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. 19.
Commencement
2. This determination shall take effect from and including 22 April 1996.
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 "12.0" (wherever occurring) and inserting in its stead "9.0".
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. 19
(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)
F. Cox D. Sutherland
................................................. ..........................................
AVM F.D. Cox AO 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 eighteenth day of April 1996
Overview
The Military Superannuation and Benefits Act 1991, enacted by the Parliament of Australia, was introduced to address the need for a comprehensive legal framework governing the superannuation and benefits of military personnel. This Act was designed to provide a reliable and structured approach to managing the retirement and related benefits for members of the Australian Defence Force. The Act establishes a system overseen by a Board of Trustees responsible for ensuring the proper administration of superannuation and benefits for military members. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 19, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the Principal Determination by adjusting the interest rate applicable to certain prescribed amounts. This determination ensures that interest rates are updated to reflect current economic conditions, thereby maintaining the financial integrity and relevance of the superannuation and benefits system for military personnel.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 19 applies to interest payable in respect of prescribed amounts related to a person who is either a member of the military superannuation scheme or someone to whom a benefit under Part 5 of the Rules is applicable or was applicable. This legislation applies to those individuals who become payable a benefit under Part 5 of the Rules after the date of commencement of this determination, or to those for whom the benefit ceases to be applicable on or after the commencement date. Additionally, the provisions apply to members who cease to be a member on or after the commencement date. The Act's scope extends to the modification of interest rates specified in the Principal Determination, as amended by this determination, to ensure that interest payable on prescribed amounts is adjusted from the previous rate of 12.0% to the new rate of 9.0%. The application of this Act is limited to the interest rates for prescribed amounts and does not extend to other aspects of military superannuation benefits unless explicitly mentioned in subordinate instruments.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 19 amends the interest rates applied to prescribed amounts under the Military Superannuation and Benefits Act 1991. Specifically, clause 5 of the Principal Determination is amended to change the interest rate from 12.0% to 9.0% (section 4). This change applies to interest payable on amounts that are prescribed in relation to a person for whom a benefit under Part 5 of the Rules becomes payable or ceases to be applicable, or who ceases to be a member, on or after the commencement date of this determination (section 5(1)).
The Act imposes obligations on the Military Superannuation and Benefits Board of Trustees No. 1 to ensure that the new interest rate is applied correctly to the relevant prescribed amounts. Trustees must adhere to the provisions of the amended determination when calculating and paying interest on benefits or amounts payable under the Act. This includes ensuring that all calculations are made in accordance with the new interest rate set out in the determination. Trustees must also ensure that any changes to the interest rate are communicated effectively to all relevant parties to avoid any confusion or disputes regarding interest payments.
Breach of the provisions of the Military Superannuation and Benefits Act 1991 or its determinations can lead to various consequences, both civil and criminal. Civil penalties may include fines, compensation for losses incurred, or other remedies as determined by a court. Criminal penalties may apply in cases of wilful or negligent breaches, which could result in imprisonment or fines, as stipulated by the relevant legislation. The maximum penalties for such breaches are not explicitly stated in the provided text but would typically be outlined in the primary Act or related regulations.