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

Administered by Department of Defence

Legislation au F2005B01481 Not in force Legislative Instrument

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Defence Act 1903

 

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

 

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

 

 

 

Dated                 8th February 1994

 

 

 

     John Faulkner

 

 Minister for Defence Science and Personnel

 

________________________________________________________

 

1. Amendment

 

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

 

2. Commencement

 

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

 

3. Clause 3(Interpretation)

 

3.1  Subclause (1):

Insert the following definition:

 

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

1973;".

 

4. Clause 8AB(Reduction of productivity benefit)

 

4.1  Paragraph (2)(a):

Omit "benefit", substitute "pay".

 

4.2              New subclause (3A):

After subclause (3), insert:

 

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

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

 

 

 

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

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

 

(a)   that invalidity benefit; and

 

(b)   that productivity benefit;

 

exceeds the greater of:

 

 (c) an amount equal to the sum of:

 

 (i) the member's refunded contributions; and

 

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

 

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

 

 (d) an amount equal to the sum of:

 

 (i) the member's refunded contributions; and

 

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

 

 (iii) the member's notional productivity benefit.

 

4.3  Subclause (4):

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

 

4.3              New subclauses (5)and (6):

Add at the end:

 

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

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

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

reduced by the amount by which the sum of:

 

 (a) that lump sum; and

 

(b)   that productivity benefit;

 

exceeds the greater of:

 

 (c) an amount equal to the sum of:

 

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

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

 

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

 

 (d) an amount equal to the sum of:

 

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

 

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

 

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

 

“(6) In this clause:

 

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

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

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

instead of clause 8AA;

 

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

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

 

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

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

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

instead of clause 8AA;

 

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

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

 

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

respect of Certain Calendar Years)

 

5.1  Add at the end:

 

 1994  0.0572.

 

6. Other amendments

 

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

 

 

 

SCHEDULE

 

OTHER AMENDMENTS

 

1. Clause 3

 

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

 

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

 

2. Clause 8AB

 

2.1 Subclause (2)

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

 

2.2 Subclause (3)

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

 

 

Overview

The Defence Act 1903, enacted by the Australian Parliament, serves as the foundational piece of legislation governing the Australian Defence Force. This Act was introduced to establish and regulate the framework within which the Defence Force operates, ensuring compliance with legislative requirements and providing the necessary legal foundation for the administration and management of defence-related matters. The Defence Force (Superannuation)(Productivity Benefit) Determination No 1 of 1994, made under section 52 of the Defence Act 1903 by the Minister for Defence Science and Personnel, John Faulkner, aims to amend existing provisions concerning the superannuation and productivity benefits for defence force members. This Determination addresses the need to adjust the criteria and calculations for productivity benefits, ensuring they align with the broader legislative objectives of providing fair and equitable retirement benefits to defence personnel. The policy objective of these amendments is to refine the benefit structure to better reflect the contributions and entitlements of members, particularly in relation to invalidity and lump sum payments.

Scope and Application

The Defence Act 1903 Determination No 1 of 1994, made under section 52 of the Defence Act 1903, pertains specifically to the Defence Force (Superannuation)(Productivity Benefit) Determination. This legislative instrument primarily applies to members of the Australian Defence Force who have been credited with a productivity benefit. It outlines the conditions under which the amount of productivity benefit credited to a member may be reduced, particularly in scenarios where the member retires and becomes entitled to invalidity benefit under the Defence Force Retirement and Death Benefits Act 1973, or dies before retirement and a lump sum becomes payable under the same Act. The Determination also includes amendments to definitions and references within the text, ensuring consistency and clarity. The jurisdictional reach of this Determination is Commonwealth-wide, impacting the superannuation benefits of Defence Force members across Australia.

Key Provisions

The Defence Force (Superannuation)(Productivity Benefit) Determination, as amended by this legislative instrument, includes several key provisions. Section 1.1 introduces a new definition of "DFRDB Act" to replace previous references to the Defence Force Retirement and Death Benefits Act 1973, streamlining terminology. Section 4.1 modifies the term "benefit" to "pay" in subclause 8AB(2), altering the context in which productivity benefits are discussed. The new subclause 8AB(3A) addresses the reduction of productivity benefit for members who retire and become entitled to invalidity benefit, detailing how the benefit is calculated in relation to other payments. Section 4.3 adds new subclauses (5) and (6) to address the reduction of productivity benefit in cases where a member dies before retirement, introducing new definitions to clarify terms like "additional productivity benefit" and "lump sum payment". The obligations imposed by this Determination include the requirement for Defence Force members to comply with the new definitions and calculations for productivity benefits, particularly when they retire or die before retirement. It mandates that the amount of productivity benefit credited to a member be reduced in specific scenarios, as outlined in the new subclauses. Furthermore, the Determination requires that any references to the Defence Force Retirement and Death Benefits Act 1973 be updated to "DFRDB Act" throughout the relevant clauses, ensuring consistency in legal terminology. There are no explicit offences, penalties, or consequences mentioned in the Determination. However, non-compliance with the new provisions could potentially lead to disputes or litigation concerning the calculation of benefits. Such disputes might be resolved in courts, where the interpretation of the new clauses and definitions would be critical. The legal implications would depend on how the courts apply the new provisions to specific cases, with the potential for financial repercussions for Defence Force members if the benefits are not correctly calculated.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.