COMMONWEALTH OF AUSTRALIA
MILITARY SUPERANNUATION AND BENEFITS ACT 1991
DETERMINATION
The Military Superannuation and Benefits Board of Trustees No. 1, pursuant to clause 3 of the Trust Deed made under Part 2 of the Military Superannuation and Benefits Act 1991, DETERMINES as follows:
Citation
1. This determination may be cited as the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 11.
Commencement
2. This determination shall take effect from and including 15 July 1994.
Principal Determination
3. In this determination "the Principal Determination" means the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, as amended.
Amendments to the Principal Determination
4. Clause 5 of the Principal Determination is amended by:
(a)deleting "1 July 1993" (wherever occurring) and inserting in its stead "1 July 1994"; and
(b)deleting "8.0" (wherever occurring) and inserting in its stead "8.2".
5. The Schedule to the Principal Determination is amended by adding at the end:
"1 July 1993 - 30 June 1994 5.4% per annum".
Application
6. (1) The provisions of the Principal Determination, as amended by this determination, apply in relation to interest payable in respect of an amount that is a prescribed amount in relation to a person:
(a)if a benefit under Part 5 of the Rules becomes payable in respect of the person - after the date of the commencement of this determination; or
(b)if:
(i)a benefit under Part 5 of the Rules ceases to be applicable in respect of the person; or
[Military Superannuation and Benefits Act 1991 (Interest) Determination No. 11
(continued)]
(ii)in the case of a person to whom a benefit under Part 5 of the Rules is not applicable - the person ceases to be a member;
on or after that date.
(2) An expression used in subclause 6(1) that is defined in the Principal Determination has the same meaning for the purposes of that subclause as it has in that determination.
W. Cole
.................................................
Sir William Cole
(Chairperson)
S. N. Gower D. Sutherland
................................................. ..........................................
MAJGEN S.N. Gower AM WO D.J. Sutherland
(Trustee) (Trustee)
P. D. Gourley K. A. Searson
................................................. ..........................................
P.D. Gourley K.A. Searson
(Trustee) (Trustee)
The Common Seal of the Military Superannuation and Benefits Board of Trustees No. 1 was hereunto affixed by authority of the Board.
Dated this Fifteenth day of July 1994
Overview
The Military Superannuation and Benefits Act 1991 was enacted to establish a legislative framework for the management and administration of military superannuation and benefits. The Act aimed to address the need for a comprehensive system to provide financial security for members of the Australian Defence Force (ADF) upon their retirement. This legislation was introduced by the Commonwealth Parliament, with the overarching policy objective of ensuring that ADF members receive appropriate benefits and support following their service. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 11, made by the Military Superannuation and Benefits Board of Trustees No. 1, further refines the interest rates applicable to certain prescribed amounts under the Act, effective from 15 July 1994. This amendment ensures that the interest rates applied to superannuation and benefits align with the economic conditions of the time, thereby maintaining the financial integrity and relevance of the benefits provided.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 11, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the Principal Determination concerning interest rates applicable to prescribed amounts for individuals in the military superannuation system. This legislative instrument applies to those individuals who are members of the military superannuation scheme or who have ceased to be members, with specific reference to benefits under Part 5 of the Rules. The amendments outlined in the determination apply to interest payable on prescribed amounts for persons whose benefits become payable or cease to be applicable on or after the commencement date of the determination on 15 July 1994. The changes also affect those individuals who are no longer members of the superannuation scheme as of this date. The amendment modifies the interest rate from 8.0% to 8.2% per annum for the period from 1 July 1993 to 30 June 1994, as well as adjusts the effective date of the interest rate change from 1 July 1993 to 1 July 1994. The determination extends the scope of the Principal Determination to ensure clarity and consistency in the application of interest rates to prescribed amounts within the military superannuation framework.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 11 amends the Principal Determination, which was previously Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, in two main ways. Clause 5 of the Principal Determination has been altered to change the date from 1 July 1993 to 1 July 1994 and to adjust the interest rate from 8.0% to 8.2%. Additionally, the Schedule has been amended to include a new interest rate of 5.4% per annum for the period from 1 July 1993 to 30 June 1994 (section 4 and 5). These changes apply to interest payable on prescribed amounts related to benefits under Part 5 of the Rules, whether those benefits are payable or cease to be applicable, or if the person ceases to be a member, on or after the commencement date of this determination, 15 July 1994 (section 6(1)).
The Act imposes specific obligations on the Military Superannuation and Benefits Board of Trustees No. 1 to ensure the updated interest rates are correctly applied to relevant financial transactions. This includes the obligation to ensure that any prescribed amounts for which benefits under Part 5 of the Rules are payable or have ceased to be applicable, or for which a person has ceased to be a member, are subject to the amended interest rates as stipulated. The Board must also ensure that any references to the old dates and interest rates in subclause 6(1) are updated to reflect the changes made by this determination.
Failure to comply with the provisions of this determination may result in incorrect calculation of interest on prescribed amounts, potentially leading to disputes or financial discrepancies. While the Act itself does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches, non-compliance could result in legal challenges or disputes regarding the accuracy of interest calculations, which could have financial implications for the parties involved. The determination is a legislative instrument designed to ensure that interest rates are correctly applied and updated as specified, thereby maintaining the integrity of financial transactions governed by the Military Superannuation and Benefits Act 1991.