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. 13.
Commencement
2. This determination shall take effect from and including 23 November 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 deleting "7.2" (wherever occurring) and inserting in its stead "4.0".
Application
5. (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
(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.
[Military Superannuation and Benefits Act 1991 (Interest) Determination No. 13
(continued)]
(2) An expression used in subclause 5(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)
G. Earley D. Sutherland
................................................. ..........................................
CDRE G. Earley WO D. J. Sutherland
(Alternate Trustee) (Trustee)
C. Neumann P. G. Skinner
................................................. ..........................................
C. Neumann P.G. Skinner
(Alternate Trustee) (Alternate 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 eighteenth day of November 1994
Overview
The Military Superannuation and Benefits Act 1991, enacted by the Parliament of Australia, was introduced to address the need for a comprehensive framework governing the superannuation and benefits for members of the Australian Defence Force. This Act ensures that military personnel receive appropriate superannuation benefits upon retirement or cessation of service. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 13, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the Principal Determination to adjust the interest rate applicable to prescribed amounts. This amendment specifically reduces the interest rate from 7.2% to 4.0%, effective from 23 November 1994. The determination applies to interest payable on amounts prescribed in relation to individuals who are subject to changes in their benefits under Part 5 of the Rules, either due to the commencement of a benefit or the cessation of a benefit or membership on or after the effective date.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 13 applies to the interest payable on prescribed amounts in relation to a person for whom a benefit under Part 5 of the Rules becomes payable after the commencement date of this determination, or in the case of a cessation of such a benefit or membership. This legislative instrument is specifically concerned with the amendment of interest rates on prescribed amounts within the context of military superannuation and benefits. The provisions of the Principal Determination, as amended by this determination, apply to prescribed amounts relevant to individuals who are or have been members of a military superannuation scheme, thus affecting the financial interests of current and former military personnel. The amendments pertain to the interest rates on certain prescribed amounts, affecting the calculation of benefits accruing after the commencement date. The scope of the Act is confined to the financial aspects of military superannuation and benefits, and does not extend to broader military or civilian conduct or transactions outside of this specific context.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 13 amends the principal determination of the Military Superannuation and Benefits Act 1991, specifically modifying Clause 5 to adjust the interest rate applicable to prescribed amounts from 7.2% to 4.0%. This change pertains to interest payable on benefits under Part 5 of the Rules, whether these benefits are newly payable after the commencement of this determination, cease to be applicable, or in cases where benefits under Part 5 of the Rules do not apply and the person ceases to be a member. The provisions apply to amounts that are prescribed as of or after the commencement date of the determination.
The Military Superannuation and Benefits Act 1991, as amended by this determination, imposes certain obligations on parties involved in the administration of military superannuation and benefits. Trustees, members, and other relevant stakeholders must adhere to the revised interest rates and ensure that interest calculations reflect the new rates when applicable. This includes maintaining accurate records and timely payment of interest to beneficiaries, ensuring compliance with the updated legislative requirements.
Failure to comply with the provisions of the Military Superannuation and Benefits Act 1991, as amended by this determination, could result in civil or criminal consequences. Trustees who fail to correctly apply the revised interest rates may face penalties for non-compliance. While the specific penalties are not detailed in the text, they could include fines or other legal repercussions. Additionally, members who suffer due to incorrect interest calculations may have grounds for civil action to recover any losses incurred as a result of the trustee's failure to comply with the Act. The determination ensures that all parties are held accountable for adhering to the legislative requirements and protecting the interests of beneficiaries.