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Superannuation Legislation (Commonwealth Employment) Repeal and Amendment (Consequential Amendments) Bill 1998



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I N F O R M A T I O N A N D R E S E A R C H S E R V I C E S

Bills Digest No. 42 1998-99

Superannuation Legislation (Commonwealth Employment) Repeal and Amendment (Consequential Amendments) Bill 1998

ISSN 1328-8091

 Copyright Commonwealth of Australia 1998

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Published by the Department of the Parliamentary Library, 1998

I N F O R M A T I O N A N D R E S E A R C H S E R V I C E S

Bills Digest No. 42 1998-99

Superannuation Legislation (Commonwealth Employment) Repeal and Amendment (Consequential Amendments) Bill 1998

Chris Field Law and Bills Digest Group 30 November 1998

Contents

Purpose ....................................................................................................................................... 1

Background ................................................................................................................................ 1

Main Provisions ......................................................................................................................... 2

Warning:

This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

Superannuation Legislation (Commonwealth Employment) Repeal and Amendment (Consequential Amendments) Bill 1998

Date Introduced: 12 November 1998

House: House of Representatives

Portfolio: Finance and Administration

Commencement: Refer to the Main Provisions section

Purpose

The Bill will make a number of minor amendments, principally to ensure the continuation of some minor, current superannuation benefits to the Governor-General and their spouse and Federal judges despite the termination of certain Commonwealth superannuation schemes as a result of the introduction of the choice of superannuation funds for Commonwealth employees.

Background

With the introduction of choice of superannuation fund for Commonwealth employees substantial changes were made to the administration of public superannuation schemes, which will be closed to new entrants from the introduction of choice of fund. The changes to the administration of the public superannuation schemes have had some unintended effects that will be rectified by this Bill.

For further information on changes to the public superannuation schemes, refer to the Digest for the Superannuation Legislation (Commonwealth Employment) Repeal and Amendment Bill 1998.

2 Superannuation Legislation (Commonwealth Employment) Repeal and Amendment (Consequential Amendments) Bill 1998

Warning:

This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

A substantially similar Bill of the same name was introduced in July 1998 but failed to pass Parliament before Parliament was perogued for the 1998 General election.

Main Provisions

The Defence Force Retirement and Death Benefits Authority is responsible for the administration of the Defence Force Retirement and Death Benefits Act 1973 and consists of the Commissioner for Superannuation as Chairman, a Deputy Chair appointed by the Minister and 3 other members. As the position of Commissioner for Superannuation is to abolished as part of the changes referred to above, the composition of the Authority will be changed, with the Chairman now to be appointed by the Minister (Schedule 2).

Commencement: 1 July 1999.

As part of the changes referred to above, the Superannuation (Productivity Benefit) Act 1988, which implemented award superannuation entitlements prior to the introduction of the superannuation guarantee scheme, is to be repealed from the date of the introduction of choice of fund. However, certain entities covered by the Productivity Benefit Act are not included in the definition of an employee for the purposes of the superannuation guarantee scheme and the repeal of that Act could result in certain people not being eligible for the minimum superannuation contribution required under the superannuation guarantee scheme.

Schedule 3 of the Bill will amend the Governor-General Act 1974 to provide that if the Governor-General or their surviving spouse, or former spouse, dies after 1 July 1999 there is payable to the personal representative of the deceased an amount equal to the amount calculated had monthly payments of the required superannuation guarantee charge been made. The amendments ensure that the minimum superannuation guarantee amounts are available, as would occur with other employees. Schedule 4 will make similar amendments in respect of Federal judges.

Commencement: 1 July 1999.