Overview

The Military Superannuation and Benefits (Eligible Member) Declaration 2010 is a legislative instrument under the Military Superannuation and Benefits Act 1991. The Act was enacted to address the need for a retention benefit for members of the Military Superannuation and Benefits Scheme who have served continuously for 15 years, incentivising them to continue serving to reach 20 years of service. Although Part 8 of the Act was repealed by the Defence Legislation Amendment Act (No. 1) 2005, the eligibility for the retention benefit remains in force for members who were part of the Scheme before 6 October 2005. This Declaration aims to adjust the eligibility criteria by withdrawing the specified category status for thirteen employment categories, declaring specified category status for two new categories, and adding fourteen additional members to the inter-employment category, which covers members who do not meet the standard eligibility requirements but have special circumstances justifying their inclusion. This instrument was developed in consultation with relevant authorities and is not subject to disallowance under the Legislative Instruments Act 2003.

Scope and Application

The Military Superannuation and Benefits (Eligible Member) Declaration 2010 applies to members of the Australian Defence Force who were part of the Military Superannuation and Benefits Scheme before 6 October 2005. The Act is applicable to officers who hold the rank of Major or equivalent, enlisted members who hold the rank of Sergeant or equivalent, and members declared by the Minister to be eligible under certain conditions. These eligible members are entitled to a retention benefit if they complete 15 years of continuous eligible service and serve for an additional five years, reaching a total of 20 years of service. The Act applies to the Commonwealth of Australia, governing the eligibility of Defence Force members for the retention benefit. The Declaration modifies the eligibility criteria by withdrawing specified category status for thirteen employment categories, declaring two new categories, and including fourteen additional members in the inter-employment category. These changes are made to accommodate special circumstances that justify the inclusion of certain members who do not meet the standard eligibility requirements. The impacts on business and individuals are minimal, as advised by the Office of Best Practice Regulation.

Key Provisions

The Military Superannuation and Benefits (Eligible Member) Declaration 2010 (F2010L03037) operates under the Military Superannuation and Benefits Act 1991, which previously included provisions for a retention benefit for certain members of the Military Superannuation and Benefits Scheme who had completed 15 years of continuous eligible service. Section 30(1) of the Act defines an "eligible member" as an officer holding the rank of Major or equivalent, an enlisted member holding the rank of Sergeant or equivalent, or a member declared by the Minister to be an eligible member. The Act's Part 8, which originally provided for the retention benefit, was repealed by the Defence Legislation Amendment Act (No. 1) 2005, but eligibility for the benefit remains applicable for certain members who were part of the Scheme before 6 October 2005. This Declaration serves to update the eligibility criteria for the retention benefit by modifying the specified categories of employment that qualify members for the benefit. Specifically, Schedule 1 to this Declaration withdraws specified category status for thirteen employment categories, declares specified category status for two new categories, and declares fourteen additional members as eligible under the inter-employment category. The inter-employment category applies to Defence Force members who do not meet the normal eligibility requirements but have special circumstances that justify their inclusion. The Declaration lists the employment categories and ranks that a member may hold to be part of the class to which this Declaration applies in Schedule 1, and the individual members to whom this Declaration applies in Schedule 2. Entities and individuals subject to the Military Superannuation and Benefits Act 1991, particularly those involved in career management and legal affairs within the Australian Defence Force, have specific obligations under this Declaration. They must ensure that the employment categories and individual members listed in the Schedules are accurately identified and recognised for the purposes of eligibility for the retention benefit. Defence Legal, the Department of Defence Chief Finance Officer, and the Department of Finance and Deregulation have all been consulted during the development of this Declaration to ensure compliance with relevant laws and regulations. Breaches of the obligations imposed by this Declaration may not explicitly state specific offences, penalties, or consequences within the text. However, given that this is a legislative instrument for the purpose of section 44(2) of the Legislative Instruments Act 2003 and is not subject to disallowance, non-compliance could potentially lead to administrative or legal repercussions. The retrospective effect for ten of the fourteen members included in the inter-employment category, while beneficial to the members, is noted to not offend against subsection 12(2) of the Legislative Instruments Act 2003 because of its beneficial nature. The impacts on business and individuals or the economy are considered low, with no further regulatory analysis required as advised by the Office of Best Practice Regulation.