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Part 8 of the Act was repealed under Schedule 4 of the Defence Legislation Amendment Act (No. 1) 2005.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.
Overview
The Military Superannuation and Benefits (Eligible Members) Amendment (Employment Categories – Army) Declaration 2014 was enacted to address the need for updating the rank requirements for certain military personnel within specified categories to be eligible for benefits under the Military Superannuation and Benefits Act 1991. This amendment was introduced by the Parliament of Australia to ensure that the criteria for eligibility for benefits remain fair and relevant to the changing structure and roles within the Australian Defence Force. The specific amendment pertains to the Army Specified Category of Special Air Service Trooper Grade 2/3, adjusting the rank requirement from Corporal to Trooper, which was implemented to better align with the current operational roles and the opportunities for promotion within these categories. This amendment was developed in consultation with relevant military and legal authorities and does not require disallowance under the Legislative Instruments Act 2003.
Scope and Application
The Military Superannuation and Benefits Act 1991 applies to certain members of the Australian Defence Force who were members of the Military Superannuation and Benefits Scheme before 6 October 2005. The Act provides for the payment of a retention benefit to eligible members who have completed 15 years of continuous eligible service. The Act applies to members who hold a rank not lower than Major or equivalent (or who were previously an enlisted member), those who hold the rank of Sergeant or equivalent, or those declared by the Minister to be eligible members. The Act includes an amendment to the Army Specified Category of Special Air Service Trooper Grade 2/3, lowering the rank requirement from Corporal to Trooper from 16 September 2014. This amendment is applicable to the Commonwealth jurisdiction and does not specify any exclusions or thresholds. Subordinate instruments may extend or restrict the application of the Act.
Key Provisions
The Military Superannuation and Benefits Act 1991, as amended, contains provisions that are designed to provide retention benefits to eligible members of the Military Superannuation and Benefits Scheme who have completed 15 years of continuous service. These members are typically those who have attained a minimum rank, such as an officer not lower than Major or equivalent, an enlisted member who holds the rank of Sergeant or equivalent, or those declared eligible by the Minister (section 30(1)(f)). The Act also provides for the adjustment of the eligibility criteria for certain employment categories, as demonstrated in this amendment concerning Army members.
The key provision of this amendment is the adjustment of the rank requirement for the Army Specified Category of Special Air Service Trooper Grade 2/3 from Corporal to Trooper. This change is detailed in Schedule 1, item 2.28, which closes the eligibility for the rank of Corporal as of 17 September 2014, and item 2.28A, which opens the eligibility for the rank of Trooper from 16 September 2014 (Schedule 1, item 2.28A). This change aims to ensure that members in specified categories who do not have the opportunity for normal promotion can still be eligible for retention benefits.
The obligations imposed by the Act on the parties or entities it governs include ensuring that eligible members are identified correctly and that retention benefits are provided to those who meet the criteria. The Minister has the authority to declare certain members as eligible under specific conditions, such as when normal promotion opportunities do not exist. The Act also mandates that the Director General Personnel - Army and Defence Legal be consulted in the development of amendments, as evidenced by the consultation undertaken during the development of this amendment.
The Act does not explicitly state offences or penalties for breaches; however, failure to comply with the requirements of the Act could potentially lead to legal challenges or administrative consequences. The legislative instrument is subject to the legislative requirements set out in the Legislative Instruments Act 2003, and it is not subject to disallowance. The impact on businesses and individuals is considered to be low, and no further regulatory analysis was required. This amendment is compatible with human rights, providing an additional financial benefit that assists affected members in exercising their right to just and favourable conditions of work.