Defence Force (Superannuation) (Productivity Benefit) Amendment Determination 2004 (No. 2)

Defence Force (Superannuation) (Productivity Benefit) Amendment Determination 2004 (No. 2)

I, MALCOLM THOMAS BROUGH, Minister for Employment Services, for the Minister for Defence, make this Determination under subsection 52 (1) of the Defence Act 1903.

Dated 17 May 2004

MALCOLM BROUGH

1 Name of Determination

  This Determination is the Defence Force (Superannuation) (Productivity Benefit) Amendment Determination 2004 (No. 2).

2 Commencement

  This Determination commences, or is taken to have commenced, on the commencement of Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004.

3 Amendment of Defence Force (Superannuation) (Productivity Benefit) Determination

  Schedule 1 amends the Defence Force (Superannuation) (Productivity Benefit) Determination.

Schedule 1 Amendments

(section 3)

[1] Subclause 3 (1), after definition of “Authority”

insert

“base amount” means:

 (a) for a splitting agreement — the base amount specified in, or calculated under, the agreement; or

 (b) for a splitting order — the amount allocated under subsection 90MT (4) of the Family Law Act 1975.

[2] Subclause 3 (1), after definition of “Commissioner”

insert

“Defence Act” means the Defence Act 1903.

[3] Subclause 3 (1), after definition of “effective service”

insert

“family law value” means the amount determined in accordance with regulations under the Family Law Act 1975 that apply for paragraph 90MT (2) (a) of that Act.  In applying those regulations, the relevant date is taken to be the date on which the operative time occurs.

Note   The amount is determined by applying those regulations, whether or not an order has been made under subsection 90MT (1) of the Family Law Act 1975.

[4] Subclause 3 (1), after definition of “member”

insert

“member spouse” has the same meaning as in Part VIIIB of the Family Law Act 1975.

[5] Subclause 3 (1), after definition of “non-effective service”

insert

“non-member spouse” has the same meaning as in Part VIIIB of the Family Law Act 1975.

“operative time”, for a splitting agreement or splitting order, means the time that is the operative time for Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order.

[6] Subclause 3 (1), after definition of “pay period”

insert

“payment split” has the same meaning as in Part VIIIB of the Family Law Act 1975.

[7] Subclause 3 (1), after definition of “recipient member”

insert

“scheme value” has the meaning given by clause 14.

[8] Subclause 3 (1), after definition of “SIS Act”

insert

“SIS Regulations” means the Superannuation Industry (Supervision) Regulations 1994.

“splitting agreement” means:

 (a) a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or

 (b) a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split.

“splitting order” has the same meaning as in Part VIIIB of the Family Law Act 1975.

“splitting percentage” means:

 (a) for a splitting agreement — the percentage specified in the agreement under subparagraph 90MJ (1) (c) (iii) of the Family Law Act 1975; or

 (b) for a splitting order — the percentage specified in the order under subparagraph 90MT (1) (b) (i) of the Family Law Act 1975.

[9] Subclause 3 (1), after definition of “surcharge deduction amount”

insert

“transfer amount” means:

 (a) if a splitting percentage applies — the amount calculated by multiplying the splitting percentage by the greater of:

 (i) the family law value; and

 (ii) the scheme value; or

 (b) if a base amount applies and the scheme value is not more than the family law value — the base amount; or

 (c) if a base amount applies and the scheme value is more than the family law value — the amount calculated using the formula:

[10] Paragraph 6 (2) (b)

omit

Superannuation Industry (Supervision) Regulations 1994

insert

SIS Regulations

[11] Paragraph 6 (6) (a)

omit

workforce;

insert

workforce; or

[12] Paragraph 6 (6) (b)

omit

invalidity;

insert

invalidity; or

[13] Paragraph 6 (6) (c)

omit

[14] Paragraph 6 (6) (e)

substitute

 (e) the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A (2) of the SIS Regulations; or

 (f) the Authority is satisfied the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the SIS Regulations.

[15] After subclause 6 (6)

insert

 (6A) An amount that becomes payable under paragraph (6) (e) or (f) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or as is necessary to alleviate financial hardship.

 (6B) If only part of a benefit payable under subclause (6) is payable because of subclause (6A), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if the Authority considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.

[16] Subparagraph 6 (7) (a) (i)

omit

regulations under the SIS Act;

insert

the SIS Regulations; or

[17] After clause 13

insert

 Scheme value

14.  For the definition of scheme value the scheme value in relation to a member spouse is determined as follows:

 Reduction of productivity superannuation benefit

15. (1) For subsection 52 (5) of the Defence Act, this clause applies to a productivity superannuation benefit in respect of the original interest if the benefit becomes payable at a time after the operative time.

 (2) The amount to which the productivity benefit payable to the member spouse after the operative time is to be reduced is to be worked out in accordance with the benefit reduction methodology developed and maintained by an actuary for this clause.