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. 22.
Commencement
2. This determination shall take effect from and including 26 February 1997.
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 "9.5" (wherever occurring) and inserting in its stead "12.7".
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. 22
(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.
F. Cox D. J. Sutherland
................................................. ..........................................
AVM F.D. Cox AO WO D.J. Sutherland
(Trustee) (Trustee)
P. D. Gourley P. G. Skinner
................................................. ..........................................
P.D. Gourley P.G. Skinner
(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 twenty- first day of February 1997
Overview
The Military Superannuation and Benefits Act 1991 was enacted by the Parliament of Australia to establish a comprehensive framework for the provision of military superannuation and benefits to members of the Australian Defence Force and their families. This Act was designed to address the need for a structured and reliable system to support the financial well-being of current and former defence personnel, ensuring they receive appropriate benefits and pensions upon retirement or in the event of death or disability. The Act serves to consolidate various superannuation and benefits provisions, thereby simplifying administration and improving the efficiency of payments. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 22, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rate applied to prescribed amounts under the Act, reflecting the policy objective of ensuring that the benefits remain competitive with prevailing interest rates and inflation.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 22 applies to individuals who are entitled to a benefit under Part 5 of the Military Superannuation and Benefits Rules, specifically in relation to interest payable on prescribed amounts. This includes members who are in receipt of benefits or cease to be applicable, as well as those who are members but not entitled to such benefits, upon their cessation of membership, all occurring on or after the commencement date of 26 February 1997. The provisions of this determination amend the Principal Determination by altering the interest rate from 9.5 to 12.7 percent, applicable to interest on prescribed amounts. This legislation operates under the Commonwealth of Australia and extends to the Military Superannuation and Benefits Board of Trustees No. 1, which is responsible for administering these benefits. The amendments and applications of this determination are confined to the scope outlined within the Military Superannuation and Benefits Act 1991, without any explicit exclusions or exemptions detailed in the provided text.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 22 primarily amends the interest rate provisions of the existing Military Superannuation and Benefits Act 1991. Specifically, clause 5 of the Principal Determination, which previously referenced an interest rate of 9.5%, is amended to set the interest rate at 12.7% (s. 4). This amendment applies to interest payable on prescribed amounts in relation to benefits under Part 5 of the Rules (s. 5(1)). This determination also specifies that the new interest rate applies to benefits payable after the determination's commencement date, 26 February 1997, and to any benefits that cease to be applicable on or after that date (s. 5(1)(a)-(b)).
Under the Military Superannuation and Benefits Act 1991, the Military Superannuation and Benefits Board of Trustees No. 1 has the responsibility to manage the benefits and superannuation entitlements of military personnel. The Board, through this determination, is obligated to ensure that the new interest rate of 12.7% is applied to the relevant benefits as specified. This includes calculating interest on prescribed amounts in accordance with the amended clause, which now reflects the new interest rate set forth in section 4 of this determination.
Failure to comply with the provisions of this determination could potentially result in civil or administrative consequences. While the specific penalties are not detailed in the text provided, breaches of statutory requirements in such legislative instruments typically result in penalties that could include fines or other legal actions to enforce compliance. It is essential that entities governed by the Military Superannuation and Benefits Act 1991 adhere to the updated interest rate to avoid any legal repercussions. The precise nature and extent of penalties would be further elaborated in the main Act or related regulations.