Military Superannuation and Benefits Amendment Trust Deed 2004 (No. 4)
I, ROBERT MURRAY HILL, Minister for Defence, make this Trust Deed under subsection 5 (1) of the Military Superannuation and Benefits Act 1991.
Dated 19 November 2004
ROBERT HILL
Minister for Defence
1 Name of Trust Deed
This Trust Deed is the Military Superannuation and Benefits Amendment Trust Deed 2004 (No. 4).
2 Commencement
This Trust Deed commences on the date of its notification in the Gazette.
3 Amendment of Military Superannuation and Benefits Trust Deed
Schedule 1 amends the Military Superannuation and Benefits Trust Deed made under the Military Superannuation and Benefits Act 1991.
Schedule 1 Amendments
(section 3)
[1] Rules, subrule 2 (1)
after
allowance
insert
ancillary
ancillary benefit
[2] Rules, subrule 2 (1)
after
Determination No. 6 of 1992
insert
DFRDB member
[3] Rules, subrule 5 (4)
substitute
(4) This rule does not apply to benefits payable under Part 12 or Part 13 or contributions made under Part 14.
[4] Rules, subrule 10 (1A)
substitute
(1A) Subrule (1) does not apply in relation to:
(a) an interim salary fortnight contribution; and
(b) a contribution made under Part 14.
[5] Rules, rule 11N
omit everything before paragraph (a), insert
As soon as practicable after the end of a financial year, the Board must give to each unitised member, to each ancillary and to each associate a statement of the beneficial interest that the member, ancillary or associate holds in the Fund, including:
[6] Rules, subrule 69 (5), definition of benefit
before
associate A benefit,
insert
ancillary benefit,
[7] Rules, paragraph 80 (1) (d)
before
associate A benefit
insert
ancillary benefit,
[8] Rules, Part 12
substitute
Part 12 Associate benefit and ancillary benefit
85 Associate A benefit and ancillary benefit
(1) Associate A benefit is a benefit:
(a) created as associate A benefit under Part 13; and
(b) held for a person as units in one or more Investment Divisions.
(2) Ancillary benefit is a benefit:
(a) created as ancillary benefit under Part 14; and
(b) held for a person as units in one or more Investment Divisions.
(3) Divisions 5, 6 and 7 of Part 2B apply in relation to associate A benefit and ancillary benefit as if the person for whom the benefit is held were a unitised member and the units were units in a member funded account.
(4) A person is entitled to be paid associate A benefit and ancillary benefit when the person reaches his or her preservation age.
(5) The person may, at any time before the benefit becomes payable, request that the Board roll over or transfer the associate A benefit or ancillary benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(6) When the benefit becomes payable in accordance with subrule (4), the person may request that the Board:
(a) pay the benefit to the person as a lump sum; or
(b) roll over or transfer the benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(7) If a person does not make a request under subrule (5) or (6), the benefit must be paid to the person as a lump sum when the person reaches the age of 65.
86 Associate B benefit
(1) Associate B benefit is a benefit:
(a) created as associate B benefit under Part 13; and
(b) preserved in the Scheme for a person; and
(c) indexed annually at the long term bond rate.
(2) A person is entitled to be paid associate B benefit when the person reaches his or her preservation age.
(3) On reaching the age of 55, the person may request that the Board roll over or transfer the associate B benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(4) When the benefit becomes payable in accordance with subrule (2), the person may request that the Board:
(a) pay the benefit to the person as a lump sum; or
(b) roll over or transfer the benefit to a regulated superannuation fund, an RSA, or an approved deposit fund nominated by the person, to be held for the benefit of the person.
(5) If a person does not make a request under subrule (3) or (4), the benefit must be paid to the person as a lump sum when the person reaches the age of 65.
87 Release of benefits because of total and permanent incapacity, on compassionate grounds, or because of severe financial hardship
(1) This rule applies to a person:
(a) to whom associate A benefit, associate B benefit or ancillary benefit applies; and
(b) who has not reached the age of 55.
(2) Subject to Part 10, the associate A benefit, associate B benefit or ancillary benefit becomes payable to the person as a lump sum:
(a) if the Board decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining — on the date on which the Board so decides; or
(b) if the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A (2) of the SIS Regulations — on the date of the determination; or
(c) if the Board is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the SIS Regulations — on the date when the Board becomes so satisfied.
(3) An amount that becomes payable under paragraph (2) (b) or (c) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or is necessary to alleviate financial hardship.
(4) If only part of a benefit payable under subrule (2) is payable because of subrule (3), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if the Board considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.
88 Death of a person who has associate benefit or ancillary benefit
(1) This rule applies if a person for whom associate A benefit, associate B benefit or ancillary benefit is held dies.
(2) Associate A benefit, associate B benefit or ancillary benefit is payable as a lump sum as follows:
(a) if the deceased person is survived by a spouse, the benefit is payable to the spouse;
(b) if the deceased person is survived by more than 1 spouse, the benefit is payable to the spouses;
(c) if the deceased person is survived by:
(i) a spouse or spouses; and
(ii) an eligible child or children;
the benefit is payable to, or for the benefit of, the spouse or spouses and the child or children;
(d) if the deceased person is not survived by a spouse but is survived by an eligible child or children, the benefit is payable to, or for the benefit of, the child or children;
(e) if the deceased person is not survived by a spouse or an eligible child and he or she had notified the Board in writing that:
(i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and
(ii) he or she had made provision for that person or those persons in his or her will;
the benefit is payable to, or for the benefit of, the person or persons;
(f) in any other case, the benefit is payable to the deceased person’s personal representative.
[9] Rules, rule 90, heading
substitute
90 Splitting a benefit that is not ancillary benefit, associate A benefit or associate B benefit
[10] Rules, subparagraph 90 (1) (a) (ii)
before
associate A benefit
insert
ancillary benefit,
[11] Rules, subrule 90 (1), note 1
substitute
Note 1 This rule applies to the benefit of a member spouse as a member of the Scheme. The member spouse may also have ancillary benefit or associate benefit in the Scheme. Ancillary benefit and associate benefit are split under rule 91.
[12] Rules, subrule 90 (5)
omit
credited, (an investment nomination)
insert
credited (an investment nomination),
[13] Rules, rule 91, heading
substitute
91 Splitting ancillary benefit, associate A benefit or associate B benefit
[14] Rules, paragraph 91 (1) (a)
before
associate A benefit
insert
ancillary benefit,
[15] Rules, subrule 91 (1), note
substitute
Note This rule applies to ancillary benefit and associate benefit. If the member spouse is a member of the Scheme, the benefit of the member spouse as a member of the Scheme will be split under rule 90.
[16] Rules, subrule 91 (3)
before
associate A benefit of the member spouse
insert
ancillary benefit or
[17] Rules, subrule 91 (5)
omit
credited, (an investment nomination)
insert
credited (an investment nomination),
[18] Rules, subrule 91 (7)
before
the associate A benefit
insert
the ancillary benefit,
[19] Rules, subparagraph 91 (8) (a) (i)
substitute
(i) any ancillary benefit and associate A benefit; and
[20] Rules, rule 94, heading
substitute
94 Member spouse is member who has ancillary benefit or associate benefit
[21] Rules, subparagraph 94 (1) (b) (ii)
before
associate A benefit
insert
ancillary benefit,
[22] Rules, paragraph 94 (1) (d)
before
associate A benefit
insert
ancillary benefit,
[23] Rules, paragraph 94 (1) (f)
before
associate interest.
insert
ancillary interest and
[24] Rules, paragraph 94 (2) (b)
before
associate A benefit
insert
ancillary benefit,
[25] Rules, subrule 94 (3), note
substitute
Note If the Board receives a splitting agreement or a splitting order that differentiates between member benefit or preserved benefit and ancillary benefit or associate benefit, the agreement or order will be given effect under rule 90 in respect of the member benefit or preserved benefit and under rule 91 in respect of any ancillary benefit or associate benefit.
[26] Rules, after Part 13
insert
Part 14 Ancillary Contributions
101 Definition
In this Part:
Government co-contribution means an amount paid as a Government co‑contribution under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003.
102 Part 2 does not apply
Part 2 does not apply to contributions made under this Part.
103 Government co-contribution for low income earners
(1) If the Board receives a Government co-contribution in respect of a member or a DFRDB member, the Board must allocate the contribution as ancillary benefit for the member or DFRDB member.
(2) If the member or DFRDB member has nominated to the Board the Investment Division or Investment Divisions to which the ancillary benefit should be credited (an investment nomination), the Board must comply as far as possible with the nomination.
(3) If the Board:
(a) has not received an investment nomination from the member or DFRDB member; or
(b) cannot comply with an investment nomination in relation to all or part of the ancillary benefit because the nomination is defective or because the Investment Divisions have changed;
the Board must allocate the ancillary benefit to the default Investment Division.
[27] Rules, Schedule 1, Part 1, after definition of allowance
insert
ancillary means a person for whom ancillary benefit is held in the Scheme.
ancillary benefit has the meaning given by subrule 85 (2).
[28] Rules, Schedule 1, Part 1, after definition of Determination No. 6 of 1992
insert
DFRDB member means a member of the 1973 Scheme.
[29] Rules, Schedule 1, Part 1, definition of eligible child
before
an associate
insert
an ancillary,
[30] Rules, Schedule 3, paragraph 6
before
associate A benefit
insert
ancillary benefit,