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No. 2 of 2004 Determinations/Superannuation as made
This Determination provides an interim superannuation benefit in respect of continuous full time service by members of the Defence Force after 1 January 1988.
Administered by: Defence
Registered 14 Dec 2005
Tabling HistoryDate
Tabled HR24-May-2004
Tabled Senate15-Jun-2004
Gazetted 20 May 2004
Date of repeal 19 Mar 2014
Repealed by Defence (Spent and Redundant Instruments) Repeal Regulation 2014

I, MALCOLM THOMAS BROUGH, Minister for Employment Services, for the Minister for Defence, make this Determination under subsection 52 (1) of the Defence Act 1903.

Dated 17 May 2004

MALCOLM BROUGH

Minister for Employment Services

for the Minister for Defence

 


1              Name of Determination

                This Determination is the Defence Force (Superannuation) (Productivity Benefit) Amendment Determination 2004 (No. 2).

2              Commencement

                This Determination commences, or is taken to have commenced, on the commencement of Schedule 1 to the Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004.

3              Amendment of Defence Force (Superannuation) (Productivity Benefit) Determination

                Schedule 1 amends the Defence Force (Superannuation) (Productivity Benefit) Determination.


Schedule 1        Amendments

(section 3)

  

[1]           Subclause 3 (1), after definition of “Authority”

insert

“base amount” means:

                (a)    for a splitting agreement — the base amount specified in, or calculated under, the agreement; or

               (b)    for a splitting order — the amount allocated under subsection 90MT (4) of the Family Law Act 1975.

[2]           Subclause 3 (1), after definition of “Commissioner”

insert

“Defence Act” means the Defence Act 1903.

[3]           Subclause 3 (1), after definition of “effective service”

insert

“family law value” means the amount determined in accordance with regulations under the Family Law Act 1975 that apply for paragraph 90MT (2) (a) of that Act.  In applying those regulations, the relevant date is taken to be the date on which the operative time occurs.

Note   The amount is determined by applying those regulations, whether or not an order has been made under subsection 90MT (1) of the Family Law Act 1975.

[4]           Subclause 3 (1), after definition of “member”

insert

“member spouse” has the same meaning as in Part VIIIB of the Family Law Act 1975.

[5]           Subclause 3 (1), after definition of “non-effective service”

insert

“non-member spouse” has the same meaning as in Part VIIIB of the Family Law Act 1975.

“operative time”, for a splitting agreement or splitting order, means the time that is the operative time for Part VIIIB of the Family Law Act 1975 in relation to a payment split under the agreement or order.

[6]           Subclause 3 (1), after definition of “pay period”

insert

“payment split” has the same meaning as in Part VIIIB of the Family Law Act 1975.

[7]           Subclause 3 (1), after definition of “recipient member”

insert

“scheme value” has the meaning given by clause 14.

[8]           Subclause 3 (1), after definition of “SIS Act”

insert

“SIS Regulations” means the Superannuation Industry (Supervision) Regulations 1994.

“splitting agreement” means:

                (a)    a superannuation agreement (within the meaning of Part VIIIB of the Family Law Act 1975); or

               (b)    a flag lifting agreement (within the meaning of Part VIIIB of the Family Law Act 1975) that provides for a payment split.

“splitting order” has the same meaning as in Part VIIIB of the Family Law Act 1975.

“splitting percentage” means:

                (a)    for a splitting agreement — the percentage specified in the agreement under subparagraph 90MJ (1) (c) (iii) of the Family Law Act 1975; or

               (b)    for a splitting order — the percentage specified in the order under subparagraph 90MT (1) (b) (i) of the Family Law Act 1975.

[9]           Subclause 3 (1), after definition of “surcharge deduction amount”

insert

“transfer amount” means:

                (a)    if a splitting percentage applies — the amount calculated by multiplying the splitting percentage by the greater of:

                          (i)    the family law value; and

                         (ii)    the scheme value; or

               (b)    if a base amount applies and the scheme value is not more than the family law value — the base amount; or

                (c)    if a base amount applies and the scheme value is more than the family law value — the amount calculated using the formula:

[10]         Paragraph 6 (2) (b)

omit

Superannuation Industry (Supervision) Regulations 1994

insert

SIS Regulations

[11]         Paragraph 6 (6) (a)

omit

workforce;

insert

workforce; or

[12]         Paragraph 6 (6) (b)

omit

invalidity;

insert

invalidity; or

[13]         Paragraph 6 (6) (c)

omit

[14]         Paragraph 6 (6) (e)

substitute

                (e)    the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A (2) of the SIS Regulations; or

                (f)    the Authority is satisfied the person is in severe financial hardship within the meaning of subregulation 6.01 (5) of the SIS Regulations.

[15]         After subclause 6 (6)

insert

      (6A)   An amount that becomes payable under paragraph (6) (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 as is necessary to alleviate financial hardship.

      (6B)   If only part of a benefit payable under subclause (6) is payable because of subclause (6A), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if the Authority considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount.

[16]         Subparagraph 6 (7) (a) (i)

omit

regulations under the SIS Act;

insert

the SIS Regulations; or

[17]         After clause 13

insert

                Scheme value

14.           For the definition of scheme value the scheme value in relation to a member spouse is determined as follows:

 

Step 1

Identify the methodology and factors set out in regulations made for section 90MT of the Family Law Act 1975 that would be used to determine the family law value in relation to the member spouse in accordance with that section as if that section applied in relation to the member spouse.

Note   The family law value is determined in accordance with the Family Law (Superannuation) Regulations 2001 that are made for paragraph 90MT (2) (a) of the Family Law Act 1975. The process of determining the family law value may include reliance on methodology and factors approved by the Attorney-General under subsection 90MT (3) of that Act.

Step 2

Substitute the factors with factors nominated by an actuary for this clause.

Step 3

Use the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse.

                Reduction of productivity superannuation benefit

15.    (1)   For subsection 52 (5) of the Defence Act, this clause applies to a productivity superannuation benefit in respect of the original interest if the benefit becomes payable at a time after the operative time.

         (2)   The amount to which the productivity benefit payable to the member spouse after the operative time is to be reduced is to be worked out in accordance with the benefit reduction methodology developed and maintained by an actuary for this clause.