Defence Force (Superannuation Interim Arrangement) Determination (Amendment) (No. 1 of 1989)

Administered by Department of Defence

Legislation au F2005B01458 Not in force Legislative Instrument

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Determination No 1 of 1989 under Section 52 of the

Defence Act 1903

 

 

I, David William SIMMONS, the Minister of State for Defence

Science and Personnel, hereby make the following Determination under section 52 of the Defence Act 1903.

 

Dated      Fourteenth day of June                     1989

 

 

    David Simmons

Minister of State for Defence Science and Personnel

   -------------------------------

Commencement

1.  This Determination shall be deemed to have commenced on 1 January 1989.

Amount of interim benefit for 1988

2.  Clause 8 of the Defence Force (Superannuation Interim Arrangement) Determination is amended by omitting subclause 8(7).

3.  The Defence Force (Superannuation Interim Arrangement) Determination is amended by inserting after clause 8 the following clauses:

Amount of interim benefit after 1988

 "8A. (1)  This clause applies in respect of service rendered by a member after 1988.

 

  (2)  Where, in a pay period, a member renders 14 days effective service, then, subject to subclause (6), the

amount of interim benefit (exclusive of interest) to be credited to that member in respect of that pay period shall be calculated in accordance with the formula:

 

 14 x ARP x  3

       365     100

where ARP is the annual rate of pay applicable to the member.

 

 (3)  Where in a pay period, a member renders a

period of effective service of less than 14 days, then, subject to subclause (6), the amount of interim benefit (exclusive of

interest) to be credited to that member in respect of that pay period shall be calculated in accordance with the formula:

 

                                                                              B      x      D

                             14

 

 

 

- 2 -

 

 

where:

 

B is the amount of benefit in respect of a member in respect of the pay period ascertained in accordance with the formula specified in subclause (2); and

 

D is the number of days effective service in the pay period.

 

 (4)  Where, in a pay period, a member renders 14 days effective service, then, subject to subclause (6), the

amount of interim benefit (being interest) to be credited to that member in respect of that pay period shall be calculated in accordance with the formula:

 

B x I x 14

365

where:

 

B is the amount of benefit (including interest) that has accrued in respect of the member immediately before commencement of the pay period; and

 

I is the factor specified in column 2 of the Schedule opposite to the reference to the calendar year specified in column 1 of

the Schedule which is the calendar year in which the pay period concludes.

 

 (5)  Where, in a pay period, a member renders a period of effective service of less than 14 days, then, subject to subclause (6), the amount of interim benefit (being interest) to be credited to that member in respect of that pay period

shall be calculated in accordance with the formula:

 

B x D x I

365

 

where:

 

B is the amount of benefit (including interest) that has accrued in respect of the member immediately before the commencement of the pay period;

 

D is the number of days effective service in the pay period; and

 

I is the factor specified in column 2 of the Schedule opposite to the reference to the calendar year specified in column 1 of the Schedule which is the calendar year in which the pay period concludes.

 

 

- 3 -

 

 

 (6)  Where an amount ascertained in accordance with subclause (2), (3), (4) or (5) includes a fraction of a cent:

 

 (a)  if the fraction is one-half or greater, the amount shall be deemed to be increased by one cent; or

 

 (b)  if the fraction is less than one-half, the fraction shall be disregarded.

 

Amount Payable

 

 8B.  Where an interim benefit becomes payable in respect of a person, the amount of that benefit is the sum of the

amounts credited to that person under clauses 8 and 8A."

 

4.  The Defence Force (Superannuation Interim Arrangement) Determination is amended by adding at the end the following Schedule:

 

                            SCHEDULE                 Clause 8A

 

FACTORS CONCERNED IN THE CALCULATION

OF INTEREST APPLICABLE IN RESPECT OF CERTAIN CALENDAR YEARS

 

______________________________________________________________

Column 1  Column 2

Calendar year  Factor

______________________________________________________________

 

1989....................................... 0.1286

______________________________________________________________

Overview

The Determination No 1 of 1989 under Section 52 of the Defence Act 1903 was enacted to address the interim benefits payable to members of the Australian Defence Force, specifically concerning the calculation of superannuation benefits for service rendered after 1988. This legislative instrument was introduced by the Minister of State for Defence Science and Personnel, David William Simmons, and is intended to provide clarity and adjustments to the superannuation interim arrangement for Defence Force members. The policy objective behind this determination is to ensure that the interim benefits are accurately calculated and fairly distributed based on the days of effective service rendered by the members. The amendments include modifications to the formulae used for calculating the interim benefits and interest, providing a structured approach to ensure consistency and transparency in benefit calculations.

Scope and Application

The Determination No 1 of 1989 under Section 52 of the Defence Act 1903 applies to members of the Australian Defence Force who rendered service after 1988, specifically concerning the calculation of interim benefits for superannuation purposes. This legislative instrument governs the interim benefits calculation, including both the benefit amount and the interest applied, for members who serve for 14 days or less in a pay period. The Act applies on a national level, as it pertains to the Commonwealth's Defence Force. Notably, this legislation does not specify any exclusions or exemptions and operates as a standalone instrument without extending or restricting its application through subordinate instruments. The commencement date of this Determination is 1 January 1989, and it includes a schedule detailing specific interest factors for certain calendar years, providing clarity and specificity in the application of interest calculations within the Defence Force's superannuation arrangements.

Key Provisions

The Determination No 1 of 1989 under Section 52 of the Defence Act 1903 primarily modifies the Defence Force (Superannuation Interim Arrangement) Determination by altering the interim benefit calculation for Defence Force members who rendered service after 1988. Clause 8 of the original Determination is amended by omitting subclause 8(7), and new clauses 8A and 8B are inserted. Clause 8A details the formula for calculating the interim benefit for service rendered after 1988, depending on whether the service period is 14 days or less. Clause 8B explains how the interim benefit payable to a person is the sum of the amounts credited under clauses 8 and 8A. The Determination imposes specific obligations on Defence Force members who are eligible for interim benefits, as well as on the Defence Force administration responsible for calculating and disbursing these benefits. Defence Force members must render effective service as defined by the clauses of the Determination to be eligible for interim benefits. The Defence Force administration must use the specified formulas to calculate the interim benefits accurately and ensure that the correct amounts are credited and paid to the members. These calculations must adhere to the rounding rules provided in subclause 8A(6), where fractions of a cent are rounded up or disregarded as appropriate. The Determination does not explicitly state any offences, penalties, or consequences for breaches of its provisions. However, non-compliance with the requirements for calculating and disbursing interim benefits could potentially lead to administrative or financial discrepancies, which might attract scrutiny from relevant authorities or result in internal Defence Force disciplinary actions. While the Determination itself does not specify maximum penalties, breaches of Defence Force regulations or administrative errors in this context could result in consequences as defined by broader Defence Force policies or applicable laws.

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