Military Superannuation and Benefits Act 1991 (Interest) Determination No. 37

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. 37.

Commencement

2. This determination shall take effect from and including 3 May 1999.

Principal Determination

3. In this determination "Principal Determination" means the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, as amended.

Substitution

4. Clauses 3, 4 and 5 of the Principal Determination and the Schedule to the Principal Determination are repealed and the following clauses and Schedule substituted:

Interpretation

“3. (1) In this determination, unless the contrary intention appears–

Act means the Military Superannuation and Benefits Act 1991;

Board means the Military Superannuation and Benefits Board of Trustees No. 1 established by section 18 of the Act;

crediting rate of interest in relation to any prescribed amount means an interest rate determined by the Board under this determination in relation to a specified period;

Deed means the Trust Deed made under Part 2 of the Act;

exit rate of interest in relation to any prescribed amount means an interest rate determined by the Board under this determination to apply to that prescribed amount from the date when a crediting rate of interest last applied;             

first day of interest in relation to any prescribed amount means–

(a) 1 October 1991; or

(b) the day the person to whom that amount is applicable became a member,

whichever is the later;

period of interest in respect of a prescribed amount means the period commencing on the first day of interest and ending on the termination day;

prescribed amount means any amount that under the Rules accrues interest at the crediting rate of interest or the exit rate of interest;

preserved benefit means a benefit that is payable under Part 5 of the Rules;

Rules means the Military Superannuation and Benefits Rules contained in the Trust Deed made under Part 2 of the Act;

termination day means–

(a) for each prescribed amount that forms a component of a member benefit–

(i) if the member benefit is preserved upon retirement – the day before that part of the preserved benefit becomes payable; or

(ii) in any other case – the day the person ceases to be a member; and

(b) for each prescribed amount that forms a component of an employer benefit–

(i) if the employer benefit is preserved upon retirement–

(A) in respect of the unfunded component of the employer benefit – the day of retirement; and

(B) in respect of all other components of the employer benefit – the day before the preserved benefit becomes payable; or

(ii) in any other case – the day the person ceases to be a member.

(2) Words and expressions defined in the Act and the Rules have the same meaning in this determination.

Interest payable in respect of prescribed amounts

4. For the purpose of ascertaining the member benefit, employer benefit and funded employer benefit of a person who has ceased to be a member or in respect of whom a preserved benefit has become payable, interest calculated in accordance with clause 5 is payable in respect of each prescribed amount for the applicable period of interest.

Calculation of interest

5. (1) Where the period of interest in respect of any prescribed amount commences on or after 1 July 1998, interest payable in respect of that prescribed amount shall be deemed to have accrued during the period of interest at the exit rate of interest of 9.8% per annum.

             (2)  Where the period of interest in respect of any prescribed amount commences before 1 July 1998, interest payable in respect of the prescribed amount shall be deemed to have accrued–

(a) during that part of the period of interest specified in column 2 of an item in the Schedule at the corresponding crediting rate of interest set out in column 3 of that item; and

(b) where the period of interest ends on or after 1 July 1998 – during that part of the period of interest that commences on 1 July 1998 at the exit rate of interest of 9.8% per annum.

              (3)  Interest at the appropriate crediting rate of interest payable in respect                                            of any prescribed amount shall be deemed to have compounded                                                     each year on 30 June.”.

SCHEDULE

Charles. Kiefel

.........................................................

C.P. Kiefel

(Chairperson)

N. J. Ford        P. Alomes

......................................................... .........................................................

AIRCDRE N.J. Ford WOFF P. Alomes 

(Trustee)                        (Acting Trustee) 

P. D. Gourley        M. Sharpe

.........................................................     .........................................................

P.D. Gourley                          M.J. Sharpe AM 

(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         thirtieth                     day of                       April 1999