Defence Force (Superannuation) (Productivity Benefit) Determination (Amendment) (No. 1 of 1994) (Cth)

Defence Act 1903

Determination No 1 of 1994 under Section 52 of the Defence Act 1903

I, John Faulkner, the Minister for Defence Science and Personnel, hereby make the following Determination under section 52 of the Defence Act 1903.

Dated                 8^th February   1994

John Faulkner

Minister for Defence Science and Personnel

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1. Amendment

1.1       The Defence Force (Superannuation)(Productivity Benefit) Determination is amended as set out in this Determination.

2. Commencement

2.1       Clause 5 is taken to have commenced on 1 January 1994.

3. Clause 3(Interpretation)

3.1       Subclause (1):

Insert the following definition:

" "DFRDB Act" means the Defence Force Retirement and Death Benefits Act

1973;".

4. Clause 8AB(Reduction of productivity benefit)

4.1       Paragraph (2)(a):

Omit "benefit", substitute "pay".

4.2       New subclause (3A):

After subclause (3), insert:

"(3A) Where a member who has been credited with productivity benefit in

accordance with subclause 8AA(2), not being a member to whom subclause (1) has applied, retires and becomes entitled to invalidity benefit under subsection 32(2) of

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the DFRDB Act, the amount of productivity benefit credited to that member is, by

force of this subclause, reduced by the amount by which the sum of:

(a)    that invalidity benefit; and

(b)   that productivity benefit;

exceeds the greater of:

(c) an amount equal to the sum of:

(i) the member's refunded contributions; and

(ii) the member's lump sum payment; and

(iii) the member's notional productivity benefit; or

(d) an amount equal to the sum of:

(i) the member's refunded contributions; and

(ii) the member's additional productivity benefit; and

(iii) the member's notional productivity benefit.

4.3       Subclause (4):

After "dies", insert "before his or her retirement and a pension becomes payable under Part VI of the DFRDB Act in respect of the deceased member".

4.3       New subclauses (5)and (6):

Add at the end:

"(5) Where a member who has been credited with productivity benefit in

accordance with subclause 8AA(2), not being a person to whom subclause (1) has applied, dies before his or her retirement and a lump sum becomes payable under

subsection 48(1) or 48A(1) of the DFRDB Act in respect of the deceased person, the amount of productivity benefit credited to that person is, by force of this clause,

reduced by the amount by which the sum of:

(a) that lump sum; and

(b)   that productivity benefit;

exceeds the greater of:

(c) an amount equal to the sum of:

(i) the amount payable in respect of the deceased member under subsection

48(1) or 48A(1) of the DFRDB Act; and

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(ii) the deceased member's notional productivity benefit; or

(d) an amount equal to the sum of:

(i) two-thirds of the amount referred to in paragraph (a); and

(ii) the deceased member's additional productivity benefit; and

(iii) the deceased member's notional productivity benefit."

“(6) In this clause:

"additional productivity benefit", in relation to a member or deceased member,

means so much of the productivity benefit credited to the member under clause 8AA

as exceeds the amount of productivity benefit which would have been credited to the member if clause 8A had continued to apply to the member after 30 June 1992

instead of clause 8AA;

"lump sum payment" in relation to a member, means the lump sum payment

payable to the member under paragraph 32(2)(b) of the DFRDB Act;

"notional productivity benefit", in relation to a member or deceased member,

means the amount of productivity benefit which would have been credited to the

member if clause 8A had continued to apply to the member after 30 June 1992

instead of clause 8AA;

"refunded contributions", in relation to a member, means the contributions

refundable to the member under paragraph 32(2)(a) of the DFRDB Act.".

5. Schedule (Factors Concerned in the Calculation of Interest Applicable in

respect of Certain Calendar Years)

5.1       Add at the end:

1994    0.0572.

6. Other amendments

6.1 The Determination is amended as set out in the Schedule.

SCHEDULE

OTHER AMENDMENTS

1. Clause 3

1.1 Subclause (1) Definition of "annual rate of pay":

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Omit "Defence Force Retirement and Death Benefits Act 1973", substitute "DFRDB Act".

2. Clause 8AB

2.1 Subclause (2)

Omit "Defence Force Retirement and Death Benefits Act 1973", substitute "DFRDB Act".

2.2 Subclause (3)

Omit "Defence Force Retirement and Death Benefits Act 1973", substitute "DFRDB Act"