Purpose:

This Act establishes the Public Sector Superannuation Accumulation Plan (PSSAP) as a superannuation scheme for the benefit of its members.

Objectives:

• To provide a superannuation scheme known as the Public Sector Superannuation Accumulation Plan (PSSAP).
• To define eligibility criteria for membership in PSSAP, generally for public sector employees commencing work on or after 1 July 2005.
• To outline the processes by which individuals can become PSSAP members, either by choice or if PSSAP is their mandated fund.
• To specify the duration of PSSAP membership, typically until benefits are paid or the member’s death.
• To mandate that employers pay contributions to PSSAP for the benefit of most ordinary employer-sponsored members.
• To designate the Commonwealth Superannuation Corporation (CSC) as the body responsible for PSSAP.

Key Provisions:

• Establishment of PSSAP: Before 1 July 2005, the Minister must establish the Public Sector Superannuation Accumulation Plan (PSSAP) and its associated fund (PSSAP Fund) by deed, which is a legislative instrument (Section 10).
• Amendment of Trust Deed: The Minister may amend the Trust Deed, but any amendment is invalid if it causes PSSAP to cease being a regulated superannuation fund or fail to comply with the Superannuation Industry (Supervision) Act 1993 (Section 11).
• Membership Eligibility: A person is generally eligible for PSSAP if they are a public sector employee or specified by ministerial declaration, with exclusions for existing members of other government superannuation schemes (Section 13).
• Becoming a Member: Individuals become PSSAP members either by choosing to do so in a CSC-approved manner, or automatically if PSSAP is their mandated fund and certain Superannuation Guarantee (Administration) Act 1992 conditions are met (Section 14).
• Employer Contributions: Designated employers must pay contributions to CSC for ordinary employer-sponsored members and Australian government superannuation scheme members who have chosen PSSAP, in accordance with the Rules (Section 17).
• Designated Employers: The Act defines who constitutes a “designated employer” for members, including Agencies, Parliamentary Departments, approved authorities, or other entities determined by the Minister (Section 19).
• CSC Functions and Powers: The CSC’s functions and powers are set out in the Trust Deed, and it is responsible for the general administration of the Act (Section 20).
• Costs of Administration: The costs of administering the Act and the Trust Deed, including PSSAP Fund management and investment, are to be paid by CSC out of the PSSAP Fund (Section 34).
• Recovery of Amounts: Amounts payable to CSC (e.g., contributions) can be recovered as a debt, and interest may be charged on unpaid amounts; overpayments of benefits can also be recovered (Sections 39, 40).
• Invalidity Retirement Certification: An ordinary employer-sponsored member under 60 cannot be retired on invalidity grounds unless CSC has approved the invalidity retirement and certified entitlement to PSSAP invalidity benefits (Section 43).
• Application of Rules: Members, former members, and designated employers (including the Commonwealth) are subject to the Rules for the administration of PSSAP (Section 44).

Evidence of Compliance Requirements For Agricultural Organisations:

This Act primarily governs superannuation for public sector employees and their designated employers. It does not specify compliance requirements unique to agricultural organisations. However, if an agricultural organisation is classified as a “designated employer” (e.g., a government-owned corporation or authority involved in agriculture), the following general compliance requirements would apply:

• Contribution Payments:
  • Requirement: Designated employers must pay contributions to CSC for ordinary employer-sponsored members and Australian government superannuation scheme members who have chosen PSSAP, in accordance with the Rules.
  • Evidence: Maintain accurate and timely payment records, financial statements, and reports detailing contributions made, consistent with the PSSAP Rules.
  • Time Frames: Contributions must be paid in accordance with the Rules.
  • Measurement Standards: Adherence to contribution rates and calculation methodologies prescribed by the PSSAP Rules.
• Information Distribution to Members:
  • Requirement: Designated employers must comply with CSC requests to distribute documents or written information to ordinary employer-sponsored members, unless doing so would breach Chapter 7 of the Corporations Act 2001.
  • Evidence: Records of receipt of documents/information from CSC, and documentation proving timely and confidential distribution to relevant members (e.g., distribution logs, acknowledgements of receipt, internal communication policies).
  • Record-keeping: Records demonstrating compliance with distribution requests and confidentiality protocols.
• Invalidity Retirement Process:
  • Requirement: For an ordinary employer-sponsored member under the age of 60, retirement from employment or office on the ground of invalidity is prohibited unless CSC has approved the invalidity retirement and certified in writing that the member will be entitled to receive invalidity benefits under PSSAP.
  • Evidence: Official written approval from CSC for invalidity retirement and a written certificate from CSC confirming entitlement to invalidity benefits. This requires a formal application and assessment process with CSC before any retirement action is finalised.
• Adherence to PSSAP Rules:
  • Requirement: Designated employers are subject to the Rules for the administration of PSSAP to the extent they are applicable. This encompasses all operational procedures, reporting, and obligations set out in the detailed Rules.
  • Evidence: Internal policies and procedures that align with the PSSAP Rules, training records for staff responsible for superannuation administration, and documentation of adherence to all specific requirements within the Rules.
  • Reporting Requirements: Any reporting specified in the PSSAP Rules.
  • Record-keeping: Comprehensive records demonstrating compliance with all aspects of the PSSAP Rules.
• Recovery of Unpaid Amounts (for CSC):
  • Requirement: Any amount (including contributions) payable to CSC under the Act or Rules, if unpaid after the due date, may incur interest as determined by CSC, and can be recovered as a debt in a court of competent jurisdiction.
  • Evidence: Records of outstanding amounts, interest calculations based on CSC’s written determination, and documentation of any debt recovery actions initiated.
• Recovery of Overpayments (for CSC):
  • Requirement: If an amount of benefit paid by CSC was, or has become, not payable, it may be recovered as a debt in a court or by deduction from future benefits as determined by CSC.
  • Evidence: Records of overpaid benefits, calculations of the overpaid amount, records of communication with the recipient regarding recovery, and documentation of recovery actions (e.g., court proceedings, deduction authorisations).

Metadata Keywords:

Superannuation, Public Sector, PSSAP, Commonwealth Superannuation Corporation, Employer Contributions, Legislative Instruments, Trust Deed, Invalidity Benefits, Family Law, Australia

Publication Information:

Publication date: 7 October 2022 (Registered) Version number: Compilation No. 17 (includes amendments up to Act No. 46, 2021) Original Act No.: No. 80, 2005 (Assent: 29 June 2005)

Agricultural Industry Alignment:

Not specified in document.

Date Added to database:

This document was parsed and added to the database on 25-07-2025

URL:

https://www.legislation.gov.au/C2005A00080/2022-09-28/2022-09-28/text/original/pdf →