Military Superannuation and Benefits Amendment Trust Deed 1999 (No. 3)

Overview

The Military Superannuation and Benefits Amendment Trust Deed 1999 (No. 3) was enacted to address the need for updating the terminology in the Military Superannuation and Benefits Act 1991 to reflect changes in financial sector regulation. The Trust Deed, which was amended under the authority of the Minister for Veterans' Affairs and the Minister Assisting the Minister for Defence, modifies the rules governing the benefits provided to members of the Military Superannuation and Benefits scheme, specifically updating the terms "credit union" and "building society" to the more inclusive term "bank". This change aligns with Stage Two of the Financial Sector Reforms, where credit unions and building societies are to be regulated under the Banking Act 1959 as authorised deposit-taking institutions, thereby simplifying the regulatory language within the scheme. The amendments also include a definition of the term "bank" to ensure clarity and consistency in the application of the MSB Rules.

Scope and Application

The Military Superannuation and Benefits Amendment Trust Deed 1999 (No. 3) amends the Military Superannuation and Benefits Act 1991 to update the terminology within the Military Superannuation and Benefits Rules. This change is necessitated by the Financial Sector Reforms, under which credit unions and building societies will be regulated as authorised deposit-taking institutions under the Banking Act 1959, thereby being encompassed by the term "bank". The amendments affect the rules pertaining to benefits provided to members of the Military Superannuation and Benefits scheme upon retirement or to dependants of deceased members, including member benefits based on contributions and interest, as well as employer benefits that include employer contributions. The amendments apply to the Trust Deed made under the MSB Act and are effective upon gazettal, with the modifications being formalised in the Schedule to the Trust Deed. These changes do not alter the scope or jurisdiction of the original Act, which applies to members of the military superannuation scheme and their dependants, and remain a Commonwealth instrument. The Act’s application is not restricted by geographic or jurisdictional boundaries within Australia, and the rules are updated to reflect legislative changes in financial sector regulation.

Key Provisions

The Military Superannuation and Benefits Amendment Trust Deed 1999 (No. 3) primarily modifies the Rules established under the Military Superannuation and Benefits Act 1991 (MSB Act). These Rules govern the benefits provided to members of the Military Superannuation and Benefits (MSB) scheme upon their retirement or to the dependants of deceased members. The MSB Rules specify the member benefit, which is calculated based on the member's contributions and accrued interest, and the employer benefit, which includes employer contributions (s. 5). The key amendments introduced by this Trust Deed are the replacement of the terms "credit union" and "building society" with the term "bank" and the addition of a definition for "bank". Under the MSB Act, the Minister Assisting the Minister for Defence has the authority to amend the Trust Deed and its Rules through an instrument that is subject to disallowance (s. 5(1), s. 49(1)). The Military Superannuation and Benefits Amendment Trust Deed 1999 (No. 3) exercises this power by altering the MSB Rules to align with the Financial Sector Reforms, specifically Stage Two, which mandates that credit unions and building societies be regulated as authorised deposit-taking institutions under the Banking Act 1959. This amendment reflects the regulatory shift where these institutions will be collectively referred to as "banks". The obligations imposed by the Trust Deed primarily concern the definition and application of the term "bank" within the context of the MSB Rules. It requires that any references previously made to "credit union" and "building society" be interpreted as references to "bank", thereby ensuring that the Rules remain consistent with the updated regulatory terminology. The Trust Deed also mandates that the term "bank" be defined in the Schedule of the MSB Rules to avoid ambiguity and to ensure clarity in the application of the benefits scheme. Failure to comply with the amendments specified in the Trust Deed could result in legal consequences. However, the Trust Deed itself does not explicitly outline offences, penalties, or consequences for breach. Instead, the penalties for non-compliance with the MSB Act or the Trust Deed would likely be prescribed in other sections of the MSB Act or relevant financial legislation. Under the MSB Act, breaches could potentially result in civil or criminal penalties, but the specific penalties would depend on the nature and severity of the breach. The maximum penalties for breaches of the MSB Act can vary and are detailed in the relevant sections of the Act.