Military Superannuation and Benefits Act 1991 (Interest) Determination No. 23

Overview

The Military Superannuation and Benefits Act 1991 was enacted by the Commonwealth Parliament to address the need for a structured and fair system of superannuation and benefits for members of the Australian Defence Force. This Act was created to ensure that military personnel receive adequate financial support post-service, recognising their unique contributions and sacrifices. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 23, issued by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rate provisions of the principal determination. This amendment adjusts the interest rates applicable to prescribed amounts for military superannuation and benefits, effective from 21 May 1997. The policy objective of these amendments is to align the interest rates with current economic conditions, ensuring that the benefits provided remain fair and reflective of the prevailing financial environment.

Scope and Application

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 23 applies to interest payable in respect of an amount that is a prescribed amount in relation to a person, specifically in cases where a benefit under Part 5 of the Military Superannuation and Benefits Act Rules becomes payable or ceases to be applicable, or in the case of a person to whom such benefit is not applicable, ceases to be a member, on or after the commencement date of the determination. This determination amends the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1 by modifying the interest rate from 12.7 to 11.7. The application of the provisions is contingent upon the person being a member of the military superannuation scheme, and the determination applies on a Commonwealth level, impacting all members of the Australian Defence Force who are covered by the Act. The determination does not specify exclusions or exemptions beyond the conditions outlined for its application.

Key Provisions

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 23 amends the Principal Determination, which is the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, as amended. The key amendment, found in clause 4, involves the alteration of the interest rate from 12.7% to 11.7% for certain prescribed amounts. These prescribed amounts pertain to benefits under Part 5 of the Rules, and the amendment applies to interest payable on amounts that become prescribed after the commencement date of this determination, which is 21 May 1997. The obligations and requirements imposed by this determination revolve around the calculation and payment of interest on prescribed amounts. Specifically, the amendment means that any interest payable on amounts prescribed under the Act after the commencement date must now be calculated at 11.7% rather than the previous rate of 12.7%. The determination also clarifies that the definitions of terms used in the Principal Determination apply equally to this amended version, ensuring consistency in interpretation and application. Failure to comply with the provisions of this determination could result in various consequences. While the specific penalties are not outlined in the determination itself, breaches of the Military Superannuation and Benefits Act 1991 could lead to civil or criminal penalties under Australian law. For example, non-compliance could result in financial penalties, legal action, or even imprisonment, depending on the severity and intent of the breach. The exact penalties would be determined by a court, taking into account the specific circumstances of the case.