for reconsideration numbered 394 for the year; 282 were brought forward from 1991-92 and 112 new requests were lodged. There were 163 requests finalised during the year, comprising:

• 23 primary decisions (14.1 per cent of those finalised) were revoked after reconsideration;

• 19 decisions (11.7 per cent of those finalised) were varied;

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• 100 decisions (61.3 per cent of those finalised) were unchanged; and

• 21 (12.9 per cent of those finalised) requests lapsed or were withdrawn.

There were 231 requests carried forward.

External Review of Decisions Made by the Commissioner or his Delegates

After a matter has been reconsidered by the Commissioner, the person affected by the decision can appeal to the Administrative Appeals Tribunal (AAT) and the Federal Court. Appeals to the AAT

are allowed under section 154 (6) of the Superannuation Act 1976, and appeals to the Federal Court arise through the provisions of the Administrative Decisions (Judicial Review) Act 1977

[the AD (JR) Act] and section 44 of the AAT Act 1975.

During the year the Commissioner appealed one matter which dealt with section 7(2) of the 1976 Act. This section grants the Board a discretion to direct that a person be deemed to have been retired on the ground of invalidity due to physical or mental

incapacity to perform his duties.

During 1992-93, 52 applications were made to the AAT and 25 were carried over from the previous year. Of the 29 applications resolved during the year, nine decisions were affirmed, and nine applications were decided by the AAT in favour of the applicant. Eight applications were withdrawn and subsequently dismissed. The AAT had no jurisdiction in three matters as each of the decisions in question had not been reconsidered by the Commissioner. There were

39 cases on hand as at 30 June 1993. Details of the outcome of applications to the AAT for the five-year period ending 30 June 1993 are set out in Table 1.

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Table 1: Administrative Appeals Tribunal Decisions 1988-89 to 1992-93

Applications 1988-89 1989-90 1990-91 1991-92 1992-93 Five-year

(to AAT during year) (23) (29) (24) (23) (52) total

Finalised: Decision affirmed Decision varied Commissioner’s favour

Applicant’s favour Decisions set aside Decisions set aside and remitted for further reconsideration Dismissed under section 42A of the AAT Act Withdrawn Beyond AAT jurisdiction and not reconsidered by Commissioner

Decision not reviewable Removed from list

6 5 4

1 1

1 1 2

12 3 5

2 - -

3 3 10

8 6

8 4

- 2 1

1

2 9 26

3 . 5

- - 4

4 9 33

- - 2

16

9 8 31

7 3 22

- - 3

- - 1

TOTAL 41 24 24 25 29 143

Significant AAT Decisions Of significance during the year were the AAT decisions relating to late election for preservation of

superannuation rights under section 157(1) of the 1976 Act. These decisions effectively adopt the Tribunal’s reasoning in Liddle and Commissioner fo r Superannuation (1991) 14 AAR 456 as to the proper construction of section 157(1). The Tribunal in Liddle held, among other things, that a person’s completion of the form S2A puts him or her on notice that he or she has the option to elect for preservation. The Tribunal expressed the view that in determining whether it is desirable to recognise a late election, the competing interests between those of the person seeking acceptance of a late election and the interests of other beneficiaries and of good

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administration are to be balanced by ‘objectively good reasons which justify the person not being required to comply with the time limits specified by the Act’.

In Lander and Commissioner fo r Superannuation (A92/69 of 26 February 1993) the Tribunal principally highlighted the 21-day time limit imposed by section 137(1) and, noting the value of the

exposition of the law in Liddle, addressed further matters of principle which may be taken into account when exercising the discretion under section 157(1). Lander and the subsequent decision in Secourable and

Commissioner fo r Superannuation (W92/117 of 19 March 1993) placed a ‘practical’ onus upon the applicant to satisfy the Commissioner (and the Tribunal) that a favourable discretion should be

exercised.

Section 157(1) provides a right which is analogous to an application for extension of time to apply for an order of review under the AD (JR) Act. The Tribunal in Lander viewed as helpful and relevant to the consideration of late election cases the extension of

time principles discussed by Wilcox J in Hunter Valley Development Pty Ltd and Ors v Cohen (58 ALR 305). Of particular relevance is the principle that there must be an acceptable explanation of the delay which, in the circumstances of late election

cases, involves ascertaining:

• whether the applicant knew of the right to preserve;

• whether enquiries were made of the applicant’s personnel officer or the office of the Commissioner; and

• the opportunities given to the applicant to enquire, as well as actions taken by the applicant (e.g. what the applicant did with the refund, correspondence other than the completed application form which would

indicate that the person opted to take a refund of contributions, and actions of the applicant when he or she rejoined the public service and became eligible to renew contributions).

Prejudice to the respondent arising from the delay as well as public considerations were also viewed by the Tribunal to be relevant in determining whether the discretion should be exercised. These principles were described by the Tribunal in Morgan and

Commissioner fo r Superannuation (W92/200 of 12 March 1993) to be ‘substantial barriers’ for those seeking to invoke the discretion to extend time for

making an election.

However, even though the Tribunal invariably affirmed the decision of the Commissioner in Lander, Morgan, and Secourable, it appears that every case involving late election to preserve under s. 157(1) will largely turn on its own individual facts. A significant number of AAT decisions on late elections to preserve are expected to be handed down in the ensuing year.

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The Retirement Benefits Office (RBO)

The RBO provides administrative support to the Commissioner for Superannuation, three superannuation Boards of Trustees and the Defence Force Retirement and Death Benefits Authority. Each of the Boards and the Authority produce annual reports relating to their respective schemes.

As a superannuation administrator, the RBO’s activities for each scheme administered involve:

The M ission o f the R B O

To provide high performance superannuation services for public sector and military employers and scheme

members

• promotion of superannuation as an important element of the employment conditions for Commonwealth Government employees and members of the defence force; • collection and recording of member

contributions; • collection of employer contributions; • determination and payment of benefits; • administration of entry and medical provisions; • meeting internal and external review

requirements; • provision of information and/or counselling for members; • provision of advice on legislative issues; and • provision of administrative and secretariat

support services to the Boards and Authority.

The RBO is currently funded from Budget appropriations and operates from a central location in the Cameron Offices, Belconnen ACT. The RBO has 505 personnel and relies heavily on the mainframe computer services provided by the Department of Finance.

This year has been one of significant change for the RBO. Major steps were taken to promote a new corporate culture and implement a new strategic

direction based on a business-like approach with a strong client focus. The principal changes arose from the development of the Corporate Vision, Mission and Corporate Goals.

Numerous workshops and communication exercises were conducted in order to ensure maximum staff participation and commitment. These included a two- day conference for Senior Officers with the theme

‘Charting Our Progress’. A draft corporate plan titled ‘Transformation to High Performance’ has been prepared and is awaiting ratification by the Minister.

15

The RBO's Corporate Goals

The development of the corporate goals centred around five key objectives. These objectives were designed to address the RBO’s new directions and aspirations in a competitive business environment.

Business To transform the RBO into a commercially sustainable business, (that is, to adopt a more business-like approach to our operations and, through benchmarking, be able to demonstrate administration

costs comparable to those generally found in the private sector).

Clients To enhance our client service delivery.

RBO Staff To achieve higher performance by all our people.

Marketing To enhance our competitive advantage.

Information To improve the relevance of our business information and align it with our direction.

The RBO Progress Review Corporate Plan In the Commissioner’s 1991-92 Annual Report, 21 items of immediate priority were listed in relation to the RBO’s Corporate Plan (these are reproduced in

appendix B). The following remarks are given as a review of RBO’s progress towards those priorities.

1. Complete Extension o f the Local Area Network (LAN) and Outstanding Computer Development Work

All staff now have LAN or mainframe workstations. Replacement of the remaining mainframe terminals with LAN workstations is now planned for 1993-94.

Most outstanding work associated with the Military Superannuation and Benefits Scheme (MSBS) has now been completed. Work associated with the PSS has been held over to the IT modernisation project because fundamental restructuring is necessary. More information relating to the IT modernisation project can be found at page 35.

I

16

2. Refine Performance Monitoring Information and Reporting Systems

Strategic projects have been initiated to develop systems which monitor benefit payment turnaround times for both military and civilian schemes. Management reporting systems have been developed for military schemes covering all benefit payments. Progress with civilian counterparts has been hampered by less sophisticated computer systems, particularly with regard to recording and automated payment. However, a civilian benefit payment monitoring system is expected to be implemented by the end of the calendar year.

A client survey has been initiated to elicit opinions from military scheme members about the services provided by RBO. A similar repeat exercise is planned for the civilian schemes.

3. Implement Revised Program Performance Evaluation Plan

This priority has been deferred pending the IT modernisation program.

4. Pursue and Expand Cost-efficient Methods o f Dealing with Fraud

Progress towards this item is fully detailed under the heading ‘Fraud Control’ starting on page 87 of this report.

5. Examine Feasibility o f On-line Access by Employers

A pilot project, EXPO (EXtemal Personnel Officers), has been successfully tested with nine Canberra-based agencies for direct input of benefit information. The EXPO system is to be put into production in Canberra during 1993-94.

17

The main features offered by EXPO include:

• access to Personnel Officer Manuals relating to the CSS and PSS;

• the ability to send benefit applications quickly and directly to the RBO;

• expediting member benefit payments due to the on-line edits which ensure the information required for processing is complete;

• a mailing sysem; and

• a means for the RBO to rapidly update information pertinent to employers.

6. Continue to Improve the RBO’s Systems and Procedures

The modernisation project will include the acquisition of contemporary application development tools and use of contemporary methodologies. These measures, as well as the redevelopment of the CSS

and PSS contributions systems on a client server platform, are expected to deliver substantial gains in productivity.

7. Pursue Opportunities fo r Greater Use o f Electronic Funds Transfer Facilities

The RBO is pursuing with employers greater opportunities for the use of electronic funds transfer facilities for the remittance of employee and employer contributions.

8. PSS and MSBS Systems and Procedures

A thorough review of the PSS was carried out as an element of the program evaluation and subsequently in formulating the Acquisition Council proposal for

the modernisation project. MSBS is currently being reviewed by the internal auditor and outcomes will be reported in next year’s annual report.

9. Provide More Comprehensive Education Programs to Our Clients

During the year special seminars were run for the Australian Tax Office and for private sector financial advisers. In addition, the RBO is currently developing a new personnel officers training course. Other seminar/counselling activities are reported at page 54 under the heading ‘Counselling and

Information’.

10. Assist Trustees to Obtain Strategic Independent Investment Advice

Arrangements were made to appoint Mercer, Campbell, Cook and Knight as independent investment advisers for each of the Boards. Longer term strategies for funds management of the civilian schemes are being considered by a Joint Steering Committee. The Committee includes representatives of the CSS and PSS Boards, Commonwealth Funds Management (CFM) and is assisted by Towers Perrin.

11. Commission Actuarial Assessment o f CSS Unfunded Liabilities

The Department of Finance is directing the activities by the Australian Government Actuary in undertaking reviews required under the Occupational

Superannuation Standards Act (OSSA) and Regulations concerning the unfunded liabilities of the CSS. The RBO has provided the Actuary with the relevant data.

12. Establish Mechanism fo r Informing Members About Investment Performance o f Funds

Two new publications were developed for providing information to members about investment performance. The publication ACCESS was produced for CSS members and NEWS UPDATE for PSS members. Both are produced six-monthly and members are advised of their availability by the personnel staff of each employer.

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13. Improve Understanding of Superannuation and Increase Awareness o f Importance

Besides the personnel and member seminars, new initiatives included the production of a video, for PSS members, titled ‘Everything You Wanted to Know About Superannuation But Were Too Bored to Ask’ and three new CSS/PSS leaflets which dealt with preservation of benefits and issues. Updated versions of the computerised Ready Reckoner were also

produced. Significant improvements were made to the Ready Reckoner which enable it to cater for permanent part-time members.

14. Examine Opportunities to Influence Policy Development and Increased Involvement

Three RBO staff members were seconded on long­ term assignment to the Department of Finance superannuation policy area.

15. Review All Standard Letters

For the military schemes, 95 per cent of benefit payments have been augmented by automated standard letters. A similar facility for the civilian schemes is being developed and some letters related

to contributions are currently being used by one client team as a test prior to their general release to all client teams.

Development of the standard letters has included a complete review of style and content. The client surveys will help refine the process.

16. Produce Updated Staff Clerk Manual

Development of a PSS manual and the updating of the CSS manual are both well underway. Several of the early chapters for both have been incorporated into the EXPO project. The RBO plans to make the entire manuals available through EXPO over the next

12 months.

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17. Monitor and Improve Client Contact Arrangements

The client survey initiated for the military schemes is designed to provide feedback concerning the services offered to scheme members by the RBO. A similar survey is planned for the members of the civilian schemes. The results will be used to evaluate RBO services and to ensure a sound basis for introducing improvements.

During 1993-94 a feasibility study will be conducted to determine the viability of combining civilian and military (008) telephone facilities. The adoption of automated voice technology for use in client communication systems will also be investigated.

The EXPO project (pages 16, 17, 29) is another tool designed to provide improved client contact arrangements.

18. Commitment to Training

Progress in terms of this priority is best illustrated by information provided at pages 88-92 under the heading ‘Training’.

19. Identify and Assess RBO’s Development, Education and Training Needs

Development and training needs have been identified as an outcome of the Performance Appraisal Scheme and Performance Enhancement Planning (an individual development plan based on the core competencies identified by the Public Service Commission). In addition, the branch workshops conducted in relation to strategic planning have identified areas for strategic training.

20. Facilitate Design and Implementation o f Specific Workplace Training

Information on this priority can be found at pages 88-92.

21

21. Establish Legal Basis for RBO to Offer and Charge fo r Administrative Services

Details are provided under the heading ‘Improved Funding Arrangements—Section 35 on page 44.

The Coming Year’s Priorities

A number of priorities have been identified for each of the RBO’s five corporate goals:

1) Business Goal

Immediate priorities are to:

• commence redevelopment of existing computer systems to meet the requirements of existing superannuation schemes; • liaise closely with employer clients and the

government and develop a greater sense of ownership on the part of employers of the superannuation schemes provided as a part of the conditions of employment; and • restructure the funding base, taking into

account the increased financial flexibility available under the Budget rules.

2) Client Goal

Immediate priorities are to:

• progressively initiate discussions with participating employers to establish service- level agreements;

• in conjunction with the IT redevelopment, explore greater use of electronic communications facilities with employers; • intensify publicity campaigns to employers and

employees highlighting the importance of superannuation; • ensure personnel staff are fully conversant with the obligations of employers in relation to

superannuation administration; and • improve business systems to address audit qualifications.

3) RBO Staff Goal

Immediate priorities are to:

• re-align the organisation structure of the RBO to accord with the new direction; • develop a human resource plan commensurate with the perceived future needs of the RBO;

and

• initiate staff training programs directed at equipping staff to meet new requirements.

4) Marketing Goal

Immediate priorities are to:

• determine areas where RBO services can be introduced and/or enhanced; • identify services in the financial services industry that can be offered to members as

extended services of their superannuation schemes; • establish management information systems to adequately monitor performance; and

• establish industry links for developing benchmarks and exchanging performance data.

5) Information Goal

Immediate priorities are to:

• in conjunction with the IT redevelopment, establish separate accounting elements for CSS and PSS activities that comply with OSSA standards; and • implement activity-based costing of all services

provided by the RBO.

Assistant Commissioner Client Communications

Warwick Vance *

To provide high-quality, client-centred communications

Ken Searson

Pat Hayes

To provide high performance superannuation services for public sector and military employers and scheme members

Ron Whithear

To provide quality review and legal services to meet the corporate objectives and obligations

Deputy Commissioner

1 Assistant Commissioner Business Systems

-■'·· / "· ----- .....* ·

David Lilley

To provide high quality and cost-effective information systems and services to support corporate goals

Peter Skinner

John McCullagh

To provide high quality strategic services which support the achievement of corporate objectives and statutory obligations

Mr Vance was acting in the position until the appointment of Mr Tom Dawes on 19 July 1993.

Organisational Structure

C lien t

C o m m u n ic a tio n s

I Member/Employer Communication | Scheme Promotions j

External Liaison Secretariat

B u s in e s s

O p e r a tio n s

I

Invalidity Assessment

Retirement, Preservation and Military Member Services

Civilian Member Services f

R eview a n d 1

L egal j

I

Superannuation Reconsideration ;

Scheme Legislation \

External Appeals and Advisings ;

Applications *

B u sin e ss

S y s te m s

Resources |

Modernisation |

B u s in e s s 1

Business Liaison ;

M a n a g e m e n t l i

Corporate Planning |

Business Accounting \

Human Resource Management

Office Management

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Restructuring

New five-branch structure being implemented to enable transformation to a commercially sustainable business

RBO satisfies the needs o f its pensioner clients well but computer systems and data quality problems severely hamper service delivery fo r

other clients.

Present systems and practices mean the RBO is unable to fully comply with the Superannuation Act 1976 and the Audit Act 1901

leading to audit qualification o f financial statements.

Resources are misdirected to maintaining complex computer systems and remedying the effects o f poor data being supplied to

RBO.

The RBO moved to a five-branch structure, principally to align the organisation with its new strategic and business direction.

One of the most significant factors highlighting the need for change was the report titled ‘ Client Servicing and Administration Arrangements, A Program Evaluation’. This exercise was conducted towards

the end of 1992. The working party conducting the evaluation concluded that:

• RBO satisfies the needs of its pensioner clients well, but computer systems and data quality problems severely hamper service delivery for other clients; • there are severe limitations on the ability of

RBO systems to cope with and respond to change; • the contribution databases are deficient due largely to poor quality data being supplied to

RBO;

• given the present systems and practices, the RBO is not fully complying with legislative requirements and standards with the result that financial statements of the Commissioner, the

CSS and PSS Boards of Trustees have been qualified by the Auditor-General; • despite extensive training of staff in participating agencies, the growth of poor

quality data input has not been arrested; • the lack of adequate management information makes it difficult to reach firm conclusions

about the RBO’s costs (although comparisons with industry benchmarks suggested the RBO was not currently competitive in terms of service delivery); and • resources are misdirected to maintaining

complex computer systems.

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The systems deficiencies identified by the working party were the subject of a more detailed analysis by external consultants. Their report was used as the basis for a proposal to an Acquisition Council. The outcome of these reports has been a strategic plan for an Information Technology modernisation. The plan is outlined elsewhere in this report as it will have a

major impact on the efficiency of the RBO (see page 35). The principal strategies for implementing improvements have been to change the corporate culture and to pursue a number of priority strategic projects.

Client

Communications

Tom Dawes

This branch was established in the restructure and assumed responsibility for most of RBO’s external communications. It also assumed the responsibility for providing secretariat support for the three Boards of Trustees.

Secretariat

The work of the secretariat has been dominated this year by change and will be so dominated for the immediate future. The changes have been associated with: •

• the implementation of the MSBS; • the addition of new funds managers for MSBS; • the reappointment of independent investment advisers;

• the development of long-term strategies for the two civilian schemes in relation to the removal of legislative ties to Commonwealth Funds Manager (CFM) by 30 June 1995; • the reappointment of Board members; and • reviews of investment policy/strategy, fund

performance and interest allocation methods.

Client Services

A prominent feature of the year has been the continuing high level of retrenchment activity in APS departments and approved authorities. This has had an impact across the organisation but, in the client service areas it has provided the focus for group

Client services enhanced by developing specialised courses and opening a less form al channel o f communication

Annual information statements a major exercise

Business Operations

Pat Hayes

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seminars. Future emphasis in group seminars is expected to be on the improvement of data quality being supplied to the RBO.

Notable enhancements to the group’s function have been the participation in a series of specialised courses and the development of a less formal communication channel to personnel officers. The

specialised courses were arranged at the request of the Australian Tax Office and dealt with part-time employment. The new communication channel is a

newsletter titled SUPER NEWS which is issued monthly to all participating employers.

The most significant exercise during the year was the supply of annual information statements to more than 230 000 members or former members. Annual information statements were not computer-generated

for some categories of employees. These categories included the following:

• PSS permanent part-time contributors; • contributors returning to the APS from statutory authorities which maintain their own productivity schemes; and

• contributors with preserved benefits.

This branch carries the prime responsibility for administering the schemes. The functions include maintenance of contributor and pensioner records, invalidity assessments, receiving contributions and paying benefits.

Civilian Schemes Operations

During the year a number of major exercises were undertaken by the operations branch. The more notable of these were the Tax dependants declaration exercise, the exercises to have all member pensions

paid to a bank account in Australia (that is, no longer paying member pensions directly overseas) and to improve the quality of the contributor databases.

Strategic projects conducted by the branch included a pilot project to provide limited on-line access for personnel officers to RBO information.

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RBO identifies $317 000 cost reduction on tax exercise using bar coding technology and cooperative processing

The tax declaration exercise required the RBO to obtain a new Income Tax Instalment Declaration form from 150 000 member pensioners. Normally this type of exercise would involve a high degree of correspondence and data entry. A similar exercise conducted in 1988 cost in the order of $450 000, excluding RBO staffing costs. The RBO negotiated with the Australian Tax Office to conduct a survey and respond on behalf of the pensioner members. The survey was conducted and the use of bar coding

technology, coupled with cooperative processing, enabled the RBO to contain the costs to $133 000 and simplified the process for RBO pensioners.

Historically, the RBO had paid pensions to overseas banks and borne the costs of transfer fees. However, this arrangement was seen as inequitable to members receiving their pensions in Australia; in effect, a relatively small group was receiving additional services and causing costs not associated with the majority of the membership. The RBO was also out of step with prevailing practices elsewhere in the public sector. Accordingly, the RBO implemented a

new policy to have all pension payments from the schemes paid into an Australian bank with the transfer costs to be borne by the member. Negotiations were initiated by the RBO, on behalf of the affected members, to ensure the transfer fees attracted by the new arrangements had a minimal impact. Bank fees to transfer funds overseas had ranged quite markedly. The negotiations resulted in an agreement with a major bank to charge fees considerably below the prevailing market rates.

Previously the RBO had two members of staff dedicated to maintaining this arrangement. The RBO has been able to reallocate these people to other duties.

The primary areas of difficulty faced by the branch are:

the integrity of the databases; the inflexibility of the computer systems; and satisfying audit certification requirements.

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Pilot project (EXPO) trialled to help solve problems o f the quality of data being received

Inflexible computer systems necessitate expensive manual processing o f some benefit payments

Database Integrity

Projects have been initiated to ‘clean up’ the databases. The longer term objective is to edit data entry at source so that agencies can supply complete information to the RBO before the database is

updated. Building in entry source edits should also make it easier for employing agencies by reducing the amount of technical superannuation training required by personnel officers. A pilot project called EXPO

(External Personnel Officers) was conducted to test technological requirements and user acceptance. The pilot project was successful and it will be implemented, initially in the ACT, during 1993-94.

Inflexible Computer Systems

One indicator of the computer system inflexibility is the level of exception processing. This processing must be done manually. This year the manual processing area of the RBO arranged over 1 000 benefit payments (in excess of 6.3 per cent of combined CSS/PSS exits). Late in the financial year some computer programs became available to help reduce the amount of manual processing.

Satisfying Audit Certification Requirements

The financial statements in the 1991-92 annual reports for the CSS and PSS Boards were qualified by the Australian National Audit Office (ANAO). Steps have been taken to reduce the level of ANAO

qualifications. This matter is dealt with under the subheading ‘Business Accounting’ at page 40.

Defence Schemes Operations

As with the civilian schemes operations sections, defence schemes operations were involved in the tax declaration exercise and the repatriation of overseas pensions. There was continued progress with the development of MSBS computer programs. Most of

these programs are in production and enable all benefit calculations to be done using the system.

30

One of the most significant strategic projects conducted by the area was a move to computer­ generated, standard letters. Some 70 per cent of benefits from the scheme relate to resignation and it

Computer-generated standard letters was this benefit which was first targeted for standard incorporated into benefit letters. The standard letter enables computer­ processing generated information to be produced as an integral

part of the benefit payment process. The gains for the RBO are evident in the reduction in processing time, and for the member there is an added gain in the quality of information being provided. The area

has achieved its 30 June 1993 target to have standard letters which cover 95 per cent of the benefit payments.

The most pressing concern for the area is the 25 per cent data rejection rate experienced. The concerns about data rejection and general data problems prompted a strategic project to isolate all data problems and to explore possible solutions. The report produced by the project team contains numerous recommendations which will provide the basis for significant improvements in data quality. Defence Schemes operations, in conjunction with IT areas, is also:

• developing computer programs to enhance data received from the Department of Defence;

• negotiating for input into the new defence pay system; and

• considering an EXPO-style interface similar to the pilot project conducted for the civilian schemes.

A strategic project was initiated to assess the use of performance indicators and their application to enhance client service. As a by-product, a pilot client survey has been commenced which will give feedback to DFRDB Schemes Operations over the next 12 months. This information is expected to provide an accurate gauge of the appropriateness of the services currently being offered to members and to provide a benchmark for change.

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Invalidity Assessments

With the restructuring, the RBO’s invalidity assessments and review of pensioners will be consolidated into one section. The area will have the responsibility for administering the processes for both

the civilian and the defence schemes.

Civilian Schemes

The notable events in relation to the civilian schemes were:

• the issue and renewal of a new contract for the Invalidity Assessment Panel; and • the selection of a new life office to provide the PSS additional death and invalidity cover after

AMPAC exercised its option to terminate its contract.

The assessment panel reviews medical evidence relating to potential civilian invalidity retirements and makes recommendations accordingly. The new contract was won by Disability Claims Management and Counselling Service (DCMC). DCMC commenced their contract from 1 July 1992 and it

was renewed for a further two years in May 1993.

The contract for the PSS additional death and invalidity cover was won by National Mutual.

Changes proposed to streamline entry medical requirements

Medical examinations would be restricted to those members who revealed significant health problems in the CMAPS. Consultations with affected parties have commenced with a view to introducing the new process in the latter part of 1993.

The group is currently developing new databases for statistical/management reporting.

During the year a special project was undertaken to review the requirement for full medical examination of all new entrants to the PSS. The project team concluded that savings of the order of $400 000 p.a. could result if new members were allowed to complete a Confidential Medical and Personal Statement (CMAPS) on entry instead of undergoing a full medical examination under such an arrangement.

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Review and Legal

Ron W hithear

Increases in late elections fo r preservation

This branch has responsibility for investigating requests for the reconsideration of decisions made by:

• the Commissioner;

• the DFRDB Authority;

• the Commonwealth Superannuation Board of Trustees No. 1;

• the Commonwealth Superannuation Board of Trustees No. 2;

• the Military Superannuation and Benefits Board of Trustees No. 1; or

• their delegates.

The branch is also responsible for providing internal legal advice in relation to the operations of the RBO, claims against the Commonwealth, and drafting instruments and determinations required under the

CSS, PSS and MSBS legislation.

Reconsideration

Decisions of the Commissioner and delegates (1976 Act)

During the year 112 requests for reconsideration were received and 163 finalised. Detailed information is reported in Part A at page 8. The decisions generating most of the requests were those that would not allow members to make late elections to preserve rights accruing from earlier periods of CSS membership (section 157 cases).

Decisions of the CSS and PSS Boards

Requests for reconsideration of decisions of the two Boards totalled 63 for 1992-93 compared to 133 for 1991-92.

Advisings

During the year the branch took action to clarify how the Crimes (Superannuation Benefits) Act 1989 and amendments to the Bankruptcy Act 1966 might apply

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Impact o f changes to bankruptcy law and the Crimes (Superannuation Benefits) Act 1989 being clarified

to the schemes administered by RBO. The Crimes (Superannuation Benefits) Act provides that in certain circumstances where a person, who is or was a member of a Commonwealth superannuation scheme,

has been convicted of a ‘corruption offence’, the Director of Public Prosecutions (DPP) may apply to a court for a ‘superannuation order’ to be issued. The

effect of such an order is to remove the person’s rights to employer benefits under the scheme and grant a new benefit equal to the person’s contributions and interest. Amounts which may have

been paid in excess of the new benefit are deemed to be debts due to the Commonwealth and the person’s employer. Issues arising from the operation of the Crimes (Superannuation Benefits) Act were clarified

in the context of statute and Trust Deed-based schemes.

External Appeals

Decisions taken in the administration of the CSS, PSS, DFRB, DFRDB, MSB and PNG schemes are susceptible to review by the Federal Court under the Administrative Decisions (Judicial Review) Act 1977

[the AD (JR) Act], Appeals to the Federal Court may be based on any of the legal grounds set out in sections 5, 6 and 7 of the AD (JR) Act, including:

• errors of law;

• denial of the rules of natural justice;

• improper exercise of power;

• failure to observe procedures; or

• unreasonable delay in making a decision.

The ambit of decisions which may be reviewed under the AD (JR) Act includes decisions made by:

• the Commissioner for Superannuation;

• the CSS, PSS and MSB Boards;

• the DFRDB Authority; or

their delegates.

34

MSBS reconsiderations started with the new procedures being closely

monitored.

Virtually all reconsideration decisions taken by

1. the Commissioner under the

• Superannuation Act 1976 and the Papua New Guinea (Staffing Assistance) Act 1973; or

2. the DFRDB Authority under the

• Defence Force Retirement and Death Benefits Act 1973 and the Defence Forces Retirement Benefits Act 1948

are reviewable by the AAT. Furthermore, under the Administrative Appeals Tribunal Act 1975, a party to a proceeding before the AAT may appeal to the Federal Court on a question of law from any decision of the AAT in that proceeding. Details of matters appealed to the AAT and the Federal Court appear on pages 8 (CSS) and 69 (DFRDB).

Defence Schemes

Reconsideration of MSBS invalidity entitlements commenced during the past year. Four matters have been reconsidered so far.

New procedures were implemented to accommodate the provisions of the Trust Deed and Rules. The MSB Board will only reconsider matters after the Reconsideration Advisory Committee (RAC) has been consulted and the member notified of the RAC’s proposed recommendation. The member will have an opportunity to respond to the RAC recommendation. The member’s response will accompany the papers sent to the Board for a final determination. Case officers preparing the information for the RAC are required to submit an agendum for the Board meeting and detailed reasons

for the original decision. A monitoring system has been implemented to evaluate the new procedures.

35

Business Systems

David Lilley

IT modernisation supported after program evaluation and computer systems review

This branch provides the IT services for the RBO and will play a major role in the planned RBO transformation.

Acquisition Council

As a result of a program evaluation and computer systems review, the RBO initiated Acquisition Council proceedings to evaluate its current and future IT demands. The Council supported the business case posed in RBO proposals. The thrust of the arguments supported the case to embark on an IT

modernisation program. Provision was included in the 1993-94 Budget to fund the upgrade which will take three years to complete.

Following the implementation of major systems for PSS and MSBS administration, IT strategy is now focussed on supporting the transformation of the RBO to a high performance superannuation service provider. The modernisation will be integral to this

transformation and will involve a move towards a client-server environment by building on the existing LAN environment. It will incorporate significant upgrades of hardware and software and a move to a

Graphical User Interface (GUI).

Other Activities

The more significant activities during the year involved the introduction of a number of new systems based on three mid-range computers. These included a new file registry system (RESPECT) and an accounting package (FINEST). Post implementation

reviews of these packages are planned for 1993-94. These systems have been integrated into the LAN environment.

In the mainframe environment, the most significant features of the year have been the establishment of a discrete RBO domain on the Department of Finance mainframe (allowing greater control), enhanced data

security and the development of a Service Level

36

Inaugural Service Level Agreement established with the Department o f Finance concerning mainframe usage

Agreement with the Department of Finance on the use of the mainframe. The year was also marked by a satisfactory result on a test designed to measure recovery time from a simulated mainframe disaster.

Major Issues

The key deliverables over the coming year are:

• to implement the proposed client-server technology; and

• to commence a program for containing and reducing the cost of providing IT support services.

Resources

During 1992/93, an average of 82 RBO staff were directly employed in providing IT services at a salary cost of $3.2 million. Consultants providing specialist IT services cost a further $1.14 million. Other resources included:

• hardware purchases and maintenance costs— $609 509;

• software purchases and maintenance costs— $340 565;

• consumables—$68 481; and

• other costs, e.g. data communications, training and data conversion—$163 249.

The RBO’s principal computer platform is currently the Department of Finance IBM mainframe, for which no direct charge is made. The notional cost of this ‘free’ service is $5 million per annum, though the marginal additional cost to the Department of Finance in providing the service to the RBO is much less (about $1.5 million).

37

Business

Management

John McCullagh

The Business Management branch is responsible for business accounting, human resource management, corporate planning, office management and business liaison. It was reconfigured as a result of the top

structure reorganisation and is yet to fully develop its new business role.

Human Resource Management

Through its Corporate and Staff Development Unit the Human Resource Management Section has played a key role in developing corporate culture and facilitating change throughout the year. Vision

workshops and workplace bargaining sessions were conducted by the section.

The section has met its critical performance indicators with substantial success. Its performance indicator for recruitment is ten weeks and this is achieved in approximately 87 per cent of cases. Another primary indicator is the number of pay variation (V line) rejections which has consistently rated below 1 per cent during the year.

In terms of the Training Guarantee Act, RBO expenditure exceeds the required level. Training expenditure for the year was 9.58 per cent of RBO’s annual payroll (including salary costs of staff

attending training; excluding these costs the percentage is approximately 1.9 per cent). The Corporate and Staff Development Unit is developing post-course evaluation procedures with supervisors, skills auditing, specific targeted outcomes and

competency based training. More information about training can be found under the heading ‘Training’ in Part D, pages 88-92.

Senior Executive Staff Movements

Mr Peter Skinner was appointed to the position of Deputy Commissioner, and commenced duty on 20 August 1992. Two Assistant Commissioner (SES level 1) vacancies were advertised in May/June 1993, and recruitment action has been completed. The position of Assistant Commissioner—Client

Communications has been filled by Mr Tom Dawes, formerly with the Department of Defence, and the

position of Assistant Commissioner—Business Systems has been filled by Mr David Lilley, formerly SES Specialist with the RBO.

Mr Rex McKillop retired during the year after a long period on sick leave.

Other Staff Movements

Three officers (two Senior Officers and one AS 06) were seconded to the Department of Finance during this period. This exchange was arranged to improve the communication between our two agencies, afford an opportunity for selected RBO staff to develop their policy skills and to enable the Department of Finance

to draw upon the practical experience of these officers in formulating superannuation policy and amending legislation.

Post-separation Employment

No staff resigning or retiring from the RBO are known to have been offered or accepted appointments with private agencies on the basis of their work experience with this Office.

Graduate Recruitment

Three graduates with legal qualifications were recruited through the Graduate Administrative Assistant (GAA) scheme during the 1992-93 period.

Other Human Resource Activities

In consultation with Public Sector Union (PSU) delegates, a number of new human resource policy papers were issued during the year and some existing policies were reviewed and updated. The new policy papers included guidance on: •

• misuse of drugs and alcohol in the workplace; • Performance Appraisal for Senior Officers; • reintroduction of a Staff Suggestion Scheme; • temporary performance (Higher Duties) policy;

official conduct; and smoking in the workplace.

39

The RBO’s Equal Employment Opportunity (EEO) policy is presently being rewritten to reflect more recent guidelines issued by the Public Service Commission.

Other matters undertaken within the section to implement elements of the Government’s human resources agenda include:

• development of a Health and Safety Agreement with the union and the implementation of a Health and Safety Committee for the RBO; • implementation of performance appraisal and

performance pay; • implementation of the APS-wide Enterprise Bargaining Agreement; • development of the initial implementation of

the competency-based training elements of the Government’s National Training Agenda; and • continued implementation and development of such matters as Industrial Democracy (ID) and

EEO (pages 77-80).

Performance Pay

The RBO implemented performance appraisal and pay during the year for its Senior Officer structure and equivalent classifications. First round payments were made early in 1993.

Table 2: Details of Performance Payments

Classification Number* Payment

SES 6 N/A

SOG A/B 19 $77 025

SOG C 47 $71 761

TOTAL 72 $148 786

' Eligible officers

40

Figure 5: Graphical Representation of Performance Pay

ANAO qualification of 1991-92 and 1992-93 financial statements prompts major accounting initiatives

NOTE: Consistent with the guidelines on confidentiality, Figure 5 uses only three cells rather than five by combining the first three distribution ranges (that is, 0 -2 0 per cent, 2 1 -4 0 per cent and 41-60 per cent o f the maximum permissible performance pay).

Business Accounting

Significant developments in this area have included the implementation of a new financial management information system based on a software package called FINEST, and the implementation of new accounting arrangements for both the CSS and the PSS.

The most pressing issue faced by the area is that of overcoming the level of qualification placed by the Auditor-General on the financial statements of the Commissioner and the CSS and PSS Boards of Trustees. Although the ANAO has expressed concerns about technical accounting matters, it should

41

be noted that those concerns do not extend to individual member accumulations in the Fund or their future entitlement to benefits. The factors which have given rise to the level of audit criticism have as

much to do with the age of the RBO’s computer systems as they do with the introduction of new Commonwealth Public Sector Superannuation schemes and changes generally occurring within the

wider superannuation industry.

Because the financial transactions of the PSS for 1991-92 were combined with those of the CSS and were presented jointly in the financial statements of the CSS, the Auditor-General qualified both the PSS and CSS financial statements for that year. Following the separation of the assets and liabilities of the PSS and CSS, the Funds have been administered separately since 1 July 1992.

Commercial accounting practice would require the Board of Trustees to maintain separate accounts in respect of each scheme. During the course of the

year the Auditor-General advised that once the assets of the two schemes were separated it would be necessary for the computer systems maintained by the scheme administrator to be amended to enable

separate accounts and records to be maintained for each scheme at individual member level. To the extent that this has not occurred in 1992-93, the Auditor-General has again qualified the financial

statements of the Commissioner and the CSS and PSS Boards of Trustees.

The computerised systems utilised by the RBO for scheme administration were developed in the 1970s and have since been progressively modified to meet the changing needs of the Commonwealth

Superannuation Schemes. Although these systems have served the accounting needs of the CSS well for many years, it became clear that they could no longer

cope with the new demands of the current financial accounting and reporting environment without significant redevelopment.

The Government has since agreed to provide funding for the replacement and enhancement of the membership records and other information technology

systems to remove areas of ongoing audit criticism among other things. This redevelopment project is an enormous undertaking and is due to start in 1 January 1994. Although the bulk of the detailed programming work will occur over the next three

years, the project will continue over the next eight.

In the interim, and in consultation with staff of the Auditor-General, action has been taken to have employing agencies remit separate amounts covering CSS and PSS contributions and to otherwise address areas of audit concern.

The primary concerns expressed by the ANAO have been:

non-compliance with the provisions of the Superannuation Act 1976 to keep separate accounts in accordance with commercial practice, to the extent that contributions received, investment revenue, benefits paid, expenses and moneys invested were accounted for together with the PSS up until 30 June 1992;

the absence of separate accounts also resulted in non-compliance with disclosure requirements of Australian Accounting Standard (AAS) 25, ‘Financial Reporting by Superannuation Plans’ in relation to the Statement of Change in Net Assets;

that it would not have been possible to readily prepare statements from time to time during the financial year which disclosed the financial transactions and financial position of the CSS and the Fund, and—relating to the PSS—the additional qualification that;

the notes to and forming part of the financial statements did not conform to the disclosure requirements of AAS 25 to the extent that total vested benefits are not disclosed.

43

Integrity o f members’ entitlements are not affected by the audit qualifications.

The strategies implemented to date include:

• the introduction of a new general ledger accounting package and the monthly maintenance of general ledgers;

• separate remittance of CSS and PSS contributions from all agencies;

• notification to employers requesting CSS/PSS employee contributions to be reported separately at member level; and

• incorporating, in the IT modernisation proposal, the issue of recording productivity contributions at member level.

As stated earlier, the audit qualifications do not affect the integrity of members’ entitlements. The success of the strategies to redress the problems is dependent on the implementation of the IT modernisation program and the ability for employing agencies to

amend their systems to meet the new reporting requirements. It is expected that the financial statements will still attract, albeit reduced, ANAO

qualifications for the next two years.

Business Liaison

The newly created Business Liaison Unit carries the prime responsibility for:

• fostering the development of a business approach to the RBO’s capacity and reputation as an administrator of occupational superannuation schemes;

• developing a long-term strategy for the implementation of the office’s business objectives; •

• initiating and fostering cooperative business relationships with employer clients (with initial concentration on existing QBE clients currently subject to user pays); and

44

the development of more appropriate financial arrangements through expanded use of the flexibilities available under existing Budget rules.

Improved Funding Arrangements—Section 35

It will be the RBO’s aim to develop the funding base of the organisation from one of complete dependence on the Budget to one which provides flexibility and incentive for the rational use of resources. This is to be achieved through expanded use of the financial flexibilities available under the Budget rules but specifically through the negotiation of a more flexible agreement under section 35 of the Audit Act for revenue generation and retention.

During 1992-93 the RBO recovered costs in the order of $9.1 million from employers subject to user pays arrangements. It is anticipated that a slightly

lesser amount will be recovered in respect of the 1993-94 financial year. The forecast reduction has been occasioned by movements in the Consumer Price Index and a reduction in operational costs in line with the efficiency dividend.

The methodology of costing services provided is the subject of continuing review and improvement. A number of strategic projects and the enhancement of

computer systems will result in a more precise methodology being developed in the coming year through application of activity-based costing methods.

The RBO will be negotiating Service Level Agreements with those employers currently subject to the Government’s decision in respect of the recovery of RBO costs of administration in line with standard commercial practice. The Business Liaison Unit will be negotiating these agreements and monitoring performance against the mutually agreed benchmarks

to ensure that all parties receive ‘value for money’.

φ ART C

R etirement

B enefits @ ffice

© ROCRAMS

R e tire m e n t B e n e fits O ffic e SBiliil

Program One

Delivery of Commonwealth Superannuation Schemes

O v e r v i e w Description

This program comprises two subprograms:

1.1 Primary Administration; and 1.2 Reconsideration and Review.

It deals principally with the CSS and PSS (that is, the civilian Commonwealth superannuation schemes). All branches of the RBO contribute to varying degrees to the program but the prime responsibility rests with the Business Operations Branch.

Major Activities

The critical activities are the recording of member contributions, payment of superannuation benefits, invalidity assessments and review procedures.

Issues Confronted

The predominant issue for this program during the year was the adequacy of the computer systems underpinning the RBO’s automated contribution recording and benefit payment processes. A program evaluation was undertaken and it identified major shortcomings with the computer-based membership systems which had been developed in the early 1970s. Acquisition Council proceedings were initiated which supported the business case for IT modernisation. Further details of this issue can be found under the subheadings ‘Database Integrity’ and

‘Inflexible Computer Systems’ on pages 28-29.

Another substantial and related issue flowing from the inadequacy of the membership system was the difficulty in producing annual information statements for all scheme contributors and former members with

46

47

preserved benefits. The shortcomings in the database and programs meant that approximately 17 500 statements required manual intervention to either replace inaccurate statements or produce original

statements.

Resources

Resources expended on the program include $7.8 million running costs, $2.7 billion in benefit payments and 186.9 staff years.

Funds for the payment of pensions and lump sum benefits are provided from two sources:

• the Superannuation Fund in respect of lump sum benefits payable when an eligible employee resigns, or dies without leaving dependants; and • the Superannuation Acts Special Appropriation

for the payment of items such as pensions and the employer-financed part of lump sum benefits on retirement.

The costs of administering Program 1 are met through moneys appropriated from time to time by Parliament (that is, annual appropriations), unlike some private sector superannuation schemes in which

administrative costs are charged against the earnings of the fund. These private sector schemes, as a general rule, are fully funded, and this also differentiates them from the Commonwealth schemes. The financial transactions for this program during

1992-93 are shown in the financial statements at appendix E. Staffing resources are shown in Table Cl, appendix C.

Social Justice

The RBO’s commitment to the social justice principles is best illustrated by its endeavours to improve client service delivery programs. During the

year new information packages were produced for members, including improved booklets, enhanced computerised Ready Reckoners and a PSS video with English subtitles to assist the hearing-impaired. A package incorporating all of these elements was

entered in the Golden Target Awards conducted by the Public Relations Institute of Australia. The package won an award, being Highly Commended. This award is particularly significant because it enabled the RBO to benchmark itself against industry standards.

Photograph: Recognition for the quality o f member information; Highly Commended in Golden Target Awards

Deputy Commissioner, Peter Skinner accepting the award from Ian Brown o f Coca-Cola Amatil

Another service enhancement initiated by the RBO was the introduction of Parliamentary Contact Officers. Two senior officers at the AS06 level were nominated to Members of Parliament as a convenient contact point in the RBO.

Other noteworthy initiatives are the EXPO pilot project designed to provide ‘on-line’ access for personnel areas (pages 16-17), the introduction of new communication tools in the form of newsletters

(page 18 and 27), the conduct of courses for private sector financial advisers and updated Ready Reckoners which allow all categories of member, including permanent part-time staff, to use them.

49

1.1 Primary Administration Description This program provides administrative support to the

Commissioner for Superannuation in the general administration of the CSS and the closed PNG superannuation schemes. It also provides the administrative structure to assist the Commonwealth Superannuation Board of Trustees No. 1 with the administration of the PSS Scheme.

Its activities comprise:

• collection of contributions and payment of benefits;

• recording of contributions and determination of benefits;

• medical classification of new contributors and invalidity pensioners;

• counselling and information; and

• legislation matters.

Operation

Collection o f Contributions and Payment o f Benefits

Superannuation contributions of members of the CSS and productivity contributions made by employers of those members are included in the superannuation fund established under the 1976 Act and form part of the Commonwealth Public Account. Superannuation contributions of members of the PSS and productivity

contributions made by employers of those members are included in the superannuation fund established under the 1990 Act. The PSS fund does not form part of the Commonwealth Public Account.

Until 30 June 1992, CSS/PSS contributions had been remitted as one amount per fortnight. Qualification by the ANAO of the respective Boards’ 1991-92 financial statements has prompted major changes in

this approach. More details are provided under the subheading ‘Business Accounting’ on page 40.

Debtors

At the 30 June 1993, there was $529 857 outstanding as amounts due to the Commissioner arising from overpaid benefits. When such overpayments occur, the Commissioner is obligated to initiate recovery procedures, but, in cases of financial hardship, the Commissioner has some latitude to waive the imposition of interest or the Commonwealth’s right to recover. (Details of amounts waived or written off are given in the financial statements at appendix E.)

The procedures adopted by the RBO to recover debts are in accordance with government policy (as expressed in the Finance Directions) and legal opinion given by the Attorney-General’s Department. During the year the procedures were reviewed after an approach from the Commonwealth Ombudsman who was concerned about the financial impact and distress of recovery action. Additionally, some elements of the legal framework came under question.

In response to the Ombudsman’s concerns, the Commissioner sought further legal opinion from the Attorney-General’s Department. The subsequent reply confirmed their previous advice but to remove any uncertainty the Department provided revised wording for use in debt-recovery agreements. Since then the Commissioner has issued revised procedures which the Ombudsman considers satisfactory.

In the past the most frequent cause of overpayments has been delayed notification of a member’s death with resultant overpayment to the estate or spouse. This cause has been largely removed by amendments to the commonwealth superannuation legislation. The amendments enable the spouses of CSS (1976 act) and PSS pensioners to receive six pays at the higher, member rate before reverting to the lower, spouses’

Recording o f Contributions and Determination o f Benefits

Maintenance of Contributor Information

A major ongoing task is the maintenance and correction of contributor information held on computer files. This program ensures the integrity of the information used for the calculation of future benefit entitlements, estimates of future entitlements

and the provision of yearly information statements to contributors. The membership data used to update the computer files are provided by employers in the form of fortnightly variation returns. These returns provide basic details on contributors, reasons for adjustments to contributions, salary and actual amounts of contributions deducted.

The major components of the maintenance program are:

• Correction exercises—Computer edits identify and produce error messages for any incorrect or incomplete information provided in the variation returns. These errors are investigated

and corrected on an ongoing basis. • Data validation exercises—These are conducted using computer programs which identify

common types of errors and missing or incomplete data.

The amount of corrective action required depends entirely on the adherence by employers to the procedures and instructions regarding the collection and reporting of contribution variations. The standard

reporting procedures are outlined in the Superannuation Manual and in superannuation circulars that have been issued to all employers.

To further assist employers the RBO is currently updating a procedures manual for the CSS and originating a similar manual for the PSS scheme. These manuals will be available ‘on-line’ to those employers participating in the RBO’s EXPO project. More information about this project is provided on pages 16-17.

51

During the year a program evaluation was conducted which demonstrated two compelling outcomes:

1. the RBO membership database

exhibits an unacceptably high error level; and

2. the computer systems have outlived

their technical and business usefulness.

The combination of these factors is proving to be an increasingly difficult issue for this program. It limits the degree of automation the RBO can employ to meet its program and corporate objectives. More details concerning the evaluation are disclosed under the heading ‘Restructuring’ on page 25.

Maintenance of Pensioner Records

During the year significant resources were directed towards the maintenance and adjustment of pension records. This entailed changes to postal addresses, bank details, taxation information and method of payment. Pensioners advise the RBO of these changes either in writing or through the free call (008) telephone service.

The (008) service is available to all superannuation pensioners at no cost to enable them to contact the RBO and advise changes of address or financial institution or make inquiries regarding taxation deductions or non-receipt of pension payments.

Classification o f Contributors and Pensioners

Principally, classification relates to invalidity retirement. Details are provided in Part A of this report on page 6. The following remarks describe the activity.

Invalidity Retirement Process

Members of either the CSS or the PSS may not be retired on the grounds of invalidity unless the relevant Board of Trustees has certified in writing that, if so retired, the officer will be entitled to invalidity benefits.

53

Before approving retirement, the Trustees must consider a recommendation from an assessment panel as to whether the employee is totally and permanently incapacitated. Total and permanent incapacity means the person is unlikely to work again in a position for which he or she is reasonably qualified by education, training and experience or could become so qualified after retraining. The recommendation on whether the person is totally and permanently incapacitated is provided by a private sector invalidity assessment panel. This service is now provided by DCMC whose staff have expertise in the assessment of invalidity claims for superannuation purposes. Before approving invalidity retirement, the trustees are also required to consider whether it is practicable for the person to find employment, or to be appointed to an office, for which the person is reasonably qualified according to the criteria for total and permanent incapacity.

Pre-assessment Payments

The retirement process also has a system of ‘pre­ assessment payments’. These payments are intended to ensure that a person (not in receipt of compensation payments) who is, or likely to become,

totally and permanently incapacitated is not left without income during the period of assessment of his or her case.

During 1992-93 pre-assessment payment application for the CSS and PSS combined were received from 234 applicants—204 were approved, 20 were refused

because they did not satisfy the eligibility criteria and 48 applicants were in receipt of compensation payments so did not qualify.

Invalidity Retirement Certificates

During the year 285 applications for invalidity retirement were received and 382 (which included cases from the previous year) were finalised. Of the cases finalised, the Trustees approved 282 and

refused 61. A further 39 cases either lapsed or were withdrawn by the applicant.

The Trustees also approved 15 invalidity retirements without reference to the panel. In these cases the respective Boards were satisfied that the person was totally and permanently incapacitated.

Further details of decisions taken in 1992-93 on pre-assessment payments and invalidity retirement certificates are reported in the Boards’ annual reports.

Depending on the member’s medical condition, the Commissioner will require periodic review of the member’s state of health and earnings. When the member’s health is sufficiently restored or when the member’s pension plus personal earnings exceed a prescribed limit, there is provision to suspend pension. This suspension can be partial or total. The reviews can continue until the member reaches age 65 and if health is restored the Commissioner will seek to have the member re-employed by the pre­ retirement employer.

Counselling and Information

As in previous years, the RBO conducted various activities designed to make members and employing agencies more aware of the importance of

superannuation as a part of the remuneration package. Table 3 details the personnel training and member presentations conducted during the year.

The RBO’s main inquiry section wrote 14 551 (10 545 CSS and 4 006 PSS) letters in response to member inquiries. This represented a decrease of 11.6 per cent from the previous year. The decrease is attributed mostly to the reduced GBE activity and

improved member communication tools. Written responses to member inquiries are commonly dispatched within 15 working days. In addition to the written responses, 29 556 telephone inquiries (including 9 on the telephone typewriter facility [TTY] for hearing-impaired), were received, with 5 229 requiring return calls to finalise.

55

In November 1992, processing fees were introduced for legal inquiries not directly associated with the administration of the schemes. Typically, fees are applied in respect of prospective benefit inquiries and

subpoenas relating to property settlements under Family Law, or in Third Party Accident compensation cases. The fees are intended to cover the costs of meeting the demanding requirements of

the courts and to cover costs seen to be extraneous to administering the schemes. Initially the fee structure was variable but, on review, this has since been replaced by a flat fee of $200.

Fees were imposed on 78 occasions (15 requests were subsequently withdrawn) resulting in receipts of $13 545. '

Table 3: Personnel Training and Member Presentations 1992-93

STATE CSS MEMBER COURSES PSS MEMBER COURSES

PERSONNEL COURSES

FINANCIAL ADVISORS

NO. ATT* NO. ATT NO. ATT NO. ATT

ACT 79 1761 54 790 22 369 0 0

NSW 79 2967 43 798 26 394 1 57

NT 22 675 12 114 2 19 0 0

QLD 29 531 25 427 6 102 1 11

SA 15 648 8 133 4 61 0 0

TAS 16 427 3 69 2 33 0 0

VIC 33 1082 11 340 12 159 1 68

WA 9 168 8 89 10 156 0 0

TOTAL 282 8259 164 2760 84 1293 3 136

AVERAGE ATTENDANCE PER COURSE

29.3 16.8 15.4 45.3

" Total number of people attending the courses

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Legislation Matters

Specific activities of the program include:

• providing advice on the implications of proposed legislative changes;

• the preparation of circulars on legislative changes for distribution to departments and authorities;

• representing the Commissioner during the development, drafting and consideration of superannuation Bills and Regulations as well as assessing and commenting on draft superannuation and associated legislation;

• coordinating the preparation of instruments for the delegation of the superannuation Boards of Trustees’ powers and the Commissioner’s powers under the superannuation legislation to

authorised officers of the RBO, departments and authorities;

• preparing submissions to the Boards of Trustees on policy matters: and

• preparing informative responses to representations from Members of Parliament, the Ombudsman’s office and staff associations.

Issues Confronted

The major issues confronted within this subprogram during the year were:

• database inadequacies; and

• undertaking a range of strategic projects to identify measures to improve performance and enhance client focus.

These matters have been discussed at pages 29-30 of this report.

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CSS Activities

PSS Activities

Membership

Contributions

Activities relating to the CSS under this program have been detailed in Part A of this report.

The Superannuation Act 1990, including the Trust Deed and Rules, provides for the administration of the Public Sector Superannuation (PSS) Scheme. Many of the administrative functions of the

Commonwealth Superannuation Board of Trustees No. 1 (PSS Board) have been delegated to the Commissioner and staff of the RBO. The Board produces its own annual report providing detailed information about scheme operations. The following outline of the Scheme’s administration is intended to

supplement the information reported about this program.

PSS contributory membership as at 30 June 1993 was 98 710, comprising 55 443 (56.2 per cent) females and 43 267 (43.8 per cent) males. Approximately two-thirds of the members have transferred from the

CSS.

The PSS contributors’ profile exhibits a membership bulge centred on the 25-34-year-old age group (see Figure 6). Interestingly, the average PSS contributor is much younger than a CSS counterpart and the

gender mix of the PSS is opposite that of the CSS. These profiles suggest that the design of the PSS was well targeted and better meets the superannuation needs of females than its predecessor, the CSS.

Contributions receivable during the year for the PSS scheme totalled $242.9 million. This is an increase of 22.3 per cent over last year.

In the PSS, members can elect to contribute (in whole percentages) from 2-10 per cent. The most common rates of contribution are 2, 5 and 10 per cent. As a percentage of contributors, 13.6 contribute at a rate

of 2 per cent, 74.9 at 5 per cent and 6.6 at the 10 per cent rate.

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Figure 6: PSS Member Profile by Age, Number and Salary

25-29 I 35-39 ! 45-49 I 55-59 I 65+

<25 30-34 40-44 50-54 60-64

Age group

Benefits

Figure 7: PSS Exits for 1992-93 Figure 7 shows that resignations and retrenchments

together account for 93.9 per cent of all exits from the Scheme; respectively 70.9 per cent and 23.0 per cent. Given the generally younger membership of the PSS and the recency of the Scheme, it is not

surprising that resignation is currently the dominant source of exits.

H Age retirement (2.5%) H Invalidity (1.2%) Q Retrenchment (23.0%) Ϊ1 Death (1.3%) □ Resignation (70.9%) ■ Preservation (1.1%)

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Figure 8: PSS Pension Commencements 1992-93 The entitlements from the PSS are generally payable as lump sums, but attractive pension choices are

available for a number of exit benefits. Of the members with a pension choice, 54.6 per cent elected to take some part of their benefit as a pension.

The total number of PSS pensions commenced during the year was 214 (see Figure 8). This is significant when one considers the total number of pensions in force as at 30 June 1992 was only 238. Total PSS

pensions being paid is 441 with an annual liability of approximately $5.54 million.

{=j Age retirement (24.3%) □ Invalidity (26.6%) IQ] Retrenchm ent (29.9%) ■ Dependants (19.2%)

1.2 Reconsideration and Review

Description

This subprogram is an adjunct to the administration of the schemes and involves reconsideration of decisions made by the two civilian Boards of Trustees, the Commissioner and his delegates. More information is reported at pages 8-10 of this report

and in the respective annual reports of the CSS and PSS Boards.

Operation

This subprogram comprises two components split according to the method of processing; either through internal or external procedures.

1. Internal

People affected by and dissatisfied with a decision made by the civilian Boards, the Commissioner or their respective delegates can ask for a matter to be reconsidered. In practice nearly all decisions taken in the course of administering the schemes can be

subject to reconsideration. More information on CSS reconsiderations can be found in Part A, page 8.

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Requests for reconsideration of decisions made by the Commonwealth Superannuation Board of Trustees No. 1 (PSS Board) totalled 43, while 25 requests were received in relation to the Commonwealth Superannuation Board of Trustees No. 2 (CSS Board). When combined with the requests relating to decisions of the Commissioner (or his delegates), the total number received was 180. Altogether, 398 requests were carried forward from 1991-92 and 248 were finalised this reporting year.

2. External

Under the Superannuation Act 1976 (relating to the CSS), once a matter has been reconsidered, there is provision for further appeal. This involves appeals to the A AT. Similar provisions exist for appeal of decisions made under the DFRDB Act. Activities relating to A AT matters are shown at page 10 in Part A of this report.

Under the provisions of the PSS the only external appeal lies to the Federal Court on a question of law.

Issues Confronted

The main issues confronted in this subprogram were those associated with: •

• a new class of matter relating to late elections; and

• amendments to the bankruptcy laws.

These issues are dealt with under the heading ‘Review and Legal’, pages 32-33 in Part B.

Delivery of Defence Force Schemes

Overview Description This program comprises two subprograms:

2.1 Primary Administration; and

2.2 Reconsideration and Review.

Program 2 provides administrative support to the DFRDB Authority and the MSB Board.

The Authority is responsible to the Minister for Defence and also the Minister for Defence Science and Personnel for the general administration of the Defence Force Retirement and Death Benefits Act

1973 and the Defence Forces Retirement Benefits Act 1948 (the DFRB Act). The Commissioner for Superannuation is ex officio chairman of the DFRDB Authority.

This program is also concerned with the administration of the Military Superannuation and Benefits Scheme (MSBS) which came into operation on 1 October 1991. The MSB Board operates under

the provisions of a Trust Deed and Rules.

Major Activities

The critical activities are the recording of contributions, payment of superannuation benefits, invalidity assessments and review procedures.

The development of administrative arrangements for the MSBS continued throughout the year, most notably in the area of invalidity assessment with the

inauguration of the Reconsideration Advisory Committee (RAC). An outline of the Committee’s activities can be found in this report under the subheading ‘Internal’ on page 71.

Resources

Funds for the payment of pensions and lump sum benefits under the DFRDB Act are provided from the DFRDB and DFRB Special Appropriation which is held by the Department of Defence. Contributions by DFRDB members are paid into revenue item ‘Superannuation (DFRDB) payments by members and transfer values received’ which is held by the Department of Defence. Details of payments made from the Special Appropriation and of amounts collected are provided in Table 1 on page 10 of the Defence Force Retirement and Death Benefits Authority Annual Report 1992-93.

The MSBS employer benefits are funded from Consolidated Revenue, while member benefits are funded from the MSB Fund. The Retention Benefit is funded from Consolidated Revenue and

administered by the Department of Defence. The productivity contributions are also paid into the MSB Fund by the Department of Defence.

The summary of resources for this program is as follows: $2.9 million running costs and 77.9 staff.

The costs of administration for this program during 1992-93 are shown in more detail in the Financial Statements starting on page 116 in appendix E of this report. Staffing resources are shown in Table Cl in appendix C.

Social Justice

The overwhelming majority of Defence Force personnel, and hence DFRDB/MSBS members, are from English-speaking backgrounds, and no groups have been identified as experiencing cultural, linguistic, racial or religious barriers preventing

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2.1 Primary Administration

equitable access to program delivery. In terms of service delivery, an extensive counselling service, seminars and (008) telephone facilities are provided to ensure members have access to information about their entitlements and the schemes.

When dealing with requests for reconsideration, the RBO provides detailed information in writing to the member concerned, including copies of the reasons for making the particular decisions affecting the

member and information outlining the member’s appeal options.

Description

Primary Administration involves:

• collection of contributions and payment of benefits; • the recording of contributions and determination of benefits;

• medical aspects of invalidity retirement and review of invalidity pensioners; • provision of information to and counselling of scheme members; and

• provision of advice on legislative matters relating to the schemes administered

Operations

The administration details for the military schemes (that is, MSBS and the DFRDB incorporating the DFRB) are reported separately in the annual reports of the Military Superannuation and Benefits Board of Trustees No. 1 and the DFRDB Authority.

Issues Confronted

One of the significant issues confronted by this program during the year was the high number of retrenchments. Historically, retrenchments from the Defence Force have been negligible. The substantial increase in retrenchments placed an unusual level of

demand on the operational staff involved. Indeed, special arrangements had to be negotiated with the Department of Defence to deal with the issue.

64

Another issue for this program has been the finalisation and implementation of the administrative procedures needed to support MSBS. The most noteworthy of these has been the constitution of the Reconsideration Advisory Committee (RAC) and the

subsequent implementation of its operational procedures. Information about the RAC activities is given on page 71 of this report.

DFRDB Activities

Contributions In terms of the schemes administered by the RBO, DFRDB contributions are unique. Member contributions are paid directly into Consolidated Revenue, not a fund. Similarly, benefits are paid from Revenue.

Membership DFRDB membership decreased by 50 per cent, from 53 680 to 26 848, with MSBS transfers accounting for approximately 91 per cent of this fall. Female membership decreased by 75.3 per cent and female members now represent less than 5 per cent of DFRDB contributors.

Figure 9: DFRDB Member Profile by Age, Number and Salary

Salary range ■ 56 000+

I ! 48-55 999

0 40-47 999

Q 32-39 999 □ 24-31 999

□ <24 000

! 65+

60-64

65

Figure 10: DFRDB Exits for 1992-93

□ Age retirement (88%) Q] Invalidity (1.2%) ■ Death (0.5%) Q Resignation (10.3%)

The most remarkable feature of the DFRDB exits has been the number of retrenchments. Traditionally, the Defence Force has rarely retrenched and certainly it has not previously retrenched members

in such large numbers during peace time.

The RBO does not have precise information on the number of members actually offered and subsequently taking retrenchment because there is no retrenchment benefit available under DFRDB. In the DFRDB,

members taking retrenchment qualify for either retirement pay or resignation benefits. Consequently, the RBO database will record retrenchments under one of those two categories. As an indication of the abnormal demand on RBO resources, approximately

1 810 ‘retrenchment’ quotations were prepared for members seeking information about their potential benefits. However, based on information from the Department of Defence, retrenchments accounted for

approximately 81 per cent of all DFRDB exits for the year.

Benefits

Figure 11: DFRDB Pension Commencements 1992-93

The DFRDB scheme provides pension benefits only upon ‘retirement’, death of a member where there are eligible dependants and invalidity retirement (Classes A and B but not C). ‘Retirement’ in the DFRDB can

be upon completion of 20 years service or at retiring age for rank (e.g. for general duties, retiring age for rank of a major is age 47). Figure 11 highlights the differences of the DFRDB benefit structure when compared to the other schemes administered by RBO.

□ Age retirement (98.5%) Q] Invalidity (1.1%) ■ Dependants (0.4%)

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MSBS Activities

Contributions The MSBS funding arrangements operate differently from those of the DFRDB scheme. The primary difference is that member contributions are paid into the MSB Fund in contrast to the member contributions in the DFRDB scheme which are paid into Consolidated Revenue. Only the employer component of the MSBS benefits is paid from Revenue.

Membership jn terms of member profile, the MSBS, like the PSS, is characterised by a relatively young membership and correspondingly lower average salary when compared to its predecessor. Figure 12 illustrates the MSBS member profile.

Figure 12: MSBS Member Profile by Age, Number and Salary

2 0 0 0 0 ^

25-29 I 35-39 I 45-49 I 55-59 65+

<25 30-34 40-44 50-54 60-64

Age group

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Figure 13: MSBS Exits 1992-93

Atypically (for the Defence Force), retrenchments were also a significant factor in the exits from the MSBS during the year. Retrenchments represented 17.7 per cent of all MSBS exits, while resignations

represented 74.6 per cent. The age of the membership and the recency of the scheme’s inception account for the predominance of the resignation cases (see Figure 13).

■ Age retirement (20.0%) I Invalidity (4.6%) □ Retrenchments (17.8%) & Death (0.4%)

3 Resignation (71.9%) 11 Other (3.3%)

Benefits

Figure 14: MSBS Pension Commencements

The MSBS benefits differ quite markedly from those of the civilian schemes. For example, the MSBS, like the DFRDB, provides three categories for invalidity entitlements. Depending on the

circumstances there is a potential pension payable under each category. For ease of comparison these have been amalgamated in Figure 14 under ‘Invalidity’. Invalidity pensions started during the

year comprise 9.8 per cent of the total. Retrenchments account for 80.0 per cent of the year’s MSBS pension commencements.

Q Age retirement (7.7%) g Preserved (0.2%) d ! Invalidity (9.2%) □ Retrenchments (82.4%) H Dependants (0.3%)

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2.2 Reconsideration and Review Description Reconsideration and review involves responding to

requests for internal reconsideration and for external review. Principally these functions relate to assessment of individual member’s medical fitness for continued employment in the Defence Force. The military schemes differ quite substantially from the civilian schemes in their invalidity provisions. The military schemes are characterised by three categories of invalidity (A, B and C). Each category entitles the member to a different benefit, category A being the most favourable benefit. There are

mechanisms in the military schemes to review and vary a member’s invalidity classification.

Operations—DFRDB

The DFRDB Authority has delegated most of its primary decision-making powers but reserved its power of reconsideration. Many of the primary decisions are taken by delegates after consideration by the Committee of Alternates. Some 72 per cent of all requests for reconsideration relate to invalidity matters; these represent 13 per cent of the decisions which could have given rise to reconsideration requests.

Internal

30.9 per cent o f DFRDB reconsideration requests varied in favour o f applicant

During 1992-93, 54 requests for reconsideration were received and 67 brought forward from last year. The outcomes were as follows:

• 52 decisions confirmed;

• 25 were varied in favour of the applicant;

• one was varied without changing the benefit; and

• one was withdrawn and two lapsed.

Forty requests were under investigation as at 30 June 1993.

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External

During 1992-93, 21 applications were made to the AAT and 15 were carried over from the previous year. Outcomes for the 19 applications resolved during the year were as follows:

• three decisions were affirmed;

• five applications were decided by the AAT in favour of the applicants (two of these were varied without the AAT proceeding to hearing due to additional evidence produced by the

individual applicants during the preliminary stages of the cases);

• eight cases were dismissed by the AAT following withdrawal of the applications; and

• the AAT had no jurisdiction in a further four matters because the decisions had not been reconsidered by the Authority or were not reviewable.

There were 16 cases receiving attention at 30 June 1993.

Most of the cases decided by the AAT during the year dealt with classification and reclassification of members of the Defence Force who have been retired on medical grounds due to some physical or mental incapacity to perform their duties.

For purposes of determining the percentage of incapacity in relation to civil employment, the Defence Force Retirement and Death Benefits Act 1973 (the DFRDB Act) provides that the Authority

shall have regard to the kinds of civil employment the person might reasonably undertake, as well as the degree to which the member’s medical condition has diminished his capacity to undertake those types of

employment. When considering the matter the Authority shall have regard to the member’s identified skills, qualifications and experience. The

Full Federal Court in Defence Force Retirement and Death Benefits Authority v House (1989) (91 ALR 286) stressed that a narrow view is not to be taken in determining the kinds of civil employment that a person might reasonably undertake. The Court stated

that the statutory test is not what an employer or member might do, but what a hypothetical person with the relevant skills, qualifications and experience

might reasonably undertake.

The Court’s judgment in House was cited in Clarke and Defence Force Retirement and Death Benefits Authority (W92/96 of 20 May 1993) where the Tribunal dealt with initial invalidity classification provisions under section 30 of the DFRDB Act. One issue in Clarke was whether the applicant’s perception of pain was a physical incapacity. The Tribunal took the view that pain itself is not a physical incapacity but a symptom of an underlying pathological process or the result of a psychosomatic

disorder. Thus, it is necessary to initially ascertain the reason for the pain and then to classify the cause as either a physical or mental impairment resulting in physical or mental incapacity.

Of equal significance in Clarke is the view taken by the Tribunal in determining the degree to which the physical and mental incapacities of the applicant have diminished his capacity to undertake defined types of civil employment where the diminished capacity is attributable to a pre-existing condition. The Tribunal held that there can be no diminution in a member’s capacity for civil employment to the extent that such diminution is the result solely of a pre-existing condition. Nevertheless, any aggravation or worsening of a condition bringing about a physical or mental impairment needs to be considered when assessing the applicant’s diminished capacity.

Figure 15 demonstrates the success of meeting time targets in processing requests for reconsideration.

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Figure 15: Meeting Time Targets—Reconsideration and Review—DFRDB Scheme

Operations—MSBS

Internal

The procedure for reconsideration of matters in the MSBS differs from DFRDB scheme procedures. Under the MSBS a case officer will prepare an agendum and detail the reasons for making a particular decision. This is then considered by the

RAC which will notify the member of the recommendation it proposes to make to the MSB Board and offer the member the opportunity to respond. The member’s response, the agendum and

the RAC recommendation are submitted to the Trustees for decision. Once the Trustees have made their determination the member is advised with full particulars, including the Board minute dealing with

the member’s request for reconsideration.

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Three requests for reconsideration were carried forward from last year and 26 received during the year relating to decisions made by delegates of the MSB Board. Of the 26, 21 concerned invalidity and five sought reconsideration of the amount of benefit entitlement. Three requests were resolved, leaving 26 on hand as at 30 June 1993. There were no requests for reconsideration related to MSB Board decisions.

External

Under the provisions of the MSBS the only external appeal lies to the Federal Court on a question of law.

Issues Confronted

As with the civilian schemes, the major issues confronted within this subprogram have been associated with amendments to bankruptcy law and the Crimes (Superannuation Benefits) Act 1989. This issue has been reported more fully at pages 32-33 in Part B of this report.

Program Three

Corporate Services

3.1 Management of Resources Description This program maintains the RBO’s administrative

infrastructure. Elements of the program are located across the organisation.

Operations

Program 3 consists of one subprogram containing six components. Their operational aspects are outlined elsewhere in this report (page numbers listed in

brackets). The components comprise the following:

• executive;

• secretariat (page 26);

• information technology (page 35);

• finance and accounts (page 40, financial statements at appendix E); and

• human resource management (page 37).

Issues Confronted

Generally the issues confronted by this program are outlined in the comments on operational areas reported elsewhere in this report (see list above). The issues addressed by this program during the year were associated with the change in corporate culture, IT modernisation and the organisational restructure.

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These fundamental issues were largely highlighted by the program evaluation concluded in November 1992 and redressed by the strategic goals adopted through the year and noted throughout this report.

Consolidation of the RBO reorganisation will continue during 1993-94.

Resources

The costs of administering Program 3 are met from moneys appropriated through Parliament (that is, annual appropriations). The resource summary is $14.45 million (after CRF receipts offset) and 237.2

staff years. More detailed information about resources are given in appendix C (starting on page 110) and the financial statements (starting on page 116).

Social Justice

Pertinent social justice remarks for this program are encompassed in the comments provided in respect of Programs 1 and 2.

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Policy Implementation

Occupational Health and Safety An RBO Health and Safety Committee was established in November 1992. The Committee

comprises three employee-elected health and safety representatives and two management representatives.

The role of the Health and Safety Committee includes assisting RBO management in the development of health and safety procedures, facilitating cooperation with employees, developing and reviewing Occupational Health and Safety (OH&S) codes of practice and disseminating health and safety information to employees.

The Committee met on three occasions between November 1992 and June 1993.

During the year the Committee increased staff awareness of OH&S issues by publishing articles in the RBO staff bulletin and providing OH&S information at internal training courses.

In addition, when a small amount of asbestos was removed from the RBO building, the Committee assisted management in ensuring that the work program complied with legislative requirements, monitored air sample tests and assisted in advising staff of progress.

RBO received 36 notifications of accidents during the year. Twenty-two of these notifications resulted in compensation claims being lodged. The claims were in the following categories:

Work-related 11*

Sporting 6

Journey 5

* Two claims have been estimated at over $10 000

Two return to work programs were undertaken.

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77

Industrial Democracy

No directions were issued under section 45, 46 and 47 of the OH&S Act but one request for an inspection of a workplace in accordance with section 30 (l)(b)(i) of the Act was made. There were no

accidents or dangerous occurrences requiring notification under section 68 of the Occupational Health & Safety (Commonwealth Employment) Act 1991. No directions or notices were lodged under that

Act.

Screen-based Eye Testing Program

One hundred and twenty-three officers were tested under the RBO’s screen-based eye testing program during 1992-93 at a cost of $4 324. Spectacles were recommend in 28 cases.

Health Initiatives Taken During 1992-93

During the year, the RBO conducted the following courses to improve the health of its officers:

• ‘Quits’ anti-smoking program; • Sports Medicine Awareness Course; and • three Ergonomic Awareness sessions.

The material for this section is provided in accordance with subsection 22C(10A) of the Public Service Act 1922.

Status and Philosophy o f Industrial Democracy Policy

The RBO’s ID policy is an agreed management-union document which was finalised in December 1985. It concentrates on: •

• involving staff in decision-making processes which affect their workplace; • providing a forum for consultation on and discussion of issues; • fostering understanding between management and

staff; • facilitating the exchange of information;

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• improving staff development opportunities; and • maintaining harmonious industrial relations.

During the year the RBO Consultative Council established a working party to examine the ID policy and report back on recommendations for any changes. At the close of the financial year, a draft revised ID policy was with the PSU for comments.

Consultative Mechanisms

The formal mechanism for consultation in the RBO is the Consultative Council. This body consists of four management and four union representatives who meet at regular intervals to consider various issues, share information, and as far as possible resolve issues. The Consultative Council met on four occasions during the year and discussed issues which included:

• the RBO restructure; • future IT acquisition proposals; and • the Program Evaluation Project.

Informal liaison also occurs regularly with union representatives at both workplace and branch office level on matters of mutual interest (e.g. comments on draft policies, Equal Employment Opportunity, office

maintenance and cleaning).

Client Comments The RBO has no formal complaints monitoring system at present. Complaints are generally handled on an ad hoc basis within the respective areas generating them. However, strategic projects have been initiated, as part of the RBO’s renewed client focus, that will consider the need for formal complaint-handling procedures and recommend

structures commensurate with that need. Statistics compiled during the program evaluation suggest that the complaint level is less than 1 per cent. Similar results were obtained during a 3 month monitoring of incoming correspondence. These results are based

solely on the quantity of complaints, that is, there was no evaluative assessment of complaint validity.

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Equal Employment Opportunity The RBO’s EEO policies received external recognition during the year when it was conferred

with the Prime Minister’s Employer of the Year Award.

Prime Minister’s Employer o f the Year Award

The RBO was awarded the Commonwealth Government’s section of the Prime Minister’s Employer of the Year Awards for 1992 following nomination by Advance Personnel. The Employer of

the Year Awards, an initiative of the Commonwealth Department of Health, Housing and Community Services, was established in 1990 to acknowledge employers who provided significant job

opportunities for people with disabilities. The awards were open to any employer, either private or public, who employed a person with a disability. The Prime

Minister announced the winners and presented the awards at a ceremony at Parliament House on 7 September 1992.

Photograph: Presentation of the Prime Minister’s Employer of the Year Award

David Madigan-Stewart (L) congratulated by Prime Minister Paul Keating with Brian McConnell (R), Director Human Resource Management looking on.

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EEO Program

EEO Resources

The RBO’s EEO program was approved by the Public Service Commission (PSC) in August 1991. The EEO program aims to eliminate discriminatory practices where they exist by emphasising the integration of the principles of EEO into key areas of people management. It focuses on a range of specific actions and desired outcomes, addresses general discrimination in employment and provides assistance to traditionally underprivileged groups of people. The program also ensures that staff have equal access to work opportunities and that their skills are used in the most effective way.

Work has commenced on the review of the current program which is due to be implemented in December 1993.

The program is coordinated by an AS06 EEO Coordinator who spends approximately 25 per cent of time devoted to EEO matters. The Senior Executive Officer responsible for EEO is the Deputy Commissioner.

Other RBO EEO Initiatives

Information booklets produced by the RBO for the CSS/PSS Schemes indicate in five different languages that specific information is available in languages other than English.

The PSS video ‘Everything You Need To Know About Superannuation But Were Too Bored To Ask’ was produced with an English subtitle version to assist the hearing-impaired.

The RBO Client Liaison Group provided information services using interpreters for members who had difficulty with the English language and sign

language seminars for the hearing-impaired.

A TTY is also available for members who are hearing-impaired and special visiting arrangements were made for members with disabilities or handicaps.

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Freedom of Information Act Statement

This statement is provided in keeping with section 8 of the Freedom o f Information Act 1982 (the FOI Act).

Functions o f the RBO

The general functions of the RBO are described in Part B, pages 13-45 of this report. Specific details of decision-making powers are given immediately below.

Decision-making Powers

The Commissioner for Superannuation’s power to administer the provisions of the Superannuation Act 1976 is set out in section 17 of that Act and the power of the Commissioner to delegate those powers and functions is set out in section 25. The application of those powers is outlined under Part A of this report.

The power of the DFKDB Authority to administer the provisions of the Defence Forces Retirement Benefits Act 1948 and the Defence Force Retirement and Death Benefits Act 1973 is set out in section 8 of the

DFRDB Act. The power of the authority to delegate its powers and functions is set out in section 15. The application of those powers is summarised under program 2 of this report, while the details are published separately in the Defence Force Retirement and Death Benefits Authority Annual Report 1992-93.

FOI Internal Procedures

All requests for documents are referred to the FOI Coordinator. Compliance with the application fee provisions of the FOI Act are verified and the request is registered and acknowledged. The documents are

then obtained and the request is considered by the staff of the FOI Unit.

Decisions to grant access and levy charges and limited powers to refuse access are made by the FOI Coordinator (Administrative Service Officer Class 5), while those refusing access are made by either the

Assistant Director, Business Liaison Unit (Senior Officer Grade C) or the Assistant Commissioner, Business Management (Senior Executive Band 1).

Requests for internal review of FOI decisions are also referred to the FOI Coordinator. They are then forwarded to the Review and Legal Services Branch where they are investigated by a designated officer prior to submission to the Commissioner for decision under section 54 of the FOI Act. The officers currently designated to carry out such investigations are Senior Officers Grade B of the Review and Legal Services Branch. All decisions on internal reviews are made by the Commissioner personally.

Facilities fo r Access

Facilities for viewing documents are provided only at the RBO in Canberra as the RBO has no regional offices. Publications may be inspected at the RBO’s FOI Unit and copies, for which there may be a charge, can be obtained by writing to the address shown below. Information about facilities for access by people with disabilities can be obtained by contacting the FOI coordinator at the address and

telephone numbers shown on page 85.

Consultative Arrangements

Informal and ad hoc arrangements exist whereby the national, State and Territory branches of the Superannuated Commonwealth Officers’ Association and those unions whose members are covered by the CSS and the PSS may make representations relating to the general administration of the schemes. Representations are also received which relate to the determination of individual contributor’s benefit entitlements.

Requests for consultations and/or representations relating to policy aspects of the schemes and their underlying legislation are referred to the Social Security Division of the Department of Finance which has responsibility for advising the Minister for Finance on such matters.

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Categories o f Documents

The Commissioner maintains no categories of documents that are open to public access as part of a public register or otherwise, in accordance with an enactment other than the FOI Act, where that access is subject to a fee or other charge.

The Commissioner’s annual report is the only category of document available for purchase by the public in accordance with arrangements made by the agency.

Leaflets that describe in general terms various aspects of the superannuation schemes are the only categories of documents made available to the public free of

charge upon request, other than under the FOI Act.

Other RBO leaflets (which incorporate an appropriate application form) are provided to personnel areas for issue to interested employees. A full list of leaflet titles is available from the Schemes Promotions

Group, telephone (06) 252 6844.

Circulars describing various aspects of the superannuation schemes administered include:

• Commissioner fo r Superannuation Circulars—providing guidance in routine administrative matters to departments and authorities covered by the provisions of the Superannuation Act 1976·,

• Commissioner fo r Superannuation Circular Memoranda—providing guidance in routine administrative matters to departments, authorities and trustees of Approved Deposit Funds and other

rollover institutions covered by the provisions of the Superannuation Act 1976] and •

• Retirement Benefits Office Superannuation Circulars—providing guidance in routine administrative matters to departments and authorities covered by the Superannuation Act 1976 and the Superannuation Act 1990.

A complete list of the circulars issued during the year is available form the Scheme Promotions Group (telephone (06) 252 6597). These circulars are prepared in three forms to accommodate the varying employer categories. The three categories of circular are:

A. agencies with staff participating in both the PSS and CSS;

B. agencies with staff in the CSS but not the

PSS with the RBO administering the productivity scheme for CSS members; and

C. agencies with staff in the CSS but not the

PSS with the employer administering productivity scheme for CSS members.

Other categories of documents maintained by the Commissioner include:

• documents maintained as separate records of decision-making machinery such as superannuation monthly management reports; • general correspondence and associated categories

of documents according to subject matter; • documents relating to specific functions of the agency such as contributor histories and benefit applications; • documents associated with the internal

administration and management of the RBO such as those relating to staff and management services; • policy-related documents including, for example: - the RBO Corporate Plan;

- RBO Administrative Circulars (which provide advice on administrative and procedural arrangements for staff); - personnel policies, guidelines and procedures

manuals; and • statistical tables relating to the schemes administered (available from the Scheme Promotions Group (06) 252 6888).

Substantial information is also kept on the RBO computer database.

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FOI Inquiries and Initial Contact Point

Inquiries concerning access to documents or other matters relating to FOI should be directed to the FOI Contact Officer at the RBO in Canberra. The postal

and street addresses are:

The FOI Coordinator Unit 1, Cameron Offices Chandler Street Belconnen ACT 2617

or

Retirement Benefits Office PO Box 22 Belconnen ACT 2616

Telephone: (06) 252 7446 Facsimile: (06) 253 1116

Resources

A total of 1.57 staff years was required to deal with FOI matters during the year and direct, non-staff costs totalled $3 326. Direct staff costs represented an approximate outlay of $50 452. Combined, these

costs average $312.66 per request.

Application fees totalling $60 were collected in respect of requests for access. Application fees totalling $5 100 were remitted pursuant to section 30A of the FOI Act. Charges levied and collected

for access to documents totalled $159.95.

Performance o f the FOI Unit

During the year 172 requests were received. The outcomes for these requests were as follows: •

• 166 granted in full; • one refused in full (under section 24A); • four granted with part refused (under subsection 41(3)); and

• one withdrawn.

There were no requests received to amend personal records (section 48) and only one request for internal review under section 54. No appeals to the AAT were lodged under Part VI of the FOI Act.

Privacy Act Operations All requests involving the disclosure of information of a personal nature relating to clients of the agency

are dealt with having regard to the Information Privacy Principles.

During 1992-93 the RBO received 101 requests for disclosure of information. Thirty were either dealt with under normal administrative practice or not proceeded with due to non-compliance (e.g. the applicant did not have a lawful claim to the documents). The documents were released in accordance with section 11 of the Privacy Act where:

• the individual concerned has consented to the disclosure [section (ll(l)(b)]; • the disclosure is required or authorised by law [section ll(l)(d)]; and • where the disclosure is reasonably necessary for

the enforcement of the criminal law or of a law imposing pecuniary penalty, or for the protection of public revenue [section ll(l)(e)].

The Federal Privacy Act Training Package is available for in-house training. Additionally, as part of RBO’s ongoing Orientation Program Policy, all new staff receive training on privacy matters, and privacy modules are included in other in-house courses.

Approximately 0.1 staff years were expended by the FOI Unit on privacy matters relating to the RBO. This represented an outlay of approximately $3 503 in direct salary costs and $285 in administrative costs. The average time to deal with a request fell from four days to three days.

Inquiries on privacy matters are directed to the FOI Unit whose contact details appear on page 85.

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Fraud Control During 1992-93 the Business Liaison Unit completed a substantial review of the RBO’s Fraud Control Plan and strategy. The outcome of this review will better place the RBO in a better position to detect,

investigate and prosecute fraudulent activities.

Measures identified for improving fraud control include but are not limited to:

• revision of the existing Fraud Control Plan and risk analysis; • improved staff training; • revision of detection procedures; • implementation of a staff awareness program; • review of existing memoranda of understanding

with the DPP and the Australian Federal Police (AFP); and • centralisation of fraud control activities within the RBO.

A limited client survey was conducted as a pro­ active fraud counter-measure. Some 2 100 clients were surveyed resulting in the detection of 25 cases of suspected ineligible payment of entitlements.

Although some cases are the subject of continuing investigation, five cases of suspected fraud were detected and are being actively pursued. A further six cases were identified where pension benefits had been overpaid and action was initiated to recover the amounts involved.

A number of cases of suspected fraud have been referred to the Commonwealth’s law enforcement bodies. Of these, two significant cases of fraud have been proven and the matters taken to court. The

outcomes of legal proceedings in these matters, at the time of reporting, are unknown.

Resources applied to fraud control activities during 1992-93 equate to 1.3 full-time staff and, given the recoveries of overpaid benefits realised, is a measure of the cost-effectiveness of the activity.

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Training Compared to last year, expenditure on training activities increased substantially during 1992-93. Training expenditure was $1 675 787 (including salary of those staff attending training) in comparison to the minimum training requirement of $262 242 (based on the total payroll of $17,482 million). This results in no training guarantee shortfall. Of this total, $36 911 was expended on Middle Management Development (MMD).

The increase in human resource development was largely due to the major efforts on strategic planning which, through a series of workshops, saw the development of a vision for the RBO, a three-year Corporate Plan, and the development of business plans for each of four branches. The MMD activities also continued with the same emphasis as with the previous year, supported by the MMD Program

funding from the PSC. The quality of this program was identified by the PSC as ‘an example of best practice’.

The increased development activities were also markedly reflected in the total number of person days spent on participation in eligible training programs; a total of 2 185.4 days as against 1 315 in the preceding year. The average of 4.2 development days per staff member was higher than the comparative 2.5 days from last year. Information about participation rates for EEO target groups is given in Table 4 on page 91.

One activity of particular interest was the visit of two officers from the Philippines during September - October 1992 to participate in a human resource development program for Filipino Human Resource and Human Development Managers.

Strategic Planning Workshops

Some 62 Senior Managers attended a series of strategic planning workshops between August and December 1992, delivered by a strategic planning consultant.

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Also, as part of the strategic planning process, approximately 450 staff attended workshops to provide input into the draft vision statement. As a result of these workshops, a new vision and corporate

direction were established for RBO.

The total cost of this project was $52 000.

Branch Planning Workshops

Branch Planning Workshops were conducted by four branches during 1992-93. The aim of these workshops was to produce a business plan for each branch. The branch plans were developed to align

with RBO’s Corporate Plan. A total of 85 staff attended these workshops.

Charting Our Progress Conference

A total of 74 Senior and Middle Managers attended a two-day conference at Federation Square, Gungahlin, ACT. Presenters were provided mostly from within the RBO. The total cost of this conference was

$10 300.

MIDDLE MANAGEMENT DEVELOPMENT 1992-93

A total of 62 staff attended MMD Programs during 1992-93 comprising:

• two 3.5 day MMD residential courses conducted by Excel Seminars at Batemans Bay, at a total cost of $36 960; and • two two-day Principle-Centred Leadership courses

conducted in-house.

The residential program was included in the PSC evaluation of the effectiveness of PSC MMD Program funding, as ‘an example of best practice’ in a small to medium agency.

Supervisor Development Program

Altogether, 21 supervisory staff were provided with 11 days of in-house supervisory development throughout the financial year.

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Performance Appraisal Training

Performance Appraisal Training was offered to all Senior Officers in the office, as part of the implementation strategy for APS performance appraisal and performance pay.

OTHER TRAINING AND DEVELOPMENT PROGRAMS

Studybank

RBO had 30 female officers and 29 male officers use the Studybank Scheme during the year. One person is on full-time unpaid study leave.

Office Trainees

Three youth trainees were appointed as permanent officers during the period. Four officers (two females and two males) have commenced the Traineeship Program during the year 1 July 1992 to 30 June 1993.

Development Programs

ASOl-4 Program

Two groups of ten people participated in a pilot program for AS01-4s based on Joint APS Training Council (JAPSTC) competencies. Seven out of the ten modules were completed in the 1992-93 financial year.

Corporate Vitality Program

A total of 30 staff attended this program, which was aimed at reducing stress levels and maximising on-the-job performance.

Drug and Alcohol Awareness Workshop

Three one-day courses were attended by a total of 36 staff.

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EE 0 Target Groups - Eligible Training

Table 4: RBO Staff Participating in Eligible Training Programs by EEO Target Group and Classification During 1992-93

Classification NESB1 NESB2 ATS I PWD

SES „ .

Senior Officer 1 1 - -

ASO 15 24 3 11

Graduate Admin. Assistant - - - -

Senior IT Officer 3 2 - 2

IT Officer 7 4 - -

General Service Officer - - - -

Office Trainee - - - -

Total 26 31 3 13

Key—Table 4

NESBft Non-English-speaking background 1. first generation 2. second generation

ATS I Aboriginal or Torres Strait Islander PWD Person with disabilities

Eligible Training Programs

Table 5: Number of Person Days Spent in Formal Training Activities by All Staff in the RBO During 1992-93, by Gender and Classification.

Classification Males Females TOTAL

Senior Executive 71.2 71.2

Senior Officer Grade B 65.5 6.5 72.0

Senior Officer Grade C 124.4 50.4 174.8

Administrative Service Officer Class 6 68.1 102.7 170.8

Administrative Service Officer Class 5 51.3 108.0 159.3

Administrative Service Officer Class 4 94.6 108.8 203.4

Administrative Service Officer Class 3 121.1 218.8 339.9

Administrative Service Officer Class 2 248.6 277.2 525.8

Administrative Service Officer Class 1 18.5 19.5 38.0

Snr Information Technology Officer Grade A 16.2 - 16.2

Snr Information Technology Officer Grade B 34.0 18.8 52.8

Snr Information Technology Officer Grade C 76.4 57.1 133.5

Information Technology Officer Grade 2 73.7 74.0 147.7

Information Technology Officer Grade 1 42.1 24.2 66.3

Graduate Administrative Assistant 7.7 - 7.7

General Service Officer Grade 3 2 - 2

Office Trainee - 4 4

Total all classifications 1 115.4 1 070.0 2 185.4

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Purchasing During the year the RBO was connected to the OPEL gazettal system operated by the Australian Government Publishing Service (AGPS). Initially, the RBO experienced problems with the system. RBO used incorrect forms for a number of its purchases. The consequence was late gazettal of

17 entries. These purchases are listed in Table 6.

IT Purchasing Certificate

The Commissioner, after due inquiry into the areas responsible, is satisfied that the procedures applied to IT purchases comply with IT purchasing policies and operate within existing guidelines.

Table 6: Exceptions to Gazettal Procedures

Date Purchase Order Supplier Amount ($)

01/04/93 393 Eire’s Printing 9 140.00

12/03/93 371 Electroboard P/L 12 670.00

09/03/93 373 Empire Office Supplies 4 675.20

09/03/93 387 DAS Fleet 5 110.62

05/02/93 325 Asset Services 3 559.28

04/02/93 314 National Capital Printing 4 125.00

03/02/93 312 ACT Mailing 3 739.50

20/01/93 281 Green Advertising 3 764.00

19/01/93 301 AGPS 4 050.00

14/01/93 295 DAS Fleet 5 448.24

14/01/93 293 Unisys Aust P/L 2 000.00

13/01/93 290 Aust. Construction Services 6 500.00

12/01/93 285 National Capital Printing 3 850.00

11/01/93 292 Film Australia 2 911.00

11/01/93 288 ACT Mailing 5 117.50

11/01/93 284 National Capital Printing 16 835.00

11/01/93 282 Empire Office Supplies 4 675.20

93

Property Usage Rent

The RBO is located in the Cameron Offices at Belconnen and rents additional space in the Mitchell Industrial Estate. The office space rented totals 8 185 square metres at the rate of $230 per square

metre annually. The total rent for office accommodation (including special purpose work areas) for 1992-3 was $1 882 550. As at the 28 June 1993 this averages 15.83 square metres per staff

member (including inoperative staff).

The RBO rents an additional 1 054 square metres of non-office (storage) space at a total cost of $69 172 for 1992-3 and $12 000 for 20 car spaces (15 of these are being paid for by Senior Officers).

Total outgoings for accommodation are $418 662. This comprises the following:

The most significant increase in costs is for energy. In 1991-2 this amount was $83 855, but since then the building owner has attempted to correctly apportion electricity costs between tenants.

Electricity

The following points detail the development of new strategies for energy management: •

• The building owner, Australian Estate Management (AEM), in consultation with tenants, will be installing electricity usage meters at the commencement of 1993-94 to each level of RBO’s

shared tenancy of Cameron Offices, so as to

Energy Outgoings

Energy Cleaning Security Management fees Excess water

$172 108 $117 645 $76 568 $36 195

$16 146

identify AEM’s power consumption as well as the tenant’s power consumption costs more accurately.

• RBO is installing individual light control switching and zoning where possible throughout all accommodation/storage areas, and has reduced the hours of office accommodation lighting by 1.5 hours daily via the new Building Management System (BMS).

• In 1993-94, the RBO will be evaluating the cost effectiveness of the recommendations made in a consultant’s report commissioned by the Australian Bureau of Statistics (ABS) to install a computerised lighting control system in office areas to reduce energy consumption.

Fleet Vehicles

The RBO has nine vehicles: three six-cylinder and six four-cylinder.

Table 7: RBO Vehicle Fleet

User No. AFC (p.a.)* AD (km)#

SES 7 3 360 20 869

OTHER 2 3 208 27 168

ALL 9 3 326 22 268

Average Fuel Consumption (AFC) in litres # Average Distance per annum (AD)

Recycling

The RBO recycles office waste, paper, bottles and cans. It also uses 100 per cent or 80 per cent recycled paper in all photocopying machines, writing pads, internal documents and most external documents, the principal exception being original letters to clients.

95

A BBREVIA TIO NS

AAS A ustralian A ccounting

Standard (42)

AAT A dm inistrative A ppeals

Tribunal (9)

ABS A ustralian B ureau of

Statistics (94)

AD A verage D istance (94)

AD (JR) Act A dm inistrative D ecisions (Judicial R eview ) A ct (9) AEM A ustralian Estate M anagem ent

(93)

AFC A verage Fuel

Consum ption (94)

AFP A ustralian Federal Police

(87)

AGPS A ustralian G overnm ent

Publishing Service (92)

ANAO A ustralian N ational Audit

Office (29)

APS A ustralian Public Service

(8)

ATSI A boriginal and T o rres

Strait Islander (91)

BCC Benefits C lassification

C ertificate (6)

BMS Building M anagem ent

System (94)

CFM C om m onw ealth Funds

M anagem ent L im ited (18)

CMAPS C onfidential M edical and

Personal Statem ent (31)

CRF Consolidated R evenue Fund

(7)

CSS C om m onwealth

Superannuation Schem e

(1)

CSS Board C om m onwealth Superannuation B oard of T rustees N o. 2 (v)

DCM C D isability C laim s

M anagem ent and C ounselling Service (31)

DFRB Defence Force Retirem ent

Benefits (ix)

DFRDB Defence Force R etirem ent

& D eath Benefits (v)

DPP Departm ent of Public

Prosecutions (33)

EEO Equal Employm ent

O pportunity (39)

FOI Freedom of Inform ation (81)

GAA Graduate Adm inistrative

Assistant (38)

GBE G overnment Business

Enterprise (4)

GUI G raphic U ser Interface (35)

ID Industrial D em ocracy (39)

IT Information Technology (ix)

JA PSTC Joint APS T raining Council

(90)

LAN Local A rea N etw ork (15)

MM D Middle M anagem ent

Development (88)

MSBS M ilitary Superannuation &

Benefits Scheme (xi)

MSB Board M ilitary Superannuation & Benefits Board of Trustees No. 1 (v) NESB N on-English-speaking

background (91)

OH&S Occupational H ealth & Safety

(76)

OSSA Occupational Superannuation

Standards Act (18)

PNG Papua New G uinea (xi)

PSC Public Service Commission

(80)

PSS Public Sector Superannuation

Scheme (xi)

PSS Board Commonwealth Superannuation Board of Trustees No. 1 (v) PSU Public Sector U nion (38)

PWD People With D isability (91)

RAC Reconsideration Advisory

Committee (34)

RBO Retirement Benefits Office

(v)

Snr Senior (91)

TTY Telephone T ypew riter

Facility (55)

96 Appendix A

LEGISLATION SUMMARY

Table A l: Statutory Rules under the S u p e r a n n u a tio n A c t 1 9 7 6

Statutory R ules A p p lies to Significance

Superannuation (Additional C ontributions) Regulations (Statutory R ules 1976 No. 221)

Superannuation (Additional Pension) Regulations (Statutory R ules 1976 No. 158 as am ended by Statutory Rules 1978 N o. 141)

Superannuation (Allocation o f Previous Fund) Regulations (Statutory Rules 1978 N o. 156)

Superannuation (A pproved A uthorities) Regulations (Statutory Rules 1977 N o. 6 as amended to (Statutory Rules 1990 N o. 96) (Repealed by Statutory Rules

1991 N o. 190)

Superannuation (Approved A uthority) D eclarations (Statutory Rules 1991 as amended to Statutory Rules

1993 N o. 2)

C ontributors under the Superannuation A ct 1922 w ho were under age 40 at comm encement of the Superannuation A ct 1976

C ontributors who take contributor-financed pension on age or early retirem ent and spouses o f contributors who die in service after attaining m axim um retiring age

C ertain contributors and pensioners at 1 July 1976

C ertain authorities that becam e approved authorities on or after 1 July 1976 and employees

of those approved authorities

A pproved authorities after 1 July 1990 and em ployees of those approved authorities

These regulations set out basic contributions that w ere payable under the traditional provisions for these contributors and the level of supplementary contributions payable.

These regulations establish the factors and percentages to be used in calculating the contributor-financed pension payable.

These regulations specified certain m atters to which the M inister o f Finance w as required to have regard when making determ inations concerned with the allocation and distribution of the old Superannuation Fund as at 30 June 1976.

These regulations specify authorities as approved authorities for the purposes o f

the Act.

These declarations specify those authorities and bodies w hich are approved authorities for the purposes of the Act.

Appendix A 97

Statutory Rules A p p lies to Significance

Superannuation (A pproved Part-tim e Em ployees) Regulations (Statutory Rules 1986 N o. 48 as am ended to

Statutory Rules 1991 No. 469)

A pproved part-time em ployees (i.e. people w ho are perm anent p art­ tim e employees)

These regulations provide for superannuation benefits for approved part-time employees who are perm anent employees.

Superannuation (C ancellation of Elections) Regulations (Statutory Rules 1978 N o. 201)

People who are eligible to make certain elections under the Act

These regulations prescribe those people w ho may apply to have elections cancelled, and specify certain m atters to w hich the

Com m issioner shall have regard in determ ining w hether certain elections should be cancelled.

Superannuation (Continuing C ontributions for Benefits) Regulations (Statutory Rules 1981 N o. 36 as amended up

Statutory Rules 1993 No. 50)

People who are eligible em ployees through the application of section 14A o f the Act

These regulations specify classes o f people to whom section 14A does not apply, circum stances in which people cease to be eligible em ployees through the application o f section 14A, and modify the Act in its application to certain eligible em ployees reappointed or reinstated under the Public Service A ct 1922.

Superannuation (Cost of A dm inistration) Regulations (Statutory Rules 1980 No. 108 as amended by Statutory

Rules 1991 No. 162)

Superannuation Fund Investm ent T rust These regulations provide for all the costs of, and incidental to,

the management o f the fund by the Investment T rust to be met from the fund from 1 July 1984.

Superannuation (CSS) Productivity C ontribution D eclarations (Statutory Rules 1990 No. 167 as am ended to Statutory Rules

1993 N o. 133)

Funded 3 per cent Productivity Benefit for E ligible Employees

This declaration am ends the table in section 110C o f the Act.

98 Appendix A

Statutory R ules

Superannuation (CSS) (SG M inim um C ontribution) D eterm ination N o. 1 (Statutory Rules 1992 No. 461)

Superannuation (D eferred Benefits) Regulations (Statutory Rules 1979 No. 46 as am ended to Statutory Rules 1992 N o. 265)

Superannuation (Eligible Em ployees) Regulations (Statutory Rules 1976 No. 140 as am ended to Statutory

Rules 1992 N o. 458)

Superannuation (Existing Invalidity Pensioners) Regulations (Statutory Rules 1988 No. 275 as amended to Statutory Rules 1992 No. 267)

Superannuation (Form er C ontributors for Units of Pension) Regulations (Statutory Rules 1978 No. 281 as am ended to Statutory Rules 1992 No. 268)

A p p lies to Significance

Superannuation G uarantee contributions in respect of eligible employees

T his determ ination varies minimum contribution from 4 per cent to 5 per cent.

Form er contributors to w hom deferred benefits w ere applicable and becam e payable as an invalidity pension which w as cancelled upon

restoration of the m em ber’s health

These Regulations m odify the A ct in relation to and its application to people to w hom a deferred pension benefit, payable on invalidity grounds, w as cancelled when the person regained his or her health.

Certain classes o f people w ho w ould otherwise be eligible employees for the purposes of the Act

These regulations prevent certain classes of people, w ho w ould otherwise be eligible em ployees under the A ct, from contributing to the scheme.

People who were invalidity These regulations provide for the pensioners im mediately application o f the A ct, subject to before 1 July 1976 certain m odifications, to existing

invalidity pensioners w ho become eligible em ployees.

C ontributors to the CSS w ho, prior to 1 July 1976, were m em bers of the superseded Pension Scheme

These regulations modify the Act to provide special arrangem ents for contributors to the superseded Pension Schem e who transferred to the CSS on 1 July

1976.

Appendix A 99

Statutory Rules A pplies to Significance

Superannuation (Form er Eligible Employees) Regulations (Statutory Rules 1986 N o. 266 as amended to Statutory Rules 1992 N o.

271)

C ertain former m em bers o f the CSS who have transferred to an approved

superannuation scheme set up by their em ployer

These regulations provide for the preservation o f the rights of em ployees of bodies w hich have set up an approved

superannuation scheme where the em ployees were m em bers of the CSS im mediately before becom ing m em bers o f the

superannuation scheme.

Superannuation (Form er Housing Loans Insurance C orporation Em ployees) Regulations (Statutory Rules

1991 N o. 22)

Form er contributors em ployed by the HLIC These regulations make arrangem ents for contributors

affected by the sale o f the HLIC.

Superannuation (Form er Invalidity Pensioners) Regulations (Statutory Rules 1979 N o. 70)

People who w ere in receipt o f an invalidity pension w hich was cancelled when the person regained his or

her health

These regulations establish a minimum rate of pension in respect o f contributors who die

or are retired on invalidity grounds and a pension is payable, w here the contributor had a previous invalidity pension

cancelled upon regaining his or her health.

Superannuation (Form er Provident Account C ontributors) Regulations (Statutory Rules 1978 N o. 227 as amended to Statutory

Rules 1992 No. 269)

C ontributors to the CSS w ho were m em bers of the superseded Provident A ccount prior to 1 July

1976

These regulations modify the Act to provide special arrangements for those contributors to the Provident Account who

transferred to the CSS on 1 July 1976.

100 Appendix A

Statutory R ules A p p lies to Significance

Superannuation (Interest) C ontributions paid to the Regulations (Statutory Rules fund 1978 N o. 253 as amended to Statutory Rules 1990 No. 217)

These regulations set out the basis on w hich interest on contributions is to be calculated, and prescribe the rates o f interest to used up to, and including, 30 June 1990.

Superannuation (Leave o f C ontributors w ho take Absence W ithout Pay) leave w ithout pay

R egulations (Statutory Rules 1988 N o. 246)

These regulations modify the Act to enable contributors granted leave w ithout pay for a period in excess of 12 w eeks to contribute for that period if they return to w ork within 12 w eeks. The regulations also set out the basis on which a transfer value may be paid to the CSS from another superannuation scheme in respect of employm ent undertaken by an eligible employee w hile on leave w ithout pay.

Superannuation (Period of C ontributory Service) Regulations (Statutory Rules 1977 N o. 105 as amended to Statutory Rules 1991 No.

72)

Superannuation (Retiring A ge) R egulations (Statutory Rules 1977 N o. 106 as amended to Statutory Rules

1987 No. 155)

People w ho were contributors on 30 June 1976 and were still contributors at 1 July 1976

Persons w ho are, or have been, eligible em ployees and w hose maximum retiring age is less than 65 years or whose minim um retiring age is less than 60 years

These regulations detail the periods of service under the Superannuation A ct 1922 that arc

to be recognised as a period of contributory service under the Superannuation A ct 1976.

These regulations specify that the maximum and minim um retiring ages applicable to these people shall be the maximum and minim um retiring ages specified in their term s and conditions of em ployment.

Appendix A 101

Statutory Rules

Superannuation (Salary) Regulations (Statutory Rules 1978 N o. 282 as amended to Statutory Rules 1993 N o. 4)

Superannuation (Statutory O ffices) Regulations (Statutory Rules 1980 No. 277 as amended by Statutory Rules 1986 No. 27)

A pplies to

C ontributors in receipt o f allowances; tem porary em ployees; and contributors on leave of absence

The Coal Industry Tribunal and the Inter-State Comm ission

Significance

These regulations specify the allowances that are to be treated, or not treated, as salary for the purposes o f the A ct, and prescribe the method of determ ining salary for temporary employees who are contributors,

and for contributors on leave of absence w ho contribute during the period o f leave.

These Regulations specify the office of the Coal Industry T ribunal, and the office of member o f the Inter-State

Comm ission as statutory offices for the purposes of the Act.

Superannuation (Transfer A rrangem ents) Regulations (Statutory Rules 1978 No. 225 as amended to Statutory Rules 1992 No. 270)

The Chairpeople o f the T ertiary Education Com m ission, of the A dvanced Education C ouncil, and o f the

N ational Board of Em ploym ent, Education and Training; certain em ployees of the Anglo- A ustralian Telescope

These regulations modify the Act in its application to these people, who had the option of transferring to the CSS under

special arrangem ents.

102 Appendix A

Statutoiy R ules A pplies to Significance

Board and of the Comm onwealth Accom m odation and

C atering Services Ltd; the D irector-G eneral o f the D epartm ent of Health and the First Assistant Secretary, Health Services

Financing Division, D epartm ent of Health; the M anaging-D irector of the A ustralian Trade Com m ission; certain N SW T A FE teachers; and contributors under the

1976 Act who have a deferred benefit under the 1922 Act

Table A2: Declarations by the M inister Gazetted 1992-93: 1922 Act

Title/D escription A p p lies to Significance

There w ere no D eclarations by the M inister gazetted during 1992-93 under this Act.

103 Appendix A

Table A3: Declarations by the M inister Gazetted 1992-93: 1976 Act

Title/Description A p p lies to Significance

Part-time Employm ent D eclaration No. 4 C ertain part-time em ployees

Repealed D eclarations Nos 2 & 3 and redefined Approved Part-time Employee

Superannuation Act 1976 (Eligible Superannuation Schemes) D eclaration No. 2

Retirem ent Benefits Fund Schem e established under the Tasmanian Retirement B enefits Act 1982

D eclares the scheme to be an eligible scheme for preservation purposes

Table A4: D eclarations under the Superannuation A c t 1990 M ade by Statutory Rules

Title /D escription A pplies to Significance

Approved A uthority Exclusion Declaration No. 1 (Statutory Rules 1990 N o. 163 w as repealed by Statutory Rules

1993 N o. 1)

C ertain authorities and bodies which are approved authorities

under the Superannuation A ct 1976

This D eclaration specifies those authorities and bodies which are approved authorities under the Superannuation A ct 1976 but

not under the Superannuation A ct 1990.

Statutory Office D eclaration No. 1 (Statutory Rules 1990 No. 164)

The Coal Industry T ribunal and m em bers of the Inter-State Comm ission

T his D eclaration specifies each o f these offices as being a statutory office for the purposes o f the Act.

Tem porary Employee Exclusion D eclaration N o. 1 (Statutory Rules 1990 N o. 165)

C ertain people engaged in employm ent outside A ustralia only

This D eclaration specifies these people as tem porary employees for the purposes o f the Act.

104 Appendix A

Title/Description A pplies to Significance

M em bership Exclusion D eclarations N os 1 and 2 (Statutory Rules 1990 N os 183 and 321) (Repealed by Statutory Rules 1991 No. 420)

Classes of people as described in the Declarations

These D eclarations specify certain people to w hom section 6 of the Act does not apply.

Superannuation (PSS) A pproved A uthority D eclaration N o. 1 (Statutory Rules 1990 N o. 411). (Revoked by Statutory Rules

1991 N o. 151)

Rural Industries Research and Development Corporation

This D eclaration defines the RIRDC as an approved authority for the purposes of the Act.

Superannuation (PSS) A pproved A uthority Exclusion D eclaration No. 1 (Statutory Rules 1993 N o. 1)

The authorities and bodies specified in the Declaration

The authorities and bodies specified are not approved authorities for the purposes of the Act.

Superannuation (PSS) A pproved A uthority Inclusion D eclarations N os 1 to 9 (Statutory R ules 1991 Nos

151, 189, 303, 394, 423; Statutory Rules 1992 N os 77, 106, 184, 466)

Approved authorities after 1 July 1990 and em ployees o f those authorities

These D eclarations specify those authorities and bodies which are approved authorities for the purposes of the Act.

Superannuation (PSS) M em bership Exclusion D eclarations N os 1 to 6 (Statutory Rules 1991 Nos 17,

34, 254, 420; Statutory Rules 1992 N os 419, 459) (D eclaration N o. 2 was repealed by Statutory Rules

1991 N o. 420)

C lasses of people as described in the Declarations

These D eclarations specify classes o f people to whom section 6 o f the Act does not apply.

Appendix A 105

Title!Description A pplies to Significance

Superannuation (PSS) Persons as described in These D eclarations specify

M em bership Inclusion the D eclarations certain people to w hom section

D eclarations Nos 2 to 7 6 o f the A ct applies.

(Statutory Rules 1991 N os 253. 463, 424, 419, 421; Statutory Rules 1992 N o. 214, 318, 420) (D eclaration N o. 1 was repealed by Statutory Rules 1991 No. 419)

Table A5: Declarations by the M inister Gazetted 1992-93: 1990 Act

Title /D escription A pplies to Significance

The scheme established under the Tasmanian Retirem ent Benefits A ct 1982

Superannuation A ct 1990 (Eligible Superannuation Schemes) D eclaration N o. 4

Declares this scheme to be an eligible scheme for preservation purposes

106 Appendix A

Tabic A6: Determ inations by the M inister Gazetted 1992-93: 1976 Act

Title/D escription A pplies to Significance

A ssets T ransfer (Telecom Superannuation Scheme) D eterm ination No. 3

Accumulated employee Authorised the transfer of funds contributions held in the for eligible em ployees who CFM Pooled elected to transfer to the Telecom

Superannuation T rust Superannuation Scheme

Superannuation (CSS) A ssets Accumulated employee Authorised the transfer o f funds T ransfer (Superannuation Fund contributions adm inistered for eligible em ployees who No. 1) D eterm ination No. 1 by Commonwealth Funds elected to transfer to the PSS Management Ltd

Superannuation (CSS) A ssets Accumulated employee Authorised the transfer o f funds T ransfer (Superannuation Fund contributions adm inistered for eligible em ployees who N o. 1) D eterm ination No. 2 by Commonwealth Funds elected to transfer to the PSS Management Ltd

Superannuation (CSS) A ssets T ransfer (C A A Staff Superannuation Fund) D eterm ination No. 3

Superannuation (CSS) Assets T ransfer (Federal A irports C orporation Superannuation Fund) D eterm ination N o. 1

Superannuation (CSS) A ssets T ransfer (SM EC Superannuation Plan) D eterm ination No. 1

Superannuation (CSS) Assets T ransfer (SM EC Superannuation Plan) D eterm ination No. 2

Accumulated employee contributions held in the C FM Pooled Superannuation Trust

Accumulated employee contributions held in the C FM Pooled Superannuation Trust

Accumulated employee contributions held in the C FM Pooled Superannuation Trust

Accumulated employee contributions held in the C FM Pooled Superannuation Trust

Authorised the transfer o f funds for eligible em ployees who elected to transfer to the CAA Staff Superannuation Fund

Authorised the transfer o f funds for eligible em ployees w ho elected to transfer to the Federal

A irports Corporation Superannuation Fund

Authorised the transfer of funds for eligible em ployees w ho elected to transfer to the SMEC Superannuation Plan

A uthorised the transfer of funds for eligible em ployees who elected to transfer to the SMEC Superannuation Plan

Appendix A 107

Title /D escription A pplies to Significance

Superannuation (CSS) Em ployer Component Payment (A M LC Superannuation Fund) D eterm ination No. 2

Consolidated Revenue Authorised the paym ent from Consolidated Revenue of a sum of money representing the em ployer component of eligible employees who transferred to the AM LC Superannuation Fund

Superannuation (CSS) Em ployer Component Payment (CAA Staff Superannuation Fund) D eterm ination No. 3

Consolidated Revenue Authorised the paym ent from Consolidated Revenue of a sum of money representing the employer component o f eligible employees who transferred to the CAA Staff Superannuation Fund

Superannuation (CSS) Em ployer Component Paym ent (Federal A irports C orporation Superannuation Fund) D eterm ination No. 2

Consolidated Revenue Authorised the paym ent from Consolidated Revenue of a sum of money representing the employer component of eligible employees who transferred to the Federal A irports Corporation Superannuation Fund

Superannuation (CSS) E m ployer Component Payment (SM EC Superannuation Plan) D eterm ination No. 2

Consolidated Revenue Authorised the payment from Consolidated Revenue o f a sum of money representing the employer component of eligible employees who transferred to the SM EC Superannuation plan

Superannuation (CSS) E m ployer Component Payment (SM EC Superannuation Plan) D eterm ination No. 1

Consolidated Revenue Authorised the payment from Consolidated Revenue of a sum of money representing the employer component o f eligible employees who transferred to the SMEC Superannuation Plan

Superannuation (CSS) Period D eterm ination No. 5 Eligible em ployees o f the Civil Aviation A uthority

not referred to in Period D eterm inations 1 or 2

Extended the period during which these eligible employee could elect to transfer from the

CSS to the CAA Staff Superannuation Fund

108 Appendix B

PRIORITIES

A s part o f the corporate planning process, the RBO established, at the beginning o f 1992-93, the follow ing as its priorities for the im mediate future:

1. com plete, by the end of 1992-93, the extension o f the com puter LAN facilities to cover all staff and also complete outstanding com puter developm ent w ork associated with the im plem entation o f the new schemes;

2. refine perform ance m onitoring information and reporting system s to provide accurate, tim ely and meaningful inform ation on w hich to base decisions;

3. implement a revised program performance evaluation plan;

4. pursue and expand cost-efficient methods o f com bating and prosecuting incidences of fraud;

5. examine the feasibility o f on-line access, by em ploying agencies, to the client database for direct input of benefit application details and general client inquiries having due regard to considerations o f privacy and fraud control;

6. continue to improve the R B O ’s systems and procedures, largely through an integrated approach to the application o f modern com puting technology and software development techniques;

7. actively pursue opportunities for greater use o f electronic funds transfer facilities for the tim ely payment of benefits;

8. m onitor the effectiveness o f systems and procedures applied to the im plem entation of the PSS and MSBS;

9. provide more com prehensive education program s to our clients (i.e. personnel/staff sections) to im prove the reporting of inform ation in order to achieve better accuracy in the recording and maintenance of contributors’ records;

10. assist the T rustees to obtain independent strategic investm ent advice on the long-term investm ent strategies to be pursued by each fund and develop and advise the trustees on an appropriate taxation strategy in order to gain maximum benefit from allowable deductions;

11. comm ission an actuarial assessment of the unfunded liabilities of the CSS Scheme in order to establish and quantify the level of pre-1988 funding credits available for transfer to other GBE schemes;

Appendix B

12. establish an appropriate mechanism for keeping scheme m em bers inform ed of the investment perform ance o f the funds and put in place appropriate processes for

responding to inquiries from scheme m em bers on investm ent and fund performance matters;

13. improve the level o f understanding of superannuation and increase aw areness of its importance as a valuable component of the em ploym ent package;

14. examine opportunities to influence the developm ent of policy affecting the wider

superannuation industry through greater involvem ent in relevant industry groups;

15. review all standard letters issued by the RBO for style and content and review

inform ation material w ith particular em phasis in 1992 on the production o f the PSS and CSS inform ation books;

16. produce an updated staff clerk manual, allocate dedicated client liaison m anager resources to specific em ploying agencies and establish direct contact arrangem ents with each employer;

17. monitor and im prove the effectiveness of client contact arrangem ents, in particular those using free call (008) telephone facilities;

18. continue the RBO ’s com m itm ent to the training of high quality supervisors, managers and staff, and to the provision (through appropriate training and developm ent) of an

environm ent that encourages a striving for excellence in all aspects of the provision of services;

19. identify and assess R B O 's developm ent, education and training needs and provide relevant program s in identified areas o f the m anagem ent, professional and personal needs o f staff, consistent w ith needs and corporate objectives;

20. facilitate design and im plem entation o f specific w orkplace training according to

organisation and w orkplace needs and im prove m atching of staff skills and resource levels w ith program dem ands; and

21. establish the legal basis on which the RBO could offer (and charge for) the provision of its adm inistrative services and target GBEs and other em ploying agencies when they are contem plating the establishm ent o f separate superannuation schem es, to determine w hether we could reasonably offer the services of RBO in relation to ongoing

adm inistration.

110 Appendix C

RBO STAFFING INFORMATION

NOTE: Although the restructure o f the office had not been completed as at 30 June 1993, this table has been prepared on the basis o f the new structure for case o f reference. A ll staff, with the exception o f the C om m issioner, are em ployed under the P u b lic S e r v ic e A c t 1 9 2 2 . All sta ff are located in Belconnen, ACT.

O perative Staff Statistics

Table C l: Operative Staff as at 30 June 1993

M ales Females TOTAL

C om m issioner 1 1

Deputy C om m issioner 1 1

A ssistant Com m issioner 5 5

Strategic Planning 1 1

Sub-total 8 8

C lient C om m unication Branch:

M em ber and Em ployer Com m unication Section 15 16 31

Secretariat Section 7 7

External Liaison / Industry Standards 2 3 5

Schem es Prom otion 5 3 8

Sub-total 22 29 51

Business O perations Branch:

C ivilian M em ber Services 46 72 118

Retirem ent, Preservation & M ilitary M em ber Services 31 32 63

Invalidity A ssessm ent 8 17 25

Sub-total 85 121 206

Review and Legal Services Branch:

Superannuation Reconsideration 6 8 14

External A ppeals and A dvising 5 3 8

Legislation and M ilitary Schemes Review 5 3 8

Sub-total 16 14 30

Appendix C 111

M ales Females TOTAL

Business Systems Branch:

Office and General A pplications 11 3 14

Civilian A pplications 9 6 15

M ilitary A pplications 4 9 13

Planning and Policy 13 16 29

Technical Services 9 4 13

Sub-total 46 38 84

Business M anagem ent Branch:

Finance and Accounts 13 19 32

Human Resource M anagem ent 14 12 26

Property and Services 27 37 64

Business Liaison 2 2 4

Sub-total 56 70 127

Total 233 272 505

Table C2: O perative Staff: by C lassification and Gender as at 30 June 1993

C lassification Males Females TOTAL

Senior Executive Band 3 1 1

Senior Executive Band 2 1 - 1

Senior Executive Band 1 4 - 4

Senior Executive (Specialist) Band 1 1 - 1

T otal Senior E xecutive Service 7 7

112 Appendix C

C lassification Males Females TOTAL

Senior O fficer Grade B 10 3 13

Senior O fficer Grade C 26 13 39

ASO Class 6 32 31 63

ASO C lass 5 24 32 56

ASO C lass 4 16 34 50

ASO Class 3 26 56 82

ASO Class 2 40 48 88

ASO C lass 1 11 27 38

Total A dm inistrative 185 244 429

Senior IT O fficer Grade A 2 - 2

Senior IT O fficer Grade B 4 - 4

Senior IT O fficer Grade C 10 6 16

IT O fficer Grade 2 15 14 29

IT O fficer Grade 1 7 4 11

Total Inform ation Technology 38 24 62

Graduate A dm inistrative A ssistant - 2 2

General Service Officer Grade 3 1 - 1

Office Trainee 2 2 4

Total ‘other’ 3 4 7

Total all classifications 233 272 505

T able C3: O perative Staff: C lassified by Age Group and G ender as at 30 June 1993

A ge Group Males Females Total

U nder 20 5 0.99% 6 1.19% 11 2.18%

20-24 38 7.52% 42 8.32% 80 15.84%

25-29 48 9.50% 25 4.95%. 73 14.46%

30-34 29 5.74% 27 5.35% 56 11.09%

35-39 21 4.16% 44 8.71% 65 12.87%

40^14 27 5.35% 55 10.89% 82 16.24%

45-49 44 8.71% 35 6.93% 79 15.64%

50-54 15 2.97% 25 4.95% 40 7.92%

55-59 5 0.99% 9 1.78% 14 2.77%

60 & over 1 0.20% 4 0.79%- 5 0.99%

Total 233 46.14% 272 53.86% 505 100.00%.

Appendix C 113

Recruitment, Promotion and Separation Statistics

Table C4: Perm anent Staff: Recruitm ent 1992-93

Method o f Entry Males Females TOTAL

Appointm ent 14 12 26'

Promotion 5 10 15

Transfer 2 - 2

Total 21 22 43

O f these appointm ents, four male officers w ere recruited from EEO target groups. They com prised one each from N on-English speaking background, first and second generation, and tw o A boriginal or T o rres Strait Islanders. All w ere recruited at the ASO 1 level.

Table C5: Perm anent Staff: Separations 1992-93

Method o f Separation Males Females TOTAL

Promotion 13 16 29

Transfer 5 9 14

Resignation 9 10 19

Age R etirem ent 1 1 2

Early Age Retirem ent - 5 5

Invalidity Retirem ent 1 1 2

A ppointm ent A nnulled - 3 3

Forfeiture o f Office - 1 1

Death - - -

Total 29 46 75

Table C6: Perm anent Staff: P rom otions 1992-93

Males Females TOTAL

Prom otions to the RBO 5 10 15

Prom otions w ithin the RBO 36 36 72

Prom otions from the RBO 13 16 29

Total 54 62 116

114 Appendix C

Part-tim e Staff Statistics

T able C7: Part-tim e Staff as at 30 June 1993

Part-tim e category Males Females TOTAL

Perm anent Part-time * Staff-initiated - 7 7

* M anagem ent-initialed - 4 4

C asual/tem porary - 14 14

Total 25 25

Table C8: Tem porary Staff by G ender and C lassification as at 30 June 1993

C lassification Males Females TOTAL

ASO C lass 1 2 2

ASO C lass 2 6 7 13

Office Trainee 2 2 4

Total 8 11 19

Inoperative Staff Statistics

Table C9: Inoperative Full-tim e Staff as at 30 June 1993

Type o f leave Males Females TOTAL

Sick 2 2

W orkers com pensation - 3 3

Long service 2 2 4

M aternity - 8 8

W ithout pay:

- 12 m onths and under 1 6 7

- over 12 m onths - 2 2

Secondment 3 - 3

Total 8 21 29

Appendix D 115

USE OF CONSULTANTS

The RBO uses consultants when in-house expertise is inadequate to meet some particular need. This year consultants have prim arily been used for contract program m ing, program evaluation and human resource developm ent (m ost notably for Middle M anagem ent D evelopment). The RBO has not developed its own policy but com plies with finance regulations, PSC and DAS guidelines. A complete listing of consultancies is available on request.

Category No. of Amount Total

M ajor C onsultants paym ents $ $

(purpose) over $2 000

Program Evaluation B andal Business Info Strategies 4 98 559

(system s review) H arpers C onsulting Services P /L 4 10 950

(IT consulting) A ustralian Bureau o f Statistics 2 15 340

(statistical services) M ercer, Campbell, C ook & K night 1 7 000 131 849

(report on adm inistration)

Contract Program m ing A sp ect Com puting P /L 21 1 129 139 1 129 139

(m ajor applications developm ent)

Human R esource Developm ent Stream line Consulting 2 30 000

(Snr M anagem ent Strategy W orkshop) W & S Beilin 2 6 880* 36 880

(M iddle M anagem ent D evelopm ent)

Audit Fees A ustralian N ational A udit O ffice 4 113 552 113 552

(auditing financial statem ents)

Data C onversion K eydata P/L - - 19 986

(data input)

M iscellaneous Consultants - - 10 568

GRAND T O T A L 40 1 441 974

T his amount originally totalled $21 080 but w as subsequently offset by a $14 200 credit from the Public Service C om m ission as a result o f the M M D Program .

FINANCIAL STATEMENTS 116 Appendix

AUSTRALIAN NATIONAL AUDIT OFFICE

Centenary House 19 National Crt Barton ACT 2600

RETIREMENT BENEFITS OFFICE INDEPENDENT AUDIT REPORT

Scope

I have audited the financial statement of the Retirement Benefits Office for the year ended 30 June 1993.

The statement comprises:

. Aggregate Statement of Transactions by Fund

. Detailed Statement of Transactions by Fund

. Program Summary

. Program Statement

. Statement of Supplementary Financial Information

. Notes to and forming part of the Financial Statement, and

. Certificate by the Commissioner for Superannuation and Assistant Commissioner, Business Management Branch.

The Commissioner for Superannuation and Assistant Commissioner, Business Management Branch are responsible for the preparation and presentation of the financial statement and the information contained therein. I have conducted an independent audit of the financial statement in order to express an opinion on it.

The Office employs the accounting policies described in Note 1 to the financial statement.

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statement is free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statement, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statement is presented fairly in accordance with Australian accounting concepts and standards applicable to public sector reporting entities employing a cash basis of accounting, and statutory requirements, so as to present a view which is consistent with my understanding of the Office’s operations and certain assets and liabilities.

The audit opinion expressed in this report has been formed on the above basis.

GPO Box 707 Canberra Australian Capital Territory 2601 Telephone (06) 203 7300 Facsimile (06) 203 7777

Appendix E 117

Qualifications

Commonwealth Superannuation Fund No. 2

The Commonwealth Superannuation Fund No. 2 (CSS Fund) forms part of the Trust Fund. As indicated at Note 3 some contribution remittances for the Superannuation Fund No. 1 (PSS Fund) had been paid into the CSS Fund during 1992-93. The PSS Fund does not form part of the Trust Fund and the mixing of its moneys with the CSS Fund resulted in a breach of section 62A of the A u d it A c t 1901. The failure to account separately for all moneys of the CSS Fund and the PSS Fund during

1992-93 was also a breach of the requirement of section 40 of the Audit Act to keep proper accounts and records, and a similar provision of the Superan n u a tio n A c t 1976.

Superannuation Contributions by Approved Authorities

As indicated at Note 6 of the financial statement the Office was unable to determine the amount due for superannuation pay-as-you-go contributions and emerging cost contributions from approved authorities for 1992-93. I am therefore unable to form an opinion on whether the total amount of receipts for superannuation pay-as-you-go contributions by general government enterprises and public trading enterprises, and emerging cost contributions by approved authorities brought to account in the Consolidated Revenue Fund in the financial statement differs to a material extent from the total

amount of superannuation contributions legally due to the Commonwealth.

Qualified Audit Opinion

In accordance with sub-section 51(1) of the Audit Act I now report that, except for matters mentioned above, the financial statement in my opinion:

. is in agreement with the accounts and records kept in accordance with section 40 of the Act

. is in accordance with the F in a n c ia l S ta te m e n t G uidelines f o r D epartm ental Secretaries (M odified C a sh R eporting) made by the Minister for Finance, and

. presents fairly, in accordance with Statements of Accounting Concepts and applicable Accounting Standards and the Guidelines, the transactions of the Office for the year ended 30 June 1993 and certain assets and liabilities as at that date.

----

D.S. Lennie Executive Director Australian National Audit Office

Canberra

24 November 1993.

118 Appendix E

Retirem ent Benefits O ffice

Statem ent by the Com m issioner fo r Superannuation and P rincipal A ccounting O fficer

D uring the financial year there w ere breaches o f the Superannuation Act 1976 and the A udit Act 1901 as explained in Note 3 to the financial statem ents.

These breaches arose due to the inability of the O ffice’s com puterised system s to cope w ith the separate dem ands o f the financial accounting and reporting requirem ents o f the Com m onwealth Superannuation Scheme and the Public Sector Superannuation Scheme.

The Office is addressing these m atters and has em barked on a m ajor redevelopm ent o f the contributions system s w hich w ere developed in the early 1970s. T his redevelopm ent will take a num ber o f years to com plete. The system redevelopm ent w ill also address the procedures m entioned in N ote 3 to the financial statem ents w hich inhibit follow -up o f under/overpaym ent of em ployer (productivity) contributions.

C ertification:

We certify that the attached financial statem ents for the year ended 30 June 1993 are in agreem ent with the accounts and records o f the Retirem ent Benefits Office and. in our opinion, the statem ents have been prepared in accordance w ith the Financial Statem ents Guidelines fo r D epartm ental Secretaries (M odified Cash Reporting) issued in A pril 1993.

K .A . Searson C om m issioner fo r Superannuation

K .J. M cCullagh A ssista n t C omm issioner B usiness M anagem ent Branch

23 N ovem ber 1993 23 N ovem ber 1993

Appendix E 119

R etirem ent Benefits O ffice A ggregate Statement o f T ransactions by Fund for the year ended 30 June 1993

This statem ent shows aggregate cash transactions, for w hich the R etirem ent Benefits Office (RBO) is responsible, for each o f the three funds com prising the Com m onw ealth Public A ccount (CPA).

1 9 9 1 -9 2 1 992-93 1992-93

actual budget actual

$ $ $

C O N SO L ID A T E D REVENUE FUN D (CRF)

627 849 583 Receipts 598 814 000 666 885 309

2591 383 995 28 166 689

E xpenditure from Special A ppropriations 2 756 037 000 2 895 687 494

E xpenditure from Annual A ppropriations 25 979 000 26 377 271

2 619 550 684 E xpenditure 2 782 016 000 2 922 064 765

LO A N FU N D

Nil Nil

Nil Nil

nil Receipts

nil E xpenditure

T R U ST F U N D (a)

4 512 991 600 109 988 251 800 502 844 1 585 493 823

N otional balance at 1 July 1992 P lu s adjustm ent from Superannuation Fund Statement Receipts E xpenditure

3 837 988 872 nil

590 332 758 520 071 541

3 837 988 872 N otional balance at 30 June 1993 3 908 250 089

R epresented by:

14 165 026 C ash

3 823 823 846 Investm ents

5 116 525 3 903 133 564

3 837 988 872 3 908 250 089

120

Appendix E

Retirem ent Benefits O ffice Detailed Statement o f Transactions by Fund for the year ended 30 June 1993

This statement shows details of cash transactions, for which the RBO is responsible, for the Consolidated Revenue Fund and the Trust Fund. (The RBO was not responsible for any transactions of the Loan Fund.)

Consolidated Revenue Fund (CRF1

Receipts to CRF

The CRF is the main working fund of the Commonwealth and consists of all current monies received by the Commonwealth (excluding loan raisings and monies received by the Trust Fund).

The RBO is responsible for the following receipt items:

1991-92 actual $

Sub­ program (4.1)*

1992-93 budget $

1992-93 actual $

253 040 436

Superannuation — accumulated contributions of former eligible employees and transfer values received (a)

Superannuation A ct 1976 1 262 541 000 280 095 088

4 317 604 Superannuation A ct 1990 1 13 858 000 19 912 533

203 047 059

Superannuation—pay-as-you-go contributions by general government enterprises (a) 1 187 504 000 228 719 097

136 120 548

Superannuation — pay-as-you-go contributions by public trading enterprises (b) 1 103 602 000 112 407 553

21 790 055 Superannuation — emerging cost contributions by approved authorities (a) 1 21 000 000 15 915 961

9 309 543

Administrative costs recovered from approved authorities and other bodies that meet employer share of superannuation costs (a) 1 9 900 000 8 924 619

208 619 Miscellaneous (a) 3 400 000 830 682

15 719

Section 35 of the A udit A ct 1901 - to be credited to running costs Division 306 — Note 4 3 9 000 79 776

627 849 58.3 TOTA L RECEIPTS CRF 598 814 000 666 885 309

(a) Receipts offset within outlays (b) Revenue

Refer to Program statement.

Appendix E 121

D etailed Statement o f T ransactions by Fund for the year ended 30 June 1993 (cont.)

Expenditure from CRF

The Constitution requires that an appropriation of monies by the Parliament is required before any expenditure can be made from the CRF. Appropriations follow two forms:

• special (or standing) appropriations; and

• annual appropriations.

The RBO is responsible for the following expenditure items:

1991-92 actual $

Sub­ program (4.1)*

1992-93

appropriation $

1992-93 actual $

SPECIAL APPROPRIATIONS

2 468 348 986 Superannuation A ct 1922, 1961, 1967, 1971, and 1976 1 2 504 744 000 2 759 229 960

123 0.35 009 Superannuation A ct 1990 1 251 29.3 000 136 457 5.34

2 591 383 995 TOTAL E X PE N D IT U R E FROM SPECIAL APPROPRIATIONS 2 756 037 000 2 895 687 494

ANNUAL APPROPRIATIONS

28 166 689

{Appropriation A ct No. 1 [Appropriation A ct No. 3 {Appropriation A ct No. 4 {Appropriation A ct No. 5 {Section 35 of the A udit A c t 1901 — to be { credited to running costs Division 306 { - Note 4

1, 2, 3

1, 2, 3

1 1, 2, 3

25 970 000} nil} nil} 778 000}

} }

72 996}

26 377 271

TOTAL E X PE N D IT U R E FROM 28 166 689 ANNUAL APPROPRIATIONS 26 820 996 26 377 271

2 619 550 684 TOTAL E X PE N D IT U R E FROM CRF 2 782 857 996 2 922 064 765

Refer to Program statement.

122 Appendix E

Detailed Statement o f Transactions by Fund for the year ended 30 June 1993 (cent.)

Details of expenditure from annual appropriations

1991-92 actual $

Sub­ program (4.1)*

1992-93

appropriation $

1992-93 actual $

27 715 819

APPROPRIATIO N A C T S Nos 1, 3, 4 and 5

Division 306 Administrative

1. Running costs (Annotated Appropriation — Note 4) 1, 2, 3 26 484 996 26 104 016

52 893

3. Other services 01. Compensation and legal expenses 1, 2, 3 39 000 38 895

354 165

02. Payments under subsection 34Λ( 1) of the Audit A ct 1901 — Note 12 1 297 000 234 360

43 812

Division 866 Other Services

Payments to former employees of the Commonwealth Accommodation and Catering Service Limited in lieu of superannuation benefits 1 nil nil

28 166 689 26 820 996 26 377 271

* Refer to Program statement.

Trust Fund

This section discloses details of each Head of the T rust Fund and Trust Account adm inistered by the RBO. It provides a breakdow n o f the information relating to the Trust Fund contained in the A ggregate Statement of Transactions by Fund.

1991-92 $ $

1992-93

$

3 340 782 6 591 811

Other Trust M oneys (Retirement Benefits Office) • Legal A uthority — Audit A c t 1901 section 60 • Purpose — for the receipt o f monies

tem porarily held in trust for other persons • Receipts and expenditure — Cash balance 1 July 1992 3 831 191

Receipts 8 844 075

9 932 593 12 675 266

6 101 402 Expenditure

Cash balance 30 June 1993

8 457 299

3 831 191 4 217 967

• Investments nil

Appendix E 123

Detailed Statement o f T ransactions by Fund for the year ended 30 June 1993 (cont.)

Trust Fund (cont.)

1991-92 $

12 258

218 960 033

218 972 291 214 316 981

4 655 310

Retirement Benefits Office — Services for other government and non-departm ental bodies

• Legal Authority — Audit Act 1901 section 60

• Purpose - payment of costs in connection with services performed on behalf of other government and non-departm ental bodies

• Receipts and expenditure

Cash balance July 1992 Receipts

Expenditure

Cash balance 30 June 1993

• Investments nil

1992-93

$ $

4 655 310 137 521 139

142 176 449 141 402 579 ___________

773 870

124 Appendix E

Detailed Statement o f T ransactions by Fund for the year ended 30 June 1993 (cont.)

Trust Fund (cont.)

1991-92 $

4 509 638 560 109 988 251 4 619 626 811

301 594 003 77 718 836

81 571 755 75 855 764

1992-93

______________________________________________ $_____________ $_

Commonwealth Superannuation Fund No. 2

• Legal Authority - Superannuation A ct 1976 section 40 • Purpose- to accumulate and invest contributions for the payment of the employee component of benefits payable under the Superannuation A ct 1976 Notional balance 1 July 1992 * 3 829 502 371

Adjustment for investment transactions of PSS Fund nil

Receipts * Employee Contributions Commonwealth Superannuation Scheme Public Sector Superannuation Scheme

Employer (Productivity) Contributions Commonwealth Superannuation Scheme Public Sector Superannuation Scheme

234 363 675 19 482 042

81 705 596

335 551 313

38 210 642 Other receipts 5 194 577 811

less Expenditure* (a)

354 123 881 Benefits 43 309 142 Other payments 4 797 144 788 less net increase in funds required by Commonwealth

Superannuation Board of Trustees No. 1 for the purpose 4 136 283 of payment of benefits 4 793 008 505

108 416 231

295 136 948 20 265 507

less Transfer of assets to -936 783 060 Public Sector Superannuation Scheme 26 723 074 and other superannuation schemes 3 829 502 371 Notional Balance 30 June 1993 *

443 967 544 4 273 469 915

315 402 455 3 958 067 460

nil

54 809 208 3 903 258 252

4 509 420 671 109 988 251 4 736 044 671 9 355 453 593 5 531 630 367 3 823 823 226

________ 620

3 823 823 846

Investment Transactions Account fbt Invested balance 30 June 1992 * Adjustment for investment transactions of PSS Fund

Purchase of Investments *

less Realisation of Investments *

Cash balance held by Commonwealth Superannuation Board of Trustees No. 2 30 June 1993 * Invested balance at 30 June 1993

3 823 823 846 nil

3 979 662 523 7 803 486 369 3 902 356 391 3 901 129 978

2 003 586 3 903 133 564

5 678 525 Balance in Commonwealth Public Account 30 June 1993 * 124 688

Note: * Figures are not disclosed in budget documentation. (a) The expenditure for 1991/92 includes $86 633 673 in respect of the Public Sector Superannuation Scheme. (b) Investments- details of investments of the fund shown at market value are provided in the annual report of the Commonwealth Superannuation Board of Trustees No. 2.

Appendix E 125

Retirem ent Benefits O ffice Program Summ ary for the year ended 30 June 1993

This summary shows the outlays for each program* administered by the RBO and reconciles the Office’s total outlays to total expenditure from the Consolidated Revenue Fund (CRF). ‘Expenditure’ refers to the actual amount of resources consumed by a program whereas ‘outlays’ refers to the ‘net’ amount of

resources consumed, after offsetting associated receipts and other items.

This summary also reconciles the total receipts classified as revenue (i.e. receipts not offset within outlays or classified as financing transactions) for each program, with ‘Receipts to CRF’.

1991-92 1992-93 1992-93

actual budget actual

$ ’000 $ ’000 $’000

Expenditure

Outlays

904 288 1. Delivery of superannuation schemes 1 118 313 946 856

5 669 2. Delivery of D FRDB Scheme 2 698 2 930

13 600 3. C orporate services 13 729 14 456

923 557 Total outlays 1 1.34 740 964 242

Plus Receipts offset within outlays

491 505 1. Delivery of superannuation schemes 494 803 553 568

225 3. Corporate services 409 911

491 7.30 495 212 554 479

Plus expenditure from appropriations classified as financing transactions

1 204 264 1. Delivery of superannuation schemes 1 152 064 1 403 344

2 619 551 Total expenditure from appropriations 2 782 016 2 922 065

Receipts

136 120 1. Delivery of superannuation schemes 103 602 112 408

491 730 Plus Receipts offset within outlays 495 212 554 479

627 850 Total receipts to CRT 598 814 666 887

* The numeric references appearing in the Finance Portfolio Program Performance Statements in respect of RBO programs are: 4.1.1 Deliveiy of superannuation schemes 4.1.2 Deliveiy of defence force schemes

4.1.3 Corporate services

126 Appendix E

Retirem ent Benefits Office Program Statement for the year ended 30 June 1993

This statement shows details of expenditure from annual and special appropriations for each program* administered by the RBO. Each ‘annual’ appropriation item contributing to a program is identified by its description followed by its appropriation code in brackets. ‘Special’ appropriations are identified by reference to the legislation containing the special appropriation and are indicated by ‘(SA)’ following the item. Partial allocations of appropriation items to programs are indicated by ‘(p)’ following the item. With respect to those programs for which ‘expenditure from appropriations’ and ‘outlays’ differ, the statement discloses information reconciling the amounts concerned. The statement also shows details of revenue received in respect of each program (where applicable).

A detailed explanation of each program is provided in the body of the annual report.

1991-92 actual $ ’000

1992-93 budget $ ’000

1992-93 actual $ ’000

2 468 349

1. Delivery of sunerannuation schemes

Superannuation A ct 1922, Act 1961, A ct 1967, Act 1971 and 1976 (SA) 2 504 744 2 759 230

123 035 Superannuation A ct 1990 (SA) 251 293 136 458

6 524

Running costs (306.1)(p) Salaries 7 140 6 520

1 736 Administrative expenses 1 656 1 251

Legal Services 20 41

15

Compensation and legal expenses (306.3.01)(p) 30 34

354

Payments under subsection 34A(1) of the A udit A ct 1901 (306.3.02) 297 234

44

Payments to former employees of the Commonwealth Accommodation and Catering Service Limited in lieu of superannuation benefits (866) l

nil nil

2 600 057 Expenditure from appropriations 2 765 180 2 903 768

253 040

Less receipts offset within outlays Superannuation- Accumulated contributions of former eligible employees and transfer values received

Superannuation Act 1976 262 541 280 095

4 318 Superannuation Act 1990 13 858 19 913

203 047

Superannuation— pay-as-you-go contributions by general government enterprises 187 504 228 719

21 790

Superannuation— emerging cost contributions by approved authorities 21 000 15 916

9 310

Administrative costs recovered from approved authorities and other bodies that meet employer share of superannuation costs 9 900 8 925

2 108 552 2 270 377 2 350 200

* The numeric references appearing in the Finance Portfolio Program Performance Statements in respect of RBO programs are: 4.1.1 Delivery of superannuation schemes 4.1.2 Delivery of defence force schemes

4.1.3 Corporate services

Appendix E 127

P ro g ra m S tatem en t fo r the y e a r ended 30 J u n e 1993 (cont.)

1991-92 1992-93 1992-93

actual budget actual

$ ’000 $ ’000 $'000

Less expenditure from appropriations classified as financing transactions: Superannuation A ct 1922, A ct 1961, A ct

1 202 503 1967, A ct 1971 and Ac? 1976 1 148 405 1 402 670

1 761 Superannuation A ct 1990 3 659 674

904 288 Outlays 1 118 313 946 856

Revenue (i.e. receipts not offset within outlays or classified as financing transactions)

Superannuation— pay-as-you-go

136 120 contributions by public trading enterprises 103 602 112 408

2. Delivery of DFRDB Scheme

Running costs (306.1)(p)

3 161 Salaries 2 415 2 731

2 471 Administrative expenses 264 173

Legal Services Compensation and legal expenses

10 21

37 (306.3.01)(p) 9 5

5 669 Expenditure from appropriations 2 698 2 930

5 669 Outlays 2 698 2 930

3. Corporate Services

Running costs (306.1)(p)

7 457 Salaries 7 655 8 352

3 853 Administrative expenses 3 973 4 493

Legal Services 4 32

2 514 Property operating expenses

Compensation and legal expenses

2 497 2 490

1 (306.3.01)(p)

Section 35 of A udit A ct 1901 n/a (306.1) 9 na

13 825 Expenditure from appropriations

Less receipts offset within outlays

14 138 15 367

209 Miscellaneous 400 831

16 Section 35 of A udit Act 1901 9 80

13 600 Outlays 13 729 14 456

* The numeric references appearing in the Finance Portfolio Program Performance Statements in respect of RBO programs are: 4.1.1 Delivery of superannuation schemes 4.1.2 Delivery of defence force schemes

4.1.3 Corporate services

128 Appendix E

Retirement Benefits Office Statement o f Supplementary Financial Information for the year ended 30 June 1993

1991-92 1992-93 Notes

$ m > $'000

C urrent assets

647 Cash 116 5

79 651 Receivables 74 561 6

340 Prepayments 349 7

Non-current assets - Receivables 2 904 6

2 805 Computer and office equipment 2 867

620 Furniture and fittings 1 091

C urrent liabilities

22 929 Creditors 125 466 8

- Other Superannuation Schemes 353 847 9

Non-Current liabilities

Other Superannuation Schemes 3 028 511 9

129 Appendix E

Retirem ent Benefits O ffice N otes to the Financial Statem ents for the year ended 30 June 1993

Note 1

Statement of significant accounting policies

(a) The financial statements have been prepared in accordance with the Financial Statements Guidelines fo r Departmental Secretaries (Modified Cash Reporting) issued by the Minister for Finance in April 1993.

(b) The financial statements have been prepared:

• on a cash basis with the exception of the Statement of Supplementary Financial Information which includes certain accrual-type information; and

• in accordance with the historical cost convention. They do not take account of changing money values or current values of non-current assets.

(c) Amounts shown in the ‘Aggregate Statement of Transactions by Fund’ and the ‘Detailed Statement of Transactions by Fund’ (and related notes) have been rounded to the nearest dollar. Amounts in other statements have been rounded to the nearest thousand dollars in accordance with the following principles:

• amounts have been rounded up if the three end-digits are greater than 500, or down if less than 500;

• if the three end-digits equal 500, the amount has been rounded to an even figure, for example: $17 484 500 = $17 484 (even, therefore stays even); $17 483 500 = $17 484 (odd, therefore has been rounded up to even); and

• all totals are the rounded additions of unrounded figures.

(d) N on-current assets with a unit value of less than $1000 have not been accounted for in the Statem ent of Supplementary Financial Information. The assets accounted for are valued at their cost of acquisition and no allowance for depreciation has been made.

(e) Administrative expenses shown in the Program Statement include minor capital expenditure items as they are considered part of ordinary annual services for the purposes of the Appropriation Acts. 'M inor capital expenditure’ includes items of capital expenditure costing less than $250 000.

(!) Salaries, wages and related benefits payable to officers and employees of the Office have not been accounted for in the balance of creditors in the Statement of Supplementary Financial Information.

Note 2

Explanation of major variations of 10% or more

One major variation occurred in the Aggregate Statement of Transactions by Fund (page 119). Expenditure from Special Appropriations increased by 12% from the previous year due to staff rationalisation programs undertaken by departments and statutory authorities and the annual CPI adjustment to pensions.

The following major variations from the 1992-93 budget estimates to actuals occurred in the ‘Delivery of superannuation schemes’ in the Program Statement (pages 126-127):

e expenditure from the Special Appropriation, Superannuation A ct 1922, Superannuation Act 1961, Superannuation A ct 1967, Superannuation A ct 1971 and Superannuation A ct 1976 increased by 10% due primarily to retrenchm ent programs undertaken by both government departments and statutory authorities at levels greater than estimated;

130 Appendix E

N otes to the Financial Statements for the year ended 30 June 1993 (cont.)

Note 2 (cont.)

• expenditure from the Special Appropriation, Superannuation Act 1990 decreased by 46% due primarily to less numbers leaving the scheme than estimated;

• receipts from ‘Superannuation- Accumulated contributions of former eligible employees and transfer values received’ from the PSS increased by 44% due to underestimation of amounts receivable;

• receipts from ‘Superannuation- pay-as-you-go contributions by general government enterprises increased by 22% due to an administrative rearrangement of enterprises included in the ‘pay-as- you-go’ category; and

• receipts from ‘Superannuation- emerging cost contributions by approved authorities’ decreased by 24% due to delays in calculating and advising the authorities of contributions due.

Note 3

Commonwealth Superannuation Fund No. 2

The Commonwealth Superannuation Fund No. 2 (CSS Fund) is established under the Superannuation Act 1976 and forms part of the Commonwealth Public Account. The financial transactions of the CSS Fund as shown in the ‘Detailed Statement of Transactions by Fund for the year ended 30 June 1993’ reflect the receipt and investment of employee and employer (productivity) superannuation contributions, the payment of benefits and the transfer of assets where former CSS members have transferred to the Public Sector Superannuation Scheme (PSS) or to superannuation schemes set up by their employer.

With the implementation of the Public Sector Superannuation Scheme (PSS) from 1 July 1990 and to facilitate the efficient collection of employee and employer (productivity) contributions for both the CSS and PSS and also to make use of the collection facilities already in place for the CSS, employing agencies were requested, from July 1990 to remit one amount per fortnight covering contributions for both the CSS and PSS. These arrangements continued during 1990-91 and 1991-92 while the CSS and PSS Funds were managed as a combined Fund.

The CSS and PSS Funds commenced to operate as separate entities from 1 July 1992 and the Commissioner for Superannuation wrote to all employers detailing changes that were required to be made to the remittance procedures for employee and employer (productivity) contributions. The changes provided for separate remittance of CSS and PSS contributions. The Department of Finance, which processes over 45 per cent of the contributions received by the CSS and PSS, implemented the separate remittancesfrom the beginning of 1992-93. Other employers progressively implemented the changed arrangements during the financial year.

Because the separate contribution remittance arrangements were not in place for all employers Iroin July 1992 some PSS employee and employer (productivity) contributions continued to be paid to the CSS Fund during 1992-93. This represents breaches of section 40 of the Audit Act 1901 (which requires proper records to be kept), section 50(2) of the Audit Act 1901 and the financial statement guidelines issued under section 50 AA of the Audit Act 1901 which require transactions of the Trust Fund to be accurately reported. A reconciliation of CSS and PSS employee and employer (productivity) contributions for 1992-93 was prepared, after the close of the financial year, from information maintained on the contributor records for the separate schemes. The reconciliation disclosed that PSS contributions of $19 482 042 were held in the CSS Fund at 30 June 1993.

Appendix E 131

N otes to the Financial Statem ents for the year ended 30 June 1993 (cont.)

Note 3 (cont.)

Separate CSS and PSS contributions accounting records were not maintained during the financial year. This represents a breach of section 44 of the Superannuation Act 1976 which requires proper accounts and records to be maintained in respect of the CSS Fund.

Employer (Productivity-) Contributions

Permanent arrangements for the administration of the employer (productivity) contribution benefit were implemented from 1 July 1990. The perm anent arrangements require all Departments and other agencies, that do not have alternative arrangements in respect of the productivity benefit, and employ

members of the CSS and/or PSS to pay employer (productivity) contributions to the CSS and PSS Funds.

In developing procedures for the administration of the permanent arrangements contribution collection agencies were requested to report the total employer (productivity) contributions paid each fortnight. However, employing Departm ents and agencies, were not required to report employer (productivity) contributions each fortnight at individual member level.

Systems and procedures have been developed to provide separate employer (productivity) contribution information necessary for the purpose of preparing CSS and PSS financial statements and also to identify the fortnightly amount payable by each Departm ent and agency.

Although under/overpayments of employer (productivity) contributions arc not material for the purpose of preparing the CSS and PSS financial statements the lack of information at individual member level and details of amounts rem itted on behalf of Budget funded Departments and agencies inhibits follow-up action. The RBO is addressing the future accounting arrangements for employer

(productivity) contributions through a major redevelopment of the contributions system. * •

Note 4

Running costs (annotated appropriation 306.1)

This appropriation was annotated pursuant to section 35 of the A udit Act 1901 to allow the crediting of certain receipts:

• contributions from SES officers towards the provision of motor vehicles;

• contributions from officers towards the provision of official telephones;

• contributions from participants towards the cost of conducting conferences and seminars;

• contributions from non-APS agencies, on a direct cost-recovery basis, to facilitate the processing of extra-ordinary requests for information, the resources for which are not currently provided in the Office’s appropriation;

• contributions from the D epartm ent of Defence recovering direct costs essential to meeting extra­ ordinary requests for the provision of information on, and processing of retrenchment benefits for civilian and service personnel;

• sale of surplus or underperform ing personal property assets;

• sale of promotional material to government business enterprises in respect of CSS/PSS marketing activity;

• freedom of information charges; • sale of Ready Reckoner software packages developed for the CSS and PSS schemes; and

• Australian Traineeship System (ATS) and Career Start Traineeship (CST) subsidies.

132 Appendix E

N otes to the Financial Statem ents for the year ended 30 June 1993 (eont.)

Note 4 (cont.)

The annotated appropriation operated as follows:

Annotated appropriation Receipts Appropriation

$26 412 000 $72 996(a) $26 484 996

(a) O f the identified amount $47 000 was received from the Department of Defence.

Expenditure

$26 104 016

Note 5

Cash

As at 30 June 1993 the following cash

1991-92

on hand and at banks was held:

1992-93 $

587 824 - On Hand (cash and cheques) 7 185

59 162 — At banks 108 713

646 986 115 898

Note 6

Receivables

Less than More than

1991-92(a) Item 30 days 3 0 -6 0 days 60 days Total

$ $ $ $ S

Accumulated contributions - 1976 Act (a) 25 033 363 4 709 125 1 954 328 31 696 816

- Accumulated contributions

1990 Act (a) 8 130 941 1 226 434 749 274 10 106 649

Employer superannuation

13 111 585 contributions (b) 7 459 646 2 049 911 23 348 503 32 858 060

Recovery of RBO

1 911 010 administration costs 105 585 28 938 2 264 001 2 398 524

798 021 Benefit debtors 14 026 31 423 484 408 529 857

1 044 Overpaid salaries - - - nil

Unclaimed monies due

55 478 to the Commonwealth nil nil nil nil

Australian and Overseas T elecommunications

64 063 107 Corporation (c) - - - nil

79 940 245 Sub-total 40 743 561 8 045 831 28 800 514 77 589 906

Less Provision for

289 055 doubtful debts 125 318

79 651 190 Net Receivables 77 464 588

Appendix E 133

N otes to the Financial Statem ents for the year ended 30 June 1993 (cont.)

Note 6 (cont.)

Age analysis of receivables 1991/92 to 1992/93

1991/92 Overdue: 1992/93

69 335 413 - Less than 30 days 40 743 561

1 409 569 - 30 to 60 days 8 045 831

9 195 263 - More than 60 davs

79 940 245

Age analysis of receivables by entity:

28 800 514 77 589 906

More than

Entity 30 days

$

30—60 days ' $

60 days $

Total $

Commonwealth Departments 2 229 515 866 199 236 010 3 331 724

Other Commonwealth controlled entities 5 198 757 1 117 941 15 998 251 22 314 949

Other 33 315 289 6 061 691 12 566 253 51 943 233

Total 40 743 561 8 045 831 28 800 514 77.589.906

(a) These amounts were not previously disclosed in prior financial years. They relate to the funded portion of benefits due to members who have recently left the CSS and PSS schemes but who had not received their entitlements at 30 June 1993. The amounts are owed by the respective schemes to the Consolidated Revenue Fund.

(b) In accordance with section 159 of the Superannuation A ct 1976 and section 19 of the Superannuation A ct 1990 approved authorities and certain other organisations are required to make payment to the Commonwealth in respect of the accruing superannuation liability of members of the CSS and PSS that are employed by those approved authorities and other organisations.

Established procedures enable authorities to meet these liabilities under either an ‘emerging cost’ basis or a ‘pay-as-you-go’ basis.

The pay as you go basis, under which the majority of approved authorities meet their liabilities, requires the employer to make fortnightly employer superannuation contributions based upon the total ‘salaries for superannuation purposes’ of their CSS and PSS members. In general, each organisation is provided with a separate rate of contribution in respect of CSS and PSS members.

The contribution rates for each organisation are subject to triennial actuarial review. The actuarial review considers changes in the profile of CSS and PSS and also the timing and amount of the employer superannuation contribution paid to the Commonwealth during the previous period. Therefore, the performance of each organisation in the payment of their fortnightly employer superannuation contribution affects the rate set after each actuarial review.

134 Appendix E

N otes to the Financial Statem ents for the year ended 30 June 1993 (cont.)

Note 6 cont.

During 1992-93 the receipt of employer superannuation contributions was monitored against Budget estimates. Systems which would allow the RBO to ensure that contributions received agree with contributions due have not yet been developed.

Authorities that meet their liability on an emerging cost basis do so by reimbursing the Commonwealth for the cost of benefits as they are paid. The Retirement Benefits Office is required to advise such authorities of the fortnightly cost of benefits paid (lump sums and pensions) to the former members.

Employer contributions due for 1992-93 includes:

• the accumulated liabilities for a number of authorities resulting from actuarial reviews carried out during the year; and

• RBO estimates for employer liabilities which have not been identified and advised to the authorities.

Amounts owing for lump sums from some authorities cannot be estimated and have not been included in the balance. As with pay-as-you-go authorities, the RBO is still to develop adequate systems to ensure contributions received agree with contributions due.

(c) This represented the outstanding balance of the repayment of the withheld portion of superannuation liability for the period 1978-79 to 1983-84.

Note 7

Prepayments

The following details are in relation to prepaid amounts during 1992-93:

1991-92 Item $

275 288 Property operating expenses 268 164

4 331 Subscriptions 3 819

58 848 Maintenance 76 259

1 342 Communications 1 217

339 809 349 459

Appendix E 135

N otes to the Financial Statements for the year ended 30 June 1993 (cont.)

Note 8

Creditors

At 30 June 1993 the RBO had outstanding creditors as follows:

1991-92 $

Item

Less than 30 days ' $ 3 0 - 60 days

More than 60 days S

Total $

507 795 Administrative expenses 122 274 25 707 7 099 155 080

24 774 Property operating expenses 6 680 - - 6 680

126 302 Legal expenses 2 753 10 208 518 13 479

473 Act of grace payments - - - Nil

nil Prepaid Employer Contributions 36 574 36 574

-

Superannuation Acts - Lump sum benefits payable from CSS Special A pprop- 1976 Act (a) 51 321 468 9 704 790 5 020 197 66 046 455

- Lump sum benefits payable from PSS Special A pprop- 1990 Act (a) 25 055 513 3 818 182 2 512 879 31 386 574

1 691 244 Pensions accrued to 30 June 1993 26 657 350 - - 26 657 350

576 499 Pension applications on hand 439 385 154 608 439 600 1 033 593

1 780 Other 122 801 4 343 3 492 130 636

2 928 867 103 764 798 13 717 838 7 983 785 125 466 421

Notes: (a) These amounts were not previously disclosed in prior financial years

Note 9

Other Liabilities

At the 30 June 1993 the Commonwealth had other outstanding liabilities relating to Superannuation (CSS) Employer Component Payments to other agency superannuation schemes, namely Telecom, Australia Post, Commonwealth Serum Laboratories, Federal Airports Corporation and the Civil Aviation Authority. These liabilities are recorded under Minister of Finance Determinations and published in the Commonwealth of Australia Gazette but were not previously disclosed in the RBO Financial Statements. The breakdown of this liability between current and non-current is as follows:

$

Current Liability 353 846 591

Non-Current 3 028 510 733

3 382 357 324

136

Appendix E

N otes to the Financial Statem ents for the year ended 30 June 1993 (cont.)

Note 10

Commitments

At 30 June 1993 the RBO had entered into the following commitments:

1991-92 $ Item

1992-93 $

Property operating expenses

2 499 257 (1) not later than one year

2 644 658 (2) later than one year but not later than two years

5 380 512 (3) later than two years but not later than five years (a) (4) later than 5 years

2 584 353 2 691 867 8 144 769

10 524 427 13 420 989

(a) Australian Property Group (APG) provided estimates out to 1995/96. The commitment level for two years but not later than five years is based on 3 times the 1995/96 estimate provided by APG.

Note 11

Contingent liabilities

At 30 June 1993 the RBO had contingent liabilities of $26 875 in respect of compensation and legal expenses (1991-92: $9 443).

Note 12

Act of grace navments

The number of payments made during the financial year 1992-93, pursuant to authorisations given under section 34A of the Audit A ct 1901 was 43 and the amount of those payments was $234 360 (1991-92: $354 165).

Note 13

Waiver of rights to navment of monies

Recovery of the following overpayments from the Consolidated Revenue Fund was waived during 1992-93:

1991-92 1992-93

$ Number $

77 338 under subsection 156(4) of the Superannuation A ct 1976 5 9 500

Appendix E 137

N otes to the Financial Statem ents for the year ended 30 June 1993 (cont.)

Note 14

Amounts written oil’

The following details are furnished in relation to amounts written off during the financial year 1992-93:

1991-92 __________ 1992-93

$ Up to SI 000 Over SI 000

Number $ Number $

— under subsection 70C(1) of the Audit A ct 1901

(i) Losses or deficiencies of public moneys (ii) Irrecoverable amounts of revenue - - - -

465 (iii) Irrecoverable debts and overpayments nil nil - -

(iv) Lost, deficient, condemned, unserviceable or obsolete stores

61 978

- under subsection 156(4) of the Superannuation Act 1976 in respect of amounts overpaid from the Consolidated Revenue Fund 236 15 013 5 172 664

314 - under Section 39 of the Superannuation A ct 1990 nil nil - -

Note 15

Resources received free of charge

During the 1992-93 financial year, a number of Commonwealth departments and agencies provided services to the Office without charge. Expenditures for the services were met from those departments’ appropriations. The major services received include the following:

Department of Finance

• accounting services in the form of computerised ledger and payroll services;

• cheque and direct credit processing systems for the payment of pensions and lump-sum superannuation benefits;

• use of mainframe computer facilities for the maintenance of contributor and pensioner records and associated computer-based systems and procedures; and

• internal audit services.

Insurance and Superannuation Commission

• provision of advice on the application of occupational superannuation standards to the superannuation schemes.

Note 16

Unacunitted advances

There were no unacquitted advances from this Office’s running costs appropriation that were overdue as at 30 June 1993.

138 Appendix E

Note 17

N otes to the Financial Statements for the year ended 30 June 1993 (cont.)

Auditor’s remuneration

The estimated cost of audit services provided by the Australian National Audit Office in the year ended 30 June 1993 is $92 500 (1991-92: $90 002).

Appendix E 139

Glossary o f terms used in the financial statements

Act of grace payments: Section 34Λ of the Audit A ct 1901 provides that, in special circumstances, the Commonwealth may pay an amount to a person notwithstanding that the Commonwealth is not under any legal liability to do so.

Administrative expenses: includes not just expenditure on office-based activities but all operational expenditure (excepting salaries). The item includes both direct costs and overhead expenditure; it includes, inter alia, minor capital expenditure which is considered part of ordinary annual services; it does not include, inter alia, major capital expenditure, grants, loans or subsidies.

Advance to the M inister for Finance (AMF): the contingency provisions appropriated in the Supply Acts and the annual A ppropriation Acts to enable funding of urgent expenditures not foreseen at the time of preparation of the relevant Bills. These funds may also be used in the case of changes in expenditure priorities to enable ‘transfers’ of monies from the purpose for which they were originally appropriated to another purpose pending specific appropriation.

Annual appropriations: Acts which appropriate monies for expenditure in relation to the Government’s activities during the financial year. Such appropriations lapse on 30 June. They include the Supply Acts and A ppropriation Acts.

Appropriation: authorisation by Parliament to expend public moneys from the Consolidated Revenue Fund or Loan Fund for a particular purpose, or the amounts so authorised. All expenditure (i.e. outflows of monies) from the Commonwealth Public Account must be appropriated, i.e. authorised by the Parliament. The authority for expenditure from individual trust accounts is provided under the Audit Act 1901 or an Act establishing the trust account and specifying its purposes. (See also ‘Annual

appropriations’ and Special appropriations’.)

Appropriation A ct (No. 1): an Act to appropriate monies from the Consolidated Revenue Fund for the ordinary services of government.

Appropriation A ct (No. 2): an Act to appropriate monies from the Consolidated Revenue Fund for other than ordinary annual services. U nder existing arrangements between the two Houses of Parliament, this Act includes appropriations in respect of new policies (apart from those funded under special appropriations), capital works and services, plant and equipment, and payments to the States, the Northern Territory and the Australian Capital Territory.

Appropriation A cts (Nos 3, 4 and 5): where an amount provided in an Appropriation Act (N o.l or No. 2) is insufficient to meet approved obligations falling due in a financial year, additional appropriation may be provided in a further Appropriation Act (No. 3, No. 4 or No.5). Appropriations may also be provided in these Acts for new expenditure proposals.

Appropriations classed as financing transactions: refers to appropriations which are classified as financing transactions rather than outlays because they are considered to be closely or functionally related to the repayment of loans or comprise transactions involving financial assets or liabilities. They mainly comprise repayments of principal on loans. (See also ‘Financing transactions’.)

Appropriations classified as revenue: refers to appropriations which are netted against receipts. They do not form part of outlays because they are considered to be closely or functionally related to certain revenue items or relate to refunds of receipts and are therefore shown as offsets to receipts, e.g. refunds of pay-as-you-earn tax instalments, working capital advance to the Government Printer.

Audit A c t 1901·. the principal legislation governing the collection, payment and reporting of public moneys, the audit of the Public A ccounts and the protection and recovery of public property. Finance regulations and directions are made pursuant to the Act.

140 Appendix E

Commitment (Forward Obligations): commitments existing at 30 June which createor arc intended to create a legal liability on the Commonwealth to provide funds in future years and which have not been exempted from the forward obligations system. In special circumstances, arrangements which do not create a legal liability, but which require forward obligations cover for effective program management, may also be included in the forward obligations system, e.g. memoranda of understanding with other governments and foreign-aid arrangements. The following items are exempted from the forward obligations systems:

• all items classified in Appropriation Acts as running costs (i.e. salaries, administrative and operating expenses);

• those items for which payment is authorised by special legislation where the amount and timing of payments are specified or clearly dictated by eligibility criteria (i.e. most, but not all, special appropriations); and

• those items which have been exempted by the Minister for Finance as a result of specific case-by­ case requests from departments.

Commonwealth Public Account (CPA): the main bank account of the Commonwealth, maintained at the Reserve Bank into which and out of which the cash receipts and cash payments of Commonwealth departments and other financially non-autonomous agencies are required to be transacted. It comprises the Loan Fund, the Trust Fund and inflows to the Consolidated Revenue Fund.

Consolidated Revenue Fund (CRF); Loan Fund; T rust Fund: the three funds constitute the Commonwealth Public Account (CPA).

• CRF — the principal working fund of the Commonwealth mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation of monies by the Parliament before any expenditure can be made from the CRF. These follow two forms:

(i) annual appropriations consisting of Supply Acts (Nos 1 and 2), the Supply (Parliamentary Departments) Act, the Appropriation Acts (Nos 1 to 4) and the Appropriation (Parliamentary Departments) Acts (Nos 1 and 2) (the Supply Acts relate to the first five months of the financial year and are subsumed by the corresponding Appropriation Acts); and

(ii) special or standing appropriations.

• Loan Fund — authority for its establishment comes from the Audit Act. All monies raised by loan on the public credit of the Commonwealth are credited to the Loan Fund. Expenditures from the Loan Fund require an appropriation by Parliament and are limited to the purpose(s) for which monies were originally raised as specified.

• Trust Fund — essentially comprises trustee funds (term ed'heads of trust’) established under section 60 of the Audit Act (i.e. monies held in trust for the benefit of persons or bodies other than the Commonwealth); trust accounts established under section 62A of the Audit Act (i.e. working accounts covering certain government agencies and certain other accounts in the nature of

‘suspense accounts’); and trust accounts established under other Acts to meet future expenditure.

Payments into the Trust Fund may be by way of appropriation from the CRF or Loan Fund or direct credit of private monies. Expenditure from the Trust Fund is appropriated for (and limited to) the specific purposes of each trust account, or head of trust, by the Audit Act or the Act establishing the trust account or head of trust. Unlike the unused portion of annual appropriations, trust account balances (as with ‘special’ or ‘standing’ appropriations) do not lapse at the end of the financial year.

Estimate: the level of payments or receipts expected for the period of the Budget (i.e. from 1 July to 30 June)

Expenditure: the total or gross amount of money spent by the Government on any or all of its activities (i.e. the total outflow of monies from the Commonwealth Public Account) (c.f. ‘outlays’). All expenditure* must be appropriated, i.e. authorised by the Parliament (see also ‘A ppropriations’). Every expenditure item is classified to one of the economic concepts of outlays, revenue (i.e. offset within revenue) or financing transactions.

Appendix E 141

Financing transactions: relate to the raising and repayment of loan principal or transactions involving financial assets or liabilities (e.g. changes in investments or holdings of cash). They represent the difference between outlays and revenue and hence involve the investment of Budget surpluses or the financing of Budget deficits. (See also ‘Appropriations classified as financing transactions’.)

Loan Fund: See ‘Consolidated Revenue Fund’.

Outlays: an economic concept which shows the net extent to which resources are directed through the Budget to other sectors of the economy after offsetting recoveries and payments against relevant expenditure items, i.e. outlays consist of expenditure net of associated receipt items. (See also Appropriations classified as revenue'; ‘Appropriations classified as financing transactions’; and

Receipts offset within outlays’.)

Receipts: the total or gross amount of monies received by the Commonwealth (i.e. the money flow into the Commonwealth Public Account). Every receipt item is classified in one of the economic concepts of revenue, outlays (i.e. offset within outlays) or financing transactions.

Receipts offset within outlays: refers to receipts which are netted against certain expenditure items because they are considered to be closely or functionally related to those items, e.g. receipts from computer hire charges are offset against the running costs of the departm ent’s accounting and management information systems.

Revenue: items classified as revenue are receipts which have not been offset within outlays or classified as financing transactions. The term ‘revenue’ is an economic concept which comprises the net amounts received from taxation, interest, regulatory functions, investment holdings and government business undertakings. It excludes amounts received from the sale of government services or assets

(these are offset within outlays) and amounts received from loan raisings (these arc classified as financing transactions). Some expenditure is offset within revenue, e.g. refunds of pay-as-you-earn tax instalments and the operating expenditure of budget sector business undertakings. (See also Receipts’.)

Running Costs: includes salaries (SES and non-SES), administrative expenses (including minor capital costs), legal services provided by the Attorney-General’s Departm ent and property operating expenses. Running costs generally refer to amounts consumed by agencies in providing the government services for which they are responsible and are funded by Appropriation Acts and also by receipts which are raised through the sale of assets or interdepartmental charging and are deemed to be appropriated [known as Section 35 receipts received via annotated running costs appropriations].

Special (standing) appropriation: monies appropriated by a specific Act of Parliament for a specific purpose (e.g. unemployment benefits, grants to States for schools). They may or may not be (or a specific amount of money or particular period of time. Special appropriations do not require annual spending authorised by the Parliament as they do not lapse at the end of each financial year. A distinction is sometimes made between standing and special appropriations. Special appropriations refer to an open-ended appropriation of the Consolidated Revenue Fund by the enabling Act of a legislatively based program. The amount appropriated will depend on the demand for payments by claimants

satisfying program eligibility criteria specified in the legislation. Special appropriations can be regarded as somewhere between standing and annual appropriations. While a specified amount is provided, it is included in a separate Bill authorising the particular program and can be specified for any number of years.

Trust F'und: See ‘Consolidated Revenue Fund’.

Unacquitted Advance: refers to monies that have been made available by the Commonwealth subject to conditions that have yet to be complied with by the person to whom the advance was made.

142 Appendix F

IN D E X OF R E Q U IR E M E N T S

This annual report is produced in accordance with the Department of Prime Minister and Cabinet paper titled The Preparation o f Departmental Annual Reports. To aid access to information on these requirements, the following table lists details of where, if applicable, the requirements have been met.

Commissioner’s Statement 01-03 iii

04 n/a

Aids to Access 05 vi

06 132

07 iv

Corporate and Portfolio Overview Objectives

Program Reporting Activities

27 26-44, 46-74

28 25, 46, 57, 59-60, 63, 68, 72-73

Social Justice

29 30

Human Resources

47-48, 62-63 n/a

08 (a) 14-15, 25

(b) v

31 (a )-(b )

(c)

110-111 110

Social Justice Overview (d) 114

09 47, 62 (e)

111-112

Corporate Structure 32 (a )-(b ) 111

10 23-24 (=) 113

11 25 (d) 38

(6) 91

Portfolio Legislation and Statutory Authorities 33 25, 37-40, 90

12 13

96-107

Perform ance Pay

14 ii-iii 34-35 39-40

15 n/a Training

16-17

11 88 36 (a )-(d )

Non-statutory Bodies 37 (a) 110-111

18-21 n/a (b) 88, 91

(c )-(d ) 91

Government Companies 38 88-90

22-24 n/a 39 88-92

EEO in Appointments Interchange Scheme

25 113 40 n/a

M ajor Documents E qual Employment O pportunity (EEO)

26 81-85 41 79-80, 91

Appendix F 143

Industrial Democracy Property Usage

42 77-78 62 93

O ccupational H ealth and Safety M arket Surveys

43 (a)—(e) 76-77 63 n/a

44 n/a

E xternal Scrutiny

Post-separation Em ploym ent 64-67 n/a

45 38

Inquiries by Parliam entary Committee

Other resources 68-70 n/a

Financial Statements

Comments by the Ombudsm an

46 116-000

71-73 50

F rau d Control

Decisions of Courts and Administrative

47-49 87 Tribunals

Claims and Losses 74-76 9-12

50-51 n/a Freedom of Inform ation (FOI)

Purchasing 77 81-86

52 92 Privacy

IT Purchasing 78-83 n/a

53 92 Client Comments

Paym ent of Accounts 84-85 78

54 (a)—(f) 50 Im pact Monitoring

Consultancy Services 86-87 n/a

55-59 115 Status of Women

60 n/a

88 n/a

C apital W orks Environm ent M atters

61 n/a 89

93-94

90-94 n/a

144 Appendix G

Key S ta tistic s (PSS)

Contributors a t 3 0 June

M ales Females

T otal

Contributor exits A ge re tire m e n t

R e tre n ch m en t/re d u n d a n cy Invalidity Death Resignation and other

Total

Pensions in force at 3 0 June A ge re tire m e n t R e tre n ch m en t/re d u n d a n cy Invalidity

Spouses and orphans

T otal

A ve ra g e yearly adult pension

Invalidity re tire m e n t rate (per 1 0 0 0 m em bers)

Contributions re c e iv e d

A nnual p en sio n liability

1 9 9 1 - 9 2 1 9 9 2 - 9 3

In c re a se

(d e c r e a s e )

3 9 9 2 7 4 3 2 1 9 8 . 3 %

5 0 271 5 4 491 8 . 4 %

9 0 1 9 8 9 8 7 1 0 9 . 4 %

1 9 9 1 - 9 2 1 9 9 2 - 9 3

In c re a se (d e c r e a s e )

105 136 2 9 . 5 %

1 4 4 5 1 2 5 4 ( 1 3 . 2 % )

60 66 1 1 .0 %

78 72 ( 7 .7 % )

4 2 0 3 3 921 ( 6 .7 % )

5 891 5 4 4 9 ( 7 . 5 % )

1 9 9 1 - 9 2 1 9 9 2 - 9 3

In c re a se (d e c r e a s e )

82 132 6 1 . 0 %

60 123 1 0 5 . 0 %

51 100 9 6 . 1 %

4 4 86 9 5 . 5 %

2 3 7 441 8 6 . 1 %

$ 13 5 1 5 $ 1 3 7 0 3 1 .4 %

0 . 6 7 0 .6 7 0 . 0 %

1 9 9 1 - 9 2 1 9 9 2 - 9 3

In crea se (d e c re a se )

$ '0 0 0 $ '0 0 0

1 5 3 5 7 5 2 4 2 9 5 7 5 8 . 2 %

2 931 5 5 3 6 8 8 . 9 %

Appendix G 145

Key Statistics (DFRDB)

In c re a se

Contributors at 3 0 June 1 9 9 1 - 9 2 1 9 9 2 - 9 3 (d e c r e a s e )

M a le s 4 8 551 2 5 5 8 3 (4 7 .3 % )

F e m a le s 5 1 2 9 1 2 6 5 (7 5 .3 % )

T o ta l 5 3 6 8 0 2 6 8 4 8 (4 9 .9 % )

In c re a se

Contributor exits 1 9 9 1 - 9 2 1 9 9 2 - 9 3 (d e c r e a s e )

A g e re tire m e n t 1 3 4 7 2 145 5 9 .2 %

In v a lid ity 1 8 6 29 (8 4 .4 % )

D e a th 3 8 12 (6 8 .4 % )

R e s ig n a tio n 1 4 4 2 2 8 4 (8 0 .3 % )

T o ta l 3 0 1 3 2 4 7 0 (1 8 .0 % )

In c re a se

Pensions in force a t 3 0 June 1 9 9 1 - 9 2 1 9 9 2 - 9 3 (d e c r e a s e )

A g e re tire m e n t 3 4 0 4 2 3 5 4 2 4 4 .1 %

In v a lid ity 3 0 5 5 3 0 2 2 (1 .1 % )

S po u se s and o rp h a n s 5 381 5 2 0 0 (3 .4 % )

T o ta l 4 2 4 7 8 4 3 6 4 6 2 .7 %

A v e ra g e y e a rly a d u lt p e n s io n $ 1 4 3 7 2 $ 1 4 5 7 4 1 .4 %

In c re a se

1 9 9 1 - 9 2 1 9 9 2 - 9 3 (d e c r e a s e )

$ '0 0 0 $ '0 0 0

M e m b e r con tribu tion s r e c e iv e d 1 1 0 2 3 7 6 4 7 1 3 (4 1 .3 % )

A nnual p e n sio n liability 6 1 0 5 0 0 6 3 6 0 9 5 4 .2 %

There were over 24 000 transfers to the MSBS representing approximately 91 per cent o f the total decrease in DFRDB contributors.

Appendix G

Key S ta tistics (MSBS)

Contributors a t 3 0 June 1 9 9 1 - 9 2 1 9 9 2 - 9 3 '

M a le s 11 5 6 0 3 0 51 1

Fem ales 3 1 3 0 6 581

T o ta l 1 4 6 9 0 3 7 0 9 2

Contributor exits 1 9 9 1 - 9 2 1 9 9 2 - 9 3

A g e re tire m e n t 75 1 4 0

R e tre n c h m e n t/re d u n d a n c y 3 1 0 3 6

In v a lid ity 1 3 2 2 6 6

D e a th 21 4 3

R e sig n a tio n and o th e r 1 9 2 2 4 3 5 5

T o ta l 2 1 5 3 5 8 4 0

Pensions in force a t 3 0 June 1 9 9 1 - 9 2 1 9 9 2 - 9 3

A g e re tire m e n t* 4 8 1 3 3

R e tre n c h m e n t/re d u n d a n c y 2 7 4 8

In v a lid ity 37 1 2 8

S pouses and orp h a n s 6 16

T o ta l 9 3 1 0 2 5

A v e ra g e y e a rly a d u lt pension $ 1 8 9 4 9 $ 10 6 4 6

In v a lid ity re tire m e n t ra te (per 1 0 0 0 m e m b e rs) 9 7 .2

1 9 9 1 - 9 2 1 9 9 2 - 9 3

$ '0 0 0 $ '0 0 0

Contributions re c e iv e d 14 9 7 5 92 2 6 2

A n n u al p en sion liability 1 7 6 2 9 9 4 3

* C a u tio n s h o u ld be e x e rc is e d w h e n co m p a rin g th e fig u re s in th is ta b le because th e

s c h e m e c o m m e n c e d du rin g 1 9 9 1 - 9 2 and o p e ra te d fo r less th a n 12 m o n th s .

# T h is fig u re in c lu d e s pre se rve d b e n e fits n o w paya b le b e ca u se the m e m b e r is o ve r age

5 5 and has c la im e d th e b e n e fit.

INDEX 147

(008) te l e p h o n e service, 5 2 , 6 3

abbreviations list, 95 Aboriginal a n d T o rres S tra it Islander s ta f f participating in eligible training p r o g r a m s , 91 accidents notified by RBO sta ff, 7 6 , 7 7

a c c o m m o d a tio n , 93 accounting, 4 0 - 3 policies, 1 2 9 Acquisition Council, 3 5 act of g r a c e p a y m e n t s , 1 3 6

actuarial a s s e s s m e n t of C S S u n fu n d e d liabilities, 1 8 additional d e a t h a n d invalidity c o v e r (PSS), 31 address o f t h e RBO, iv

Adm inistrative A p p e als Tribunal (AAT) a p p lic atio n s a n d d e cisio n s, 9 - 1 2 , 6 9 -7 1 administrative e x p e n s e s , 1 2 6 , 1 2 7 F reed o m o f Inform ation, 8 5

Privacy A c t o p e r a tio n s , 8 6 A d m in istra tive D e c isio n s (Judicial R e v ie w ) A c t 1 9 7 7 , 3 3 - 4 a dm inistrative d e c i s i o n s of C o m m i s s i o n e r , 6-7

r e c o n s i d e r a t i o n a n d r e v ie w , 8 - 1 2 a d v an c es , u n a c q u i t t e d , 1 3 7 advisings b y R e v ie w a n d Legal, 3 2 - 3 age of m e m b e r s

CSS, 3

DFRDB, 6 4 MSBS, 6 6 PSS, 5 8 age of RBO s t a f f , 1 1 2

age p e n s i o n s / b e n e f i t s CSS, 2, 5

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PSS, 5 9 , 1 4 4

age r e ti r e m e n t e x it s fro m RBO, 11 3

age r e ti r e m e n t e x it s fro m s c h e m e s

ρ ς ς o 4

DFRDB,' 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PSS, 5 8 , 1 4 4

air s a m p le t e s t s , 7 6

Alcohol A w a r e n e s s W o r k s h o p , 9 0 a m o u n ts w r i t t e n off, 1 3 7

annual i n f o r m a t io n s t a t e m e n t s , 2 7 , 4 6 - 7

annual p e n s i o n liability, 2 , 5

DFRDB, 1 4 5 MSBS, 1 4 6 PSS, 1 4 4 annual r e p o r t i n g r e q u i r e m e n t s , in d e x of, 1 4 2 - 3 annual r e p o r t s , re la te d , ii a s b e s t o s r e m o v a l, 7 6 a s s e s s m e n t p a n e l , 5 3 a s s e t s of RBO, 1 3 2 - 4 audit f e e s , 1 1 5

audit s e r v i c e s , e s t i m a t e d c o s t of, 1 3 8

A u d i t o r - G e n e r a l's q u a lific a tio n s on financial s t a t e m e n t s , 4 0 - 3

A u s tr a lia n T a x Office s p e c ia li s e d c o u r s e s for, 2 7

t a x d e c l a r a t io n e x e r c is e w ith , 2 8

a w a r d s , 4 8 , 7 9

b a n k t r a n s f e r f e e s for p e n s i o n p a y m e n t s , 2 8

B enefit Classification C e rtifica te s (BCCs), 6-7 b e n e f i ts C S S , 2, 5 - 6

DRFDB, 6 4 , 6 5 , 1 4 5

M SBS, 6 7 , 1 4 6 on-line i n p u t of in fo rm a tio n b y e m p lo y e rs , 1 6 - 1 7 , 2 9

o v e r p a y m e n t s , 5 0 , 1 3 6 , 1 3 7

PS S, 5 9 , 1 4 4

B ranch Planning W o r k s h o p s , 8 9 b u s i n e s s a c c o u n t i n g , 4 0 - 3

b u s i n e s s g o a l, 1 5

priorities, 21 B u s i n e s s Liaison Unit, 4 3 - 4 B u s i n e s s M a n a g e m e n t Branch, 3 7 - 4 4 sta f f in g , 111 B u s i n e s s O p e r a t i o n s B ranch, 2 7 - 3 1

s ta f f in g , 1 1 0 B u s i n e s s S y s t e m s Branch, 3 5 - 6 s ta f f in g , 111

c a s h held b y RBO, 1 3 2

C ha rting O u r P r o g r e s s C o n f e r e n c e , 8 9 Clarke a n d D e fe n c e F orce R e tire m e n t an d D eath B e n e fits A u th o rity , 7 0

c la ss ifica tio n of c o n tr i b u t o r s a n d f o r m e r m e m b e r s (CSS), 6 - 7 c le aning c h a r g e s , 93

client c o m m e n t s , 7 8

Client C o m m u n i c a t i o n s Branch, 2 6 - 7 sta ffin g , 1 1 0 client e d u c a t i o n p r o g r a m s , 18, 2 6 - 7 Client Liaison G roup, 8 0

C lient S e rv ic in g a n d A d m in istra tio n A rra n g e m e n ts, A P rogram E valuation, 2 5 - 6 client s u r v e y s , 2 0 , 3 0

a s f r a u d c o n tr o l m e a s u r e , 8 7

c lie nts g o a l, 1 5

priorities, 21 C o m m i s s io n e r for S u p e r a n n u a t i o n , xi C irculars a n d Circular M em o ra n d a , 8 3 d e c is io n - m a k in g p o w e r s , 81

o v e r v ie w by, ix-x r e p o rt of, 1 -12

c o m m i t m e n t s e n te r e d into by RBO, 1 3 6

C o m m o n w e a l t h O m b u d s m a n ' s c o m m e n t s , 5 0 C o m m o n w e a l t h S u p e r a n n u a t i o n B oa rd of T r u s t e e s No. 1 (PSS Board), xi

a u d it q u a lifica tio n s o n financial s t a t e m e n t s , 4 0 - 3 r e v ie w a n d re c o n s i d e r a t i o n of d e c is io n s , 3 2 ,

6 0 s e c r e t a r i a t , 2 6

148

INDEX

C om m onw ealth Superannuation Board of T rustees No. 2 (CSS Board), 3 audit qualifications on financial s ta te m e n ts , 40-3 review and reconsideration of decisions, 3 2 , 60 secretariat, 2 6 C om m onw ealth S u p erannuation Fund No. 2,

124, 130-1 C om m onw ealth S u p erannuation S c he m e , xi, 1-12 actuarial a s s e s s m e n t of unfunded liabilities,

18 business o p e ratio n s, 27-9 information to m em bers, 1 8 invalidity a s s e s s m e n t s and review, 31 complaints by clients, 78 conference, 89 Confidential Medical and Personal S ta te m en t,

31

consultants, u se of, 115 consultation w ith Public Sector Union, 3 8 , 39, 78 consultative a rra n g e m e n ts, 82 Consultative Council, 78 c o n ta ct points for inquiries, iv

Freedom of Information, 85 Su peran n u ation Circulars, 8 4 co n trib u tio n s CSS, 2, 5, 4 9

DFRDB, 6 4 , 1 4 5 ele ctronic f u n d s t r a n s f e r facilities, 17 MSBS, 6 6 , 1 4 6

PSS, 4 9 , 5 7 , 1 4 4

c o n trib u to r exits CSS, 2, 4-5; m ed ic al, 6-7

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PSS, 5 8 , 1 4 4

c o n tr ib u to r s ( C o m m o n w e a l th s u p e r a n n u a t i o n s c h e m e s ) CSS, 2, 3; c la ssifica tion, 6

annual s t a t e m e n t s , 2 7 , 4 6 - 7

information a b o u t , 8 6 information for, 1 8 , 19, 4 7 - 8 , 8 0

PSS, 5 7 , 1 4 4

training c o u r s e s , 5 5

c o n tr ib u to r s (D e fe n c e Force s c h e m e s ) DFRDB, 6 4 , 1 4 5 inform atio n for, 8 0 information a b o u t , 8 6 MSBS, 6 6 , 1 4 6 C o rp o ra te a n d S ta f f D e v e l o p m e n t Unit, 3 7 c o r p o ra t e c u ltu re, ix, 3 7

c o r p o ra t e g oa ls, 15

priorities, 2 1 - 2 C o rp o ra te S e r v ic e s p r o g r a m , 7 3 - 4 financial s t a t e m e n t s , 1 2 7 C o r p o r a te Vitality P r o g r a m , 90 C orporation Plan, 1 5 - 2 2 c o s t re cove ry a r r a n g e m e n t s , 4 4

c o u r t a n d tribunal de cisio n s, 9 - 1 2 , 6 9 - 7 0

c red ito rs of RBO, 135 C rim es (S u perannuation B en efits) A c t 1 9 8 9 , 3 3 C S S Board, s e e C o m m o n w e a l th

S u p e r a n n u a t i o n Board of T r u s t e e s No. 2 C S S Fund ( C o m m o n w e a l th S u p e r a n n u a t io n Fund No. 2), 1 2 4 , 130-1

d a t a b a s e inte grity , 2 9

d e a t h a s r e a s o n for s c h e m e exit

CSS, 4

DFRDB, 6 5 MSBS, 6 7 PS S, 5 8 d e a t h c o v e r (PSS), 31

d e b t o r s (overpaid benefits), 5 0 a m o u n t s w a i v e d , 1 3 6

a m o u n t s w r i t te n of, 1 3 7

d e cisio n -m ak in g p o w e r s , 81 D e cla ratio n s b y Minister, 1 0 2 - 5 D e fen c e Force R e tir e m e n t a n d D e ath Benefits (DFRDB) A u th o rity , xi

d e cisio n -m ak in g p o w e r s , 81 D efen ce F orce R e tirem en t a n d D eath B en efits A c t 1 9 7 3 , 61

D e fen c e Force R e tire m e n t a n d D e ath Benefits (DFRDB) A u th o rity , xi d e c isio n -m a k in g p o w e r s , 81 re c o n s i d e r a t i o n a n d re v ie w of d e c is io n s , 68-71 D efen ce F orce R e tirem en t a n d D eath B en efits

A u th o rity v H ou se, 7 0 D e fen c e Force R e tire m e n t Benefits (DFRDB) S c h e m e , xi, 6 4 - 5

b u s i n e s s o p e r a t io n s , 2 9 - 3 0 D efen ce F orces R e tirem en t B en efits A c t 1 9 4 8 , 61 Delivery of C o m m o n w e a l t h S u p e r a n n u a t io n

S c h e m e s (program ), 4 6 - 6 0 financial s t a t e m e n t s , 1 2 6 - 7 Delivery of D e f e n c e Force S c h e m e s (program 2), 6 1 - 7 2

financial s t a t e m e n t s , 1 2 7 D e p a r t m e n t of Fina nce , 1 8 long-term a s s i g n m e n t of RBO sta f f

m e m b e r s to , 1 9

m ain f r a m e c o m p u t e r , 3 5 - 6 d e p e n d a n t s ( s p o u s e s a nd o rp h a n s) b e n e fits C SS , 2, 5

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PS S, 5 9 , 1 4 4

D e term in a tio n s by Minister, 1 0 6 - 7 d e v e l o p m e n t of sta f f , s e e s t a f f training a n d

d e v e l o p m e n t Disability Claims M a n a g e m e n t a n d Counselling Service, 31 disabilities, s t a f f m e m b e r s w ith participating in

eligible training p r o g r a m s , 91

INDEX 149

d o cu m en ts, c a te g o rie s of, 8 3 - 4 (008) t e le p h o n e service, 5 2 Drug an d Alcohol A w a r e n e s s W o rk s h o p , 9 0 education p r o g r a m s (by RBO), 18, 2 6 - 7 , 5 5

s e e a ls o s t a f f training a n d d e v e l o p m e n t

electricity u s a g e , 9 3 - 4 electronic f u n d s t r a n s f e r facilities, 1 7 em ployer (productivity) c o n tr i b u t io n s , 131 employer b e n e f i ts , 4 7 , 6 2 , 6 6

Employer o f t h e Year A w a r d , 7 9

energy c o n s u m p t i o n , 9 3 - 4 Equal E m p l o y m e n t O p p o r tu n ity , 3 9 , 7 9 - 8 0 sta f f s t a t i s t i c s , 1 1 0 - 1 4

in tr aining, 91 evaluation of p r o g r a m s , 1 6 , 2 5 - 6

c o n s u l t a n t s u s e d , 11 5

'E verything Y ou N e ed t o K n o w A b o u t S u p e r a n n u a t i o n But W e r e T o o Bored to A s k ' (video), 8 0

excess w a t e r c h a r g e s , 9 3

exists f r o m RBO, 1 1 3 exits fro m s c h e m e s CSS, 2 , 4 - 5 ; m edical, 6 - 7

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PSS, 5 8 , 1 4 4

EXPO pilot, 1 6 - 1 7 , 2 9 external c o m m u n i c a t i o n s , s e e i n fo rm a tio n external r e v i e w of d e c is io n s , 9 - 1 2 , 3 3 - 4 ,

69-71 eye t e s ti n g , 7 7

Federal C o u r t d e c is io n s , 7 0 re v ie w o f a d m in is tr a tiv e d e c i s i o n s , 3 3 - 4 fees, 6 6

F re e dom of In form ation a p p li c a t io n s , 8 5 legal in quirie s, 5 5 female m e m b e r s h i p of s c h e m e s CSS, 2

DFRDB, 1 4 5 MSBS, 1 4 6 PSS, 1 4 4 female s t a f f m e m b e r s , 1 1 0 - 1 4 pa rticipa tion in eligible training p r o g r a m s , 91 S t u d y b a n k S c h e m e u s e r s , 9 0

file re g is tr y s y s t e m (RESPECT), 3 5 financial a d v i s o r s ' training p r o g r a m s , 5 5 financial m a n a g e m e n t , 4 3 - 4 , 8 7

financial s t a t e m e n t s , 1 1 8 - 4 1 FINEST, 4 0 fleet v e h ic le s, 9 4

fraud c o n tr o l, 8 7 free call ( 0 0 8 ) t e l e p h o n e s e r v i c e , 5 2 , 6 3

Freedom o f I nform ation A c t s t a t e m e n t , 8 1 - 6

func tions o f t h e RBO, 1 4

funding a r r a n g e m e n t s , 4 4

g a z e tta l of p u rc h a s i n g in f orm a tion, 9 2 g o a ls of t h e RBO, 1 5

priorities, 2 1 - 2 G olden T a r g e t A w a r d s , 4 8

G o v e r n m e n t B u sin e ss E nte rprise t r a n s f e r s fro m C S S , 4

g r a d u a t e r e c r u itm e n t, 3 8

H ealth a n d S a f e t y C o m m itte e , 7 6

H u m a n R e s o u r c e M a n a g e m e n t S e c ti o n , 3 7 - 4 0 H unter V alley D e v e lo p m e n t P ty L td a n d Ors v C oh en , 11

In c o m e T a x I n s t a lm e n t D e cla ration f o r m s , 2 8 Industrial D e m o c r a c y , 7 7 - 8 in fo rm a tio n a c c e s s , 8 1 - 6

t o clients, 2 6 - 7

d is c lo s u r e , 8 6

goal, 1 5; priorities, 2 2

t o m e m b e r s , 18, 19, 4 7 - 8 , 8 0 ; a n n u a l

s t a t e m e n t s , 2 7 , 4 6 - 7

I nform ation T e c h n o lo g y , 3 5 - 6 B u s i n e s s O p e r a t i o n s Branch, 2 9 , 3 0

c o n s u l t a n t s u s e d , 1 1 5

e le c tr o n ic f u n d s t r a n s f e r facilities, 17 EXPO pilot, 1 6 - 1 7 , 2 9

m o d e r n i s a t io n p ro g ra m , 15, 2 6 p u r c h a s i n g , 9 2

in o p e r a tiv e sta f f , 1 1 4

inquiries, c o n t a c t po in ts for, iv

F r e e d o m of Inform ation, 8 5 S u p eran n u ation Circulars, 8 4 inquiries, RBO r e s p o n s e s t o , 5 4 - 5 invalidity a s s e s s m e n t s a n d r e v ie w , 31

DFRDB, 6 8 , 6 9 - 7 0 M SBS, 3 4 invalidity c o v e r (PSS), 31 invalidity p e n s i o n s

CSR 2

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PS S, 1 4 4 invalidity p e n s i o n e r s , r e v i e w of, 7 - 8 , 31

invalidity r e ti r e m e n t of m e m b e r s C SS , 2 , 7 , 9, 5 2 -4 ; b e c a u s e of pre-existin g

m edical co n d itio n , 6 DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PS S, 5 2 - 4 , 5 9 , 1 4 4

invalidity r e ti r e m e n t of RBO sta ff, 1 1 3 i n v e s t m e n t a d v is e r s , 1 8

J o i n t S te e r in g C o m m itte e , 18

judicial r e v ie w of a d m in istrativ e d e c i s i o n s , 3 3 - 4

150 INDEX

L an der a n d C o m m issio n e r fo r Superan n u ation , 1 1 , 1 2 legal advice (internal), 3 2 - 3 legal inquiries, p ro c e ss in g f e e s for, 55 legislation, 3, 6 1 , 9 6 - 1 0 7

advisings by R eview a n d Legal, 3 2 - 3 Primary A dm inistration (program 1.2), 5 6 liabilities (RBO), 1 3 5 , 1 3 6

liabilities, u n fu n d ed (CSS), 18 L iddle a n d C o m m issio n er fo r S u perannuation, 10-11 lighting control, 9 4 Local Area N e t w o r k (LAN), 15 lo ca tio n of RBO, iv lum p s u m b enefits, 6, 4 7

m ale m e m b e rs h ip C S S , 2

DFRDB, 145 M SBS, 1 4 6 P S S , 1 4 4

m ale staff, 1 1 0 - 1 4 S tu d y b a n k S c h e m e u s e r s , 9 0

participation in eligible training p ro g ram s , 91 m a n a g e m e n t f e e s , 9 3

m a n a g e m e n t of r e s o u r c e s , 7 3 - 4

financial, 4 3 - 4 , 8 7

s e e a lso staffing m a n a g e m e n t reporting s y s t e m s , 16 m a n a g e m e n t training, 8 9 m a r k e tin g goal, 15

priorities, 2 2 m ed ic al e x am in atio n s invalidity p e n s i o n e r s , 7-8 P S S n e w e n tr a n ts , 31

m edic al r e tirem e n ts , s e e invalidity r e tirem e n t m e m b e r s exits C S S , 2, 4-5; m edical, 6-7

DFRDB, 65, 1 4 5 M S B S, 67, 1 4 6

P S S , 5 8 , 1 4 4

m e m b e r s ( C o m m o n w e a l th s u p e r a n n u a t io n s c h e m e s ) C S S , 2, 3; cla ssifica tion, 6

a n n u a l s t a t e m e n t s , 2 7 , 4 6 - 7

inform ation a b o u t, 8 6 inform ation for, 18, 1 9 , 4 7 - 8 , 8 0

P S S , 5 7 , 1 4 4

training c o u r s e s , 5 5

m e m b e r s (Defence Force s c h e m e s ) DFRDB, 64, 1 4 5 inform ation a b o u t, 8 6 M S B S, 66, 1 4 6

m e n m e m b e r s C S S , 2

DFRDB, 145 M S B S, 146 P S S , 1 4 4

m e n sta f f , 1 1 0 - 1 4

S tu d y b a n k S c h e m e u s e r s , 9 0

participation in eligible training p r o g r a m s , 91 Mercer, Campbell, C o o k a n d Knight, 18 Middle M a n a g e m e n t D e v e lo p m e n t P ro g ra m s, 89 Military S u p e r a n n u a t i o n a n d Benefits Board of T r u s t e e s No. 1, xi

re co n sid e ratio n of d e c isio n s, 3 4 , 7 1 - 2 s e c re taria t, 2 6 Military S u p e r a n n u a t i o n a n d Benefits S c h e m e , xi, 61, 6 6 - 7

b u s in e s s o p e r a t io n s , 2 9 - 3 0 client su r v e y , 3 0 revie w of s y s t e m s a n d p r o c e d u r e s , 1 7

t r a n s f e r s to , 6 4

Ministerial D e c la r a tio n s a n d D e term ina tions, 102-7 m ission of RBO, 14 M organ a n d C o m m issio n e r for

S uperannuation, 1 2

National M utual, 31 non-English s p e a k in g b a c k g r o u n d s t a f f participating in eligible training p r o g r a m s , 91

O c cu p a tio n a l H ealth a n d S a f e ty , 7 6 - 7 office a c c o m m o d a t i o n , 9 3 office tr a in e e s, 9 0

O m b u d s m a n 's c o m m e n t s , 5 0 organisational s t r u c t u r e , 2 3 - 4 4 o r p h a n s a n d s p o u s e s ( d e p e n d a n ts ) b e n e fits CSS, 2, 5

DFRDB, 6 5 , 1 4 5 MSBS, 6 7 , 1 4 6

PSS, 5 9 , 1 4 4

o v e r p a y m e n t s , 5 0 waived, 1 3 6 w ritten off, 1 3 7

o v e r s e a s p e n s i o n s , b a n k p a y m e n t of, 2 8

p a p e r recycling, 9 4 P a rliam entary C o n t a c t Officers, 4 8 p art-tim e e m p l o y m e n t training c o u r s e s , 2 7 part-tim e sta ff, 1 1 4

partial invalidity p e n s i o n s , 7 p a y m e n t of m o n ie s, w a i v e r of right t o , 1 3 6

p e n s io n liability (annual), 2 DFRDB, 1 4 5 MSBS, 1 4 6 PS S, 1 4 4 p e n s i o n e r m e m b e r s

CSS, 5 Incom e T ax I n s t a lm e n t Declaration f o rm s, 2 8 PSS, 59 r e c o r d s m a i n t e n a n c e , 5 2

I

152

INDEX

salaries, 126, 1 27 Privacy Act o perations, 8 6 salary range of sc h e m e m em b e rs CSS, 3

DFRDB, 64 MSBS, 66 PSS, 58 scree n -b a se d eye te s tin g program , 7 7 S eco u ra b le a n d C o m m issio n e r for Superan n u ation , 1 1 , 1 2 s e c re t a r i a t, 2 6

s e c u rity , 93 S e n io r Executive S ta f f (SES), 3 7 - 8 , 111 re sp o n sib le for EEO, 8 0 training, 91

vehicle fleet u s e r s , 9 4

S e n io r Officers, 11 2 p e r fo r m a n c e a ppraisa l a n d pay, 3 9 - 4 0 training, 91 s e p a r a t io n (staff) s t a ti s t i c s , 1 1 3

social justice, 4 7 - 8 , 6 2 - 3 , 8 0

( 0 0 8 ) t e le p h o n e se r v ic e , 5 2 , 63

s p o u s e s and o r p h a n s ( d e p e n d a n ts ) b e n e fits C S S , 2, 5

DFRDB, 65, 1 4 5 M S B S, 6 7 , 1 4 6

P S S , 59, 1 4 4

s t a f f clerk m anual, 19

s t a f f training a n d d e v e l o p m e n t , 20, 88-91 c o n s u l t a n t s u s e d , 1 1 5

e x p e n d itu re on, 3 7 , 8 8

O c cu p a tio n a l Health a n d S a f e ty , 7 6 privacy, 8 6 sta ffin g , 3 7 - 4 0 , 7 6 - 8 0 , 8 8 - 9 1 , 1 1 0 - 1 4

Delivery of C o m m o n w e a l t h S u p e r a n n u a t io n S c h e m e s p ro g ra m , 4 7 Delivery of D e fen c e Force S c h e m e s p r o g r a m , 6 2 f r a u d control activities, 8 7

F re e d o m of In form ation m a t t e r s , 8 5 goal, 1 5; priorities, 2 2

Inform ation T e c h n o lo g y se r v ic e s, 3 6 P riva cy Act o p e r a t io n s , 8 6 s t a n d a r d letters, re v ie w of, 1 9, 3 0

s t r a t e g i c planning w o r k s h o p s , 8 8 - 9 s t a tis tic a l inquiries, c o n t a c t po in t for, iv

S t a t u t o r y Rules. 9 6 - 1 0 2 , 1 0 3 - 5

s t r a t e g i c direction, r e v ie w of, ix

s t r u c t u r e of t h e o r g a n is a t i o n , 2 3 - 4 4

S tu d y b a n k , 9 0 Superan n u ation A c t 1 9 2 2 D eclarations by M inister, 1 0 2 p e n s i o n liability u n d e r , 5

S t a t u t o r y Rules u n d e r , 9 6 - 1 0 2

S u perannuation A c t 1 9 7 6 , 3 D eclarations by M inister, 1 0 3 D e te rm in a tio n s by M inister, 1 0 6 - 7 p e n s i o n liability u n d e r , 5

section 1 5 7 ( 1 ) (late election for

pre serva tion of s u p e r a n n u a t io n rights), 10-12 Superannuation A c t 1 9 9 0 , Declarations unde r, 103-5 Superannuation C irculars, 8 3 - 4 Supervisor D e v e l o p m e n t P rogram , 8 9 s u s p e n d e d invalidity p e n s i o n s , 7-8 s y s t e m s a n d p r o c e d u r e s , d eficiencies in, 2 5 - 6 t a x declaratio n e x e r c is e , 2 8

te m p o r a r y sta ff, 1 1 4

tim eliness of r e c o n s i d e r a t i o n and re v ie w (DFRDB S c h e m e ) , 71 totally and p e r m a n e n t l y i n c a p a c ita te d , 5 3 T raineeship P ro g ra m , 9 0 training a n d d e v e l o p m e n t (RBO staff), 2 0 ,

88-91 c o n s u l ta n t s u s e d , 11 5

ex p en d itu re on, 3 7 , 8 8

O c cupa tiona l H ealth a n d Safety , 7 6 privacy, 8 6 training p r o g r a m s , 1 8 , 2 6 - 7 , 5 5 (by RBO)

t r a n s f e r s fro m C S S , 4

tr a n s f e r s of RBO sta f f , 1 1 3

T r u s t Fund, 1 2 2 - 4

u n a c q u itte d a d v a n c e s , 1 3 7 union, c o n s u l ta t io n w ith , 3 8 , 3 9 , 7 8

u s e r pa y s a r r a n g e m e n t s , 4 4

vehicle fleet, 9 4 video for P S S m e m b e r s , 8 0

w a iv e r of rig h ts t o p a y m e n t of m o nie s, 1 3 6

w a t e r c h a r g e s , 9 3

w o m e n m e m b e r s of s c h e m e s CSS, 2

DFRDB, 1 4 5 MSBS, 1 4 6 PSS, 1 4 4 w o m e n s t a f f m e m b e r s , 1 1 0 - 1 4 participation in eligible training p r o g r a m s , 91 S t u d y b a n k S c h e m e u s e r s , 9 0

y o uth t r a in e e s , 9 0 w ork-related a c c i d e n t s notified by sta f f , 7 6 , 7 7 w o r k s h o p s , 3 7 , 8 8 - 9 , 9 0

w rite off of a m o u n t s , 1 3 7

y o u t h train ee s, 9 0

PARLIAMENTARY PAPER 425 of 1993 No. ORDERED TO BE PRINTED

ISSN 0727-418_______

Ί 7801=44 3540Ξ1

A40282 Cat No. 93 2054 8