EXPLANATORY STATEMENT
MILITARY SUPERANNUATION AND BENEFITS TRUST DEED (AMENDMENT) (N0.1 OF 1994)
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE SCIENCE AND PERSONNEL
The Schedule to the Trust Deed made by the Minister for Defence Science and Personnel under section 5 of the Military Superannuation and Benefits Act 1991 (the “MSB Act”) contains Rules (“the MSB Rules”) which deal with:
- the contributions to be made by members of the Defence Force who are members of the Military Superannuation and Benefits Scheme (the
“MSB scheme”) established by the Trust Deed in accordance with section 4 of the MSB Act; and
b. the benefits to be provided to members of the MSB scheme upon retirement or to dependants of deceased members of the scheme.
The Minister is empowered, by ‘subsection 5(1) of the MSB Act, to amend the Trust Deed (including the MSB Rules), by an instrument which, by subsection 49(1) of the MSB Act, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.
Under certain circumstances, members of the MSB scheme may elect to contribute while on leave without pay. The amendment extends the ability to pay contributions to members granted leave without pay for compassionate reasons.
- Amendment
This clause is formal.
2. Rule 7 (Contributions while on other leave without pay)
Subclause 2.1 inserts a provision in the Rules so as to enable a member who is on leave without pay on compassionate grounds to continue to pay contributions. The subclause provides that the member may elect, with the approval of the Board, to pay contributions in respect of all or part of the period of leave but not exceeding two years. The election must be made before the expiration of the period of leave without pay.
3. Rule 10 (Liability of Department to pay employer contributions)
Subclause 3.1 inserts a provision which provides that in a case where a member is on leave without pay on compassionate grounds, the employer contribution is not payable In respect of the member.
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