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. 36.
Commencement
2. This determination shall take effect from and including 24 March 1999.
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 "10.9% per annum” (wherever occurring) and inserting in its stead "7.3% per annum".
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. 36
(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.
P. D. Gourley R. C. Swanwick
......................................................... .........................................................
P.D. Gourley WOFF R.C. Swanwick
(Trustee) (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- second day of March 1999
Overview
The Military Superannuation and Benefits Act 1991 was enacted to establish a framework for the provision of superannuation and benefits to members of the Australian Defence Force and their families. This legislation was introduced to address the need for a comprehensive system to support the retirement and welfare needs of defence personnel. The Act was passed by the Australian Parliament with the intention of providing financial security and benefits to military members, their families, and dependants. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 36, issued by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rate applied to prescribed amounts under the Act. This amendment, effective from 24 March 1999, reduces the interest rate from 10.9% to 7.3% per annum, aligning with the policy objective of adjusting interest rates in line with prevailing economic conditions to ensure the sustainability and fairness of the benefits provided.
Scope and Application
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 36 applies to prescribed amounts that are subject to interest calculations, specifically in relation to benefits under Part 5 of the Rules, which are payable or cease to be applicable to a person who is or was a member on or after the date of commencement of this determination. This legislation, administered by the Military Superannuation and Benefits Board of Trustees No. 1, amends the Principal Determination by reducing the interest rate from 10.9% to 7.3% per annum for specified interest payments. The provisions of this determination apply to any interest payable on amounts that are prescribed under the Military Superannuation and Benefits Act 1991, with expressions defined in the Principal Determination retaining their original meanings for the purposes of this amendment.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 36 modifies the interest rate applied to certain prescribed amounts under the Military Superannuation and Benefits Act 1991. Specifically, it amends clause 5 of the Principal Determination, reducing the interest rate from 10.9% per annum to 7.3% per annum (sections 3 and 4). This amendment applies to interest payable in respect of an amount that is a prescribed amount in relation to a person if a benefit under Part 5 of the Rules becomes payable, ceases to be applicable, or if a person ceases to be a member, on or after the commencement date of this determination (section 5(1)).
The obligations imposed by this Determination primarily concern the calculation and application of the reduced interest rate to the prescribed amounts as outlined. This adjustment requires trustees and other relevant parties to ensure that the new interest rate of 7.3% per annum is applied to all applicable prescribed amounts from the commencement date of the Determination. This includes recalculating interest that has accrued under the old rate and adjusting any future interest calculations accordingly.
Breaching the provisions of this Determination may result in civil consequences for non-compliance. However, the specific penalties or consequences for non-compliance are not detailed within this legislative instrument. Parties affected by the Determination are expected to adhere to the amended interest rate as specified, and failure to do so could lead to disputes or legal challenges regarding the proper application of the interest rate.