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Why it matters (stated purpose and operational consequences)

• The instrument's declared purpose is to create and run a compliant accumulation superannuation plan for public sector employees and related non‑member spouses (Trust Deed preamble; cl.2). That purpose is implemented by giving CSC both fiduciary responsibilities (run the Fund for members) and wide operational discretion (investments, fees, insurance, payment terms).

• Who pays: basic employer contributions are generally payable by the designated employer on each pay day (Rule 2.2.1 — current rate specified in the Deed at 15.4% for the categories covered by that rule). Members may also make employee contributions, and CSC may deduct insurance premiums and administration fees from members' personal accumulation accounts (Rules 2.3.1; 4.1.6; 2.5.1; 5.1.5–5.1.6). The Fund also pays administration costs, taxes and any surcharge liabilities (Rules 5.1.3, 5.3.1). This allocates costs between employers (statutory contribution), members (fees and insurance premiums) and the Fund (administration and tax liabilities).

• Who decides and where discretion lies: CSC has broad decision‑making authority: it sets investment strategy and policy and may change them (Rule 6.4); it determines how contributions, transfers and roll‑overs must be paid (Rules 2.2.5, 2.3.5, 2.4.2); it may set fees charged to accounts (Rules 2.5.1, 7.2.1B); it can accept or reject contributions where the SIS Act would prevent acceptance (Rule 2.2.1B and multiple parallel rules); it may delegate many powers and establish reconsideration committees (Trust Deed cl.8; Rules Part 6). The Minister may request information and may delegate some powers (Trust Deed cl.7 and cl.9).

Testing the stated purpose against incentives, costs and trade‑offs

• Incentives and private choice: The Rules preserve member choice in important respects (investment choice, roll‑overs, ability to cash or take pensions where SIS allows — e.g. Rules 5.4.1; 3.6.1–3.6.3). The MySuper provisions (Rules 2.1A.1–2.1A.5) create a default, standardised product with a single diversified strategy and restrict involuntary switching without short written consent, limiting administrative substitution of members' interests.

• Concentrated benefits / diffuse costs: Fees and insurance premiums are debited to individual personal accounts (Rules 4.1.6; 4.3.5; 5.1.6(e)), so direct costs of those services fall on individuals holding the accounts. Basic employer contributions (the statutory employer share) are concentrated on designated employers in defined employment relationships (Rule 2.2.1). The Fund bears some collective costs (taxes; administration paid from the Fund — Rule 5.1.3), which are effectively shared by all account holders via investment crediting/debiting arrangements (Rule 5.2.1). The instrument therefore differentiates cost incidence across actors.

• Effects on third‑party markets and competition: CSC may engage external investment managers and product providers (Trust Deed cl.3.2(f),(l); Rules 3.5.1). It may also underwrite investments or borrow (cl.3.2(b),(c)), and to the extent it does so it can create business for intermediaries and insurers. Those arrangements and CSC's procurement and fee‑setting powers create concentrated commercial opportunities for providers, subject to CSC procurement and SIS constraints.

• Compliance, administrative and implementation risk: The Rules are heavily cross‑referenced to the SIS Act/Regulations, Family Law Act and taxation laws (numerous defined terms and repeated "subject to the SIS Act" clauses: e.g. Trust Deed cl.3.3; Rules 2.2.1B, 2.4.1 and many others). That means CSC must interpret and apply multiple interacting Commonwealth statutes. CSC's broad discretions (fee, investment, acceptance/rejection of contributions, insurance terms, internal review procedures) create operational burden and require robust governance and record‑keeping (Trust Deed cl.3.4 and Rules Part 6). The instrument also contains numerous conditional rules that trigger different processes (e.g. member categories, concurrent employments, transfer conditions), increasing administrative complexity and the potential for implementation error.

Concrete mechanisms that could produce second‑order effects (only where present in the text)

• Fee setting and debiting: CSC may determine fees and debit them to member accounts (Rules 2.5.1; 5.1.6(e); 7.2.1B). This gives CSC a direct lever over net member returns and the fund's expense recovery.
• Acceptance/rejection of contributions: CSC must reject contributions if acceptance would jeopardise the Fund's complying status (several rules, e.g. 2.2.1B). That protects the Fund's legal status but places the compliance gatekeeper role on CSC and may generate friction with employers and members when contributions are returned.
• Delegation and internal review: CSC may delegate many powers and establish Reconsideration Advisory Committees (Trust Deed cl.8; Rules 6.1–6.4). That creates an internal checks‑and‑balances system, but also layers of process and appeal that affect speed and cost of decision making.

Selected cross‑references and legal anchors (examples)

• SIS Act / SIS Regulations: repeated — rules defer to SIS requirements for investment, Member nominations, release authorities, MySuper rules, transfers, and many payment conditions (e.g. Rules 2.1A.1, 3.6.1, 7.1.1).
• Family Law Act 1975: informs splitting rules and non‑member spouse entitlements (Part 7).
• Superannuation Guarantee legislation: used to calculate employer reporting and shortfall notifications (Rules 2.2.9–2.2.11).

Bottom line (practical takeaway)

• This Deed and detailed Schedule are the operational constitution for the PSSAP Fund: they create the scheme, vest the Fund in CSC, allocate who pays and who decides, and give CSC broad powers to run the Fund while tying many outcomes to the SIS Act and other Commonwealth laws. For members and employers the key mechanical points are: which category of membership applies, who pays what and when, how contributions/transfers are handled, what benefits are payable and under what conditions, and that CSC carries both discretion and regulatory compliance obligations.

(References: Trust Deed cl.2–3, 5–9; Schedule Rules Parts 1–7, in particular Rules 1.2.1, 2.1A, 2.2.1–2.2.11, 2.3.1–2.3.6, 2.4.1–2.4.3, 3.1.1–3.1.21, 3.6.1–3.6.14, 4.1.1–4.1.9, 4.3.1–4.3.6, 5.1.1–5.2.2, Part 6, Part 7.)

Functions and Powers of CSC in relation to PSSAP

TRUST DEED

THIS DEED, to be known as the Superannuation (PSSAP) Trust Deed, is made on 29 June 2005 by the COMMONWEALTH OF AUSTRALIA.

WHEREAS section 10 of the Superannuation Act 2005 (in this Deed called the “Act”) provides that before 1 July 2005, the Minister must, for and on behalf of the Commonwealth, by deed:

(a) establish a superannuation scheme that:

(i) is to be known as the Public Sector Superannuation Accumulation Plan;

(ii) may also be known as PSSAP; and

(iii) is for the benefit of persons who will be members of PSSAP; and

(b) establish and vest in the Australian Reward Investment Alliance (formerly known at the PSS Board) established under section 20 of the Superannuation Act 1990 (the “Board”), a fund for the purposes of the PSSAP; and

(c) set out the functions and powers of CSC in relation to PSSAP and the PSSAP Fund;

AND WHEREAS section 12 of the Act provides that the Rules for the administration of PSSAP set out in the Schedule to the Deed referred to in section 10 of the Act (in this Deed called the Rules):

(a) may provide that, when a splitting agreement or splitting order is received by CSC in respect of a superannuation interest under the Act;

(i) the non‑member spouse is entitled to benefits determined in accordance with the Rules; and

(ii) the benefits of the member spouse are reduced in accordance with the Rules; and

(b) may include any other provision that is related to, or consequential on, provisions referred to in paragraph (a) concerning a splitting agreement or splitting order;

NOW THIS DEED WITNESSES AS FOLLOWS:

1.1 In this Deed, where the context requires or admits, a reference to the Deed shall include a reference to the Rules, as set out in the Schedule, and the Rules shall form part of the Deed. In the case of an inconsistency between the Deed and the Rules, the Deed shall prevail.

1.2 In this Deed, where the context requires or admits, words and expressions defined in the Act have the same meanings when used in the Deed. The headings in this Deed are for the convenience of reference only and shall not affect its interpretation.

1.4 In this Deed, “Minister” means:

(a) the Commonwealth Minister of State for Finance;

(b) if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or

(c) a member of the Executive Council acting for the time being for and on behalf of any of those Ministers; or

(d) a person, as defined in clause 9, to whom the Minister for Finance has delegated his powers.

1.5 In this Deed, “APS employee” has the same meaning as in the Public Service Act 1999.

1.7 In this Deed, “PSSAP member” means a person who is a member of PSSAP due to the operation of Part 3 of the Act.

Subclauses 1.3, 1.6 and 1.8 deleted in the 5th amending deed.

2.1 There is hereby established from 1 July 2005 a superannuation scheme (to be known as the “Public Sector Superannuation Accumulation Plan” or “PSSAP”) for the benefit of members of PSSAP and non‑member spouses entitled to benefits, to be administered in accordance with the Deed:

(a) in relation to the period from 1 July 2005 to immediately before the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Australian Reward Investment Alliance (which, in this Deed, is called “the Board”); and

(b) in relation to the period immediately following the commencement of the Governance of Australian Government Superannuation Schemes Act 2011, by the Commonwealth Superannuation Corporation (CSC) as defined in the Governance of Australian Government Superannuation Schemes Act 2011 (in this Deed called “CSC”).

2.2 There is hereby established from 1 July 2005, and vested in CSC (formerly referred to as “the Board”), a fund for the purposes of PSSAP (to be known as the PSSAP Fund”).

3.1 The functions of CSC in relation to PSSAP and the PSSAP Fund are to administer PSSAP and to manage and invest the PSSAP Fund in accordance with the provisions of the Act and this Deed including, without limiting the generality of the foregoing, the following functions:

(a) to receive payments from designated employers as provided for in the Act and other superannuation entities in accordance with this Deed;

(b) to pay benefits to the persons entitled to receive benefits from PSSAP in accordance with the Act and this Deed;

(c) to provide information about benefits or potential benefits, and available options, to:

(i) PSSAP members;

(ii) non‑member spouses; and

(iii) potential PSSAP members;

(d) to provide advice to the Minister on proposed changes to the Act and the Deed; and

(e) to determine interest rates for the purposes of PSSAP.

3.2 CSC has power in Australia and elsewhere to do all things necessary or convenient to be done for, or in connection with, the performance of its functions and, in particular, may:

(a) give guarantees;

(b) underwrite or sub‑underwrite any form of investment including the underwriting or sub‑underwriting of the issue of shares, debentures or units in a unit trust;

(c) borrow moneys and give security over the whole or any part of the assets of the PSSAP Fund;

(d) appoint agents and attorneys;

(e) act as agent for other persons;

(f) engage consultants and investment managers;

(g) engage a panel of persons to assist it in determining whether a person is to be retired on the grounds of invalidity;

(h) establish a Reconsideration Advisory Committee or Committees to examine and report on decisions of CSC and its delegates under the Rules relating to entitlements to benefits of PSSAP members and non‑member spouses entitled to benefits;

(i) effect policies with insurers in CSC’s name to provide death and invalidity cover and income protection cover for members in accordance with the Rules;

(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the PSSAP Fund, or to enhance or protect, the return on any such investment;

(k) arrange for the purchase of income products, including retirement income products, by members, non‑members and beneficiaries as provided for in the Rules;

(l) establish a trust for the purpose of investing the PSSAP Fund and manage and administer the trust; and

(m) charge reasonable fees relating to the costs of the administration of the Act and this Deed, including arrangements connected with PSSAP members and non‑member spouses choosing particular investment strategies and arrangements connected with splitting of superannuation interests under the Family Law Act 1975.

3.3 In exercising its functions and powers, CSC shall comply with the requirements of the Superannuation Industry (Supervision) Act 1993 and Regulations made under that Act, and have regard to the interests of PSSAP members, their employers and non‑member spouses entitled to benefits.

3.4 CSC must cause proper records to be kept in respect of:

(a) contributions paid into the PSSAP Fund; and

(b) benefits paid under the Act and this Deed.

Notes:

1. Under section 52 of the Superannuation Industry (Supervision) Act 1993, this Deed is taken to contain the covenants set out in that section.

5.1 All contributions and other moneys paid to CSC for the purposes of PSSAP, or as directed by CSC, shall be held in trust by CSC in the PSSAP Fund. The PSSAP Fund shall be managed and invested by CSC in accordance with the Act and the Deed.

5.2 The PSSAP Fund shall comprise:

(a) contributions made by members;

(b) contributions made by employers pursuant to the Act and the Deed;

(c) any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;

(d) the income arising or derived from investments held within the PSSAP Fund; and

(e) any accretions to or profits on realisation of investments held within the PSSAP Fund.

5.3 CSC must pay the following out of the PSSAP Fund:

(a) benefits in respect of PSSAP members;

(b) costs of the administration of the Act and this Deed;

(c) taxes relating to PSSAP and the PSSAP Fund.

Note:

The costs of the administration of the Act and this Deed include the costs of and incidental to both the management of the PSSAP Fund by CSC and the investment of money from the PSSAP Fund.

Subclauses 5.4 and 5.5 deleted in the 5th amending deed.

6.1 For the purposes of this clause:

(a) “invest” means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and

(b) “profit” includes capital profit.

6.2 Moneys standing to the credit of the PSSAP Fund which are, in the opinion of CSC, moneys that are not for the time being required for the purpose of making payments out of the PSSAP Fund under the Act and the Deed shall, so far as is practicable, be invested by CSC in accordance with the Act and the Deed, but CSC shall so manage the PSSAP Fund that moneys that are from time to time required to pay benefits that are payable out of the PSSAP Fund are available for that purpose.

6.3 Moneys that, by virtue of subclause 6.2, are required to be invested by CSC may be invested in any manner and, without limiting the generality of the foregoing, may be invested by CSC jointly with another person or other persons.

6.4 CSC must determine an investment strategy and policy of the PSSAP Fund as soon as possible after 1 July 2005 and thereafter regularly review such a strategy and policy, and, where it considers it necessary or desirable, change its existing investment strategy or policy. In determining and reviewing its investment strategy and policy, CSC shall consult with such persons or bodies as it thinks fit.

6.5 CSC shall invest moneys standing to the credit of the PSSAP Fund that are available for investment only through an investment manager or managers who undertake to invest, and manage the investment of those funds on behalf of CSC.

6.6 CSC shall ensure that any investment manager engaged by CSC in relation to the PSSAP Fund:

(a) operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and

(b) reports to CSC on the state of CSC’s investments and the investment market at such times and in such manner as CSC determines.

7.1 CSC shall furnish to the Minister such information relating to the general administration and operation of PSSAP and the PSSAP Fund as the Minister may from time to time require.

8.1 Subject to subclause 8.2, CSC may by an instrument under its seal delegate to:

(a) a director of CSC; or

(c) a member of the staff of CSC; or

(d) an APS employee in the Department referred to in subclause 1.4; or

(e) an officer or employee of the person who is responsible for investing money forming part of a superannuation fund vested in or managed by CSC; or

(f) any other person who performs duties in connection with the operation of the Deed; or

(g) a committee consisting of 2 or more persons each of whom is a person referred to in any of the above paragraphs; or

(h) any other person;

all or any of its powers under the Deed other than its power to reconsider its own decisions or decisions made by its delegates.

8.2 CSC may by an instrument under its seal delegate to a Reconsideration Advisory Committee established under the Rules CSC’s power to reconsider its own decision or a decision made by its delegate in relation to PSSAP or the PSSAP Fund and to determine the matter by:

(a) affirming the decision under reconsideration; or

(b) varying the decision; or

(c) substituting another decision; or

(d) setting the decision aside;

and, at its discretion, refunding any fee paid.

8.3 If CSC delegates a power under subclause 8.1, other than paragraph (h), the delegate may, by writing, sub‑delegate the power:

(a) if the delegate is a director of CSC — to:

(i) another director of CSC; or

(ii) a person referred to in paragraph 8.1(c), (d), (e) or (f); or

(c) if the delegate is a person referred to in paragraph 8.1(c), (d), (e) or (f) — to:

(i) another person referred to in the same paragraph; or

(ii) a person referred to in another of those paragraphs.

8.4 Section 34AA and paragraphs 34AB(a), (b) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub‑delegation in a corresponding way to the way in which they apply to a delegation.

8.5 Section 34A and paragraphs 34AB(c) and (d) of the Acts Interpretation Act 1901 apply in relation to a sub‑delegation as if it were a delegation.

9.1 The Minister may by signed instrument delegate all or any of his or her powers under the Deed, other than this po

This is an opening excerpt, not the complete document.