Military Superannuation and Benefits Act 1991 (Interest) Determination No. 28

Overview

The Military Superannuation and Benefits Act 1991 was enacted to establish a framework for the administration of military superannuation and benefits for members of the Australian Defence Force and their dependants. This Act was designed to address the specific needs of military personnel by providing a structured system for the accumulation and distribution of superannuation benefits. The Military Superannuation and Benefits Act 1991 was enacted by the Parliament of Australia, aiming to ensure that military personnel receive adequate retirement and related benefits. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 28 was made under clause 3 of the Trust Deed pursuant to Part 2 of the Act. This determination, which took effect on 21 August 1998, amends the principal determination concerning interest rates applicable to prescribed amounts. The amendments include adjusting the effective date for certain interest rate changes and updating the interest rate itself, reflecting the policy objective of accurately adjusting interest rates to reflect economic conditions and ensure the financial sustainability of the superannuation fund.

Scope and Application

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 28 applies to interest payable in relation to prescribed amounts for individuals who are or were members of the military superannuation scheme. This legislation amends the Principal Determination, which sets out the interest rates applicable to certain prescribed amounts in the context of military superannuation benefits. The provisions apply to interest payable for amounts that become prescribed after the commencement of the determination on August 21, 1998, whether in the case of a benefit becoming payable, ceasing to be applicable, or for a member who is no longer eligible for benefits under Part 5 of the Rules. The amendment modifies the interest rate for the period from July 1, 1997, to June 30, 1998, and updates relevant dates and rates in the schedule of the Principal Determination. This legislative instrument extends the application of the Act through subordinate instruments, ensuring that the interest rates are adjusted as specified.

Key Provisions

The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 28 modifies the interest rate applicable to certain prescribed amounts. Section 4(a) and (b) specify the conditions under which these amended interest provisions apply, notably in relation to benefits under Part 5 of the rules, and whether a benefit becomes payable, ceases to be applicable, or if a member ceases to be a member on or after the commencement date of 21 August 1998. The Principal Determination, as amended, governs the interest payable on prescribed amounts, with specific reference to Clause 5 of the Principal Determination, which is altered to reflect new dates and interest rates (sections 4(a) and (b)). Entities and individuals governed by this legislation must adhere to the new interest rates and dates specified in the determination. This involves ensuring that interest calculations on prescribed amounts are in line with the amendments, particularly for benefits under Part 5 of the rules. The obligations include updating any relevant documentation, systems, and processes to reflect the new rates and dates as stipulated in the amended Clause 5 of the Principal Determination. Failure to comply with the provisions of this determination may lead to civil consequences, although specific penalties are not detailed in the text. Typically, non-compliance with legislative requirements can result in financial penalties, legal action, or other enforcement measures depending on the severity and intent of the breach. The maximum penalties, if any, would be in accordance with the broader legal framework governing the Military Superannuation and Benefits Act 1991, which may include fines or other legal sanctions. It is essential for entities and individuals to ensure they are aware of and adhere to the amendments to avoid potential repercussions.