Military Superannuation and Benefits Act 1991 (Interest) Determination No. 17

Overview

The Military Superannuation and Benefits Act 1991 was enacted to provide for the establishment of a superannuation scheme for the benefit of serving and former members of the Australian Defence Force, addressing the need for a comprehensive and reliable pension system for military personnel. This Act was passed by the Parliament of Australia and serves the policy objective of ensuring that military members and their families have access to financial security upon retirement or in the event of death or disability. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 17, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rate applied to prescribed amounts under the Act, effective from 20 November 1995. This amendment adjusts the interest payable on certain benefits, ensuring that the financial provisions of the scheme remain fair and reflective of current economic conditions.

Scope and Application

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 17 applies to interest payable on prescribed amounts related to benefits under Part 5 of the Rules for individuals who are members or former members of the Military Superannuation and Benefits Scheme. The determination applies to interest payable from the date of its commencement, 20 November 1995, onwards, in relation to benefits that become payable or cease to be applicable after this date, or where benefits under Part 5 of the Rules are not applicable, when the individual ceases to be a member. The expression used in this determination has the same meaning as defined in the Principal Determination, which is the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1. This determination amends the Principal Determination by changing the interest rate from 7.8% to 9.1%. The Act applies to the Commonwealth jurisdiction and is administered by the Military Superannuation and Benefits Board of Trustees No. 1.

Key Provisions

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 17 amends the Principal Determination, which is the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1. This amendment specifically affects Clause 5, replacing the interest rate of 7.8% with 9.1%. This new rate applies to interest payable on prescribed amounts for benefits under Part 5 of the Rules, whether those benefits are payable or cease to be applicable after the commencement date of this determination, 20 November 1995. The amendments apply to interest payable in respect of a person who is or was a member and for whom a benefit under Part 5 of the Rules becomes payable or ceases to be applicable on or after the specified date. Under this legislation, the Military Superannuation and Benefits Board of Trustees No. 1 has obligations to ensure that the new interest rate is correctly applied to all relevant prescribed amounts. Trustees must also ensure that any expressions used in subclause 5(1) retain their original definitions as outlined in the Principal Determination. The Board must maintain accurate records and calculations to reflect the amended interest rate, ensuring transparency and compliance with the legislative requirements. Failure to comply with the provisions of this determination may result in legal consequences. While the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach, it is implied that non-compliance could lead to legal action for breach of trust or mismanagement of funds. Trustees could potentially face personal liability for any losses incurred due to failure to adhere to the amended interest rate stipulations. Furthermore, members affected by incorrect interest calculations could seek redress through legal means, seeking compensation for any financial losses resulting from the Board’s non-compliance.