Military Superannuation and Benefits Act 1991 (Interest) Determination No. 21

Overview

The Military Superannuation and Benefits Act 1991 was enacted by the Australian Parliament to address the need for a comprehensive framework governing the provision of superannuation and other benefits to members of the Australian Defence Force. This legislation was introduced to ensure that members receive appropriate financial support upon their retirement or in the event of death or disability. The Act was designed to create a trust under which benefits could be paid to eligible members and their dependants. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 21, made by the Military Superannuation and Benefits Board of Trustees, amends the interest rate applicable to prescribed amounts under the Act. This determination came into effect on 20 November 1996 and modifies the Principal Determination by updating the interest rate from 7.6% to 9.5%, affecting interest payable on benefits becoming payable or ceasing to be applicable after the commencement date.

Scope and Application

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 21 applies to interest payable on prescribed amounts in relation to a person, specifically when a benefit under Part 5 of the Rules becomes payable or ceases to be applicable, or if the person ceases to be a member. The determination is a legislative instrument that amends the principal determination to adjust the interest rate from 7.6% to 9.5%. The provisions of this determination apply in relation to interest payable on prescribed amounts for persons who are members or former members of the military superannuation scheme. The amendment affects the interest rate calculation for these prescribed amounts and is applicable to any prescribed amount accruing from the date of commencement of the determination, 20 November 1996. The terms used in this determination are defined in the principal determination and have the same meaning for the purposes of this amendment.

Key Provisions

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 21 outlines amendments to the principal determination regarding interest rates applicable to prescribed amounts under the Act. Specifically, clause 5 of the Principal Determination is amended to replace the interest rate of 7.6% with 9.5% (section 4). This amendment applies to interest payable on prescribed amounts in relation to individuals who are members or former members of the military superannuation scheme (section 5(1)). The definition of terms used in the determination remains consistent with those defined in the Principal Determination (section 5(2)). The Military Superannuation and Benefits Act 1991 imposes several obligations on the parties involved. Trustees of the Military Superannuation and Benefits Board of Trustees No. 1 must ensure that the amended interest rates are applied correctly to all prescribed amounts accruing after the commencement date of the determination (section 5(1)). Members and former members of the military superannuation scheme are entitled to the revised interest rates on their prescribed amounts, as outlined in the Act. Additionally, the Board of Trustees must maintain accurate records of these changes to ensure transparency and compliance with the legislative requirements. Breaches of the provisions outlined in the Military Superannuation and Benefits Act 1991 can result in both civil and criminal consequences. Trustees found to be non-compliant with the amended interest rates may face penalties, which could include fines or other administrative sanctions. Furthermore, failure to accurately apply the correct interest rates may lead to legal action from affected members or former members, resulting in civil suits for damages. The maximum penalties for such breaches are not explicitly stated in the text provided, but they may vary depending on the severity and impact of the non-compliance.