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. 26.
Commencement
2. This determination shall take effect from and including 9 March 1998.
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 "6.6" (wherever occurring) and inserting in its stead "5.0".
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. 26
(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.
Charles. Kiefel
................................................................
C.P. Kiefel
(Chairperson)
N. J. Ford R. C. Swanwick
................................................................ .........................................................
AIRCDRE N.J. Ford WOFF R.C. Swanwick
(Trustee) (Trustee)
P. D. Gourley P. G. Skinner
................................................................ .........................................................
P.D. Gourley P.G. Skinner
(Trustee) (Acting 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 sixth day of March 1998
Overview
The Military Superannuation and Benefits Act 1991 was enacted by the Parliament of Australia to establish and regulate the Military Superannuation and Benefits Scheme, providing retirement benefits to members of the Australian Defence Force and their dependants. This legislation aimed to address the gap in retirement benefits for military personnel by ensuring a structured and reliable superannuation system tailored to their unique service conditions. The Act was designed to provide comprehensive financial security to members and their families post-service.
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 26, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rates applicable to prescribed amounts under the Act. This amendment, effective from 9 March 1998, adjusts the interest rates to better reflect current economic conditions and ensure that the financial benefits provided under the scheme remain equitable and sustainable. The determination specifies that the amended provisions apply to interest payable on prescribed amounts in relation to benefits that become payable, cease to be applicable, or in respect of members ceasing to be members, on or after the commencement date.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 26, made by the Military Superannuation and Benefits Board of Trustees No. 1, modifies the interest rate applicable to prescribed amounts under the Military Superannuation and Benefits Act 1991. This legislation applies to individuals who are or were members of the military superannuation scheme, particularly those who are in receipt of benefits under Part 5 of the Rules or are no longer eligible for such benefits. The amendment affects the interest rates on prescribed amounts related to military benefits payable or ceasing to be payable after the commencement date of the determination, which is 9 March 1998. The scope of the legislation is national, operating under the Commonwealth of Australia, and it extends to all members of the military superannuation scheme who meet the criteria specified. The application of the Act is not restricted by geographic boundaries within Australia, thereby encompassing all relevant members regardless of their location. The legislation does not explicitly mention any exclusions or exemptions, but it is implied that it applies only to those who are members of the military superannuation scheme and who have prescribed amounts accruing interest under the conditions stipulated.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 26, effective from 9 March 1998, amends the interest rate stipulated in Clause 5 of the Principal Determination (previously 6.6%) to 5.0%. This amendment applies to interest payable on prescribed amounts for individuals who are entitled to benefits under Part 5 of the Rules or whose membership status changes on or after the commencement date of this determination. This means that any interest accruing on benefits or amounts payable after this date will be calculated at the new rate of 5.0%.
Under this determination, the Military Superannuation and Benefits Board of Trustees No. 1 has the responsibility to ensure the correct application of the amended interest rate. Trustees must calculate and credit interest on prescribed amounts at the new rate of 5.0%, as specified by Clause 5 of the amended Principal Determination. This requirement applies to all relevant benefits and membership status changes occurring after the commencement date. Trustees must also ensure compliance with the definition of terms as they are interpreted in the Principal Determination.
Breaching the provisions of this determination can lead to legal consequences. Trustees or other responsible parties failing to apply the correct interest rate may face civil penalties. While the exact nature and extent of penalties are not detailed in this determination, non-compliance with legislative requirements can result in financial repercussions, including being ordered to pay any interest owed at the correct rate, plus additional penalties as deemed appropriate by a court. In severe cases, trustees may also face disciplinary action, including removal from their position, if they are found to have wilfully neglected their duties under this determination.