Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6
I, RALPH WILLIS, Minister of State for Finance, make the following Declaration under subsections 4a (1) and (2) of the Superannuation (Productivity Benefit) Act 1988.
Dated 15 February 1993.
RALPH WILLIS
Minister of State for Finance
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Citation
This Declaration may be cited as Superannuation (Productivity Benefit) Alternative Arrangements Declaration No. 6.
Commencement
This Declaration is taken to have commenced on 17 December 1992.
Interpretation
In this Declaration, unless the contrary intention appears:
“member” means a member of the class of qualified employees specified in clause 4;
“performance pay” means a payment of that name payable on or after 17 December 1992:
(a) under an industrial agreement under Division 3 of Part VI of the Industrial Relations Act 1988; and
(b) in accordance with a determination of a kind referred to in Schedule 4 or 5 in Attachment C to the Agreement between the Commonwealth and employee organisations, dated 4 December 1992 and called “Improving Productivity, Jobs and Pay in the Australian Public Service 1992-1994”;
“the Act” means the Superannuation (Productivity Benefit) Act 1988.
Class of qualified employees
For the purposes of subsection 4a (1) of the Act, the class of qualified employees who are entitled to receive performance pay are a class of employees who are neither fund employees nor interim arrangement employees.
Arrangements that apply to the class
For the purposes of subsection 4a (2) of the Act, the arrangements stated in the following clauses apply to members.
Election to have performance pay taken into account in superannuation arrangements
(1) A member may give a notice of election to have performance pay taken into account in his or her superannuation arrangements under the Act.
(2) A notice must be given in accordance with subclauses 9 (2), (3) and (4).
Selection by members of funds
(1) This clause applies only to a member who makes an election under clause 6.
(2) A member may give a notice of election to have payments under subclause 11 (1) in relation to the member paid by the designated employer to an approved fund specified in the notice.
(a) who has been appointed to the Senior Executive Service for a fixed term; and
(b) to whom superannuation benefits are provided in accordance with a determination made for that purpose under section 45 of the Public Service Act 1922;
may give a notice of election to have payments under subclause 11 (1) in relation to the member’s performance pay paid in accordance with the notice.
(4) A notice under subclause (3) must state that the payments to which the notice relates are to be paid:
(a) in accordance with the determination under the Public Service Act 1922 for payment of other superannuation benefits payable to the person; or
(b) to an approved fund specified in the notice.
(5) A notice must be given in accordance with subclauses 9 (2), (3) and (4).
Elections apply only to particular payments
(1) An election by a member under clause 6 or 7 applies:
(a) if the notice of election is expressed to apply to a payment of performance pay that the member received before 25 February 1993—to that payment; or
(b) in any other case—to the first payment of performance pay that the member receives after the notice of election takes effect.
(2) An election referred to in subclause (1) does not apply to a payment of performance pay except as stated in that subclause.
Notices: procedure and date of effect
(1) In this clause, “notice” means a notice under clause 6 or 7.
(2) A notice must be in writing and signed by the member giving it.
(3) A member who gives a notice must give it to the employer that, in relation to the member, is the designated employer.
(4) The member must give the notice:
(a) if the notice relates to a payment of performance pay that the member received before 25 February 1993—not later than 3 months after the date on which the member receives the payment; or
(b) in any other case—before the member receives the payment of performance pay to which the notice relates.
(5) A notice takes effect when it is given to the designated employer in accordance with the applicable provisions of this clause.
What happens if a member does not make an election?
If a member does not make an election under clause 6, the member’s performance pay is not to be taken into account for the purposes of the Act.
Payments to be made by a member’s designated employer
(1) If a member makes an election under clause 6, the member’s designated employer must:
(a) pay 5 percent of the total amount of the member’s performance pay to:
(i) if the member has specified, under clause 7, a fund or arrangement—to that fund or in accordance with that arrangement, as the case requires; or
(ii) in any other case—to the fund that is the nominated fund in relation to the member; and
(b) pay an amount equal to 15 percent of the total amount of the performance pay to the same fund.
(2) The designated employer must deduct the amount referred to in paragraph (1) (a):
(a) in the case of performance pay paid to the member before 25 February 1993—by a lump sum deduction from the member’s ordinary salary payment;
(b) in any other case—by a lump sum deduction from the member’s payment of performance pay.
Members receiving continuing contributions
(1) In this clause, “relevant member” means a member who, but for this Declaration, would be entitled to have continuing contributions paid in relation to the member’s salary (other than performance pay).
(2) A relevant member is entitled, in spite of any other provisions of this Declaration, to have those contributions paid in relation to the member’s salary (other than performance pay).