MILITARY SUPERANNUATION AND BENEFITS ACT 1991
MILITARY SUPERANNUATION AND BENEFITS (ELIGIBLE MEMBER)
DECLARATION 2014
EXPLANATORY STATEMENT
The Military Superannuation and Benefits Act 1991 (the MSBS Act) makes provision in Part 8 for the payment of a retention benefit to certain members of the Military Superannuation and Benefits Scheme (“the Scheme”) who have completed 15 years of continuous eligible service. The purpose of the benefit is to induce members to serve for another five years and so get to 20 years of service.
Part 8 of the Act was repealed under Schedule 4 of the Defence Legislation Amendment Act (No. 1) 2005 (DLA Act). However, due to a saving provision in item 4 of Schedule 4 of the DLA Act, eligibility for the retention benefit is still applicable for eligible members of the Australian Defence Force who were members of the Scheme before 6 October 2005.
An “eligible member” is defined in subsection 30(1) of the MSBS Act to include:
- an officer who holds the rank not lower than Major or equivalent (or who was previously an enlisted member);
- an enlisted member who holds the rank of Sergeant or equivalent; or
- a member declared by the Minister to be an eligible member (paragraph (f) of the definition).
Members who do not satisfy the minimum rank requirement as a result of being in employment categories (“specified categories”) where the normal opportunities for promotion do not exist; or due to losing promotion seniority because of a category transfer may be declared by the Minister to be eligible members for the purposes of the MSBS Act.
By withdrawing specified category status from four employment categories and declaring specified category status for three new categories; and specifying individuals who have lost, or are likely to lose, promotion seniority due to a category transfer, this Declaration identifies those members who may become eligible for the retention benefit in 2014.
Schedule 1 to this Declaration lists the employment categories and ranks that a member may hold in order to be part of the class to which this Declaration applies.
Schedule 2 to this Declaration lists individual members to whom this Declaration applies.
Consultation
The three Australian Defence Force Career Management Agencies (who nominate employment categories and individual members for listing in the Specified Category and Inter-Employment category Schedules), Defence Legal, the Department of Defence Chief Finance Officer, the Department of Finance and Deregulation and the Office of Parliamentary Counsel have all been consulted during the development of this Declaration.
This is a legislative instrument for the purpose of section 44(2) of the Legislative Instruments Act 2003 (LIA) and is not subject to disallowance in accordance with item 39 of the table in subsection 44(2) of the LIA.
The impacts on business and individuals or the economy of the instrument are low and the Office of Best Practice Regulation advised that no further regulatory analysis was required.
Commencement
This Declaration commences on the day after it is registered.
Authority: Paragraph (f) of subsection 30(1) of the Military Superannuation and Benefits Act 1991, as continued in force by item 4 of Schedule 4 to the Defence Legislation Amendment Act (No.1) 2005.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Military Superannuation and Benefits (Eligible Member) Declaration 2014
Overview of the Declaration
Part 8 of the Military Superannuation and Benefits Act 1991 (“the Act”) makes provision for the payment of a retention benefit to certain Australian Defence Force members of the Military Superannuation and Benefits Scheme (“the Scheme”), who have completed 15 years of continuous eligible service. The purpose of the benefit is to induce members to serve for another five years and so get to 20 years of service.
Part 8 of the Act was repealed under Schedule 4 of the Defence Legislation Amendment Act (No. 1) 2005. However, due to a saving provision in item 4 of Schedule 4 of that Act, eligibility for the retention benefit is still applicable for eligible members of the Australian Defence Force who were members of the Scheme before 6 October 2005.
As provided for by the above provisions, the purpose of this Declaration is to declare members of certain Australian Defence Force employment categories or individual members (called specified categories or inter-employment categories respectively) to be eligible for a retention bonus without meeting the normal minimum rank requirements for payment of the bonus.
Human Rights Implications
This instrument engages the human right to just and favourable conditions of work, including remuneration, safe and healthy conditions, equal opportunity and reasonable limitations per Article 7 of the International Covenant on Economic, Social and Cultural Rights.
The retention benefit is normally only payable to members who have attained the minimum rank of Major (or equivalent) or Sergeant (or equivalent). However, certain members are not able to attain the minimum rank required due to impediments in their employment category structures, or as a result of losing promotion seniority because of a category transfer. This Declaration remediates the disadvantage that would be otherwise suffered by such members by specifying those employment categories and identifying the individual members affected, thus recognising those members as eligible for the retention benefit.
Conclusion
As this Declaration promotes members’ right to remuneration, it is compatible with the human right it engages, specifically, Article 7 of the International Covenant on Economic, Social and Cultural Rights.
The Hon Stuart Robert MP, Assistant Minister for Defence.