Military Superannuation and Benefits Trust Amendment Deed 2007 (No. )

Schedule 1 Amendments to the Military Superannuation and Benefits Rules

(section 3)

[1] Schedule 1, sub-subparagraph 9 (b) (iii)

omit

5 years

insert

3 years

[2] Schedule 1, subparagraph 10 (c)

omit

5 years

insert

3 years

[3] Schedule 1, after paragraph 10

insert

Application of paragraph 11

11. (1) This paragraph applies if:

(a) a spouse survives a deceased person; and

(b) the spouse’s marital relationship with the deceased person:

(i) began after the deceased person became a member; and

(ii) began after the deceased person reached 60; and

(iii) continued for a period (the period of the relationship) of less than 3 years up to the time of the deceased person’s death.

Rate of spouse’s pension

(2) The rate of spouse pension to which the spouse is entitled is calculated using the following formula:

where:

r means the rate of spouse pension to which the spouse would otherwise be entitled.

n means the number of days in the period of the relationship.

Minimum amount for lump sum payment

(3) If the annual rate of pension worked out under subparagraph (2) is less than or equal to $1 407.79, the spouse is instead entitled to a lump sum payment worked out in accordance with this paragraph.

Indexation of the amount mentioned in subparagraph (3)

(4) On 1 July 2008, the amount mentioned in subparagraph (3) is indexed in accordance with subparagraph (5).

(5) If the all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of the half‑year immediately before the date of the indexation (A) exceeds the highest all groups consumer price index number for the weighted average of the 8 capital cities published by the Statistician in respect of the March quarter or September quarter of any earlier half‑year, not being a half‑year earlier than the half‑year that commenced on 1 July 2007 (B), the amount is increased, at the rate calculated in accordance with subparagraph (6).

(6) The rate is A – B expressed as a percentage of B.

(7) On 1 January and 1 July in each year following 2008, the indexed amount in force immediately before that date is indexed in accordance with subparagraph (5).

Calculating the lump sum payment

(8) For the purposes of this paragraph, a lump sum is calculated using the following formula:

where:

p means the annual rate of pension worked out in accordance with subparagraph (2).

a means the spouse’s age factor.

(9) For subparagraph (8), the spouse’s age factor is determined by:

(a) first — identifying the spouse’s age in the list of ages in column 1 of table 4A (for males) or table 4B (for females) in Part 4 of Schedule 1 to the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003; and

(b) second — adopting the figure in column 6 of table 4A (for males) or table 4B (for females) in Part 4 of Schedule 1 to the Family Law (Superannuation) (Methods and Factors for Valuing Particular Superannuation Interests) Approval 2003, which is in the same row as the spouse’s age identified using sub-subparagraph (a), as the spouse’s age factor.