COMMONWEALTH OF AUSTRALIA
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS ACT 1973
DETERMINATION
The Defence Force Retirement and Death Benefits Authority, pursuant to subsection 124A(1) of the Defence Force Retirement and Death Benefits Act 1973, and for the purposes of subsection 23(6), subparagraph 24(8)(e)(ii), paragraph 24(9)(f), subsection 31(4), subparagraph 32A(7)(e)(ii), paragraph 32A(8)(f), subparagraph 41A(4A)(d)(ii) and subsections 43(2AA), 75(3A) and 75(4A) of the Act, DETERMINES as follows:
Citation
1. This determination may be cited as the "Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 2".
Commencement
2. This determination shall take effect from and including 16 March 2001.
Purpose
3. The purpose of this determination is to determine, in accordance with advice from the Australian Government Actuary, new conversion factors to be used when calculating pension reductions in order to discharge Surcharge Deduction Amounts.
Principal Determination
4. In this determination “the Principal Determination” means the Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 1.
Interpretation
5.(1) In this determination:
"Act" means the Defence Force Retirement and Death Benefits Act 1973; and
“DFRDB Scheme” means the retirement and death benefits scheme established by the Act.
(2) Words and expressions defined in the Act have the same meaning in this determination.
Amendment of the Principal Determination
6. The Table in the Schedule to the Principal Determination and the conversion factors required to be determined under subsection 124A(1) of the Act there set out are omitted and replaced by the Table and conversion factors set out in the Schedule to this determination.
[Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 2 (continued)]
Christine M. Goode
..............................................................
C.M. Goode
(Chairman)
P. Charley G. Ferguson
............................................................. ............................................................
P.J. Charley CAPT G. Ferguson
(Deputy Chairman (Navy Member)
and Department of Defence Member)
Geoffrey Beck A. Bobets
.............................................................. ............................................................
COL G. Beck A. Bobets
(Army Member) (Air Force Member)
Dated this sixteenth day of March 2001
SCHEDULE
CONVERSION FACTORS REQUIRED TO BE DETERMINED
UNDER SUBSECTION 124A(1) OF THE ACT
Age in completed years at date benefit becomes payable | Conversion factor | | Age in completed years at date benefit becomes payable | Conversion factor |
15 | 24.0 | | 43 | 20.8 |
16 | 24.0 | | 44 | 20.6 |
17 | 23.9 | | 45 | 20.4 |
18 | 23.8 | | 46 | 20.2 |
19 | 23.8 | | 47 | 20.0 |
20 | 23.7 | | 48 | 19.7 |
21 | 23.6 | | 49 | 19.5 |
22 | 23.5 | | 50 | 19.3 |
23 | 23.5 | | 51 | 19.0 |
24 | 23.4 | | 52 | 18.7 |
25 | 23.3 | | 53 | 18.5 |
26 | 23.2 | | 54 | 18.2 |
27 | 23.1 | | 55 | 17.9 |
28 | 23.0 | | 56 | 17.6 |
29 | 22.9 | | 57 | 17.3 |
30 | 22.8 | | 58 | 17.0 |
31 | 22.7 | | 59 | 16.7 |
32 | 22.5 | | 60 | 16.3 |
33 | 22.4 | | 61 | 16.0 |
34 | 22.3 | | 62 | 15.6 |
35 | 22.1 | | 63 | 15.3 |
36 | 22.0 | | 64 | 14.9 |
37 | 21.9 | | 65 | 14.5 |
38 | 21.7 | | 66 | 14.1 |
39 | 21.5 | | 67 | 13.7 |
40 | 21.4 | | 68 | 13.3 |
41 | 21.2 | | 69 | 12.9 |
42 | 21.0 | | 70 | 12.5 |
Overview
The Defence Force Retirement and Death Benefits Act 1973 was enacted to address the need for a comprehensive retirement and death benefits scheme for members of the Australian Defence Force. The Act establishes a scheme designed to provide financial security to service members and their families in the event of retirement, death, or disability. The Parliament of Australia enacted this legislation to ensure that defence personnel have adequate support mechanisms in place. The primary policy objective of the Act is to provide a structured and reliable system of retirement and death benefits that reflect the unique nature of military service and the sacrifices made by defence personnel and their families. This legislative framework was introduced to fill a critical gap in providing adequate retirement and death benefits to those who serve in the Australian Defence Force, ensuring they are properly cared for after their service.
The Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 2, made under the authority of the Defence Force Retirement and Death Benefits Act 1973, was issued to update the conversion factors used in calculating pension reductions necessary to discharge Surcharge Deduction Amounts. This legislative instrument was developed to implement changes recommended by the Australian Government Actuary, ensuring that the calculation of pension reductions remains accurate and reflective of current economic conditions. The determination, which took effect from 16 March 2001, amends the conversion factors previously set out in the Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 1, thereby ensuring the continued relevance and fairness of the pension calculation process within the DFRDB Scheme.
Scope and Application
The Defence Force Retirement and Death Benefits Act 1973 applies to all members of the Australian Defence Force and their families, including both current and past members, as well as those who have been employed by the Department of Defence. This legislation is designed to provide retirement and death benefits to eligible members and their families, ensuring financial security in their post-service lives. The Act's jurisdiction extends across the Commonwealth of Australia, covering federal territories and state jurisdictions uniformly. This legislative instrument, the Superannuation (DFRDB Scheme) (Surcharge Deduction Amount - Conversion Factors) Determination No. 2, amends the conversion factors used for calculating pension reductions to discharge Surcharge Deduction Amounts, ensuring these benefits are accurately and fairly applied. Any exclusions, exemptions, or thresholds are specified within the Act itself, and the application of the Act may be extended or restricted through subordinate instruments, as detailed in the legislation.
Key Provisions
The key sections of the Determination outline the establishment of new conversion factors for the Defence Force Retirement and Death Benefits Scheme (DFRDB Scheme), as specified in section 4. These conversion factors, detailed in the accompanying Schedule, are used to calculate pension reductions necessary to discharge Surcharge Deduction Amounts, as per section 6. The purpose of these conversion factors is to ensure that the DFRDB Scheme remains financially viable and compliant with the requirements set forth in the Defence Force Retirement and Death Benefits Act 1973 (Act), as stated in section 3. This Determination, effective from 16 March 2001 as per section 2, replaces the previous conversion factors established under the Principal Determination, as outlined in section 6.
The obligations imposed by this Determination primarily concern the Defence Force Retirement and Death Benefits Authority (DFRDB Authority), which must ensure that the conversion factors provided in the Schedule are applied correctly in all relevant calculations. These factors are crucial for the accurate determination of pension reductions, ensuring that Surcharge Deduction Amounts are discharged appropriately. Additionally, the DFRDB Authority is required to ensure that the conversion factors are updated periodically, as advised by the Australian Government Actuary, to maintain the financial integrity of the DFRDB Scheme.
In terms of consequences for non-compliance, the Determination does not explicitly outline specific offences, penalties, or consequences for breaches. However, given its role in ensuring the financial sustainability of the DFRDB Scheme, any failure to correctly apply the conversion factors could potentially lead to financial mismanagement and legal repercussions. It is also important to note that while the Determination itself does not specify maximum penalties, breaches of the Act or regulations related to the DFRDB Scheme could result in substantial fines or other legal actions under the broader legislative framework governing the DFRDB Scheme.