Richard Colbeck (Tasmania, Liberal Party, Parliamentary Secretary to the Minister for Finance and Administration) Share this | Hansard source

The Superannuation Legislation Amendment (Trustee Board and Other Measures) Bill 2006 will consolidate and revise the government’s arrangements for the superannuation schemes for Australian government employees with effect from 1 July 2006. From that date, the Commonwealth Superannuation Scheme, the Public Sector Superannuation Scheme and the Public Sector Superannuation Accumulation Plan will be managed by a single board, to be named the Australian Reward Investment Alliance. This will replace the governance arrangements where the CSS board manages the Commonwealth Superannuation Scheme, while the smaller PSS board manages both the Public Sector Superannuation Scheme and the Public Sector Superannuation Accumulation Plan.

The consolidation of the governance arrangements for these schemes is consistent with the governance principles of the review of the corporate governance of statutory authorities and officeholders that was undertaken by Mr John Uhrig AC. This includes providing that the Australian Reward Investment Alliance will comprise seven members, consistent with the Uhrig principle that boards should comprise between six and nine members. The consolidation of the governance arrangements for the three schemes under one board will provide significant opportunities for efficiencies in the management of the schemes. It will also offer an opportunity for the new board to adopt one investment mechanism for the ongoing management and investment of the three funds. This is particularly significant for the Commonwealth Superannuation Scheme, which has been closed to new members since 1990 and has a decreasing contribution base.

The changes to be made by the bill are supported by the CSS and PSS boards because the changes will allow for more effective administration of the three schemes and the investment of their funds. This will strengthen their ability to focus on the needs of the members of the schemes. Senator Murray raised the matter of funds under management for the three schemes. I should point out that the responsibility for the management of the funds under these schemes lies with the trustee board, not the government. However, I can confirm that separate funds will be maintained for the three schemes.

The Superannuation Legislation Amendment Bill 2004 proposes amendments to the Superannuation Act 1976 in respect of the Commonwealth Superannuation Scheme, the CSS, and rules for the administration of the Public Sector Superannuation Scheme, the PSS. The purpose of the bill is to make specific provision for the superannuation salary of departmental secretaries and certain Australian government officeholders who are members of the CSS or the PSS. For most scheme members, superannuation salary is provided for in the rules of the relevant superannuation scheme, although where the Remuneration Tribunal determines an officeholder’s remuneration it is also authorised to determine superannuation salary.

The amendments included in the bill are designed to allow superannuation salary to be set in a broader range of determinations made by ministers and the Presiding Officers of the Senate and the House of Representatives, as well as all determinations made under the Remuneration Tribunal Act 1973. The bill also validates some past determinations of superannuation salary that were not authorised by the scheme rules when made, while also ensuring that no benefit that has been paid or is continuing to be paid will be reduced because of the amendments in the bill. I commend the bills to the Senate.

Question agreed to.

Bills read a second time.