Defence Forces Retirement Benefits Act 1963 (Cth)

DEFENCE FORCES RETIREMENT BENEFITS.

No. 103 of 1963.

An Act relating to Retirement Benefits for Members of the Defence Forces of the Commonwealth.

[Assented to 1st November, 1963.]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Part I.—Preliminary.

Short title and citation.

1.—(1.) This Act may be cited as the Defence Forces Retirement Benefits Act 1963.

(2.) The Defence Forces Retirement Benefits Act 1948–1962 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by Part II. of this Act, may be cited as the Defence Forces Retirement Benefits Act 1948–1963.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Parts.

3. This Act is divided into Parts, as follows:—

Part I.—Preliminary.
Part II.—Amendments of the Defence Forces Retirement Benefits Act 1948–1962.
Part III.—Pension Increases.
Part IV.—Miscellaneous.

Part II.—Amendments of the Defence Forces Retirement Benefits Act 1948–1962.

Interpretation.

4.Section four of the Principal Act is amended by inserting in sub-section (1.), before the definition of “children”, the following definition:—

“‘annual pay’, in relation to a member, means the product of his daily rate of pay and three hundred and sixty-five, less any shillings or pence included in that product;”.

5. Section four a of the Principal Act is repealed and the following section inserted in its stead:—

Categories of members.

“4a.—(1.) For the purposes of this Act, members are divided into categories according to their respective rates of annual pay, and each member has a category number ascertained in accordance with the next succeeding sub-section.

“(2.) The category number of a member is—

(a) if the annual pay of the member is less than the prescribed amount—the number ascertained in accordance with the formula , where A is the number of pounds in his annual pay or, if the number of pounds in his annual pay is not a multiple of sixty-five, the next lower number that is such a multiple; and
(b) in any other case—the number ascertained in accordance with the formula , where—
B is the number of pounds in the prescribed amount; and
C is the number by which the number of pounds in the member’s annual pay exceeds the number of pounds in the prescribed amount or, if the number so ascertained is not a multiple of one hundred and fourteen, the next lower number that is such a multiple.

“(3.) A reference in this Act to a change in the category of a member shall be read as a reference to a change in the rate of annual pay of a member as a result of which his category number changes.

“(4.) In this section, ‘the prescribed amount’ means the amount of Two thousand six hundred pounds or such other amount, being a multiple of Sixty-five pounds, as is specified in the regulations for the purposes of this section.

“(5.) In making a regulation for the purposes of the last preceding sub-section, the Governor-General shall have regard to any general variations in the rates of annual pay of members that have occurred.”.

6. Section sixteen of the Principal Act is repealed and the following section inserted in its stead:—

Investment of Fund.

“16.—(1.) The moneys of the Fund shall, so far as is practicable, be invested by the Board.

“(2.) Subject to this section, the moneys of the Fund may be invested by the Board—

(a) in securities of the Commonwealth or of a State;
(b) in a loan to a local governing body in Australia;
(c) in a loan secured by a mortgage of an estate in fee simple, or of a leasehold interest, in land in Australia, being a loan—
(i) the amount of which does not exceed seventy per centum of the value of the security at the time the loan is made; and
(ii) which is repayable on demand or is for a term not exceeding thirty years;
(d) in debentures issued in Australia by a company incorporated in Australia; or
(e) in any manner for the time being allowed by an Act or State Act, or by an Ordinance of a Territory of the Commonwealth, for the investment of trust moneys in Australia, other than in stock or shares issued by a company,

but shall not be invested in any other manner.

“(3.) Moneys of the Fund shall not be invested in debentures unless—

(a) the investment is permitted by, and is in accordance with, the regulations; and
(b) the amount of the moneys to be invested, together with the value of any debentures in which moneys of the Fund are already invested, is less than one quarter of the value of the assets of the Fund.

“(4.) In this section, ‘debenture’, in relation to a company, includes debenture stock, bonds, notes and any other securities of the company, whether constituting a charge on the assets of the company or not.”.

7. Section thirty of the Principal Act is repealed and the following section inserted in its stead:—

Rates of contribution.

“30.—(1.) Subject to the next succeeding sub-section, the contribution to be paid by a member is an amount per fortnight ascertained in accordance with the formula—

where—

A is—
(a) in the case of a member who is a male officer other than—
(i) an officer of the Special Duties List of the Permanent Naval Forces;
(ii) an officer of the Permanent Military Forces who is a Quartermaster or a member of the Canteen Corps, Catering Corps, Dental Corps, Education Corps, Legal Corps, Medical Corps, Pay Corps, Psychology Corps or Survey Corps or of the Printing and Stationery Service;
(iii) an officer of the Permanent Air Force who is not an officer of the General Duties Branch; or
(iv) a Chaplain,
the factor set out in the second column of the First Schedule opposite to the age set out in the first column of that Schedule that is the age of the officer on his birthday next following the day on which he became a member; and
(b) in any other case—five hundredths;
B is the number of pounds in the prescribed amount;
C is—
(a) if the annual pay of the member is less than the prescribed amount—sixty-five;
(b) in any other case—one hundred and fourteen; and
D is the category number of the member.

“(2.) Where a person becomes a member after attaining the age of thirty years, then, whether or not that person was previously a member, the amount of contribution to be paid by him is the amount that would have been payable by him in accordance with the last preceding sub-section if he had become a contributor immediately before attaining that age increased by such percentage as is determined in relation to the member by the Board on the advice of the Commonwealth Actuary.

“(3.) In this section, ‘the prescribed amount’ has the same meaning as in section four a of this Act.”.

Pension on retirement after twenty years’ service for pension—officers.

8. Section thirty-eight of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-sections:—

“(3.) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is sixty years or more is an amount per annum ascertained by multiplying the amount of Forty-five pounds ten shillings by the number that is his category number on that date.

“(3a.) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is less than sixty years is the amount per annum that would be the rate applicable to him under the last preceding sub-section if he had attained the age of sixty years on that date multiplied by the factor set out in the third column of the Second Schedule opposite to the age set out in the first column of that Schedule that is his age on that date.”.

Pension on retirement under special circumstances—officers.

9. Section thirty-nine of the Principal Act is amended—

(a) by omitting sub-section (3.) and inserting in its stead the following sub-sections:—
“(3.) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is sixty years or more is an amount per annum ascertained by multiplying the amount of Forty-five pounds ten shillings by the number that is his category number on that date.
“(3a.) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is less than sixty years is the amount per annum that would be the rate applicable to him under the last preceding sub-section if he had attained the age of sixty years on that date multiplied by the factor set out in the third column of the Second Schedule opposite to the age set out in the first column of that Schedule that is his age on that date.”; and

(b) by omitting from sub-section (4.) the words “last preceding sub-section and Part I. of the Third Schedule” and inserting in their stead the words “last two preceding sub-sections”.

Pension after twenty years’ service for pension—other ranks.

10.Section forty-one of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-section:—

“(3.) Subject to this Act, the rate at which pension is payable to a member under this section is an amount per annum ascertained by multiplying the amount of Forty-five pounds ten shillings by the number that is his category number on the date of his retirement and multiplying the result by the factor set out in the third column of the Second Schedule opposite to the number of years set out in the second column of that Schedule that is the number of years of service for pension completed by him on that date.”.

11.After section forty-one of the Principal Act the following section is inserted:—

Annual amount of certain pensions to be calculated to nearest pound.

“41a. Where the amount of pension per annum ascertained under section thirty-eight, section thirty-nine or section forty-one of this Act includes an amount of shillings, of pence or of shillings and pence—

(a) if that last-mentioned amount is less than Ten shillings—the amount of pension shall be deemed to be reduced by that last-mentioned amount; and
(b) in any other case—the amount of pension shall be deemed to be increased by treating the shillings or the shillings and pence, as the case may be, as One pound.”.

Benefits other than pension—other ranks.

12.Section forty-two of the Principal Act is amended by omitting from sub-section (1.) the words “the last preceding section” and inserting in their stead the words “section forty-one of this Act”.

Payment to other ranks after six years’ service.

13.Section forty-two a of the Principal Act is amended by omitting from sub-section (1.) the words “, he has elected not to receive that payment” and inserting in their stead the words “or within such period after he has completed six years’ service for pension as the Board allows, he elects not to receive that payment”.

Invalidity benefit.

14.Section fifty-one of the Principal Act is amended by omitting from sub-section (2.) the word “member” (wherever occurring) and inserting in its stead the word “person”.

Rate or amount of invalidity benefit.

15.Section fifty-two of the Principal Act is amended—

(a) by omitting sub-sections (1.) to (8.) (inclusive) and inserting in their stead the following sub-sections:—
“(1.) A person who is entitled to invalidity benefit and is classified as Class A under sub-section (2.) of the last preceding section is entitled to a pension at a rate of such amount per annum as is ascertained by multiplying the amount of Forty-five pounds ten shillings by the number that is his category number on the date of his retirement.
“(2.) A person who is entitled to invalidity benefit, is classified as Class B under sub-section (2.) of the last preceding section and was an officer immediately before his retirement is entitled to a pension—
(a) if, immediately before his retirement, he had completed twenty years’ service for pension but had not attained the retiring age for the rank held by him at that time—at the rate at which pension would be payable to an officer of the same category as the category of the person immediately before his retirement who became entitled to a pension under section thirty-eight of this Act upon retiring on attaining the retiring age for the rank held by the person immediately before his retirement;
(b) if, immediately before his retirement, he had completed twenty years’ service for pension and had attained the retiring age for the rank held by him at that time—at the rate at which pension would be payable to him under section thirty-eight of this Act if he were not entitled to invalidity benefit; or
(c) in any other case—at whichever is the lesser of the following rates:—
(i) the rate at which pension would be payable to an officer of the same category as the category of the person immediately before his retirement who became entitled to a pension under section thirty-eight of this Act upon retiring on attaining the retiring age for the rank held by the person immediately before his retirement; or

(ii) a rate equal to one-half of the rate at which pension would be payable to him if he were classified as Class A under sub-section (2.) of the last preceding section.
“(3.) A person who is entitled to invalidity benefit, is classified as Class B under sub-section (2.) of the last preceding section and was not an officer immediately before his retirement is entitled to a pension—
(a) if, immediately before his retirement, he had completed twenty years’ service for pension—at the rate at which pension would be payable to him under section forty-one of this Act if he were not entitled to invalidity benefit; or
(b) in any other case—at the rate at which pension would be payable to a member of the same category as the category of the person immediately before his retirement who became entitled to a pension under section forty-one of this Act upon retiring on completing twenty years’ service for pension.
“(4.) Where a person to whom paragraph (a) of the last preceding sub-section applies retired before completing the engagement under which he was serving on the date of his retirement and before attaining the retiring age for the rank held by him, then, for the purpose of determining the rate at which pension is payable to him, his period of service for pension shall be deemed to be the period that would have been his period of service for pension if he had retired upon completing that engagement.
“(5.) A person who is entitled to invalidity benefit, is classified as Class C under sub-section (2.) of the last preceding section and was an officer immediately before his retirement is entitled—
(a) if, immediately before his retirement, he had completed twenty years’ service for pension but had not attained the retiring age for the rank held by him at that time—to a pension at the rate at which

pension would be payable to him if, upon retirement, he had become entitled to a pension under section thirty-nine of this Act by virtue of paragraph (b) of sub-section (2.) of that section;
(b) if, immediately before his retirement, he had completed twenty years’ service for pension and had attained the retiring age for the rank held by him at that time—to a pension at the rate at which pension would be payable to him if he were classified as Class B; or
(c) in any other case—in addition to a refund under section sixty of this Act of the amount of contributions paid by him under this Act, to a gratuity in accordance with the next two succeeding sub-sections.
“(6.) Subject to the next succeeding sub-section, the gratuity to which a person is entitled under paragraph (c) of the last preceding sub-section is an amount calculated at the rate of Seventy-five pounds if the person is a male, or Thirty-seven pounds ten shillings if the person is a female, for each year of service for pension completed by the person.
“(7.) Where the period of service for pension of a person who was an officer immediately before his retirement includes a period served by the person as a member other than an officer, the gratuity to which the person is entitled under paragraph (c) of sub-section (5.) of this section is the sum of—
(a) an amount calculated at the rate of Fifty pounds per annum if the person is a male, or Twenty-five pounds per annum if the person is a female, in respect of the period of service for pension completed by the person as a member other than an officer; and
(b) an amount calculated at the rate of Seventy-five pounds per annum if the person is a male, or Thirty-seven pounds ten shillings per annum if the person is a female, in respect of the period that is equal to the difference between—
(i) the period comprising the years of service for pension completed by the person on retirement; and

(ii) the period of service for pension completed by the person as a member other than an officer.
“(8.) A person who is entitled to invalidity benefit, is classified as Class C under sub-section (2.) of the last preceding section and was not an officer immediately before his retirement is entitled—
(a) if, immediately before his retirement, he had completed twenty years’ service for pension—to a pension at the rate at which pension would be payable to a member of the same category as the category of the person immediately before his retirement who became entitled to a pension under section forty-one of this Act upon retiring on completing a period of service for pension equal to the period of service for pension completed by that person; or
(b) in any other case—in addition to a refund under section sixty of this Act of the amount of contributions paid by the person under this Act, to a gratuity—
(i) if the person is a male—of an amount calculated at the rate of Fifty pounds for each year of service for pension completed by him; or
(ii) if the person is a female—of an amount calculated at the rate of Twenty-five pounds for each year of service for pension completed by her.”;
(b) by omitting from sub-section (9.) the word “member” and inserting in its stead the word “person”; and
(c) by omitting from sub-section (10.) the words “an officer who” and inserting in their stead the words “a person who was an officer immediately before his retirement and”.

16.After section fifty-three a of the Principal Act the following section is inserted:—

Power of Board to require invalid pensioners to be medically examined and to furnish information as to employment.

“53b.—(1.) The Board may, by notice in writing to a person to whom a pension, being invalidity benefit, is being paid, require that person—

(a) to submit himself for medical examination by a legally qualified medical practitioner at a time and place specified in the notice; or

(b) to furnish in writing to the Board, within such period as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his own account) in which the person has been engaged during such period as is specified in the notice.

“(2.) A notice to a person under the last preceding sub-section may be given by delivering it to him personally or by sending it by post addressed to him at his address last-known to the Board.

“(3.) Where a person fails to comply with a notice given to him under this section and does not satisfy the Board that there was reasonable excuse for the failure, the Board may suspend the person’s pension.

“(4.) Where the Board suspends a person’s pension under this section by virtue of the person having failed to comply with a notice requiring him to submit himself for medical examination, his pension is not payable in respect of the period that commenced on the day on which he was required by the notice to submit himself for examination and ends on the day immediately preceding the day on which he submits himself for medical examination at a time and place approved by the Board.

“(5.) Where the Board suspends a person’s pension under this section by virtue of the person having failed to comply with a notice requiring him to furnish information to the Board, his pension is not payable in respect of the period that commenced upon the expiration of the period within which he was required by the notice to furnish the information and ends on the day immediately preceding the day on which he furnishes the information to the Board.

“(6.) The cost of any medical examination carried out for the purposes of this section shall be treated as part of the cost of the administration of this Act.

“(7.) For the purposes of this section—

(a) ‘invalidity benefit’ includes pension payable under section seventy-three of this Act; and
(b) where a person’s pension has been suspended under section fifty-three a of this Act, the pension shall be deemed not to have ceased to be paid.”.

First, Second and Third Schedules.

17.The First, Second and Third Schedules to the Principal Act are repealed and the following Schedules inserted in their stead:—

FIRST SCHEDULE. Section 30.

Contribution Factors Applicable to Certain Officers.

First column.	Second column.
Age (in years).	Factor.
24 or less	.050
25	.055
26	.060
27	.065
28	.070
29	.075
30	.080

SECOND SCHEDULE. Sections 38, 39 and 41.

Pension Factors.

First column.	Second column.	Third column.
Officers—age (in years).	Members other than officers—number of completed years of service for pension.	Factors.
59	39	.96
58	38	.92
57	37	.89
56	36	.86
55	35	.83
54	34	.80
53	33	.77
52	32	.74
51	31	.72
50	30	.70
49	29	.68
48	28	.66
47	27	.64
46	26	.62
45	25	.60
44	24	.58
43	23	.56
42	22	.54
41	21	.52
40	20	.50
39	..	.48
38	..	.46
37	..	.44
36	..	.42
35	..	.40

Fifth Schedule.

18. The Fifth Schedule to the Principal Act is repealed.

Part III.—Pension Increases.

Interpretation.

19.—(1.) In this Part, unless the contrary intention appears—

“actual pension entitlement”, in relation to a prescribed pensioner, means the rate at which pension was payable to him immediately before the commencing date, or, if section sixty-nine of the Defence Forces Retirement Benefits Act 1948 applied in relation to him at that time, or he had commuted a portion of his pension before that time, the rate at which pension would have been payable to him at that time if that section had not so applied in relation to him or he had not commuted a portion of his pension, as the case may be;
“basic pension entitlement”, in relation to a prescribed pensioner, means—
(a) in the case of a pensioner who retired before the commencement of the Defence Forces Retirement Benefits (Pension Increases) Act 1961—the rate at which pension was payable to him immediately before the commencement of that Act, or, if section sixty-nine of the Defence Forces Retirement Benefits Act 1948 applied in relation to him at that time, or he had commuted a portion of his pension before that time, or (being a pensioner to whom pension is payable under section fifty-two of the Defence Forces Retirement Benefits Act 1948) his classification for the purposes of that section was, at that time, different from his classification on the commencing date, the rate at which pension would have been payable to him at that time if section sixty-nine of the Defence Forces Retirement Benefits Act 1948 had not so applied in relation to him, or he had not commuted a portion of his pension, or his classification at that time had been the same as his classification on the commencing date, as the case may be; and
(b) in any other case—his actual pension entitlement;
“notional daily rate of pay”, in relation to a prescribed pensioner or a pensioner included in a class of prescribed pensioners, means such daily rate of pay payable to members immediately before the thirteenth day of July, One thousand nine hundred and sixty-one, as the Treasurer determines to be the rate that corresponds with the maximum daily rate of pay that was applicable to

the pensioner or to that class of pensioners, as the case may be, immediately before the retirement of the pensioner;
“pension at current rate”, in relation to a prescribed pensioner, means—
(a) except in the case of a pensioner to whom paragraph (b), (c) or (d) of this definition applies—the rate at which pension would have been payable to him immediately before the commencing date if the Defence Forces Retirement Benefits Act 1948–1962 had been in force immediately before his retirement and he were, subject to the next succeeding sub-section, entitled to pension in accordance with the provisions of that Act;
(b) in the case of a pensioner who was not an officer immediately before his retirement and in relation to whose pension section forty-five of the Defence Forces Retirement Benefits Act 1948 applies—such rate of pension as is ascertained by multiplying the rate of Forty-five pounds ten shillings per annum by a number the same as the category number applicable under the First Schedule to the Defence Forces Retirement Benefits Act 1948–1962 to a daily rate of pay the same as the notional daily rate of pay of the pensioner;
(c) in the case of a pensioner—
(i) the rate of whose pension has been reduced under section fifty-eight or section seventy-nine a, or under an agreement entered into in pursuance of section seventy-eight or section seventy-nine, of the Defence Forces Retirement Benefits Act 1959 or of that Act as amended;
(ii) the rate of whose pension is, by virtue of the operation of section seventy-seven or section seventy-eight of the Defence Forces Retirement Benefits Act 1948, less than it would otherwise be; or
(iii) who retired after the commencement of the Defence Forces Retirement Benefits Act 1959 and, immediately before his retirement, was not a contributor for maximum additional basic pension for the purposes of Part III. of that Act,

such rate of pension, being a proportion of the rate of pension that, but for this paragraph, would apply in relation to him under the preceding provisions of this definition, as is determined by the Treasurer to be appropriate having regard to all the circumstances of the case; and
(d) in the case of a pensioner who is a person to whom the Defence Forces Special Retirement Benefits Act 1960 applies, such rate of pension as is determined by the Treasurer to be appropriate having regard to all the circumstances of the case;
“prescribed pensioner” means a person to whom, immediately before the commencing date, a pension was payable by virtue of that person having been a contributor or by virtue of section seventy-three of the Defence Forces Retirement Benefits Act 1948, being a pension that commenced to be payable before the date fixed under sub-section (1.) of section two of the Defence Forces Retirement Benefits Act 1962;
“the commencing date” means the date of commencement of this Act.

(2.) In the application of the provisions of the Defence Forces Retirement Benefits Act 1948–1962 in relation to a prescribed pensioner for the purposes of paragraph (a) of the definition of “pension at current rate” in the last preceding sub-section—

(a) the category of the member at his retirement shall be deemed to be the category applicable under the First Schedule to that Act to a daily rate of pay the same as the notional daily rate of pay of the pensioner;
(b) section sixty-nine of that Act, and any commutation of a portion of his pension by the prescribed pensioner, shall be disregarded;
(c) if the prescribed pensioner retired before the commencement of the Defence Forces Retirement Benefits Act 1959, paragraph (b) of sub-section (4.) of section thirty-nine of the Defence Forces Retirement Benefits Act 1948–1962 shall be disregarded;
(d) if the prescribed pensioner was an officer immediately before his retirement and retired—
(i) before the commencement of the Defence Forces Retirement Benefits Act 1959;
(ii) after attaining the retiring age for the rank held by him immediately before his retirement; and

(iii) before attaining the age of sixty years,
his age on retirement shall be deemed to be the retiring age for the rank held by him immediately before his retirement; and
(e) if the prescribed pensioner was not an officer immediately before his retirement and retired—
(i) before the commencement of the Defence Forces Retirement Benefits Act 1959;
(ii) after attaining the retiring age for the rank held by him immediately before his retirement;
(iii) before attaining the age of sixty years; and
(iv) after completing twenty years’ service for pension,
the number of years of service for pension completed by him immediately before his retirement shall be deemed to be twenty years or such number of years of service for pension as had been completed by him immediately before he attained the retiring age for the rank held by him immediately before his retirement, whichever is the greater.

(3.) A reference in this Part to the Defence Forces Retirement Benefits Act 1948 shall be read as a reference to that Act as amended and in force from time to time.

(4.) Expressions used in this Part that are also used in the Defence Forces Retirement Benefits Act 1948–1963 have, in this Part, unless the contrary intention appears, the same respective meanings as they have in that Act.

Increases in pensions of prescribed pensioners.

20.Where the pension at current rate applicable to a prescribed pensioner exceeds his actual pension entitlement, he is, subject to this Part, entitled to an increase in the rate of his pension equal to five-sevenths of the difference between the pension at current rate applicable to him and his basic pension entitlement.

Application of increases to pensioners not in receipt of full pension.

21.Where a prescribed pensioner referred to in paragraph (c) of the definition of “pension at current rate” in sub-section (1.) of section nineteen of this Act is entitled to an increase in the rate of pension under the last preceding section, he is, subject to this Part, in lieu of the increase to which, but for this section, he would have been entitled in accordance with the last preceding section, entitled to an increase that bears to the increase to which he would have been so entitled the same proportion as the rate of the

pension payable to him immediately after his retirement bears to the rate of pension that would have been so payable to him if—

(a) the rate of his pension had not been reduced in the manner referred to in sub-paragraph (i) of paragraph (c) of that definition;
(b) neither section seventy-seven nor section seventy-eight of the Defence Forces Retirement Benefits Act 1948 had applied in relation to him; or
(c) he had, immediately before his retirement, been a contributor for maximum additional basic pension for the purposes of Part III. of the Defence Forces Retirement Benefits Act 1959,

as the case may be.

Application of increases to commuted pensions.

22.—(1.) Where a prescribed pensioner who has commuted a portion of his pension under section seventy-four of the Defence Forces Retirement Benefits Act 1948 is entitled to an increase in the rate of his pension under the preceding provisions of this Part, he is, subject to this Part, in lieu of the increase to which, but for this section, he would have been entitled in accordance with those provisions, entitled to an increase that bears to the increase to which he would have been so entitled the same proportion as the rate at which pension was payable to him immediately before the commencing date bears to the rate at which pension would have been payable to him immediately before that date if he had not commuted a portion of his pension.

(2.) The operation of section sixty-nine of the Defence Forces Retirement Benefits Act 1948 shall be disregarded for the purposes of the last preceding sub-section.

Adjustment in relation to previous Increase.

23. Where a prescribed pensioner was granted an increase in the rate of his pension under the Defence Forces Retirement Benefits (Pension Increases) Act 1961, any increase in the rate of his pension to which he is entitled under the preceding provisions of this Part shall be reduced by the amount of that first-mentioned increase.

Increase in widows’ pensions.

24.—(1.) Where, immediately before the commencing date—

(a)a pension was payable to a person under section fifty-five of the Defence Forces Retirement Benefits Act 1948 by virtue of that person being the widow of a member who died before retirement but who, if he had retired on the day on which he died, and had been in receipt of a pension immediately before the commencing date under sub-section (1.) of section fifty-two of the Defence Forces Retirement Benefits Act 1948, would have been entitled to an increase in that pension under this Part;

(b) a pension was payable to a person under sub-section (1.) of section fifty-seven of the Defence Forces Retirement Benefits Act 1948 by virtue of that person being the widow of a pensioner who, if he had not died and had been in receipt of his pension immediately before the commencing date, would have been entitled to an increase in that pension under this Part; or
(c) a pension was payable to a person under sub-section (3.) of section fifty-seven of the Defence Forces Retirement Benefits Act 1948 by virtue of that person being the widow of a pensioner who, if he had not died and had been in receipt of a pension immediately before the commencing date under sub-section (1.) of section fifty-two of the Defence Forces Retirement Benefits Act 1948, would have been entitled to an increase in that pension under this Part,
the widow is, subject to this Part, entitled to an increase in her pension, being an increase equal to five-eighths of the increase in pension to which her husband would have been entitled under this Part, but, in ascertaining the increase in pension to which her husband would have been entitled, regard shall not be had to section twenty-two of this Act.

(2.) The reference in the last preceding sub-section to the fraction of five-eighths shall, in the case of the widow of a person who made an election under sub-section (6.) of section forty-seven, or sub-section (4.) of section forty-eight, of the Defence Forces Retirement Benefits Act 1959, be read as a reference to the fraction of one-half.

(3.) Where—

(a) a person is the widow of a pensioner whose rate of pension was reduced under section fifty-eight or section seventy-nine a, or under an agreement entered into in pursuance of section seventy-eight or section seventy-nine, of the Defence Forces Retirement Benefits Act 1959 or of that Act as amended;
(b) the rate of pension of the widow of a member has been reduced under a section or an agreement referred to in the last preceding paragraph;
(c) the rate of pension of the widow of a member or of a pensioner is, by virtue of the operation of section seventy-seven or section seventy-eight of the Defence Forces Retirement Benefits Act 1948, less than it would otherwise be;
(d) a person is the widow of a member who died, or of a pensioner who retired, after the commencement of the Defence Forces Retirement Benefits Act 1959 and, immediately before the death of the member or the

retirement of the pensioner, as the case may be, he was not a contributor for maximum additional basic pension for the purposes of Part III. of that Act; or
(e) a person is the widow of a pensioner who was a person to whom the Defence Forces Special Retirement Benefits Act 1960 applied,

the increase in pension to which the husband of the widow would have been entitled under this Part if he had been in receipt of a pension immediately before the commencing date shall, for the purposes of sub-section (1.) of this section, be deemed to be such increase as is determined by the Treasurer having regard to all the circumstances of the case.

Application of increases to suspended pensions.

25.Where a person would, but for section fifty-three a of the Defence Forces Retirement Benefits Act 1948, be a prescribed pensioner, that person shall, upon his pension again becoming payable to him after the commencing date, be entitled to an increase in the pension equal to the increase to which he would have been entitled if he had been a prescribed pensioner.

Re-employment of pensioners.

26.Any increase in pension to which a person is entitled under this Part is subject to the operation of section sixty-nine of the Defence Forces Retirement Benefits Act 1948.

Rate of invalidity pension payable on reclassification.

27.Where, on or after the commencing date, a prescribed pensioner to whom pension is payable under section fifty-two of the Defence Forces Retirement Benefits Act 1948 is reclassified under section fifty-three of that Act, the rate at which pension is payable to him on and after the date from which the reclassification has effect shall be the rate at which pension would have been payable to him on the commencing date if he had been so reclassified with effect on and from the day immediately preceding the commencing date.

Act does not apply to pension in respect of a child.

28.The increases in pensions provided for by this Part do not apply to or in relation to pension in respect of a child.

Increase in pension not payable when pensioner in receipt of pension under the Superannuation Act.

29.—(1.) An increase in pension provided for by this Part is not payable at any time when the person entitled to the pension is also entitled to pension under the Superannuation Act 1922–1963.

(2.) Where the pension payable to the widow of a prescribed pensioner who dies on or after the commencing date is increased by virtue of the prescribed pensioner having been entitled to an increase in pension under this Part, the increase in the widow’s pension shall, for the purposes of the last preceding sub-section, be deemed to be an increase provided for by this Part.

Payment of pension Increases.

30.—(1.) The reference in sub-section (1.) of section fifteen b of the Defence Forces Retirement Benefits Act 1948–1963 to benefits under that Act shall be read as including a reference to increases in pensions payable under this Part.

(2.) The Commonwealth shall pay to the Defence Forces Retirement Benefits Fund amounts equal to the amounts by which payments of pensions (including pensions that become payable to widows of prescribed pensioners who die on or after the commencing date) are increased by virtue of this Part, and the Consolidated Revenue Fund is, to the necessary extent, appropriated accordingly.

Application.

31.Increases in pensions payable by virtue of this Part have effect from and including the first fortnightly payment of pensions made after the commencing date.

Part IV.—Miscellaneous.

Interpretation.

32.—(1.) In this Part, unless the contrary intention appears—

“additional basic pension”, in relation to a prescribed contributor, means, subject to sub-section (3.) of section forty-five of this Act—
(a) in the case of a contributor who is not entitled to make an election under sub-section (1.) of section thirty-eight of this Act or, being so entitled, does not make such an election—an amount equal to his maximum additional basic pension;
(b) in the case of a contributor who makes an election under paragraph (a) of that sub-section—nil; or
(c) in the case of a contributor who makes an election under paragraph (b) of that sub-section—an amount equal to such part of his maximum additional basic pension as is specified in the election;
“contributor for maximum additional basic pension” means a prescribed contributor whose additional basic pension is equal to his maximum additional basic pension;

“contributor for portion of maximum additional basic pension” means a prescribed contributor, other than a contributor not contributing for additional basic pension, whose additional basic pension is less than his maximum additional basic pension;
“contributor not contributing for additional basic pension” means a prescribed contributor whose additional basic pension is nil;
“existing contributor” means a person, other than a prescribed contributor, who is a member on the commencing date and was, immediately before that date, a contributor;
“future basic pension” means—
(a) in relation to a prescribed contributor who, before the commencing date, has not attained the retiring age for the rank held by him on that date—an amount equal to the amount of pension per annum payable in accordance with the provisions of section thirty-eight of the Defence Forces Retirement Benefits Act 1948–1963 to an officer of the same category as the prescribed contributor who retires on attaining the retiring age for the rank held by him after completing twenty years’ service for pension; and

(b) in relation to a prescribed contributor who, before the commencing date, has attained the retiring age for the rank held by him on that date—an amount equal to the amount of pension per annum that would be payable in accordance with the provisions of section thirty-eight of the Defence Forces Retirement Benefits Act 1948–1963 to an officer of the same category and age as the prescribed contributor who retired on the commencing date after completing twenty years’ service for pension;
“maximum additional basic pension”, in relation to a prescribed contributor, means—
(a) if his future basic pension exceeds his previous basic pension—an amount equal to the difference between his future basic pension and his previous basic pension; and
(b) in any other case—nil;
“prescribed contributor” means a person who is a member on the commencing date and is an existing contributor

as defined by sub-section (1.) of section thirty-eight of the Defence Forces Retirement Benefits Act 1959, but—
(a) does not include a person—
(i) to whom regulation 5 or regulation 7 of the Defence Forces Retirement Benefits (Existing Contributors) Regulations as in force immediately before the commencing date applies; or
(ii) to whom regulation 6 of the Defence Forces Retirement Benefits (Prescribed Contributors) Regulations as in force immediately before the commencing date applies; and
(b) except in a provision that is expressed to extend to members other than officers—does not include such members;
“previous basic pension”, in relation to a prescribed contributor, means an amount equal to the amount of pension per annum specified in Part I. of the Third Schedule to the Principal Act—
(a) opposite to the category of members within which the officer was included, for the purposes of the Principal Act, immediately before the commencing date; and
(b) in relation to—
(i) if the officer had, within the period of two years immediately before the commencing date, attained the retiring age for the rank held by him immediately before that date—the age attained by him immediately before that date;
(ii) if the officer had, before the commencing date but not within the period of two years immediately before that date, attained the retiring age for the rank held by him immediately before that date—the age attained by him at the expiration of the period of two years after he had attained that retiring age; or
(iii) in any other case—the age that is the retiring age for the rank held by the officer immediately before the commencing date;
“the commencing date” means the date of commencement of this Act.

(2.) In this Part, unless the contrary intention appears, expressions defined by the Principal Act as amended by this Act have the same respective meanings as they have in the Principal Act as so amended.

(3.) A reference in this Part to pension payable to or in respect of a person shall be read as not including a reference to pension payable in respect of a child.

(4.) Where the category of a prescribed contributor who has attained the retiring age for the rank held by him changes and—

(a) the change occurred as a result of his being reduced to a lower rank; or
(b) the change occurred after the expiration of a period of two years after he has attained that retiring age,

that change in category shall be disregarded for the purposes of the Defence Forces Retirement Benefits Act 1948–1963 and of any other Act relating to retirement benefits for members of the Defence Forces of the Commonwealth.

(5.) The last preceding sub-section extends to members other than officers.

Determination of number of fortnightly periods applicable to a prescribed contributor.

33.For the purposes of sections thirty-nine and forty-one of this Act, the number of fortnightly periods applicable to a prescribed contributor shall be deemed to be the number of successive periods of a fortnight (including any period consisting of part of a fortnight) included in the period commencing on the pay-day next following the commencing date and ending on the date on which he will attain the retiring age for the rank held by him immediately before the commencing date.

Elections under this Part.

34.—(1.) Notwithstanding anything contained in this Part, a person is not entitled to make an election under this Part after he ceases to be a member.

(2.) A person is not permitted to vary or revoke an election made by him under this Part.

Application of Defence Forces Retirement Benefits Acts to prescribed contributors.

35.—(1.) Subject to this Part, the provisions of the Defence Forces Retirement Benefits Act 1948–1963, of Part III. of the Defence Forces Retirement Benefits Act 1959–1962 and of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963 apply to and in relation to prescribed contributors.

(2.) This section extends to members other than officers.

Contributions by prescribed contributors.

36.—(1.) A prescribed contributor shall not contribute to the Fund except as provided by this Part.

(2.) This section extends to members other than officers.

Prescribed contributors to continue existing contributions.

37.—(1.) Subject to this Part, each prescribed contributor shall, after the commencement of this Part, make contributions to the

Fund as provided by Part IV. of the Defence Forces Retirement Benefits Act 1962–1963.

(2.) This section extends to members other than officers.

Election not to contribute for maximum pension.

38.—(1.) Where, before the commencing date, a prescribed contributor had attained the retiring age for the rank held by him immediately before that date or had attained an age within eight years of that retiring age, he may, by notice in writing given to the Board on, or within six months after, the commencing date—

(a) elect not to contribute for additional basic pension; or
(b) elect to contribute for such part only of his maximum additional basic pension as is specified in the election.

(2.) An election made under the last preceding sub-section after the commencing date has effect as if it had been made on that date.

Contributions for additional basic pension.

39.—(1.) A prescribed contributor (other than a contributor who makes an election under paragraph (a) of sub-section (1.) of the last preceding section or to whom the next succeeding section applies) shall, after the commencing date, in addition to any other contributions that he is required to make to the Fund, make fortnightly contributions to the Fund of an amount ascertained or determined in accordance with the succeeding provisions of this section.

(2.) Where the number of fortnightly periods applicable to a contributor is a number specified in the first column of the First Schedule to the Defence Forces Retirement Benefits Act 1959–1962, the amount of each fortnightly contribution payable by him under the last preceding sub-section is eighty-five per centum of an amount that bears to the amount that is applicable to him in accordance with the next succeeding sub-section the same proportion as the amount of his additional basic pension on the commencing date bears to One hundred pounds.

(3.) For the purposes of the last preceding sub-section, the amount applicable to a prescribed contributor is such amount specified in the Schedule referred to in that sub-section as is applicable to him having regard to the number of fortnightly periods applicable to him and to the retiring age for the rank held by him immediately before the commencing date.

would have been payable by him in accordance with the last preceding sub-section if the number of fortnightly periods applicable to him had been the next lower number that is specified in the first column of that Schedule.

(5.) Where a prescribed contributor to whom this section applies ceases to be a member on or after the commencing date and before the pay-day next following that date, he shall, for the purposes of sub-section (1.) of section sixty-eight of the Defence Forces Retirement Benefits Act 1948–1963, be deemed, notwithstanding anything contained in section forty-six of this Act, to be liable to pay to the Fund one fortnightly contribution under this section.

Contribution for additional basic pension—prescribed contributor who attained retiring age before commencing date, &c.

40.—(1.) This section applies to a prescribed contributor who does not make an election under paragraph (a) of sub-section (1.) of section thirty-eight of this Act and—

(a) had, before the commencing date, attained the retiring age for the rank held by him immediately before that date; or
(b) will, on or after the commencing date and before the pay-day next following that date, attain that retiring age.

(2.) A prescribed contributor to whom this section applies shall, before the expiration of three months after the commencing date or before the day on which he ceases to be a member, whichever first occurs, in addition to any other contributions that he is required to make to the Fund, make one contribution to the Fund equal to eighty-five per centum of an amount that bears to the amount that is applicable to him in accordance with the next succeeding sub-section the same proportion as the amount of his additional basic pension on the commencing date bears to One hundred pounds.

(3.) For the purposes of the last preceding sub-section, the amount applicable to a prescribed contributor is such amount specified in the Second Schedule to the Defence Forces Retirement Benefits Act 1959–1962 as is applicable to the contributor having regard to—

(a) if he is an officer to whom paragraph (a) of sub-section (1.) of this section applies—the age attained by him immediately before the commencing date; or
(b) if he is an officer to whom paragraph (b) of that sub-section applies—the retiring age for the rank held by him.

Contributions for additional widow’s pension.

41.—(1.) A prescribed contributor (other than a female or a contributor who has made an election under sub-section (6.) of section forty-seven of the Defence Forces Retirement Benefits Act 1959 or of that Act as amended or to whom the next succeeding

section applies) shall, after the commencing date, in addition to any other contributions that he is required to make to the Fund, make fortnightly contributions to the Fund of an amount ascertained or determined in accordance with the succeeding provisions of this section.

(2.) Where the number of fortnightly periods applicable to a contributor is a number specified in the first column of the Third Schedule to the Defence Forces Retirement Benefits Act 1959–1962, the amount of each fortnightly contribution payable by him under the last preceding sub-section is eighty-five per centum of an amount that bears to the amount that is applicable to him in accordance with the next succeeding sub-section the same proportion as his additional basic pension on the commencing date bears to One hundred pounds.

(4.) Where the number of fortnightly periods applicable to a contributor is a number that is not specified in the Schedule referred to in sub-section (2.) of this section, the amount of each fortnightly contribution payable by him under sub-section (1.) of this section is such amount as is determined by the Board on the advice of the Commonwealth Actuary, being an amount not greater than the amount of each fortnightly contribution that would have been payable by him in accordance with the last preceding sub-section if the number of fortnightly periods applicable to him had been the next lower number that is specified in the first column of that Schedule.

Contribution for additional widow’s pension—prescribed contributor who attained retiring age before commencing data, &c.

42.—(1.) This section applies to a prescribed contributor (other than a female or a contributor who has made an election under sub-section (4.) of section forty-eight of the Defence Forces Retirement Benefits Act 1959) who—

(a) had, before the commencing date, attained the retiring age for the rank held by him immediately before that date; or

(b) will, on or after the commencing date and before the pay-day next following that date, attain that retiring age.

(2.) A prescribed contributor to whom this section applies shall, before the expiration of three months after the commencing date or before the day on which he ceases to be a member, whichever first occurs, in addition to any other contributions that he is required to make to the Fund, make one contribution to the Fund equal to eighty-five per centum of an amount that bears to the amount that is applicable to him in accordance with the next succeeding sub-section the same proportion as his additional basic pension on the commencing date bears to One hundred pounds.

(3.) For the purposes of the last preceding sub-section, the amount applicable to a prescribed contributor is such amount specified in the Fourth Schedule to the Defence Forces Retirement Benefits Act 1959–1962 as is applicable to the contributor having regard to—

(a) if he is an officer to whom paragraph (a) of sub-section (1.) of this section applies—the age attained by him immediately before the commencing date; or
(b) if he is an officer to whom paragraph (b) of that sub-section applies—the retiring age for the rank held by him.

Contribution on change of category, &c., prescribed contributors.

43.—(1.) Section forty-nine of the Defence Forces Retirement Benefits Act 1959–1962 and section thirty-three of the Defence Forces Retirement Benefits Act 1962–1963 do not apply to or in relation to a promotion, or a change in the category or retiring age, of a prescribed contributor that takes effect on or after the commencing date.

(2.) Where the category of a prescribed contributor (other than a contributor who has attained the retiring age for the rank held by him) who is not liable to make additional contributions to the Fund changes and, as a result of the change, he is included within a category that has a higher category number than the category within which he was included immediately before the change, he shall, in addition to any other contributions that he is required to make to the Fund, make, as from the date of the change (or, if that date is not a pay-day, as from the next following pay-day) fortnightly contributions to the Fund of such amount as is determined in accordance with regulations made for the purposes of this section.

(3.) Where the category of a prescribed contributor (other than a contributor who has attained the retiring age for the rank held by him) who is liable to make additional contributions to the Fund changes, the amount to be paid fortnightly by him to

the Fund in respect of those contributions shall, as from the date of the change (or, if that date is not a pay-day, as from the next following pay-day), be, in lieu of the amount that but for this sub-section would be payable, such amount as is determined in accordance with regulations made for the purposes of this section.

(4.) Where, at any time, the retiring age applicable to a prescribed contributor who is liable to make additional contributions to the Fund changes by reason of a change in his rank, branch or group or for any other reason but his category does not change at that time, the amount to be paid fortnightly by him to the Fund in respect of those contributions shall, as from the date of the change (or, if that date is not a pay-day, as from the next following pay-day), be, in lieu of the amount that but for this sub-section would be payable, such amount as is determined in accordance with regulations made for the purposes of this section.

(5.) The Governor-General may make regulations, not inconsistent with this Act, prescribing matters that are required or permitted by this section to be prescribed, or are necessary or convenient to be prescribed for giving effect to this section, and regulations so made within the period of six months immediately following the commencing date shall, unless otherwise provided by the regulations, have effect and be deemed to have had effect from and including that date.

(6.) In this section—

“additional contributions” means contributions payable to the Fund as provided by this Part, other than contributions payable in accordance with the provisions of the Defence Forces Retirement Benefits Act 1948–1958;
“retiring age”, in relation to a prescribed contributor, means the age that is the retiring age for the rank held by him.

(7.) This section extends to members other than officers.

Contribution on change of category of prescribed contributor who has attained retiring age.

44.—(1.) Where the category of a prescribed contributor who has attained the retiring age for the rank held by him changes and, as a result of the change, he is included within a category that has a higher category number than the category within which he was included immediately before the change, he shall, before the expiration of one month after the date of the change or before the day on which he ceases to be a member, whichever first occurs, in addition to any other contributions that he is required to make to the Fund, make one contribution to the Fund of such amount as is determined by the Board on the advice of the Commonwealth Actuary.

(2.)This section extends to members other than officers.

Election on change of category to make additional contributions.

45.—(1.) Where, on or after the commencing date, the category of a prescribed contributor who has made an election under section thirty-eight of this Act changes and, as a result of the change, he is included within a category that has a higher category number than the category within which he was included immediately before the change, he may, by notice in writing given to the Board within four months’ after the change, elect to contribute under this section for such part of his maximum additional basic pension as is specified in the election and does not exceed the difference between the amount of his maximum additional basic pension and the amount of his additional basic pension immediately before the change.

(2.) An election under the last preceding sub-section does not have effect unless, within six months after the election, the contributor satisfies the Board that he is not suffering from any physical or mental defect likely to render him incapable of performing his duties.

(3.) Where an election is made by a contributor under sub-section (1.) of this section—

(a) the contributor shall, in addition to any other contributions that he is required to make to the Fund, make, as from the date of the election (or, if that date is not a pay-day, as from the next following pay-day), fortnightly contributions to the Fund of such amount as is determined by the Board on the advice of the Commonwealth Actuary; and

(b) the amount of his additional basic pension shall, as from the date of the election, be deemed to be increased by an amount equal to such part of his maximum additional basic pension as is specified in the election.

Cessation of additional contributions payable under this Part.

46.—(1.) A prescribed contributor, being an officer, shall not make additional contributions to the Fund in respect of any period after the day on which—

(a) he ceases to be a member; or
(b) he attains the retiring age for the rank held by him,

whichever first occurs, or, if that day is not a pay-day, after the pay-day last preceding that day.

(2.) A prescribed contributor, not being an officer, shall not make additional contributions to the Fund in respect of any period after the day on which—

(a) he ceases to be a member;
(b) he attains the retiring age for the rank held by him; or
(c) he completes twenty years’ service for pension,

whichever first occurs, or, if that day is not a pay-day, after the pay-day last preceding that day.

(3.) In the application of the last preceding sub-section to a prescribed contributor who, before completing the engagement under which he is serving on the commencing date, completes twenty years’ service for pension, the reference in that sub-section to the day on which a prescribed contributor completes twenty years’ service for pension shall be read as a reference to the day on which he completes that engagement.

(4.) Where—

(a) a prescribed contributor, not being an officer, has, by virtue of the operation of the preceding provisions of this section, ceased to be liable to make additional contributions to the Fund and, after he has so ceased, his category changes and he becomes liable to make contributions to the Fund under section forty-three of this Act; or
(b) a change takes place in the category of a prescribed contributor, not being an officer, who has not at any time made additional contributions to the Fund and—
(i) has completed twenty years’ service for pension; or
(ii) will, at the completion of the engagement under which he is serving, have completed twenty years’ service for pension,
and he becomes liable to make contributions to the Fund under section forty-three of this Act,

he shall not make those last-mentioned contributions in respect of any period after the day on which—

(c) he ceases to be a member;
(d) he attains the retiring age for the rank held by him; or
(e) he completes the engagement under which he was serving on the day on which his category changed,

whichever first occurs, or, if that day is not a pay-day, after the pay-day last preceding that day.

(5.) In this section, “additional contributions” means contributions payable to the Fund as provided by this Part, other than contributions under section thirty-seven, section forty, section forty-two or section forty-four of this Act or contributions with respect to the cessation of which provision is made in the last preceding sub-section.

(6.) This section extends to members other than officers.

Contributions under this Part deemed to be contributions paid under the Defence Forces Retirement Benefits Act 1948–1963.

47.—(1.) In the application of the Defence Forces Retirement Benefits Act 1948–1963 to a prescribed contributor, contributions paid by him under the provisions of this Part shall be deemed to be contributions paid by him under that Act.

(2.) This section extends to members other than officers.

Pension to or in respect of contributor not contributing for additional basic pension.

48.—(1.) This section applies to a person who—

(a) has ceased to be a member; and
(b) immediately before he so ceased, was not a contributor for additional basic pension by reason of an election under paragraph (a) of sub-section (1.) of section thirty-eight of this Act.

(2.) Where pension becomes payable to or in respect of a person to whom this section applies under the Defence Forces Retirement Benefits Act 1948–1963 (not being pension payable to a widow under section fifty-seven of that Act), the amount of that pension per annum is, in lieu of the amount that, but for this section, would be payable, an amount ascertained in accordance with the succeeding provisions of this section.

(3.) Subject to the next two succeeding sub-sections, the amount of pension per annum payable in pursuance of the last preceding sub-section to or in respect of a person is—

(a) an amount equal to the amount of pension per annum that would have been payable to or in respect of the person by virtue of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963 if this Act other than section sixty-three had not been enacted; or
(b) if the person was, immediately before he ceased to be a member, included within a category other than the category within which he was included immediately before the commencing date—whichever is the greater of—
(i) the amount referred to in the last preceding paragraph; or
(ii) the sum of that amount and an amount ascertained in accordance with the formula (A—B) — (C—D), where—
A is the amount of pension per annum that would have been payable to or in respect of the person under the Defence Forces Retirement Benefits Act 1948–1963 if the provisions of this Part, of Part III. of the Defence Forces Retirement Benefits Act 1959 and of Part IV. of the Defence Forces Retirement Benefits Act 1962 had not been enacted;
B is the amount of pension per annum that would have been payable to or in respect of the person under the Defence Forces Retirement Benefits Act 1948–1963 if the provisions of this Part, of Part III. of the Defence Forces Retirement Benefits Act 1959 and of Part IV. of the Defence Forces Retirement

Benefits Act 1962 had not been enacted and the category within which he was included immediately before he ceased to be a member had been the category within which he was included immediately before the commencing date;
C is the amount of pension per annum that would have been payable to or in respect of the person under the Principal Act if this Act and the provisions of Part III. of the Defence Forces Retirement Benefits Act 1959 and of Part IV. of the Defence Forces Retirement Benefits Act 1962 had not been enacted; and
D is the amount of pension per annum that would have been payable to or in respect of the person under the Principal Act if this Act and the provisions of Part III. of the Defence Forces Retirement Benefits Act 1959 and of Part IV. of the Defence Forces Retirement Benefits Act 1962 had not been enacted and the category within which he was included immediately before he ceased to be a member had been the category within which he was included immediately before the commencing date.

(4.) Where a person to whom this section applies ceased to be a member after the expiration of two years after he attained the retiring age for the rank held by him immediately before the commencing date, the amounts of pension per annum respectively represented by the symbols B and D in the formula set out in the last preceding sub-section shall be determined without regard to sub-section (4.) of section thirty-eight of the Defence Forces Retirement Benefits Act 1948–1959 or of that Act as amended from time to time.

(5.) In ascertaining the amount of the pension payable to the widow of a person to whom this section applies and who made an election under section forty-seven or section forty-eight of the Defence Forces Retirement Benefits Act 1959 or of that Act as amended, the amount ascertained in accordance with the formula specified in sub-paragraph (ii) of paragraph (b) of sub-section (3.) of this section shall be reduced by one-fifth.

Pension to or in respect of contributor for portion of maximum additional basic pension.

49.—(1.) This section applies to a person who—

(a) has ceased to be a member; and
(b) immediately before he so ceased, was a contributor for portion of maximum additional basic pension.

(3.) The amount of pension per annum payable in pursuance of the last preceding sub-section to or in respect of a person is the sum of—

(a) an amount equal to the amount of pension per annum that would have been payable to or in respect of the person if he had, immediately before he ceased to be a member, been a contributor not contributing for additional basic pension; and
(b) an amount that bears to an amount equal to the difference between—
(i) the amount of pension per annum that would have been payable to or in respect of the person if he had, immediately before he ceased to be a member, been a contributor for maximum additional basic pension; and
(ii) the amount referred to in the last preceding paragraph,
the same proportion as the amount of his additional basic pension immediately before he ceased to be a member bears to the amount of his maximum additional basic pension.

Pension to or in respect of certain contributors for maximum additional basic pension.

50.—(1.) This section applies to a person who has ceased to be a member and, immediately before he so ceased—

(a) was a prescribed contributor other than an officer; or
(b) was an officer and a contributor for maximum additional basic pension under this Part but was not a contributor for maximum additional basic pension under Part III. of the Defence Forces Retirement Benefits Act 1959–1962 or under Part IV. of the Defence Forces Retirement Benefits Act 1962–1963.

of that pension per annum is, in lieu of the amount that, but for this section, would be payable, an amount ascertained in accordance with the next succeeding sub-section.

(3.) The amount of pension per annum payable in pursuance of the last preceding sub-section to or in respect of a person is an amount equal to the amount of pension per annum that would have been payable to or in respect of the person by virtue of the Defence Forces Retirement Benefits Act 1962–1963 if this Act other than section sixty-three had not been enacted, increased by an amount equal to the amount, if any, by which pension at current rate applicable to him exceeds pension at previous rate applicable to him.

(4.) In this section—

“pension at current rate”, in relation to a person, means the amount of pension per annum that would have been payable to or in respect of him under the Defence Forces Retirement Benefits Act 1948–1963 if the provisions of this Part, of Part IV. of the Defence Forces Retirement Benefits Act 1962 and of Part III. of the Defence Forces Retirement Benefits Act 1959 had not been enacted, reduced, in the case of a pension payable to the widow of a person who made an election under section forty-seven or section forty-eight of that last-mentioned Act or of that Act as amended, by one-fifth;
“pension at previous rate”, in relation to a person, means the amount of pension per annum that would have been payable to or in respect of him by virtue of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963 if this Act other than section sixty-three had not been enacted and he had been a contributor for maximum additional basic pension under that Part.

(5.) This section extends to members other than officers.

Reduction in certain pensions.

51.—(1.) This section applies to a prescribed contributor who retires and, immediately before his retirement, was a contributor for maximum additional basic pension or a contributor for portion of maximum additional basic pension or was making contributions to the Fund under section forty-three of this Act.

(2.) Where a prescribed contributor to whom this section applies—

(a) having been an officer—is entitled to a pension under the Defence Forces Retirement Benefits Act 1948–1963 by virtue of paragraph (b) or (c) of sub-section (2.) of section thirty-nine of that Act; or

(b) not having been an officer—retired before completing the engagement under which he was serving immediately before his retirement and is entitled to a pension under section forty-one of that Act,

the pension may be reduced by the Board to such extent as is determined by the Board on the advice of the Commonwealth Actuary unless, within one month after his retirement or within such further period as the Board allows, he pays to the Fund a contribution of such amount as is determined by the Board on the advice of the Commonwealth Actuary.

(3.) The Commonwealth Actuary shall, in advising the Board in relation to a person for the purposes of the last preceding sub-section, have regard to the amount of the additional basic pension of the person, and to the amount of the contributions being made by him under this Part (other than under section thirty-seven of this Act), immediately before his retirement.

(4.) This section extends to members other than officers.

Application of certain provisions of Defence Forces Retirement Benefits Act 1948–1963.

52.—(1.) Nothing in this Part shall be construed as affecting the application of the provisions of section forty-two a, section fifty or sub-section (10.) of section fifty-two of the Defence Forces Retirement Benefits Act 1948–1963 to or in relation to a prescribed contributor.

(2.) This section extends to members other than officers.

Special provisions relating to certain Air Force Officers.

53.—(1.) This section applies to a prescribed contributor to whom section seventy-six of the Defence Forces Retirement Benefits Act 1959–1962 applies.

(2.) Subject to this section, this Part does not apply to or in relation to a prescribed contributor to whom this section applies.

(3.) The Board may, if it thinks fit, on application by a prescribed contributor to whom this section applies made within four months after the commencing date, enter into an agreement with him under which provision is made for the contributor to make contributions to the Fund in addition to those that he is otherwise required to make and for the amount of any benefit payable to or in respect of the contributor to be increased accordingly.

Deferment of payment of contributions.

54.—(1.) In this section—

“additional contributions”, in relation to a prescribed contributor, means the contributions that he is required to make to the Fund under this Part (other than under section thirty-seven, section forty, section forty-two, section forty-three, section forty-four or section forty-five of this Act);
“daily rate of pay”, in relation to a prescribed contributor, means his daily rate of pay on the commencing date.

(2.) Where—

(a) a prescribed contributor makes or is entitled to make an election under section thirty-eight of this Act; and
(b) the sum of—
(i) the amount of additional contributions to be paid fortnightly by him to the Fund; and
(ii) the amount of the contributions that he was required to pay fortnightly to the Fund immediately before the commencing date,
exceeds one-tenth of the product of his daily rate of pay and fourteen,

he may, subject to this section, by notice in writing given to the Board on, or within six months after, the commencing date, inform the Board that he wishes to defer payment of his fortnightly additional contributions or of such part of those contributions as is specified in the notice.

(3.) Where a contributor gives a notice under the last preceding sub-section—

(a) payment of his fortnightly additional contributions or of the part of those contributions specified in the notice, as the case may be, (in this sub-section referred to as “the deferred contributions”) shall be deferred;
(b) compound interest at the rate of five per centum per annum is payable to the Fund upon the deferred contributions;
(c) the amount of the deferred contributions and interest upon the deferred contributions, or of so much of the deferred contributions and of that interest as has not previously been paid, shall be paid to the Fund within one month after the contributor ceases to be a member or within such further period as the Board allows; and
(d) if any such amount is not so paid, the rate of any pension payable to or in respect of the contributor shall be reduced to such extent as is determined by the Board on the advice of the Commonwealth Actuary, having regard to the amount not paid, or, in the event of the death of the contributor, or of the contributor otherwise ceasing to be a member, in such circumstances that no pension becomes payable to or in respect of the contributor, any such amount—
(i) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the contributor, be deducted by the Board from the benefit; and

(ii) may, to the extent, if any, that it exceeds the amount of any such benefit, be recovered by the Board as a debt due by the contributor to the Board, in any court of competent jurisdiction.

(4.) Where an amount is deducted by the Board under the last preceding sub-section from any benefit and the benefit consists of a refund of contributions and a gratuity, the deduction shall be made successively from the amount of the refund and the amount of the gratuity.

(5.) The amount of the contributor’s fortnightly payment to the Fund in respect of his additional contributions shall not, by virtue of this section, be reduced to an amount that, together with the amount referred to in sub-paragraph (ii) of paragraph (b) of sub-section (2.) of this section, is less than one-tenth of the product of his daily rate of pay and fourteen.

(6.) This section has effect notwithstanding anything contained in any other provision of this Act or in any provision of the Defence Forces Retirement Benefits Act 1948–1963.

Deferment of payment of contribution payable under section 40 or 42 of this Act.

55.—(1.) A prescribed contributor who is required to make a contribution to the Fund under section forty or section forty-two of this Act may, by notice in writing given to the Board within one month after the commencing date, or within such further time as the Board allows, inform the Board that he wishes to defer payment of the contribution or of such part of the contribution as is specified in the notice.

(2.) Where a contributor gives a notice under the last preceding sub-section—

(a) payment of his contribution or of the part of the contribution specified in the notice, as the case may be, (in this sub-section referred to as “the deferred contribution”) shall be deferred;
(b) compound interest at the rate of five per centum per annum is payable to the Fund upon the deferred contribution;
(c) the amount of the deferred contribution and interest upon the deferred contribution, or of so much of the deferred contribution and of that interest as has not previously been paid, shall be paid to the Fund within one month after the contributor ceases to be a member or within such further period as the Board allows; and

(d) if any such amount is not so paid, the rate of any pension payable to or in respect of the contributor shall be reduced to such extent as is determined by the Board on the advice of the Commonwealth Actuary, having regard to the amount not paid, or, in the event of the death of the contributor, or of the contributor otherwise ceasing to be a member, in such circumstances that no pension becomes payable to or in respect of the contributor, any such amount—
(i) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the contributor, be deducted by the Board from the benefit; and
(ii) may, to the extent, if any, that it exceeds the amount of any such benefit, be recovered by the Board as a debt due by the contributor to the Board in any court of competent jurisdiction.

(3.) Where an amount is deducted by the Board under the last preceding sub-section from any benefit and the benefit consists of a refund of contributions and a gratuity, the deductions shall be made successively from the amount of the refund and the amount of the gratuity.

(4.) This section has effect notwithstanding anything contained in any other provision of this Act or in any provision of the Defence Forces Retirement Benefits Act 1948–1963.

Deferment of payment of contributions payable on change of category, &c.

56.—(1.) In this section—

“additional contributions”, in relation to a prescribed contributor whose category or retiring age has changed, means the contributions that he is, by reason of the change, required to make to the Fund under section forty-three of this Act;
“retiring age”, in relation to a prescribed contributor, means the age that is the retiring age for the rank held by him.

(2.) Where, on application by a prescribed contributor whose category or retiring age has changed, the Board is satisfied that the contributor would suffer hardship if he were required to pay additional contributions fortnightly to the Fund, the Board may consent to the deferment of payment of the whole or any part of the additional contributions.

(3.) Where the Board so consents—

(a) payment of the contributor’s fortnightly additional contributions or of the part of those contributions to which the consent relates, as the case may be, (in this sub-section referred to as “the deferred contributions”) shall be deferred;

(b) compound interest at the rate of five per centum per annum is payable to the Fund upon the deferred contributions;
(c) the amount of the deferred contributions and interest upon the deferred contributions, or of so much of the deferred contributions and of that interest as has not previously been paid, shall be paid to the Fund within one month after the contributor ceases to be a member or within such further period as the Board allows; and
(d) if any such amount is not so paid, the rate of any pension payable to or in respect of the contributor shall be reduced to such extent as is determined by the Board on the advice of the Commonwealth Actuary, having regard to the amount not paid, or, in the event of the death of the contributor, or of the contributor otherwise ceasing to be a member, in such circumstances that no pension becomes payable to or in respect of the contributor, any such amount—
(i) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the contributor, be deducted by the Board from the benefit; and
(ii) may, to the extent, if any, that it exceeds the amount of any such benefit, be recovered by the Board as a debt due by the contributor to the Board in any court of competent jurisdiction.

(5.) This section has effect notwithstanding anything contained in any other provision of this Act or in any provision of the Defence Forces Retirement Benefits Act 1948–1963.

(6.) This section extends to members other than officers.

Deferment of payment of contribution payable under section 44 of this Act.

57.—(1.) Where, on application by a prescribed contributor who is required to make a contribution to the Fund under section forty-four of this Act, the Board is satisfied that the contributor would suffer hardship if he were required to pay that contribution to the Fund, the Board may consent to the deferment of payment of the whole or any part of that contribution.

(2.) Where the Board so consents—

(a) payment of the contribution or of the part of the contribution (in this sub-section referred to as “the deferred contribution”) shall be deferred;

(b) compound interest at the rate of five per centum per annum is payable to the Fund upon the deferred contribution;
(c) the amount of the deferred contribution and interest upon the deferred contribution, or of so much of the deferred contribution and of that interest as has not previously been paid, shall be paid to the Fund within one month after the contributor ceases to be a member or within such further period as the Board allows; and
(d) if any such amount is not so paid, the rate of any pension payable to or in respect of the contributor shall be reduced to such extent as is determined by the Board on the advice of the Commonwealth Actuary, having regard to the amount not paid, or, in the event of the death of the contributor, or of the contributor otherwise ceasing to be a member, in such circumstances that no pension becomes payable to or in respect of the contributor, any such amount—
(i) shall, to the extent that it does not exceed the amount of any benefit payable to or in respect of the contributor, be deducted by the Board from the benefit; and
(ii) may, to the extent, if any, that it exceeds the amount of any such benefit, be recovered by the Board as a debt due by the contributor to the Board in any court of competent jurisdiction.

(3.) Where an amount is deducted by the Board under the last preceding sub-section from any benefit and the benefit consists of a refund of contributions and a gratuity, the deduction shall be made successively from the amount of the refund and the amount of the gratuity.

(4.) This section has effect notwithstanding anything contained in any other provision of this Act or in any provision of the Defence Forces Retirement Benefits Act 1948–1963.

(5.) This section extends to members other than officers.

Pensions of certain existing contributors not to be reduced.

58.—(1.) Notwithstanding anything contained in the Defence Forces Retirement Benefits Act 1948–1963, where pension becomes payable under that Act (not being pension payable to a widow under section fifty-seven of that Act) to or in respect of an existing contributor who—

(a) is an existing contributor for the purposes of Part IV. of the Defence Forces Retirement Benefits Act 1962; and
(b) is, immediately before pension becomes so payable, included within the category within which he was

included on the day immediately preceding the commencement of that Part,

the rate of that pension shall not be less than the rate of pension that would have been payable to or in respect of him under the Defence Forces Retirement Benefits Act 1948–1959 if the Defence Forces Retirement Benefits Act 1962 and this Act had not been enacted.

(2.) For the purposes of the last preceding sub-section, the category of a member on the day immediately preceding the commencement of Part IV. of the Defence Forces Retirement Benefits Act 1962 shall be deemed to be the category that would have applied to the member if the date fixed under sub-section (1.) of section two of that Act had been the date immediately preceding the date of commencement of that Part.

Contributions by existing contributors.

59. Notwithstanding anything contained in the Defence Forces Retirement Benefits Act 1948–1963, where the daily rate of pay of an existing contributor is, on the commencing date, the same as his daily rate of pay immediately before that date, the amount of the fortnightly contributions payable by him under that Act is, until there is a change in his daily rate of pay that results in a change in his category, the amount of the fortnightly contributions that would have been payable by him if this Act had not been enacted.

Election by certain prescribed contributors to contribute for neglected pension.

60.—(1.) Subject to this section, a prescribed contributor who—

(a) is not an officer or is an officer who has not made an election under section thirty-eight of this Act; and
(b) is not a contributor for maximum additional basic pension for the purposes of Part III. of the Defence Forces Retirement Benefits Act 1959–1962 or is not a contributor for maximum additional basic pension for the purposes of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963,

may, by notice in writing given to the Board within six months after the commencing date, elect to contribute for such part of that maximum additional basic pension as is specified in the election and does not exceed the difference between the amount of that maximum additional basic pension and the amount that, immediately before the election, was his additional basic pension for the purposes of Part III. of the Defence Forces Retirement Benefits Act 1959–1962 or for the purposes of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963, as the case may be.

(2.) Where a contributor who has made an election under the last preceding sub-section makes an election under section thirty-eight of this Act, the election made by him under the last preceding sub-section shall be deemed not to have been made.

(3.) An election under sub-section (1.) of this section does not have effect unless, within six months after the election, the contributor satisfies the Board that he is not suffering from any physical or mental defect likely to render him incapable of performing his duties.

(4.) Where an election is made by a contributor under sub-section (1.) of this section—

(a) the contributor shall, in addition to any other contributions that he is required to make to the Fund, make, as from the date of the election (or, if that date is not a pay-day, as from the next following pay-day), fortnightly contributions to the Fund of such amount as is determined by the Board on the advice of the Commonwealth Actuary; and
(b) the amount of his additional basic pension for the purposes of Part III. of the Defence Forces Retirement Benefits Act 1959–1962 or for the purposes of Part IV. of the Defence Forces Retirement Benefits Act 1962–1963, as the case may be, shall, as from the date of the election, be deemed to be increased by an amount equal to such part of his maximum additional basic pension for the purposes of that Part as is specified in the election.

(5.) This section extends to members other than officers.

Advance Contributions Account.

61.—(1.) The Governor-General may make regulations, not inconsistent with this Act, making provision for and in relation to—

(a) the establishment of an Advance Contributions Account as part of the Defence Forces Retirement Benefits Fund;
(b) the payment into that account by prescribed contributors to whom the regulations are expressed to apply of amounts by way of advance contributions;
(c) the payment, refund or other application of moneys forming part of that account; and
(d) the payment of interest on amounts paid into that account by contributors.

(2.) This section extends to members other than officers.

Existing pensioners.

62.The amendments of the Principal Act made by this Act do not apply to or in relation to—

(a) a person who had become entitled to pension under the Principal Act before the commencing date or a person who becomes the widow of such a person on or after that date; or

(b) any pension that is or becomes payable to a person referred to in the last preceding paragraph.

Amendment of section 40 of the Defence Forces Retirement Benefits Act 1962.

63.—(1.) Section forty of the Defence Forces Retirement Benefits Act 1962 is amended by omitting sub-section (3.) and inserting in its stead the following sub-sections:—

“(3.) The amount of pension per annum payable in pursuance of the last preceding sub-section to or in respect of a person is an amount equal to the amount of pension per annum that would have been payable to or in respect of the person by virtue of the Defence Forces Retirement Benefits Act 1959–1961 if this Act other than sub-section (2.) of section fourteen of this Act had not been enacted, increased by an amount equal to the amount, if any, by which pension at current rate applicable to him exceeds pension at previous rate applicable to him.

“(4.) In this section—

‘pension at current rate’, in relation to a person, means the amount of pension per annum that would have been payable to or in respect of him under the Defence Forces Retirement Benefits Act 1948–1962 if the provisions of this Part and of Part III. of the Defence Forces Retirement Benefits Act 1959 had not been enacted, reduced, in the case of a pension payable to the widow of a person who made an election under section forty-seven or section forty-eight of that last-mentioned Act or of that Act as amended, by one-fifth;
‘pension at previous rate’, in relation to a person, means the amount of pension per annum that would have been payable to or in respect of him by virtue of Part III. of the Defence Forces Retirement Benefits Act 1959–1961 if this Act other than sub-section (2.) of section fourteen of this Act had not been enacted and he had been a contributor for maximum additional basic pension under that Part.”.

(2.) The amendment made by the last preceding sub-section shall be deemed to have come into operation on the date of commencement of Part IV. of the Defence Forces Retirement Benefits Act 1962.

(3.) The Defence Forces Retirement Benefits Act 1962, as amended by sub-section (1.) of this section, may be cited as the Defence Forces Retirement Benefits Act 1962