MILITARY SUPERANNUATION AND BENEFITS ACT 1991

MILITARY SUPERANNUATION AND BENEFITS (ELIGIBLE MEMBERS) AMENDMENT (EMPLOYMENT CATEGORIES – ARMY)

DECLARATION 2014

EXPLANATORY STATEMENT

Background

The Military Superannuation and Benefits Act 1991 (“the 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Part 8 of the Act was repealed under Schedule 4 of the Defence Legislation Amendment Act (No. 1) 2005.  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.

An “eligible member” is defined in subsection 30(1) of the 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 and are in employment categories where the normal opportunities for promotion do not exist may be declared by the Minister to be eligible members for the purposes of the Act. These employment categories are referred to as “specified categories” for identifying members as eligible members for the purposes of the Act. The employment categories are listed in Ministerial Declarations such as the one to which this statement relates.

Amendment

The purpose of this amendment is to adjust the rank requirement for the Army Specified Category of Special Air Service Trooper Grade 2/3 from Corporal to Trooper.  Specifically, the amendment will be made at Part 2 of Schedule 1, item 2.28 the Army category of Special Air Service Trooper Grade 2/3 Corporal will be closed as at 17 September 2014 and item 2.28A will open the adjusted rank of Special Air Service Trooper Grade 2/3 Trooper from 16 September 2014.  This amendment will be consolidated into the Military Superannuation and Benefits (Eligible Members) Declaration 2014 (No.2).

Schedule 1 to the Declaration lists the employment categories and ranks that a member may hold in order to be part of the class to which the Declaration applies.

Consultation

The Director General Personnel - Army and Defence Legal have been consulted during the development of this amendment.

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.

Human Rights Statement

This amendment is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.  The Declaration does not engage any applicable rights or freedoms, other than to provide an additional financial benefit to the affected person that assists them to exercise their right to the enjoyment of just and favourable conditions of work (article 7 of the International Covenant of Economic, Social and Cultural Rights).

      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.