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. 16.
Commencement
2. This determination shall take effect from and including 4 September 1995.
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 1994" (wherever occurring) and inserting in its stead "1 July 1995"; and
(b) deleting "2.5" (wherever occurring) and inserting in its stead "7.8".
5. The Schedule to the Principal Determination is amended by adding at the end:
"1 July 1994 - 30 June 1995 5.8% 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
[Military Superannuation and Benefits Act 1991 (Interest) Determination No. 16
(continued)]
(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.
(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.
................................................. ..........................................
K.A. Searson WO D.J. Sutherland
(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 thirty- first day of August 1995
Overview
The Military Superannuation and Benefits Act 1991 was enacted by the Parliament of Australia to provide a structured and comprehensive framework for the management of superannuation and benefits for military personnel. This legislation was introduced to address the need for a dedicated system to ensure that members of the Australian Defence Force, including regular and reserve forces, and their dependents receive appropriate retirement, disability, and death benefits. The Act established a system that ensures these benefits are managed efficiently and fairly, reflecting the unique nature of military service and the risks associated with it. The Military Superannuation and Benefits Board of Trustees No. 1 was authorised to make determinations under the Act, such as the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 16, to adjust interest rates applicable to prescribed amounts in the context of military benefits. This determination, effective from 4 September 1995, amended the interest rates set in the Principal Determination, reflecting changes designed to better align with prevailing economic conditions and ensure the sustainability of the benefits scheme.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 16 applies to interest payable on prescribed amounts in relation to individuals who are or were members of the Military Superannuation Scheme. This includes members to whom benefits under Part 5 of the Rules become payable or cease to be applicable, or those who are not members of the scheme and cease to be members, on or after the commencement date of 4 September 1995. The application of this determination is made by the Military Superannuation and Benefits Board of Trustees No. 1, and it amends the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1 by adjusting the interest rate from 2.5% to 7.8% per annum for the period of 1 July 1995 to 30 June 1995. The amendments apply nationally within the Commonwealth of Australia, affecting all relevant members of the Military Superannuation Scheme across the country.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 16 amends the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, referred to as the Principal Determination (sections 3 and 4). This legislative instrument modifies the interest rates and the effective dates for interest calculations on prescribed amounts in relation to military superannuation and benefits. Specifically, it adjusts the interest rate from 2.5% to 7.8% per annum and extends the applicable period from 1 July 1994 to 1 July 1995 (section 4). The new interest rate and effective dates are detailed in the Schedule, which is added to the Principal Determination (section 5).
This determination imposes certain obligations on the Military Superannuation and Benefits Board of Trustees No. 1 to ensure that the amended interest rates and effective dates are applied correctly to prescribed amounts for military superannuation and benefits. The Board is required to implement these changes in accordance with the new provisions, which include the altered interest rate and the extended effective period for these calculations (section 6(1)).
Breaches of the requirements set forth in this determination could potentially lead to legal consequences. While the Act does not explicitly state offences, penalties, or specific consequences for non-compliance, the enforcement of these provisions would likely be carried out through the broader legislative framework of the Military Superannuation and Benefits Act 1991. The penalties for non-compliance with the Act can be severe, including fines and imprisonment, depending on the severity of the breach. The maximum penalties for breaches under the Military Superannuation and Benefits Act 1991 are significant and can include substantial fines and imprisonment terms, reflecting the importance of the obligations placed upon the Board and other relevant parties.