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by Munro Research

Superannuation Act 2010


Official Summary

A Bill to make provision for and in connection with limiting the value of the benefits which may be provided under so much of any scheme under section 1 of the Superannuation Act 1972 as provides by virtue of section 2(2) of that Act for benefits to be provided by way of compensation to or in respect of persons who suffer loss of office or employment.

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Overview

This bill amends the Superannuation Act 1972, introducing stricter requirements for consulting civil servants before making changes to their compensation schemes, particularly those that reduce benefits. It mandates reporting to Parliament on these consultations and sets a time limit on certain types of orders.

Description

The amendments add a new clause requiring consultation before reducing civil service compensation benefits. This consultation must aim for agreement with affected individuals. A report detailing the consultation process, steps taken to reach agreement, and whether agreement was reached must be submitted to Parliament before any changes take effect.

Key Changes:
  • Mandatory Consultation: Before reducing compensation benefits, the government must consult with civil servants and aim for agreement.
  • Parliamentary Reporting: A report on the consultation process and outcome must be presented to Parliament.
  • Time Limits: A three-year limit is imposed on making certain orders modifying the compensation scheme.

Government Spending

The bill is unlikely to have a significant direct impact on government spending. The cost of the consultation process and report preparation may incur some additional administrative expenses, but no figures have been provided.

Groups Affected

The bill primarily affects:

  • Civil Servants: They will benefit from increased consultation rights before potential reductions in their compensation benefits.
  • Government Departments: They will be required to undergo a more extensive consultation process and submit reports to Parliament.
  • Parliament: Parliament will receive reports detailing the consultations on changes to civil service compensation.
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