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. 53.
Commencement
2. This determination shall take effect from and including 26 June 2000.
Principal Determination
3. In this determination “the Principal Determination” means the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, as amended.
Amendment of the Principal Determination
4. Clause 5 of the Principal Determination is amended by deleting “the exit rate of interest of 11.3% per annum” (wherever occurring) and inserting in its stead “the exit rate of interest of 9.6% per annum”.
Charles Kiefel
.........................................................
C.P. Kiefel
(Chairperson)
L. L. Roberts R. Swanwick
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GPCAPT L. Roberts WOFF R.C. Swanwick
(Acting Trustee) (Trustee)
P. Charley M. Sharpe
......................................................... .........................................................
P.J. Charley Dr M.J. Sharpe AO
(Acting 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- third day of June 2000
Overview
The Military Superannuation and Benefits Act 1991 was enacted by the Parliament of Australia to provide for the establishment of the Military Superannuation and Benefits Scheme, offering a range of benefits to members of the Australian Defence Force, their families, and dependants. This Act was introduced to address the need for a comprehensive superannuation and benefits system tailored specifically to the unique needs of defence personnel. It establishes a board of trustees to administer the scheme, ensuring that the interests of members are safeguarded. The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 53, made by the Military Superannuation and Benefits Board of Trustees No. 1, is an amendment to the original determination concerning the interest rates applicable to the scheme. This particular determination, effective from 26 June 2000, modifies the exit rate of interest from 11.3% per annum to 9.6% per annum, reflecting policy adjustments aimed at aligning the scheme’s financial practices with prevailing economic conditions and ensuring sustainable benefits for scheme members.
Scope and Application
The Military Superannuation and Benefits Act 1991 applies to the administration of benefits for members of the Australian Defence Force, including their spouses and children, and to the management of the Military Superannuation Fund. This legislation encompasses individuals who have served or are currently serving in the defence forces, as well as their families, ensuring that they receive appropriate benefits and superannuation entitlements. The Act's jurisdiction extends across the Commonwealth of Australia, thus applying uniformly regardless of state or territory boundaries. The Act does not explicitly state exclusions or exemptions but implicitly excludes those not affiliated with the Australian Defence Force from its benefits. The Act's application can be further refined through subordinate instruments, such as the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 53, which specifies the interest rates applicable to the Military Superannuation Fund, thereby illustrating how the Act's provisions can be adjusted to reflect economic conditions or policy changes.
Key Provisions
The Military Superannuation and Benefits Act 1991 (Interest) Determination No. 53, which came into effect on 26 June 2000, amends the Principal Determination (clause 5) of the Military Superannuation and Benefits Act 1991 (Interest) Determination No. 1, by reducing the exit rate of interest from 11.3% per annum to 9.6% per annum. This adjustment directly affects the interest rates applicable to military superannuation and benefits, impacting the returns on superannuation funds for members of the Australian Defence Force and their families. This determination is made by the Military Superannuation and Benefits Board of Trustees No. 1, pursuant to clause 3 of the Trust Deed under Part 2 of the Military Superannuation and Benefits Act 1991.
Under this determination, the Board of Trustees has a clear obligation to ensure the updated interest rate is accurately reflected in all relevant calculations and communications pertaining to military superannuation and benefits. Trustees must also update any related documentation, systems, and processes to incorporate the new interest rate. The Board is tasked with overseeing the implementation of this change, ensuring that all affected parties are informed and that the amendment is uniformly applied across all superannuation funds managed under the Act.
Failure to comply with the provisions of this determination may result in legal consequences for the Board of Trustees. Although the specific offences and penalties are not detailed within the text, it is reasonable to infer that breaches could lead to civil or administrative penalties, considering the critical nature of financial calculations in superannuation. The potential for legal action against the Board or its members underscores the importance of adhering to the requirements set forth by this determination. Additionally, the Board is responsible for monitoring and enforcing compliance to avoid any financial discrepancies or legal disputes that may arise from the amendment of the interest rate.