EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 103
ISSUED BY THE AUTHORITY OF THE
MINISTER FOR DEFENCE
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS
(ANNUAL RATES OF PAY) REGULATIONS
(AMENDMENT)
Background
Section 3 of the Defence Force Retirement and Death Benefits Act 1973 (“the Act”) provides for a member’s “annual rate of pay” (the basis for calculating contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme) to be prescribed.
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (“the Annual Rates of Pay Regulations”) prescribe the annual rate of pay of a member of the Defence Force, for the above purposes of the Act, by reference to Determination 0101, Salary of Permanent Force Members (“Determination 0101”), made under section 58B of the Defence Act 1903.
With effect from 5 September 1985, the Defence Force Remuneration Tribunal (“the Remuneration Tribunal”) made Determination No. 1 of 1985, under section 58H of the Defence Act 1903, modifying Determination 0101 with respect to the rates of pay applicable to members of the Defence Force.
Consequential amendments were accordingly made to the Annual Rates of Pay Regulations by Statutory Rules 1985 No. 325 to include references to that modification from the same date of effect.
On 19 December 1985 the Remuneration Tribunal, in Determination No. 7 of 1985, altered the date of effect of the increases in salary and allowances covered by Determination No. 1. These were made retrospective to 30 May 1985 following a reconsideration of the matter by the Tribunal following a request by the Chief of the Defence Force in accordance with the procedures set out in the Defence Act 1903.
As a result, a further consequential amendment was required to the Annual Rates of Pay Regulations to achieve retrospectivity to the same date of effect as the Tribunal’s Determination No. 7 of 1985.
Amendments to the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations
This Statutory Rule amends Statutory Rules 1985 No. 325 to prescribe 30 May 1985 as the date of effect of the modified reference to Determination 0101, to achieve retrospectivity to the same date of effect as the Tribunal’s Determination No. 7 of 1985.
This retrospectivity, effective from the date of an increase in the pay of members of the Defence Force, is authorized by sub-section 131(2) of the Act.
Commencement
The amendment has effect from 30 May 1985.
Overview
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment) Statutory Rules 1986 No. 103, issued by the authority of the Minister for Defence, were enacted to address the need for retrospective adjustments to the annual rates of pay for members of the Defence Force. This amendment was necessitated by the Defence Force Remuneration Tribunal's Decision No. 7 of 1985, which altered the date of effect of certain salary and allowance increases to be retrospective to 30 May 1985. This change was made in response to a request by the Chief of the Defence Force, as per the procedures outlined in the Defence Act 1903. The primary objective of this amendment is to ensure that the annual rates of pay, as prescribed by the Defence Force Retirement and Death Benefits Act 1973, align with the retrospective modifications made by the Remuneration Tribunal, thereby maintaining consistency and fairness in the calculation of contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme.
Scope and Application
The Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment) Statutory Rules 1986 No. 103, issued under the authority of the Minister for Defence, pertains to the modification of annual rates of pay for members of the Defence Force, as prescribed under the Defence Force Retirement and Death Benefits Act 1973. This legislation applies to all members of the Defence Force, including both current and former members, as it concerns the calculation of their contributions and entitlements under the Defence Force Retirement and Death Benefits Scheme. The amendment achieves retrospectivity for the modifications made by the Defence Force Remuneration Tribunal to the annual rates of pay, effective from 30 May 1985. This ensures that any pay adjustments are considered from the date they were originally intended to take effect, rather than from the later date of the initial amendment. The scope of this regulation is national, as it pertains to the Defence Force which operates across Australia. However, the application is specific to the financial and administrative aspects of the Defence Force Retirement and Death Benefits Scheme, and does not extend to other areas of Defence or military operations.
Key Provisions
The key operative sections of the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations (Amendment) Statutory Rule 1986 No. 103, which amends the existing regulations, are primarily concerned with updating the reference date for salary and allowances for members of the Defence Force. Section 3 of the Defence Force Retirement and Death Benefits Act 1973 establishes the framework for calculating a member's "annual rate of pay" based on which contributions and entitlements are determined under the Defence Force Retirement and Death Benefits Scheme. The Annual Rates of Pay Regulations, as amended, prescribe these rates by reference to Determination 0101, which details the salary of permanent force members.
The obligations imposed by this Act require the Defence Force Retirement and Death Benefits (Annual Rates of Pay) Regulations to be updated to reflect changes in the pay and allowances of Defence Force members. The regulations must align with modifications made by the Defence Force Remuneration Tribunal, ensuring that the annual rates of pay used for calculating benefits are accurate and reflect any retrospective adjustments. This ensures that members are compensated correctly based on their pay history, as determined by the Tribunal's determinations.
Failure to comply with the amended regulations could result in incorrect calculations of retirement and death benefits for Defence Force members. While the statutory rule does not explicitly outline specific offences, penalties, or civil or criminal consequences for non-compliance, the importance of accurate calculations suggests that any discrepancies could lead to disputes or claims for underpayment. The Defence Force Retirement and Death Benefits Act 1973 and related regulations are designed to provide a fair and equitable system for Defence Force members, and any breaches of these regulations could undermine the integrity of the benefits system. It is therefore crucial for all parties involved to adhere strictly to the updated provisions to avoid potential legal and financial repercussions.