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No. 2 of 1998 Deeds & Trust Deeds as made
Trust Deed Amendment
Administered by: Defence
Exempt from sunsetting by the Legislative Instruments Act 2003 s 54(2) item 42
Registered 08 Mar 2005
Tabling HistoryDate
Tabled HR12-May-1998
Tabled Senate13-May-1998
Gazetted 06 May 1998
Date of repeal 19 Mar 2014
Repealed by Defence (Spent and Redundant Instruments) Repeal Regulation 2014

Commonwealth of Australia

Military Superannuation and Benefits Act 1991

Military Superannuation and Benefits Trust Deed (Amendment) (No. 2 of 1998)

I, BRONWYN KATHLEEN BISHOP, Minister for Defence Industry, Science and Personnel, make this instrument under section 5 of the Military Superannuation and Benefits Act 1991.

Dated 24 April 1998.

 

 

BRONWYN BISHOP

Minister for Defence Industry, Science and Personnel

 

1.   Commencement

1.1   This instrument commences on gazettal.

2.   Amendment

2.1   The Trust Deed made under the Military Superannuation and Benefits Act 1991 is amended as set out in this instrument.

3.   Schedule (Military Superannuation and Benefits Rules)

3.1   The Military Superannuation and Benefits Rules are amended as set out in the Schedule.

 

                                                            SCHEDULE                                            Clause 3.1

1.   Rule 2 (Definitions and interpretation)

1.1   Subrule 2 (1):

After:

 “Statistician”,

insert:

“surcharge debt account

surcharge deduction amount”.

2.   Rule 12 (Benefits on retirement before reaching 55 years of age or earlier retiring age, otherwise than for redundancy or retrenchment etc)

2.1   Subrule 12 (2):

Omit “Subject to rule 15, in”, substitute “In”.

2.2   Subrule 12 (3):

Omit “Subject to rule 15, a”, substitute “A”.

2.3   Paragraph 12 (4) (b):

Omit “(3), 15 (2) or 15 (3);”, substitute “(3);”.

3.   Rule 13 (Benefits on retirement for redundancy or retrenchment or on completion of limited tenure appointment or on attaining retiring age of less than 55 years)

3.1   Paragraph 13 (4) (b):

Omit “the benefit”, substitute “subject to subrule (4A), the benefit”.

3.2   After subrule 13 (4), insert:

         (4A)   If the person’s surcharge debt account is in debit, an employer benefit must be reduced by the surcharge deduction amount before it is converted into a pension.”.

3.3   Paragraph 13 (6) (b):

Omit “(3), 15 (2) or 15 (3);”, substitute “(3);”.

4.   Rule 14 (Benefits on retirement on or after attaining age of 55 years)

4.1   Subrule 14 (1):

Omit the subrule, substitute:

           (1)   If a member:

             (a)   retires on or after turning 55; and

             (b)   is not entitled to an invalidity pension;

the following benefits are payable to him or her as a lump sum:

             (c)   his or her member benefit; and

             (d)   subject to subrule (6), his or her employer benefit.”.


4.2   Subrule 14 (3):

Omit the subrule, substitute:

           (3)   If a person is entitled to be paid an employer benefit under subrule (1):

             (a)   the person may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the employer benefit and, if he or she so elects:

                          (i)   the employer benefit is not payable to him or her as a lump sum; and

                         (ii)   there is applicable to him or her a preserved benefit of that amount; or

             (b)   the person may elect that, instead of his or her employer benefit being paid to him or her, it be converted into a pension payable to him or her and, subject to subrule (6), if he or she so elects, that benefit is so converted; or

             (c)   the person may elect that, instead of his or her employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one-half of the benefit, be converted into a pension payable to him or her and, subject to subrule (6), if he or she so elects:

                          (i)   that part of the employer benefit is so converted; and

                         (ii)   the balance of the employer benefit is payable to him or her as a lump sum.”.

4.3   Paragraph 14 (5) (b):

Omit “(2), 15 (2) or 15 (3);”, substitute “(2);”.

4.4   Add at the end:

           (6)   If the person’s surcharge debt account is in debit, the person’s employer benefit must be reduced by the surcharge deduction amount before it, or any part of it, is paid as a lump sum or converted into a pension.”.

5.   Rule 15 (Payment of benefits where rule 12, 13 or 14 applies and person has less than 12 months’ eligible service)

5.1   Omit the rule.

6.   Rule 27 (Invalidity benefits for person classified as Class A)

6.1   Paragraph  27 (1) (b):

Omit “his”, substitute “subject to subrule (4), his”.

6.2   Add at the end:

           (4)   If the person’s surcharge debt account is in debit, the person’s employer benefit must be reduced by the surcharge deduction amount before it is converted into a pension.”.


7.   Rule 28 (Invalidity benefits for person classified as Class B)

7.1   Paragraph 28 (1) (b):

Omit “a pension”, substitute “subject to subrule (4), a pension”.

7.2   Add at the end:

           (4)   If the person’s surcharge debt account is in debit, the person’s employer benefit must be reduced by the surcharge deduction amount before it is converted into a pension.”.

8.   Rule 40 (Payment of deceased member’s employer benefit)

8.1   Subrule 40 (1):

Omit “A”, substitute “Subject to subrule (4A), a”.

8.2   After subrule 40 (4), insert:

         (4A)   If the deceased member’s surcharge debt account is in debit, the deceased member’s employer benefit must be reduced by the surcharge deduction amount before it is paid as a lump sum or converted into a pension.”.

9.   Rule 51 (Payment of employer benefit etc included in preserved benefit before person attains 55 years of age)

9.1   Paragraph 51 (1) (d):

After “person”, insert “notifies the Board before 1 July 1998 that he or she”.

9.2   Paragraph 51 (1) (d):

After “permanently”, insert “before 1 July 1998”.

9.3   Paragraph 51 (1) (e):

Omit the paragraph, substitute:

            “(e)   the Insurance and Superannuation Commission determines that the person has satisfied a condition of release on a compassionate ground under subregulation 6.19A (2) of the Superannuation Industry (Supervision) Regulations—the date of the approval;

              (f)   the Board is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the Superannuation Industry (Supervision) Regulations—the date when the Board became so satisfied.”.

9.4   Subrule 51 (1A):

Omit the subrule, substitute:

         (1A)   An amount that becomes payable under paragraph (1) (e) or (f) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or are necessary to alleviate the financial hardship.”.


9.5   Subrule 51 (1B):

Omit the subrule, substitute:

        (1B)   If a benefit is payable under subrule (1):

             (a)   if the whole benefit is payable, it must be reduced by the surcharge deduction amount before it is paid as a lump sum or converted into a pension; and

             (b)   if, in accordance with subrule (1A), only part of the benefit is payable, that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum or converted into a pension if the Board considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.”.

9.6   Subrule 51 (2):

Omit “or (e)”.

10.   Rule 52 (Payment of employer benefit included in preserved benefit to person who has attained 55 years of age)

10.1   Subrule 52 (1):

Omit “(2) and (3),”, substitute “(2), (3) and (3A),”.

10.2   After subrule 52 (3), insert:

         (3A)   If the person’s surcharge debt account is in debit, the person’s employer benefit must be reduced by the surcharge deduction amount before it is paid as a lump sum or converted into a pension.”.

11.   Rule 53 (Compulsory payment of preserved benefit)

11.1   Subrule 53 (1):

Omit “Where”, substitute “Subject to subrule (3), if”.

11.2   Subrule 53 (1):

Omit “52 (b)”, substitute “52 (1) (b)”.

11.3   Subrule 53 (2):

Omit “Where”, substitute “Subject to subrule (3), if”.

11.4   Add at the end:

           (3)   If the person’s surcharge debt account is in debit, the amount of employer benefit included in the person’s preserved benefit must be reduced by the surcharge deduction amount before it is paid as a lump sum.”.


12.   Rule 54 (Payment of deceased former member’s preserved benefit)

12.1   Subrule 54 (2):

Omit “A”, substitute “Subject to subrule (4A), a”.

12.2   Subrule 54 (4):

Omit “A”, substitute “Subject to subrule (4A), a”.

12.3   After subrule 54 (4), insert:

         (4A)   If the deceased former member’s surcharge debt account is in debit, the amount of employer benefit included in the deceased former member’s preserved benefit must be reduced by the surcharge deduction amount before it is paid as a lump sum or converted into a pension.”.

13.   Rule 65B (Prescribed minimum amount for conversion of lump sum to pension)

13.1   Omit “10”, substitute “25”.

14.   Schedule 1 (Glossary)

14.1   Paragraph 1 (definition of “SIS preservation threshold amount”):

Omit “107 to”, substitute “104 of”.

14.2   Paragraph 1:

Insert the following definitions:

‘surcharge debt account’, for a member of the Scheme, means the surcharge debt account kept for the member by the Board under section 16 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997;

‘surcharge deduction amount’, in relation to a member of the Scheme to or in respect of whom benefits become payable under the Rules, means the surcharge deduction amount that is specified in the determination made by the Board, under Schedule 12, in relation to the member;”.

15.   Schedule 6 (Calculation of eligible service)

15.1   Paragraph 2 (e):

Omit the paragraph, substitute:

            “(e)   in respect of which the person accrued an employer benefit that was paid to the person as a lump sum, converted into a pension or became applicable to the person as a preserved benefit.”.


16.   New Schedule 12

16.1   Add at the end:

                                                         SCHEDULE 12                                         Schedule 1
(Definition of “surcharge
deduction amount”)

SURCHARGE DEDUCTION AMOUNT

1.   If:

             (a)   benefits become payable to or in respect of a member of the Scheme; and

             (b)   the member’s surcharge debt account is in debit when those benefits became so payable;

the Board must determine in writing the surcharge deduction amount that, in its opinion, it would be fair and reasonable to take into account in working out the amount of those benefits.

2.   In making the determination, the Board must have regard to the following:

             (a)   the amount by which the member’s surcharge debt account is in debit when those benefits become payable;

             (b)   the value of the employer-financed component of those benefits;

             (c)   the value of the benefits that, for the purpose of working out (under the Superannuation Contributions Tax (Assessment and Collection) Act 1997) the notional surchargeable contributions factors applicable to the member, were assumed to be likely to be payable to the member on his or her retirement;

             (d)   whether the member has or had qualified for his or her maximum benefit entitlement under the Rules;

             (e)   any other matter that the Board considers relevant.

3.   The amount determined by the Board may not be more than 15% of the employer-financed component of that part of the benefits payable to the member that accrued after 20 August 1996.