EXPLANATORY STATEMENT
STATUTORY RULES NO. 250
ISSUED BY AUTHORITY OF THE MINISTER OF STATE FOR VETERANS’ AFFAIRS
PAPUA NEW GUINEA (MEMBERS OF THE FORCES BENEFITS) REGULATIONS (AMENDMENT)
Under section 9 of the Papua New Guinea (Members of the Forces Benefits) Act 1957, the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed for carrying out or giving effect to the Act.
The proposed regulations give effect to the Government’s Budget decision to increase the amounts payable to Papua New Guinea Veterans and to adjust the payments twice yearly in line with movements in the Papua New Guinea Consumer Price Index. The proposed regulations also specify the amounts payable to Veterans in fortnightly amounts. Regulation 11 permits the prescribed authority to pay pension in instalments. The practice of paying pensions fortnightly has been adopted and it is desirable to express the rates in fortnightly instalments.
Details of the proposed regulations are as follows:
Regulation 2 - Indexation of pensions - inserts a new regulation 9A to allow for twice-yearly adjustment of pensions paid to Veterans, widows and orphans in line with movements in the Weighted Urban Average Consumer Price Index for Papua New Guinea.
Regulations 2 provide for adjustment of pensions each May and November based on Consumer Price Index figures for the previous December and June quarters, commencing on 1 May 1984.
Regulation 3 - Increase in pensions - The existing First Schedule specifies the monthly amount of disability pension payable to Veterans and their dependants.
Regulation 3 changes the First Schedule to Schedule 1, increases the amounts payable to Veterans, widows and orphans and converts the amounts to fortnightly instead of monthly payments for all instalments due after 1 November 1983.
The proposed amended rates are as follows:
Table A | Old rate per month | New rate per fortnight |
1. Widow of member | $100.85 | $56.30 |
2. Dependant of member under 16 years of age | $17.95 | $10.60 |
3. Any other dependant of member | $10.50 | $4.80 |
Table B | | |
1. Member | $160.05 | $94.60 |
2. Wife of member | $6.75 | $3.10 |
3. Dependant of member under 16 years of age | $3.00 | $1.40 |
4. Any other dependant of member | $10.50 | $4.80 |
Overview
The Papua New Guinea (Members of the Forces Benefits) Regulations (Amendment) Statutory Rules No. 250, issued by authority of the Minister of State for Veterans' Affairs, amends existing regulations under section 9 of the Papua New Guinea (Members of the Forces Benefits) Act 1957 to address the need for adjusting pension payments to veterans, widows, and orphans in line with economic changes. These amendments aim to ensure that pension payments are periodically reviewed and increased to reflect the movement in the Papua New Guinea Consumer Price Index, providing better financial security to beneficiaries. This legislative action follows the Government's Budget decision to enhance the welfare of veterans by increasing pension amounts and implementing a bi-annual adjustment mechanism, thereby maintaining the purchasing power of the pensions. The regulations also transition from monthly to fortnightly pension payments, aligning with administrative practices and enhancing clarity in pension disbursements.
Scope and Application
The Papua New Guinea (Members of the Forces Benefits) Regulations (Amendment) Statutory Rules No. 250, issued under the authority of the Minister of State for Veterans' Affairs, apply to all veterans, widows, and orphans who receive benefits under the Papua New Guinea (Members of the Forces Benefits) Act 1957. These regulations specifically govern the indexation of pensions and the increase in pension amounts payable to these individuals. They are intended to align pension payments with the economic conditions of Papua New Guinea, as measured by the Weighted Urban Average Consumer Price Index. The amendments establish a new regulation 9A, which mandates twice-yearly adjustments to pension amounts in May and November based on Consumer Price Index figures from the previous December and June quarters, starting from May 1, 1984. Additionally, the regulations convert the pension payments from monthly to fortnightly instalments for all amounts due after November 1, 1983. These changes are reflected in the updated First Schedule to Schedule 1, which provides the new fortnightly rates for different categories of recipients. The regulations do not specify any exclusions or exemptions, applying uniformly to all eligible beneficiaries within the scope of the Act.
Key Provisions
The Papua New Guinea (Members of the Forces Benefits) Regulations (Amendment) primarily focus on the adjustment of pensions for veterans and their dependants. Section 2 of the regulations introduces a new regulation 9A, which allows for the twice-yearly adjustment of pensions in line with movements in the Weighted Urban Average Consumer Price Index for Papua New Guinea. These adjustments take effect in May and November each year, based on Consumer Price Index figures from the previous December and June quarters, starting from 1 May 1984. Section 3 changes the existing schedule to Schedule 1, increasing the amounts payable to veterans, widows, and orphans and converting these payments from monthly to fortnightly, effective from 1 November 1983. The new fortnightly rates are specified in the schedules attached to the regulations.
The obligations imposed by these regulations on the relevant authorities include ensuring that pension payments are indexed to reflect changes in the cost of living, as measured by the Consumer Price Index. Authorities must also ensure that the new fortnightly rates are implemented correctly and that all pension payments are made according to the revised schedule. The regulations mandate the prescribed authority to pay pensions in instalments, as specified in Regulation 11. The practice of paying pensions fortnightly has been adopted, and it is essential to express the rates in fortnightly instalments to maintain consistency and clarity in pension disbursements.
Failure to comply with these regulations could result in legal consequences. While the specific offences and penalties are not detailed in the explanatory statement, non-compliance with statutory obligations typically results in administrative penalties or legal action. In the context of pension payments, non-compliance could lead to financial discrepancies and dissatisfaction among beneficiaries, potentially resulting in legal disputes or regulatory enforcement actions. The precise penalties would depend on the nature and severity of the breach, but could include fines or corrective actions to rectify the non-compliance.