Defence Force (Superannuation) (Productivity Benefit) Amendment Determination 2009 (No. )

Schedule 1 Amendments

(section 3)

[1] Clause 1

substitute

1 Name of Determination

This Determination is the Defence Force (Superannuation) (Productivity Benefit) Determination 1988.

[2] Subclause 3 (1), after definition of family law value, including the note

insert

legal personal representative has the same meaning as in the SIS Act.

[3] Subclause 3 (1), after definition of payment split

insert

preservation age has the same meaning as in the SIS Regulations.

[4] Subclause 3 (1), after definition of service offence

insert

severe financial hardship has the same meaning as in subregulations 6.01 (5) and (5A) of the SIS Regulations, applied as if references in those subregulations to the trustee of a superannuation entity (however described) were references to the Authority.

[5] Subclause 3A (3)

substitute

(3) The amount determined by the Authority must not be more than the total of the following amounts:

(a) 15% of the employer-financed component of any part of the benefits payable to the member that accrued in the period starting on 21 August 1996 and ending at the end of 30 June 2003;

(b) 14.5% of the employer-financed component of any part of the benefits payable to the member that accrued in the period starting on 1 July 2003 and ending at the end of 30 June 2004;

(c) 12.5% of the employer-financed component of any part of the benefits payable to the member that accrued in the period starting on 1 July 2004 and ending at the end of 30 June 2005.

(4) Reductions under Division 3 of Part VIA of the DFRDB Act 1973 are to be disregarded in applying subclause (3).

[6] Clause 6

substitute

6 When benefit is payable in respect of a member

(1) If, on or after 1 January 1988:

(a) a member retires; or

(b) a member dies; or

(d) the Australian Prudential Regulation Authority determines that the member satisfies a condition of release on a compassionate ground under regulation 6.19A of the SIS Regulations;

a productivity superannuation benefit, or part of a productivity superannuation benefit, becomes payable in respect of the member.

(2) If:

(a) a member retires; and

(b) a productivity benefit is payable in respect of the member; and

(i) has reached preservation age, or a later age, and has retired from the workforce; or

(ii) has not reached preservation age and is retired on the ground of invalidity or of physical or mental incapacity to perform his or her duties; and

(d) the amount of the benefit is an amount to which the preservation standards set out in the SIS Regulations do not apply;

the productivity benefit is payable in respect of the member when the member retires.

(3) A member does not meet the requirement in subparagraph (2) (c) (ii) unless the Commissioner:

(a) has considered at least 2 certificates, each signed by a registered medical practitioner, giving the practitioner’s opinion of whether the member is likely to work again in gainful employment for which the member is reasonably qualified by education, training or experience; and

(b) is satisfied that the member is unlikely to work again in gainful employment for which the member is reasonably qualified by education, training or experience.

(4) If a member dies, and a productivity benefit is payable in respect of the member, the benefit must be paid to the member’s legal personal representative.

(5) The Commissioner may, before paying a productivity benefit in respect of a member, seek evidence as to the circumstances in which that benefit becomes payable to the member under this Determination.

Part payments

(6) An amount that becomes payable for a reason mentioned in paragraph (1) (c) or (d) is limited to so much of the benefit as is necessary to alleviate the financial hardship or to meet the expenses that give rise to the compassionate grounds.

(7) If only part of a benefit is payable, 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.

6A Preservation of productivity benefit

(1) If a productivity benefit becomes payable in respect of a member, but is not payable in accordance with subclause 6 (2) or (4), the benefit must be preserved in accordance with subclause (2) or (3).

(2) The productivity benefit to be preserved in relation to a member must be paid to 1 of the following:

(a) a superannuation fund:

(i) that is nominated by the member; and

(ii) of which the member is, or intends to become, a member; and

(iii) that is required to preserve superannuation benefits in accordance with standards prescribed by the SIS Regulations;

(b) an approved deposit fund that is:

(i) nominated by the member; and

(ii) required to preserve superannuation benefits in accordance with standards prescribed by the SIS Regulations;

(i) that is nominated by the member; and

(ii) that cannot be surrendered or assigned before the member attains preservation age; and

(iii) that does not pay benefits except in circumstances mentioned in subclause 6 (1).

(3) However, if the member does not make a nomination mentioned in subclause (2) within 2 calendar months after the benefit becomes payable in respect of the member the benefit must be paid to a superannuation fund or approved deposit fund nominated by the Commissioner.

[7] Subclause 11 (1)

omit

subclause 6 (2A)

insert

subclause 6 (3)

[8] Clause 13

omit

subclause 6 (2A)

insert

subclause 6 (3)

[9] Schedule

after

2008

0.0633

insert

2009

0.0399