COMMONWEALTH OF AUSTRALIA
MILITARY SUPERANNUATION AND BENEFITS ACT 1990
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. 3.
Commencement
2. This determination shall take effect from and including 11 September 1992.
Principal Determination
3. In this determination "the Principal Determination" means the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1.
Amendments to the Principal Determination
4. Clause 5 of the Principal Determination is revoked and the following clause substituted:
“5. (1) Where the period of interest in respect of a prescribed amount in relation to a person who has ceased to be a member commences on or after 1 July 1992, interest shall be deemed to have accrued during the whole of the period of interest at the rate of 7.0% per annum.
(2) Where the period of interest in respect of a prescribed amount in relation to a person who has ceased to be a member commences before 1 July 1992, interest payable in respect of that prescribed amount shall be deemed to have accrued –
(a) during the part, or where there is more than one such part, each part of the period of interest is comprised of a financial year specified in column 1 of the Schedule (or, where the period of interest is comprised wholly of such a financial year or part of such
(b) financial year, during the whole of the period of interest), at the rate of interest applicable in respect of the financial year that comprises, or part of which comprises, that part of the period of interest (or the whole of the period of interest as the case requires); and
(c) where the period of interest ends on or after 1 July 1992 – during the part of the period of interest that commences on 1 July 1992 at the rate of 7.0% per annum.
(3) Interest payable in respect of a prescribed amount in relation to a person who has ceased to be a member shall be deemed to have compounded each year on 30 June.
(4) For the purposes of a subclause 5(2), the rate of interest specified in column 2 of the Schedule opposite to the reference to a financial year in column 1 of the Schedule is the rate of interest applicable in respect of that financial year.
(5) In this clause, “period of interest” in respect of a prescribed amount means the period in respect of which interest is, by virtue of clause 4, payable in respect of the prescribed amount.”
5. The Principal Determination is amended by adding at the end the following Schedule:
Column 1 Column 2
Period Rate of Interest
1 October 1991 to 5.9% per annum“
30 Jun 1992
Military and Superannuation Benefits Act 1991 (Interest) Determination No. 3
W. Cole
....................
Sir William Cole
(Chairperson)
E. Stubington D. Sutherland
.................... .................... RADM E.G. Stubington WO D.J. Sutherland (Trustee) (Trustee)
A.G. Thompson K. A. Searson
.................... ....................
A.G. Thompson K.A. Searson
(Trustee) (Trustee)
The Common Seal of the Military and Superannuation Benefits Board of Trustees No. 1 was hereunto affixed by authority of the Board.
Dated this Tenth day of September 1992
Overview
The Military Superannuation and Benefits Act 1991 was enacted by the Australian Parliament to address the need for a structured and equitable system of superannuation and benefits for military personnel. This legislation aimed to provide a comprehensive framework that ensures military members and their families receive appropriate financial support post-service. The Act, along with its accompanying determinations, seeks to establish clear guidelines and mechanisms for the administration of these benefits. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 3, made by the Military Superannuation and Benefits Board of Trustees No. 1, amends the interest rates applicable to prescribed amounts for those who have ceased to be members, reflecting a policy objective to adjust interest rates in alignment with financial conditions and to ensure that the benefits remain financially sustainable and beneficial. This determination specifically adjusts the interest rates for periods beginning on or after 1 July 1992, thereby maintaining the Act's relevance and effectiveness in supporting military retirees.
Scope and Application
The Military Superannuation and Benefits Act 1990, as amended by the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 3, applies to individuals who have ceased to be members of the military superannuation scheme. The Act governs the calculation of interest on prescribed amounts, which are specified in the determination, for these former members. The interest rates apply to periods beginning on or after 1 July 1992 at a rate of 7.0% per annum, and for periods ending before 1 July 1992, the rates are determined by the financial year in which the period falls, as outlined in the Schedule attached to the determination. The Act operates on a Commonwealth level, with its authority derived from the Military Superannuation and Benefits Board of Trustees No. 1. The determination itself is a legislative instrument that extends the application of the principal determination by specifying detailed interest rates and periods, and it is effective from 11 September 1992. Any further specifications or exclusions are to be found in the Schedule attached to this determination.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 3, effective from 11 September 1992, amends the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1. It specifically modifies Clause 5, which deals with the interest rates applicable to prescribed amounts for individuals who have ceased to be members. Clause 5(1) states that interest for periods commencing on or after 1 July 1992 accrues at a rate of 7.0% per annum. Clause 5(2) provides a more detailed breakdown for periods that begin before 1 July 1992, with interest rates varying according to the financial year specified in the Schedule. Clause 5(3) mandates that interest compounds annually on 30 June. The Schedule lists the applicable interest rates for specific financial years, such as 5.9% per annum for the period from 1 October 1991 to 30 June 1992.
This determination imposes clear obligations on the Military Superannuation and Benefits Board of Trustees No. 1 to ensure that interest calculations for prescribed amounts are accurate and comply with the specified rates. Trustees are required to adhere strictly to the stipulated interest rates and the compounding rules outlined in Clause 5. The Board must ensure that all calculations are transparent and correctly reflect the applicable rates for different periods, as dictated by the law.
Failure to comply with the provisions of this determination could lead to significant consequences. Although specific penalties are not detailed within the text, breaches of the Military Superannuation and Benefits Act 1991 could result in legal actions against the Board or its trustees. This may include fines, compensation claims, or other civil remedies. The penalties for non-compliance are generally severe, reflecting the importance of accurately administering superannuation interests to ensure the financial security of former members.