Determination No.1 of 1988 under Section 52 of the

Defence Act 1903

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Defence Force (Superannuation Interim Arrangement) Determination

I, ROSLYN JOAN KELLY, the Minister of State for Defence Science and Personnel, hereby make the following Determination under section 52 of

the Defence Act 1903.

Dated 12 July 1988.

R. KELLY

Minister of State for Defence Science

and Personnel

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Citation

1. This Determination may be cited as the Defence Force (Superannuation Interim Arrangement) Determination.

Commencement

2. This Determination shall be deemed to have commenced on 1 January 1988.

Interpretation

3. (1) In this Determination, unless the contrary intention appears: "annual rate of pay", in relation to a member:

(a) in relation to a period when the member is on long service

leave on half pay—means half the rate which would have

been the rate applicable to the member if paragraph (b) had

applied to the member; or

(b) in any other case—has the same meaning as in the Defence Force Retirement and Death Benefits Act 1973;

"approved deposit fund" has the same meaning as in the Standards Act; "authorised person" means the person holding or performing the duties

of the office of First Assistant Secretary Resources and Financial

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2. Defence Force (Superannuation Interim Arrangement) Determination

1988 No. 1

Programs, Assistant Secretary Service Pay Accounting and Systems

or Director Defence Force Pay in the Department;

"effective service" means service other than non-effective service;

"interim benefit" means an interim superannuation benefit payable in

accordance with this Determination;

"member" means:

(a) a member of the Permanent Forces; or

(b) a member of the Reserve Forces or the Emergency Forces

who is rendering continuous full time naval, military or air

force service;

"non-effective service", in relation to a member, means a period that,

under clause 4, is deemed to be a period of non-effective service in

relation to the member;

"pay period", in relation to a person who is, or has been, a member,

means a fortnightly period in respect of which the person would ordinarily receive salary;

"service offence" has the same meaning as in the Defence Force Discipline

Act 1982;

"Standards Act" means the Occupational Superannuation Standards

Act 1987;

"superannuation fund" has the same meaning as in the Standards Act.

(2) A reference in this Determination to a member who retires shall be read as a reference to a member who ceases to render continuous full time naval, military or air force service.

(3) For the purposes of this clause and clause 5 a member who is rendering continuous full time service shall not be deemed to have ceased to render continuous full time service during any period that is deemed by clause 4 to be a period of non-effective service in relation to the member.

(4) Where a member retires and, without a break in the continuity of his or her service, again becomes a member who is rendering continuous full time service, the member shall, for the purposes of this Determination, be deemed not to have retired.

Non-effective service

4. (1) Where a member was on leave of absence without pay for a

period, the period shall be deemed to be a period of non-effective service in relation to the member.

(2) Where:

(a) the salary and allowances of a member in respect of a period were

forfeited, in whole or in part, under regulations made under the

Defence Act 1903; and

Defence Force (Superannuation Interim Arrangement) Determination 3

1988 No. I

(b) an amount equal to the amount of the salary and allowances

forfeited was not subsequently paid, and is not payable, under

those regulations to the member;

the period shall be deemed to be a period of non-effective service in relation to the member.

(3) Where:

(a) a member was in custody under the Defence Force Discipline Act

1982 awaiting or undergoing trial for a service offence;

(b) the member was subsequently convicted of the offence or another

service offence at the trial; and

(i) the conviction was not quashed or set aside;

(ii) the conviction was quashed or set aside and:

(A) a conviction for another service offence was

substituted; or

(B) the member was ordered to be tried again for the

offence of which the member was convicted, or for

another service offence, and was convicted of a service offence at the subsequent trial;

the period shall be deemed to be a period of non-effective service in relation to the member.

Minimum Qualifying Service

5. An interim benefit is not payable in respect of a member unless, at the time when that benefit would be payable in respect of the member, the member has completed at least 3 months continuous full time service, whether or not that service commenced before the commencement of this clause.

When Benefit Payable

6. (1) Subject to clause 5, where, on or after I January 1988, a member retires or dies, an interim superannuation benefit becomes payable in respect of the person.

(2) Where:

(a) an interim benefit is payable in respect of a person because the

person retired:

(i) on or after attaining the prescribed age for his or her

retirement; or

(ii) on the ground of invalidity or of physical or mental incapacity

to perform his or her duties; or

(b) the amount of the benefit is less than $500;

the benefit is payable to the person at the time when the benefit becomes payable in respect of the person.

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1988 No. 1

(3) For the purposes of subparagraph (2) (a) (i):

(a) where the prescribed age for a person's retirement:

(i) is extended; or

(ii) is changed by the operation of subregulation 124 (6) of the

Australian Military Regulations;

the person's prescribed age for retirement is his or her prescribed

age for retirement before that extension or change; and

(b) where an officer of the Permanent Naval Forces is transferred to

the Emergency List of Officers and continues to render continuous

full time service without a break in the continuity of that service,

the person's prescribed age for retirement is his or her prescribed

age for retirement before that transfer.

(4) Where an interim benefit is payable in respect of a person following

the death of the person, the benefit shall be paid to the person's personal representative.

(5) Where:

(a) an interim benefit becomes payable in respect of a person otherwise

than in the circumstances mentioned in subclause (2) or (4): and

(b) the person is about to leave Australia permanently;

the benefit is payable to the person.

(6) Where an interim benefit becomes payable in respect of a person

otherwise than in the circumstances mentione4 in subclause (2), (4) or (5), the benefit shall be preserved in accordance with subclause (7) until:

(a) the person retires from the workforce after attaining the age of 55

years;

(b) the person retires from the workforce before attaining the age of

55 years on the ground of permanent incapacity or permanent

invalidity;

(d) the person dies; or

(e) such other circumstances (if any) as the Insurance and

Superannuation Commissioner approves prevail.

(7) An interim benefit payable in respect of a person that is required

by subclause (6) to be preserved shall:

(a) be paid to, for preservation in relation to the person:

(i) a superannuation fund nominated by the person, being a

superannuation fund of which the person is, or intends to become, a member and that is required to preserve superannuation benefits in accordance with standards prescribed by regulations under the Standards Act;

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1988 No. 1

(ii) an approved deposit fund nominated by the person, being a

fund that is required to preserve superannuation benefits in

accordance with standards prescribed by those regulations; or

(iii) a deferred annuity nominated by the person, being an annuity

that cannot be surrendered or assigned before the person

attains the age of 55 years and that does not pay benefits

except in the circumstances mentioned in subclause (6); or

(b) if the person does not make such a nomination within 2 months

after the benefit becomes payable in respect of the person—be paid

to such a superannuation fund or approved deposit fund nominated

by an authorised person.

(8) An authorised person may, before paying an interim benefit to a

person, seek evidence as to the circumstances in which that benefit becomes

payable to the person under this Determination.

Accrual of interim benefit

7. (1) An interim benefit in respect of a member accrues in respect of

continuous full time service in the Defence Force rendered by the member

on or after 1 January 1988.

(2) An interim benefit does not accrue in respect of service of a member

that is non-effective service.

Amount of interim benefit

8. (1) This clause applies in respect of service rendered by a member in

1988.

(2) Where, in a pay period, a member renders 14 days effective service,

then, subject to subclause (6), the amount of interim benefit (exclusive of interest) to be credited to that member in respect of that pay period shall

be calculated in accordance with the formula:

14 x ARP x __3_

365 200

where ARP is the annual rate of pay applicable to the member.

(3) Where, in a pay period, a member renders a period of effective

service of less than 14 days, then, subject to subclause (6), the amount of interim benefit (exclusive of interest) to be credited to that member in respect of that pay period shall be calculated in accordance with the formula:.

B x D

where:

B is the amount of benefit in respect of a member in respect of the pay

period ascertained in accordance with the formula specified in subclause

(2); and

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1988 No. 1

D is the number of days of effective service in the pay period.

(4) Where, in a pay period, a member renders 14 days effective service,

then, subject to subclause (6), the amount of interim benefit (being interest) to be credited to that member in respect of that pay period shall be

calculated in accordance with the formula:

B x 0.1286 x 14

365

where B is the amount of benefit (including interest) that has accrued in respect of the member immediately before the commencement of the pay

period.

(5) Where, in a pay period, a member renders a period of effective service of less than 14 days, then, subject to subclause (6), the amount of interim benefit (being interest) to be credited to that member in respect of

that pay period shall be calculated in accordance with the formula:

B x D x 0.1286

365

where:

B is the amount of benefit (including interest) that has accrued in

respect of the member immediately before the commencement of the

pay period; and

D is the number of days of effective service in the pay period.

(6) Where an amount ascertained in accordance with subclause (2), (3),

(4) or (5) includes a fraction of a cent:

(a) if the fraction is one-half or greater, the amount shall be deemed

to be increased by one cent; or

(b) if the fraction is less than one-half, the fraction shall be disregarded.

(7) Where an interim benefit becomes payable in respect of a person,

the amount of that benefit is the sum of the amounts credited to that person under this clause.

Assignment of interim benefit

9. An interim benefit is not capable of being assigned or charged.