EXPLANATORY STATEMENT
MILITARY SUPERANNUATION AND BENEFITS (DELAYED PAYMENT OF BENEFITS) AMENDMENT DETERMINATION 2005 (No 1)
Part 2 of the Military Superannuation and Benefits Act 1991 (“the Act”) provides, in part, for the establishment, by Deed, of the Military Superannuation and Benefits Scheme (“MSBS”), an occupational superannuation scheme.
Background
Paragraph 3(1)(c) of the Trust Deed enables the Military Superannuation and Benefits Board of Trustees No 1 established by section 18 of the Act to determine interest rates for the purposes of the MSBS.
Purpose
The Military Superannuation and Benefits (Delayed Payment of Benefits) Amendment Determination 2005 (No 1) (“the amending instrument”) amends the Military Superannuation and Benefits (Delayed Payment of Benefits) Determination 2004 (“the principal instrument.”)
The principal instrument enables interest to be paid on lump sum benefits for members and associates where the processing period is greater than 15 working days.
The amending instrument extends the application of the principal determination to ancillary benefits.
Schedule 1 of the amending instrument achieves this by expanding the definition of a lump sum benefit in the principal instrument to include an ancillary benefit.
Transitional
The amendments made by this determination apply in relation to an ancillary benefit which became payable, whether paid or not, prior to the commencement of this determination or to an ancillary benefit which becomes payable on or after the commencement of this determination.