defined, for the purposes of the Rules, in Schedule 1 to the Rules; and

used in a provision of this Act other than the Deed;

has in that provision the same meaning as it has in the Rules.

establish an occupational superannuation scheme for the benefit of persons who, on and after the commencement of Part 3, will be, under that Part, members of the scheme; and

establish, and vest in the Board, a fund for the purposes of the superannuation scheme; and

set out the functions and powers of the Board.

authorise CSC to:

accept particular kinds of amounts in respect of particular kinds of people who are not members of the Scheme; and

deal with those amounts under the Deed; and

define the functions of CSC in relation to those amounts; and

include provisions in the Rules dealing with:

the manner in which those amounts will be dealt with; and

the benefits that are to become payable in relation to those amounts; and

the circumstances in which entitlements to receive those benefits will arise; and

any other matter relating to those amounts or those benefits.

CSC has consented to the amendment; or

the amendment:

relates to a payment of an employer contribution that will, after the making of the amendment, be required or permitted to be made under this Act; or

relates solely to the termination of the Scheme; or

(iii) is made in circumstances covered by regulations made for the purposes of subparagraph 60(1)(b)(iii) of the Superannuation Industry (Supervision) Act 1993.

(a) would not be a regulated superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993; or

would not comply with that Act;

that provision is invalid.

may provide that, when a splitting agreement or splitting order is received by CSC in respect of a superannuation interest under this Act:

the non-member spouse is entitled to benefits determined in accordance with the Rules; and

the benefits of the member spouse are reduced in accordance with the Rules; and

may provide that, when a splitting agreement or splitting order is received by CSC in respect of a superannuation interest under:

(i) Defence Act 1903; orsection 52 of the

(ii) the Defence Force Retirement and Death Benefits Act 1973;

the non-member spouse is entitled to benefits determined in accordance with the Rules; and

may make any other provision that is related to, or consequential on, provisions referred to in paragraph (a) or (b).

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

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

splitting order means a splitting order within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.

superannuation interest means a superannuation interest within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.

a person who is a member of the Permanent Forces;

a member of the Reserves who is rendering a period of continuous full-time service.

the person does not have a preserved benefit that includes an amount of employer benefit; and

on or after 1 July 2016:

the person becomes a member of the Permanent Forces; or

the person, as a member of the Reserves, begins to render continuous full-time service.

Those choosing Australian Defence Force Superannuation

a preserved benefit, or part of a preserved benefit, applicable to a person who has ceased to be a member becomes payable; and

the preserved benefit, or the part of the preserved benefit, consists only of an amount of member benefit;

then:

if the preserved benefit consists only of an amount of member benefit that is totally funded—the preserved benefit, or the part of the preserved benefit, is payable to, or in respect of, the person by CSC; or

if paragraph (c) does not apply:

an amount equal to:

(A) if the total amount of preserved benefit is payable—the part of the member benefit that is totally funded; or

(B) if a part of a preserved benefit is payable—a corresponding part of the part of the member benefit that is totally funded;

is payable by CSC to the Commonwealth; and

the preserved benefit, or the part of the preserved benefit, is payable to, or in respect of, the person by the Commonwealth.

a preserved benefit applicable to a person who has ceased to be a member becomes payable; and

the preserved benefit includes both an amount of member benefit and an amount of employer benefit;

then:

an amount equal to the sum of:

the part of the member benefit included in the preserved benefit that is totally funded; and

so much of the funded employer benefit in relation to the person as is included in the preserved benefit;

is payable by CSC to the Commonwealth; and

the preserved benefit is payable to, or in respect of, the person by the Commonwealth.

a person who was an invalidity pensioner classified as Class A or Class B was reclassified as Class C; and

the person is subsequently reclassified as Class A or Class B;

CSC must pay to the Commonwealth an amount equal to the funded employer benefit in relation to the person.

is a debt due to the Commonwealth by the recipient; and

may be recovered by CSC, on behalf of the Commonwealth, in a court of competent jurisdiction.

a payment is made under subsection (1) to the recipient; and

the recipient is receiving, or is entitled to receive, a benefit under the Rules;

then:

the relevant amount; or

such part of the relevant amount as the Board of CSC determines;

may, if the Board of CSC so directs, be recovered by deduction from that benefit.

the relevant amount is deposited to an account kept in the name of a deceased person;

the relevant amount is deposited to an account kept in the names of a deceased person and another person;

the relevant amount is paid by way of a cheque made out to a deceased person;

the Commonwealth may pay the relevant amount in the circumstances mentioned in paragraph (a), (b) or (c), so long as:

on the last day on which changes could reasonably be made to the payment of the relevant amount, the chief executive officer (however described) of CSC did not know that the deceased person had died; and

apart from this subsection, the relevant amount would have been payable as a benefit to the deceased person if the deceased person had not died.

is a debt due to the Commonwealth by the legal personal representative of the deceased person; and

may be recovered by CSC, on behalf of the Commonwealth, in a court of competent jurisdiction.

the number of payments that any employee of CSC was aware of that were made under subsection 16B(1) or 16C(1) during the reporting period (see subsection (2) of this section);

the total amount of payments referred to in paragraph (a);

the number of payments made under subsection 16B(1) or 16C(1) that any employee of CSC became aware of during the reporting period that were made during an earlier reporting period;

the total amount of payments referred to in paragraph (c);

for each payment referred to in paragraph (c)—the reporting period in which the payment was made.

a financial year; or

if a shorter recurring period is prescribed under paragraph (5)(a)—that period.

4 months after the end of the reporting period;

if a lesser number of months has been prescribed for the reporting period under paragraph (5)(b)—that number of months after the end of the reporting period.

Power to make legislative instruments

a period for the purposes of paragraph (2)(b); or

a number of months for a reporting period for the purposes of paragraph (4)(b).

(a) for the purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997, CSC in its capacity as a superannuation provider is an entity distinct from the Commonwealth; and

consequently, section 33 of that Act does not affect the liability of CSC under that Act to pay surcharge on the surchargeable contributions of members.

the amount so paid may be recovered by CSC in a court of competent jurisdiction as a debt; or

where the person to whom that amount was paid is receiving, or is entitled to receive, a benefit under the Rules, the amount so paid, or such part of that amount as CSC determines, may, if CSC in its discretion so directs, be recovered by deduction from that benefit.

a member of an Incapacity Classification Committee established under the Rules; or

a member of a Reconsideration Advisory Committee established under the Rules;

does not subject him or her personally to any action, liability, claim or demand.

after the death of a retirement pensioner, an amount purporting to be an instalment of primary pension payable to the pensioner on a pension pay day not later than the 7th pension pay day after his or her death is paid into an account of the pensioner with a bank; and

the bank pays, out of that account, to the spouse of the deceased pensioner an amount not exceeding the amount so paid into the account;

then, in spite of any other law, the bank is not liable to the Commonwealth, the personal representative of the deceased pensioner or anyone else for any loss incurred because of the payment of that amount to the spouse of the pensioner.

to review a decision of CSC under this Act, the regulations or the Trust Deed; and

to vary, or make a decision in substitution for, CSC’s decision under this Act, the regulations or the Trust Deed;

the tribunal, authority or person is not bound by any presumption made by CSC under subsection (1).

the period beginning on 1 October 1991 and ending at the end of 26 May 1992;

the period beginning on 9 September 1992 and ending at the end of 21 April 1993.

Retrospective effect

the member benefit has been paid to the person; and

the amount paid exceeds the amount that the person would have been entitled to be paid if MSB Instrument No. 3 of 1993 had been made, and had come into force, on 1 October 1991;

the person is liable to repay the amount of the excess.

Recovery of repayment

the amount may be recovered as a debt due to the Board or the Commonwealth, as the case may be; and

the amount may be deducted from any other amount that is payable to the person by the Board or the Commonwealth, as the case may be.

Definition

is a debt due to the Commonwealth by the recipient; and

may be recovered by the Secretary of the Department, on behalf of the Commonwealth, in a court of competent jurisdiction.

a payment is made under subsection (1) to the recipient; and

(b) the recipient is receiving, or is entitled to receive, an amount under a determination made under Defence Act 1903;Part IIIA of the

then:

the relevant amount; or

such part of the relevant amount as the Secretary of the Department determines;

may, if the Secretary of the Department so directs, be recovered by deduction from the amount mentioned in paragraph (b).

Appropriation

the number of payments made under subsection 51B(1) during the reporting period; and

the total amount of those payments.

a payment was made under subsection 51B(1) in a reporting period; and

because of subsection (3) of this section, subsection (1) of this section did not require a report to deal with the payment; and

during a later reporting period, a Departmental official becomes aware that the payment was made under subsection 51B(1);

the payment is subject to a deferred reporting obligation in relation to the later reporting period.

prepare a report that sets out:

the number of those payments; and

the total amount of those payments; and

the reporting period during which the payments were made; and

if a report is required under subsection (1) in relation to the later reporting period—include the paragraph (a) report in the subsection (1) report; and

if paragraph (b) does not apply—publish, in such manner as the Secretary thinks fit, the paragraph (a) report.

Reporting period

a financial year; or

if a shorter recurring period is specified in a legislative instrument made by the Minister—that period.

Applicable publication period

4 months; or

if a lesser number of months is specified, in relation to the reporting period, in a legislative instrument made by the Minister—that number of months;

beginning immediately after the end of the reporting period.

Departmental official

are required or permitted to be prescribed by this Act; or

are necessary or convenient to be prescribed for carrying out or giving effect to this Act.

CSC has consented to the making of the regulations; or

the regulations:

relate to a payment of an employer contribution that will, after the making of the regulations, be required or permitted to be made under this Act; or

relate solely to the termination of the Scheme; or

(iii) are made in circumstances covered by regulations made for the purposes of subparagraph 60(1)(b)(iii) of the Superannuation Industry (Supervision) Act 1993.

the Commonwealth Minister of State for Defence;

if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or

a member of the Executive Council acting for the time being for and on behalf of any of those Ministers.

Establishment of the Superannuation Scheme and the Fund

2. (1) There is hereby established an occupational superannuation scheme to be known as the Military Superannuation and Benefits Scheme (in this Deed called “the Superannuation Scheme”) to come into force on 1 October 1991 for the benefit of:

members of the Permanent Forces; and

members of the Emergency Forces and the Reserve Forces,

to be administered in accordance with the Deed by the Military Superannuation and Benefits Board of Trustees No. 1 established by the Act (in this Deed called “the Board”).

to pay benefits to or in respect of members, and to make payments to and receive payments from the Commonwealth, as provided for in the Act;

to provide advice to the Minister on proposed changes to the Act and the Deed; and

to determine interest rates for the purposes of the Superannuation Scheme.

give guarantees;

underwrite or sub-underwrite any form of investment including the underwriting or sub-underwriting of the issue of shares, debentures or units in a unit trust;

borrow moneys and give security over the whole or any part of the assets of the Fund;

appoint agents and attorneys;

act as agent for other persons;

engage consultants and investment managers;

establish an Incapacity Classification Committee to determine members’ incapacity classifications under the Rules;

establish a Reconsideration Advisory Committee or Committees to examine and report on decisions of CSC and its delegates under the Rules relating to members’ entitlements to benefits;

take action to control or manage, or to enhance or protect, the value of, any investment made out of the Fund, or to enhance or protect, the return on any such investment.

the interests of members and the Commonwealth;

any statement of the policy of the Commonwealth Government on any matter that is relevant to the performance of the functions, duties and powers of CSC furnished to CSC by the Minister with a request that CSC consider that policy;

but notwithstanding anything contained in any statement of Commonwealth Government policy or the Deed, CSC shall, in exercising its functions and powers, comply with the requirements of the Occupational Superannuation Standards Act 1987 and Regulations applicable to the Fund and the Superannuation Scheme.

Appointment of Trustees

4. (1) Four of the 5 Trustees constituting CSC shall be appointed by the Minister having regard to the following:

2 of the Trustees shall be persons with experience in, and knowledge of, the formulation of government policy and public administration; and

2 of the Trustees shall be members of the Defence Force nominated by the Chief of the Defence Force, one being an officer and the other a member, other than an officer.

misbehaviour or physical or mental incapacity; or

inefficiency or incompetence.

becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with the Trustee’s creditors or makes an assignment of the Trustee’s remuneration for their benefit; or

fails, without reasonable excuse, to comply with the Trustee’s obligations under clause 7; or

is absent, except on leave granted by the Minister, from 3 consecutive meetings of CSC of which the Trustee has had notice;

the Minister may terminate the appointment of the Trustee.

Acting Appointments

6. (1) The Minister may appoint a person to act as Chairperson after consultation with the Minister for Finance in relation to the appointment:

during a vacancy in the office of Chairperson; or

during any period, or during all periods, when the Chairperson is absent from duty or from or is, for any reason, unable to perform the duties of the office of Chairperson.

during a vacancy in the office of a Trustee; or

during any period, or during all periods, when a Trustee is acting as Chairperson, is absent from or is, for any reason, unable to perform the duties of that office.

determine the terms and conditions of appointment, including remuneration and allowances of a person appointed to act in an office under subclause (1) or (2); and

terminate such an appointment at any time.

as soon as possible after, but in any case not later than 60 days after, appointment as a Trustee; and

as soon as possible after, but in any case not later than 60 days after, each anniversary of the Trustee’s appointment as a Trustee,

present to a meeting of CSC a statement in writing setting out particulars of those interests, whether pecuniary or otherwise and whether direct or indirect, of the Trustee as at the day of appointment or as at that anniversary, as the case requires, that could reasonably be expected to conflict with the proper performance by the Trustee of the Trustee’s duties as a Trustee.

be present during any deliberation of CSC with respect to that matter; or

take part in any decision of CSC with respect to that matter.

be present during any deliberation of CSC for the purpose of making the determination; or

take part in the making by CSC of the determination.

contributions made by members;

contributions made by the Commonwealth pursuant to the Act and the Deed;

any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;

the income arising from investments; and

any accretions to or profits on realisation of investments.

(a) “invest” means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and

(b) “profit” includes capital profit.

operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and

reports to CSC on the state of the Board’s investments and the investment market at such times and in such manner as CSC determines.

Requests by Minister for Information

11. CSC shall furnish to the Minister such information relating to the general administration and operation of the Superannuation Scheme and the Fund as the Minister may from time to time require.

Delegation by the CSC

12. CSC may by an instrument under its seal delegate all or any of its powers under the Deed to any person, including the Commissioner for Superannuation or a Trustee, other than its powers under Part 9 of the Rules and this power of delegation.

Military Superannuation and Benefits Rules

Table of Provisions

Part 1—Preliminary

Rule

1. Citation

2. Definitions and Interpretation

Part 2—Contributions

3. Contributions by members

4. Amount of contributions

5. Cessation of contributions on reaching maximum benefit limit

6. Contributions while on leave without pay in connection with birth of child etc.

7. Contributions while on other leave without pay

8. General conditions applicable to contributions under rules 6 and 7

9. Member contributions to be paid to Board

10. Liability of Department to pay employer contributions

11. Payment of contributions into Fund

Part 3—Members’ Benefits

Division 1—Benefits other than Invalidity Benefits

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

13. Benefits on retirement for redundancy or retrenchment or on attaining retiring age of less than 55 years

14. Benefits on retirement on or after attaining age of 55 years

15. Payment of benefits where rule 12 applies and person has less than 12 months’ eligible service

16. Limitation on certain benefits in case of certain transferees who retire before completing 731 days’ service after 30 September 1991

Division 2—Invalidity Benefits

Subdivision A—Incapacity Classification

17. Establishment of Incapacity Classification Committee

18. Membership of Committee

19. Functions of Committee

20. Proceedings of Committee

21. Decisions by Committee

22. Classification in respect of incapacity

23. Reclassification in respect of incapacity

24. Decision as to classification or reclassification to be notified to invalidity retiree

25. Power of Board to require persons to be medically examined etc.

Subdivision B—Invalidity Benefits

26. Entitlement to invalidity benefits

27. Invalidity benefits for person classified as Class A

28. Invalidity benefits for person classified as Class B

29. Effect of change of invalidity classification on pension and preserved benefit

30. Person may be treated as having been retired on ground of invalidity

Subdivision C—Invalidity Benefits Not Payable

31. Person classified as Class C

32. Pre-existing condition

33. Invalidity due to intentional act

34. Invalidity arising during absence without leave exceeding 21 days

Division 3—Person Rejoining the Scheme

35. Suspension of pension of retirement pensioner other than invalidity retiree

36. Cancellation of pension etc. of invalidity retiree

37. Continuation of previous election to cease paying contributions

Part 4—Spouses’ and Children’s Benefits

Division 1—Death of Member

38. Applicability of benefits

39. Payment of deceased member’s member benefit

40. Payment of deceased member’s employer benefit

Division 2—Death of Retirement Pensioner

41. Applicability of benefits

42. Pensions payable

43. Final benefit payable in relation to deceased retirement pensioner

44. Death in certain cases due to retirement disabilities

45. Effect of death of invalidity pensioner while pension suspended

Division 3—Death of Spouse

46. Child’s benefit upon death of spouse

Division 4—Miscellaneous

47. Entitlements where two spouses

48. Payment of balance of benefit where pension becomes payable to child in certain cases

Part 5—Payment of Preserved Benefits

49. Drawing on member benefit included in preserved benefit

50. Fee for payment of part of person’s member benefit

51. Payment of employer benefit included in preserved benefit before person attains age of 55 years

52. Payment of employer benefit included in preserved benefit to person who has attained 55 years of age from Defence Force

53. Compulsory payment of preserved benefit to person on attaining 65 years of age

54. Payment of deceased former member’s preserved benefit

Part 6—Increases in Maximum Benefit Limits, Pensions and Certain Unfunded Preserved Benefits

Division 1—Increases in Maximum Benefit Limits

55. Increases in maximum benefit limits

Division 2—Increases in Pensions and Certain Unfunded Preserved Benefits

56. Increases in pensions and certain unfunded preserved benefits

57. Application of increase to suspended pension

58. Proportionate increase for part of a year

59. Adjustment in connection with invalidity reclassification

60. Date of effect of increase

61. Interpretation

Part 7—Candidates at Parliamentary Elections

62. Re-instated member

63. Death or physical or mental incapacity of person

Part 8—General Provisions Applicable to Contributions and Benefits

64. Provisions applicable to elections under the Rules

65. Rate of pension where lump sum converted into pension

66. Benefits in unusual or exceptional circumstances

67. Instalments of pensions

68. Set off against pension in certain cases

69. Interest payable where payment of benefit delayed

70. Payment of benefit otherwise than to person entitled

71. Withholding payment of benefit where required information not provided

Part 9—Reconsideration of Decisions

72. Establishment of Reconsideration Advisory Committees

73. Membership of Committee

74. Functions of Committee

75. Proceedings of Committee

76. Reconsideration of decision made by delegate

77. Reconsideration of decision made by Board

78. Content of statements of reasons for decision

79. Interpretation

SCHEDULE 1

GLOSSARY

SCHEDULE 2

PRESCRIBED PERIODS FOR THE PURPOSES OF RULE 4

SCHEDULE 3

CALCULATION OF MAXIMUM BENEFIT LIMITS

SCHEDULE 4

PERCENTAGE OF EMPLOYER BENEFIT OR DECEASED PENSIONER’S PENSION APPLICABLE TO SPOUSE OR ELIGIBLE CHILD

SCHEDULE 5

CALCULATION OF RATE OF PENSION BY CONVERSION OF EMPLOYER BENEFIT

SCHEDULE 6

CALCULATION OF ELIGIBLE SERVICE

SCHEDULE 7

CALCULATION OF FINAL AVERAGE SALARY

SCHEDULE 8

CALCULATION OF EMPLOYER BENEFIT

SCHEDULE 9

CALCULATION OF MEMBER BENEFIT

SCHEDULE 10

TRANSFER VALUE

SCHEDULE 11

RATES OF INTEREST APPLICABLE IN RESPECT OF CERTAIN UNFUNDED AMOUNTS

Military Superannuation and Benefits Rules

Part 1—Preliminary

Citation

1. These Rules may be cited as the Military Superannuation and Benefits Rules.

Definitions and interpretation

2. (1) The following expressions are defined or interpreted, for the purposes of these Rules, in the Glossary in Schedule 1. Unless otherwise stated, the expressions are in Part 1 of the Schedule.

Actuary

Board

calendar month

child

classification

Committee

contribution

Department

eligible child

eligible service

Emergency Forces

employer benefit

final average salary

financial year

foreign service member

Fund

funded employer benefit

higher duties allowance

invalidity

invalidity pension

invalidity pensioner

invalidity retiree

lump sum maximum benefit limit

MBL member

member

member benefit

membership

month

Parliamentary Candidates Act

pension

pension maximum benefit limit

Permanent Forces

prescribed fee

prescribed year

previous contributions

previous legislation

relevant percentage

relevant period

relevant provision

Reserve Forces

resign to contest an election (see Part 2)

retirement (see Part 3)

retirement pensioner

retiring age (see Part 4)

salary

Scheme

service

service allowance

service offence

spouse (see Part 5)

spouse’s pension

Statistician

total benefit

transferred person

transfer value

unfunded preserved benefit

1948 Act

1973 Act

1973 Scheme

1973 Scheme recipient member

1973 Scheme re-entrant

1973 Scheme retirement pensioner

1991 Scheme

1991 Scheme re-entrant

each fortnight; or

in such instalments and at such times as CSC approves; or

with the approval of CSC, in a lump sum.

Amount of contributions

4. (1) Subject to subrule (2), the amount of the contribution payable by a member in a fortnight is an amount equal to the relevant percentage of the amount of the salary paid to the member in that fortnight.

(a) the salary and allowances of a member in respect of a period are forfeited, in whole or in part, under regulations made under the Defence Act 1903; and

the period does not exceed 21 consecutive days;

the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.

long service leave on half pay; or

leave without pay for a period not exceeding 21 days;

the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.

higher duties allowance was payable to the member on the day immediately preceding the commencement of the period; and

an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, higher duties allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave.

if the fraction is less than one-half of a cent—the contribution is taken to be reduced by the amount of the fraction; or

if the fraction is one-half of a cent or more—the contribution is taken to be increased by treating the fraction as one cent.

the percentage, being a whole number that is not less than 5 and not more than 10, elected by the member; or

if the member has not made an election—5 per centum.

Cessation of contributions on reaching maximum benefit limit

5. (1) A member is not entitled to pay contributions after he or she has been notified that his or her total benefit equals or exceeds his or her pension maximum benefit limit.

the birth of a child of the member; or

other termination of the pregnancy of the member; or

the adoption of a child by the member;

may elect to pay contributions, calculated as if the member were on full pay, in respect of so much of that period, not exceeding 9 months, as is specified in the election.

Contributions while on other leave without pay

7. (1) This rule does not apply to a period of leave without pay to which rule 6 applies.

for the purpose of the member:

engaging, with the approval of the appropriate authority of the Defence Force, in full time employment; or

undertaking further education; or

undergoing training; or

engaging in some other activity;

and, in the case of subparagraph (ii), (iii) or (iv), an appropriate authority of the Defence Force has notified CSC that the education, training or other activity is relevant to the requirements of the Defence Force; or

because the member was for the time being physically or mentally incapable of performing his or her duties;

the member may, with the approval of CSC, elect to pay contributions, calculated as if the member were on full pay, in respect of so much of the period as is specified in the election.

(a) leave without pay is granted to a member (in this subrule called the “inactive member”) whose spouse (in this subrule called the “active member”):

is also a member; or

is an eligible member of the Defence Force within the meaning of the 1973 Act; and

the active member is posted to a locality to which the inactive member is unable to obtain a posting; and

the inactive member is granted the leave without pay in order not to be separated from the active member;

the inactive member may elect to pay contributions, calculated as if the member were on full pay, in respect of so much of that period, not exceeding 2 years, as is specified in the election.

the reference in that rule to the amount of salary paid to the member in a fortnight were a reference to the amount of salary that would have been paid to the member in that fortnight if the member had been on full pay; and

the salary so assumed to be paid did not include higher duties allowance unless:

higher duties allowance was payable to the member on the day immediately before the commencement of the period; and

an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, higher duties allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave.

in the case of a period of leave without pay referred to in subrule 7 (2) which exceeds 12 months—to any part of the excess period in respect of which no amount is paid under a prescribed arrangement; or

in the case of a period of leave without pay referred to in subrule 7 (3).

in respect of each salary fortnight in the period of that employment; or

in respect of each salary fortnight in a specified part of that period;

as the case may be, in respect of which the member pays a contribution under this Part.

Payment of contributions into Fund

11. CSC must pay all member and employer contributions received by it into the Fund.

Part 3—Members’ Benefits

Division 1—Benefits other than Invalidity Benefits

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

12. (1) This rule applies to a member who retires:

in the case of a member whose retiring age is less than 55 years—before reaching his or her retiring age; or

in any other case—before reaching the age of 55 years;

not being a member who is:

retired on the ground of redundancy or retrenchment; or

entitled to an invalidity pension.

his or her member benefit is payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.

the member benefit is not payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of that amount.

Benefits on retirement for redundancy or retrenchment or on attaining retiring age of less than 55 years

13. (1) Where a member is retired on the ground of redundancy or retrenchment and he or she is not entitled to an invalidity pension:

his or her member benefit is payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.

he or she has reached his or her retiring age;

that retiring age is less than 55 years; and

he or she is not entitled to an invalidity pension;

then:

his or her member benefit is payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.

the member benefit is not payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of that amount.

a preserved benefit of the amount of the benefit is not applicable to him or her; and

the benefit is converted into a pension payable to him or her.

a member retired and, on that retirement, subrule (2) applied to him or her; and

he or she again became a member and again retires; and

on the last-mentioned retirement the member is not entitled to an invalidity pension;

then, for the purposes of these Rules, the person is taken to be a person to whom subrule (2) applies.

Benefits on retirement on or after attaining age of 55 years

14. Where a member retires:

on or after attaining the age of 55 years; and

he or she is not entitled to an invalidity pension;

there is applicable to him or her a preserved benefit of the amount of his or her member benefit and employer benefit.

Payment of benefits where rule 12 applies and person has less than 12 months’ eligible service

15. (1) This rule applies to a person to whom rule 12 applies who has less than 12 months’ eligible service and whose employer benefit consists wholly of funded employer benefit.

his or her employer benefit is payable to that preservation fund or to be used to purchase that annuity, as the case may be; and

he or she is not entitled to elect under subrule 12 (3) to have applicable to him or her a preserved benefit of the amount of his or her member benefit.

his or her employer benefit is payable to him or her as a lump sum; and

he or she is not entitled to elect under subrule 12 (3) to have applicable to him or her a preserved benefit of his or her member benefit.

if the employer benefit is an amount referred to in subrule (2), it is payable to a preservation fund, or used to purchase a deferred annuity, of his or her choice; or

in any other case, it is payable to him or her as a lump sum.

on reaching his or her retiring age; or

on the ground of invalidity, redundancy or retrenchment;

the amount of member benefit which he or she would, but for this rule, be entitled to be paid is reduced by substituting for the amount of interest applicable in relation to him or her under the relevant provisions an amount calculated in accordance with the formula:

where:

“Notional interest” means the amount of interest applicable in relation to the person under the relevant provisions; and

“Number of days of contributory service” means the number of days of contributory service by the person after 30 September 1991.

must take into account any evidence relating to that retiree that is made available or submitted to it; and

may take steps to obtain any other evidence that it considers necessary to properly determine the classification.

the vocational, trade and professional skills, qualifications and experience of the retiree;

the kinds of civil employment which a person with the skills, qualifications and experience referred to in paragraph (a) might reasonably undertake;

the degree to which the physical or mental impairment of the retiree that is the cause of the invalidity by reason of which he or she has been retired has diminished his or her capacity to undertake the kinds of civil employment referred to in paragraph (b).

as Class A—subrule (1) does not apply to him or her; or

as Class B—subrule (1) is taken not to empower CSC to reclassify him or her as Class C.

the vocational, trade and professional skills, qualifications and experience of the pensioner;

the kinds of civil employment which a person with skills, qualifications and experience referred to in paragraph (a) might reasonably undertake;

the degree to which any physical or mental impairment of the pensioner, being a prescribed physical or mental impairment, has diminished his or her capacity to undertake the kinds of civil employment referred to in paragraph (b).

the person is reclassified as Class A or, having been classified as Class C, is reclassified as Class B; and

CSC or the Committee is satisfied that special circumstances exist that justify an earlier date being so specified.

is classified as Class C; and

immediately before being so classified was an invalidity pensioner;

is taken to be an invalidity pensioner.

a physical or mental impairment of the pensioner that was the cause, or one of the causes, of the invalidity by reason of which he or she was retired, whether or not that impairment has changed, for better or worse, since that retirement; or

any other physical or mental impairment of the pensioner causally connected with a physical or mental impairment referred to in paragraph (a).

Decision as to classification or reclassification to be notified to invalidity retiree

24. CSC must notify an invalidity retiree in writing of any decision under rule 22 or 23 as to the classification or reclassification of the retiree and the reasons for that decision.

Power of CSC to require persons to be medically examined etc.

25. (1) CSC may, by notice in writing given to a person in receipt of an invalidity pension, require him or her:

to submit himself or herself for medical examination by a legally qualified medical practitioner at a time and place specified in the notice; or

to furnish in writing to CSC, within such period as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his or her own account) in which he or she has been engaged during such period as is specified in the notice.

in a case where the first-mentioned notice required the person to submit to a medical examination on a day specified in the notice—the day next following that day; or

in a case where the first-mentioned notice required the person to furnish information within a period specified in the notice—the day next following the end of that period.

the invalidity pension of a person is suspended under subrule (3); and

CSC, having regard to such matters as it considers relevant, is of the opinion that the suspension should be revoked;

CSC may, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than the day on which the notice is given.

if the invalidity pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the person to submit to a medical examination—require the person to submit to a medical examination by a medical practitioner at a time and place specified in the second-mentioned notice; or

(b) if the invalidity pension has been suspended by virtue of the person’s having failed to comply with a notice requiring the person to give information to CSC (in this paragraph called “the original notice”)—require the person to give in writing to CSC, within such period as is specified in the second-mentioned notice, such information as was required by the original notice to be given.

because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person: and

either:

the person complies with the notice; or

the person fails to comply with the notice but CSC is satisfied that there was a reasonable excuse for the failure;

CSC must, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than:

in a case to which subparagraph (b) (i) applies—the day on which the person so complied with the notice; or

in a case to which subparagraph (b) (ii) applies:

the day on which CSC became so satisfied; or

if CSC is satisfied that it would be equitable in the circumstances of the case for the revocation to have effect from an earlier day—from that earlier day.

because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person; and

the person fails to comply with the notice and CSC is not satisfied that there was a reasonable excuse for the failure;

CSC must, by notice in writing given to the person, refuse to revoke the suspension.

to a person by CSC under subrule (6), (7), (9) or (10) may be given to a person acting on his or her behalf; or

to CSC by a person under this rule may be given by a person acting on his or her behalf.

the notice is served on the person personally; or

the notice is sent to the person by pre-paid post as a letter and the person acknowledges receipt of the letter; or

where CSC has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by prepaid post to:

in a case where CSC is satisfied that at least one reliable address of the person has been ascertained—that address or one of those addresses; or

in any other case—the last address of the person known to CSC.

his or her member benefit is payable to him or her as a lump sum; and

his or her employer benefit is converted into a pension payable to him or her.

the member benefit is not payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of that amount.

Invalidity benefits for person classified as Class B

28. (1) Where a person who is entitled to invalidity benefits is classified as Class B:

his or her member benefit is payable to him or her as a lump sum; and

a pension is payable to him or her at an annual rate equal to:

half the rate of the pension which would have been payable to him or her if he or she had been classified as Class A; or

the rate of the pension which would have been payable to him or her if he or she:

(A) had been retired otherwise than on the ground of invalidity; and

(B) were entitled to elect to convert his or her employer benefit into a pension and had elected to do so;

whichever is the greater.

the member benefit is not payable to him or her as a lump sum; and

there is applicable to him or her a preserved benefit of that amount.

Effect of change of invalidity classification on pension and preserved benefit

29. (1) Where a person who is classified as Class A or Class B is reclassified as Class C:

the pension payable to him or her under rule 27 or 28 is cancelled; and

there is applicable to him or her a preserved benefit of the amount of his or her employer benefit.

the preserved benefit referred to in that subrule ceases to be applicable to him or her; and

a pension is payable to him or her in accordance with rule 27 or 28, as the case may be, from the date specified under rule 23 by CSC or the Committee, as the case may be, as the date from which the reclassification has effect.

Person may be treated as having been retired on ground of invalidity

30. (1) Where a person has been retired otherwise than on the ground of invalidity but, after his or her retirement, CSC is satisfied that, at the time the person was retired, grounds existed on which he or she could have been retired on the ground of invalidity, CSC may, for the purposes of these Rules, treat the person as if he or she had been retired on the last-mentioned ground.

so much of the preserved benefit applicable to him or her under rule 12, 13 or 14 as consists of employer benefit ceases to be applicable to him or her; and

a pension is payable to him or her in accordance with rule 27 or 28, as the case may be.

Subdivision C—Invalidity Benefits Not Payable

Person classified as Class C

31. A person who is classified as Class C is not entitled to invalidity benefits under this Division.

Pre-existing condition

32. (1) Where:

a member is, within a period of 2 years after becoming a member, retired on the ground of invalidity; and

CSC is satisfied that:

the invalidity was caused, or was substantially contributed to, by a physical or mental condition that existed at the time when he or she became a member; and

the condition was not materially aggravated by his or her service after becoming a member;

the person is not entitled to invalidity benefits under this Division.

a person who has retired again becomes a member after a break in the continuity of his or her service; and

he or she is not a person who again became a member pursuant to the Parliamentary Candidates Act; and

he or she is subsequently retired on the ground of invalidity;

the person is, for the purposes of subrule (1), treated as if he or she had first become a member at the time when he or she again became a member.

Invalidity due to intentional act

33. (1) Where:

a member is retired on the ground of invalidity; and

CSC is satisfied that the invalidity was due to an intentional act on his or her part for the purpose of obtaining invalidity benefits under this Division;

he or she is not entitled to invalidity benefits under this Division.

that the condition which formed the ground on which the person was retired was not wholly due to the intentional act of the person; or

that the action of the person was caused by his or her physical or mental condition.

Invalidity arising during absence without leave exceeding 21 days

34. (1) Where:

a member is retired on the ground of invalidity; and

CSC is satisfied that the invalidity was caused, or was substantially contributed to, by an occurrence that happened at a time when he or she was absent without leave and had been so absent for a period exceeding 21 consecutive days; and

(c) the salary and allowances of the member in respect of the period were forfeited under regulations made under the Defence Act 1903 and an amount equal to the amount of the salary and allowances so forfeited was not subsequently paid, and is not payable, under those regulations to him or her;

he or she is not entitled to invalidity benefits under this Division.

any determination of his or her incapacity in relation to civil employment and consequent classification or reclassification, under rule 22 or 23, is cancelled; and

if he or she was, immediately before again becoming a member, a person to whom an invalidity pension was payable, his or her entitlement to that pension is cancelled; and

when the person again retires, he or she is not treated as having been retired on the ground of invalidity only by reason of his or her retirement on that ground from his or her earlier period of service.

Continuation of previous election to cease paying contributions

37. Where:

immediately before a person ceased to be a member, the person was, in consequence of an election made by him or her under subrule 5 (2), not paying contributions; and

the person again becomes a member;

that election is taken to be again in force in relation to the member as if it had been made after the member again became a member.

Part 5—Spouses’ and Children’s Benefits

Division 1—Death of a Member

Applicability of benefits

38. Where a member dies and is survived by a spouse or spouses or an eligible child or children, benefits are payable in accordance with this Division.

Payment of deceased member’s member benefit

39. A deceased member’s member benefit is payable as a lump sum as follows:

if the deceased member is survived by a spouse, the benefit is payable to the spouse;

if the deceased member is not survived by a spouse but is survived by an eligible child or children, the benefit is payable to, or for the benefit of, the child or children;

if the deceased member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:

he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and

he or she had made provision for that person or those persons in his or her will;

the benefit is payable to, or for the benefit of, the person or persons;

in any other case the benefit is payable to the deceased member’s personal representative.

Payment of deceased member’s employer benefit

40. (1) A deceased member’s employer benefit or a pension is payable as follows:

if the deceased member is survived by a spouse with or without an eligible child or children, the employer benefit is payable to the spouse as a lump sum;

if the deceased member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased member’s notional invalidity pension;

if the deceased member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:

he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and

he or she had made provision for that person or those persons in his or her will;

the employer benefit is payable to, or for the benefit of, the person or persons as a lump sum;

in any other case the employer benefit is payable to the deceased member’s personal representative as a lump sum.

instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional invalidity pension and if he or she so elects the benefit is so converted; or

instead of that 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 at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional invalidity pension and if he or she so elects:

that part of the benefit is so converted; and

the balance of the benefit is payable to him or her as a lump sum.

a member dies and, at the time of his or her death, he or she was absent without leave and had been so absent for a period that exceeds 21 consecutive days; and

(b) the salary and allowances of the deceased member in respect of the period of absence without leave were forfeited under regulations made under the Defence Act 1903 and 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 deceased member’s personal representative;

unless CSC is satisfied that the absence of the member was due to sufficiently mitigating circumstances.

he or she had become entitled to invalidity benefits under Division 2 of Part 3; and

he or she had been classified as Class A under rule 22; and

the amount of his or her employer benefit were the amount which his or her spouse elected under paragraph (2) (b) to convert into a pension.

Division 2—Death of Retirement Pensioner

Applicability of benefits

41. Where a retirement pensioner dies and is survived by a spouse or spouses or an eligible child or children, benefits are payable in accordance with this Division.

Pensions payable

42. (1) Where a deceased retirement pensioner is survived by a spouse with or without eligible children, a pension is payable to the spouse at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased retirement pensioner’s pension.

where the deceased retirement pensioner was an invalidity pensioner:

the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the amount of pension paid to the deceased invalidity pensioner since he or she last ceased to be a member; or

the amount of pension which would have been paid to the invalidity pensioner (if he or she had not died) from the date of his or her death until the expiration of a period of 10 years after the invalidity pensioner’s pension became payable to him or her;

whichever is the less; or

in any other case—the amount (if any) by which so much of the deceased retirement pensioner’s employer benefit as was funded exceeds the amount of pension paid to the deceased retirement pensioner since he or she last ceased to be a member.

he or she is survived by a spouse or eligible child to whom, or for the benefit of whom, a pension is payable under this Division; and

that surviving person, or the last of those surviving persons, dies not later than 10 years after the retirement pensioner’s pension became payable to him or her;

there is payable to the deceased spouse’s or eligible child’s personal representative as a lump sum an amount equal to:

where the deceased retirement pensioner was an invalidity pensioner—the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the total of the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; or

in any other case—the amount (if any) by which so much of the deceased retirement pensioner’s employer benefit as was funded exceeds the total of the amounts of pension paid to the deceased retirement pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member.

Death in certain cases due to retirement disabilities

44. Where a person who:

is classified as Class B; or

is classified as Class C as a result of a reclassification under rule 23;

dies, and CSC is satisfied that his or her death was due to:

the physical condition that was the cause of his or her retirement on the ground of invalidity; or

a physical condition that was causally connected with that condition;

he or she is taken, for the purposes of this Division, to have been, immediately before his or her death, an invalidity pensioner classified as Class A and in receipt of pension at a rate calculated accordingly.

Effect of death of invalidity pensioner while pension suspended

45. Where a person whose invalidity pension has been suspended under rule 25 dies before the invalidity pension again becomes payable, he or she is taken, for the purposes of this Division, to have been an invalidity pensioner in receipt of pension immediately before his or her death.

Division 3—Death of Spouse

Child’s benefit upon death of spouse

46. (1) Where a spouse of a deceased member, being a spouse who:

is in receipt of a spouse’s pension; and

has an eligible child or children;

dies, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 of Schedule 4 of the deceased person’s notional pension.

where the spouse was in receipt of a pension under subrule 40 (2)—the deceased person’s notional invalidity pension, or reduced notional invalidity pension, on the date of the member’s death; or

where the spouse was in receipt of a pension under subrule 42 (1)—the deceased person’s pension on the date of the member’s death;

as if the rate of that pension had been increased from time to time in accordance with Division 2 of Part 6;

“notional invalidity pension” and “reduced notional invalidity pension” have the same respective meanings as in rule 40.

Division 4—Miscellaneous

Entitlements where two spouses

47. (1) In spite of anything in this Part, where a deceased member or retirement pensioner is survived by 2 spouses, the amount of member benefit (if any) and the amount of employer benefit payable to each spouse is to be determined by CSC but so that not less than 37.5 per centum of the member benefit (if any) and 37.5 per centum of the employer benefit is payable to each spouse.

the amounts of pension paid to the deceased retirement pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and

the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;

is payable in accordance with subrule (4).

the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and

the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children;

is payable in accordance with subrule (4).

if the deceased person had notified CSC in writing that:

he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and

he or she had made provision for that person or those persons in his or her will;

the amount is payable to, or for the benefit of the person or persons as a lump sum; or

in any other case, the amount is payable to the deceased person’s personal representative as a lump sum.

if he or she elects to have the whole of the member benefit paid—the whole of the member benefit is payable to him or her; or

if he or she elects to have part of the member benefit paid—the amount specified in the election is payable to him or her;

and the amount of the preserved benefit applicable to the person is reduced by a corresponding amount.

that part must be an amount of $10,000 or a whole number multiple of that amount; and

he or she is not permitted, except with the approval of CSC, to make another election under this rule until 6 months has elapsed since the last election made by him or her.

Fee for payment of part of person’s member benefit

50. (1) Where a person elects under rule 49 to have part of his or her member benefit paid to him or her, there is payable to CSC by the person a fee determined by CSC but not exceeding the administrative costs incurred by CSC in relation to that payment.

to whom a preserved benefit applies; and

who has not attained the age of 55 years;

one of the following paragraphs applies, the employer benefit included in that preserved benefit becomes payable to him or her as a lump sum on the date specified in that paragraph:

CSC decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining—on the date on which CSC so decided;

the person intends to leave permanently and CSC is satisfied that that intention will be carried out—on the date on which CSC became so satisfied;

the Insurance and Superannuation Commissioner approves the payment of the benefit in other circumstances—the date which is the later of:

the date of the approval; or

the date on which the circumstances apply.

Payment of employer benefit included in preserved benefit to person who has attained 55 years of age

52. Where a preserved benefit is applicable to a person who has attained the age of 55 years, he or she may, at any time:

elect to have that preserved benefit paid to him or her as a lump sum and if he or she so elects the benefit is payable to him or her; or

instead of the employer benefit included in the preserved benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects:

the employer benefit is so converted; and

the member benefit (if any) included in the preserved benefit is payable to the person as a lump sum; or

instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects:

that part of the employer benefit is so converted; and

the balance of the preserved benefit is payable to him or her as a lump sum.

Compulsory payment of preserved benefit to person on attaining 65 years of age

53. Where a person in relation to whom a preserved benefit is applicable does not make an election under paragraph 52 (b) or (c) on or before attaining the age of 65 years, the preserved benefit is payable to the person as a lump sum.

Payment of deceased former member’s preserved benefit

54. (1) Upon the death of a person who had been a member but at the time of his or her death was not a member or a retirement pensioner (in this rule called the “deceased former member”), his or her preserved benefit or a pension is payable in accordance with this rule.

if the deceased former member is survived by a spouse, the preserved benefit is payable to the spouse as a lump sum;

if the deceased former member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased former member’s notional pension;

if the deceased former member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that:

he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and

he or she had made provision for that person or those persons in his or her will;

the preserved benefit is payable to, or for the benefit of, the person as a lump sum;

in any other case, the preserved benefit is payable to the deceased member’s personal representatives as a lump sum.

instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional pension and if he or she so elects the benefit is so converted; or

instead of that 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 at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional pension and if he or she so elects:

that part of the employer benefit is so converted; and

the balance of the preserved benefit is payable to him or her as a lump sum.

had become entitled, under Division 1 of Part 3, to elect to have part of his or her employer benefit converted into a pension; and

had elected to convert into a pension the same amount of his or her employer benefit as his or her spouse elected under paragraph (4) (b) to convert into a pension.

Part 6—Increases in Maximum Benefit Limits, Pensions and Certain Unfunded Preserved Benefits

Division 1—Increases in Maximum Benefit Limits

Increases in maximum benefit limits

55. (1) This rule is to have effect, on 1 July 1991 and each subsequent 1 July, as if there were substituted for:

each amount referred to in the definition of “lump sum maximum benefit multiple” in Schedule 3; and

each amount referred to in the definition of “pension maximum benefit multiple” in Schedule 3;

or for the amount last substituted for that amount under this rule (in this rule called the “base amount”) a new amount calculated by:

multiplying the base amount by the index number for the March quarter immediately preceding that 1 July; and

dividing the product by the index number for the previous March quarter.

(a) a person (in this section called the “pensioner”) who was in receipt of a pension immediately before the commencement of that prescribed year is entitled to an increase in the rate at which the pension was payable immediately before the commencement of that prescribed year; and

where, immediately before the commencement of that prescribed year, a preserved benefit is applicable to a person, or has become payable in respect of a deceased person but has not been paid, the amount of the unfunded employer benefit included in the preserved benefit in relation to that person immediately before the commencement of that year is increased.

the person to whom the pension is payable would, but for this rule, be entitled to an increase, in accordance with rule 56, in the rate at which the pension was payable to him or her immediately before the commencement of the prescribed year; and

the person is:

a retirement pensioner and the pension became payable to him or her during the preceding year; or

the spouse of, or eligible child in relation to, a deceased person who was a member immediately before his or her death and the pension became payable to the spouse or child, as the case may be, during the preceding year; or

the spouse of, or eligible child in relation to, a deceased person who was a retirement pensioner immediately before his or her death and the deceased person’s pension became payable to the deceased person during the preceding year.

the pension; or

where subparagraph (1) (b) (iii) applies—the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child;

became payable after 16 June in the preceding year, the person is not entitled to the increase.

the pension; or

where subparagraph (1) (b) (iii) applies—the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child;

became payable on or before 16 June in the preceding year, the amount of the increase is an amount calculated in accordance with the formula:

where:

“Full increase” means the amount of the increase that would have been applicable but for this subrule.

“Number of months in period” means the number of months in the period that began on the day on which the pension referred to in paragraph (a) or (b) became payable and ended on 30 June in the preceding year.

where the number of days in that part of that month is less than one-half of the number of days in that month—that part is disregarded; and

where the number of days in that part of that month is more than one-half of the number of days in that month—that part is treated as a whole month.

became applicable to a person; or

became payable or was converted into a pension;

during the most recent prescribed year, that part of the preserved benefit that is an unfunded employer benefit is increased to the extent determined by CSC, consistent with the principle of subrule 56 (2).

a person to whom an invalidity pension is payable is reclassified from Class A to Class B or vice versa under rule 23 during a prescribed year; and

the person became entitled at the beginning of that year to an increase under this Part in the rate at which that invalidity pension was payable to him or her immediately before the beginning of that year;

the rate at which the pension is payable to him or her on and after the date from which the reclassification has effect is the rate at which the pension would have been payable to him or her at the beginning of the year if his or her classification, on and after the date on which he or she became entitled to the pension, had been in accordance with the reclassification.

a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and

in consequence of a further reclassification under that rule during a prescribed year he or she again becomes entitled to an invalidity pension;

the rate at which the pension is payable to him or her on and after the date from which the latter reclassification has effect is the rate at which the pension would have been payable to him or her if:

he or she had not ceased to be entitled to an invalidity pension in consequence of the first mentioned reclassification; and

his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification.

a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and

in consequence of a further reclassification under that rule after his or her death he or she would, had he or she not died, have again become entitled to an invalidity pension;

then, for the purpose of calculating benefits for any surviving spouse or eligible child of the invalidity pensioner, the invalidity pensioner is to be taken to have been, immediately before his or her death, in receipt of an invalidity pension at the rate at which that pension would have been payable to him or her if:

he or she had not ceased to be entitled to invalidity pension in consequence of the first-mentioned reclassification; and

his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification.

that preserved benefit had become applicable to the person on the person’s retirement; and

this Part had applied, since that retirement, to the unfunded employer benefit included in the preserved benefit.

Date of effect of increase

60. (1) An increase by virtue of this Part in the rate of a pension that:

was payable; or

under subrule 56 (3) is treated as having been payable;

to a person on 30 June in a year applies in relation to the instalment of pension falling due on the first pension pay-day occurring after that day and in relation to all subsequent instalments.

in the case of an increase under subrule 58 (6)—the date on which the preserved benefit became payable; or

in any other case—1 July of the prescribed year.

Interpretation

61. (1) Subject to subrule (2), if at any time, whether before or after the commencement of these Rules, the Statistician has published or publishes in respect of a particular March quarter an all groups consumer price index number for the weighted average of the 8 capital cities in substitution for an index number previously published by him or her in respect of that quarter, the publication of the later index number is disregarded for the purposes of this Part.

where that fraction is less than one half of one tenth—that fraction is disregarded; and

where that fraction is not less than one half of one tenth—that fraction is treated as one tenth.

Part 7—Candidates at Parliamentary Elections

Re-instated member

62. (1) Where a person who resigned to contest an election:

again becomes a member; and

is a person referred to in a relevant provision of the Parliamentary Candidates Act; and

repays to CSC, before the expiration of 60 days after the day on which he or she again became a member, the amount of any benefit paid to him or her under these Rules upon him or her resigning to contest the election;

the person is taken for the purposes of these Rules:

to have been a member; and

despite the operation of the relevant provision, not to have been absent on leave without pay;

during the relevant period.

any benefit that became payable to him or her under these Rules upon him or her ceasing to be a member is taken not to have been payable; and

the fortnightly contributions that the person is required to make in respect of the relevant period are in accordance with the election by him or her that was in force immediately before the beginning of that period.

Death or physical or mental incapacity of person

63. When a person who resigned to contest an election:

dies; or

in the opinion of CSC, becomes physically or mentally incapacitated to the extent that he or she would have been retired on the ground of invalidity if he or she had remained a member;

he or she is, where considered appropriate by CSC, taken not to have ceased to be a member but to have died or retired on the ground of invalidity while a member at a time determined by CSC.

Part 8—General Provisions Applicable to Contributions and Benefits

Provisions applicable to elections under the Rules

64. (1) An election under these Rules is to be in writing.

to benefits under Part 3 or Part 5; and

to make an election in relation to the nature of those benefits;

he or she may make that election not earlier than 3 months before he or she is due to become entitled to the benefits and not later than 3 months after becoming entitled to the benefits.

an election under Part 3, 4 or 5 is made by the person entitled to make the election or, in accordance with subrule (3), by another person on behalf of the first-mentioned person; and

the person who made the election makes an application to CSC, not later than 3 months after the day on which the election is made or within such further period as CSC in special circumstances allows, requesting that CSC cancel the election; and

CSC, having regard to such matters as it considers relevant, is satisfied that the election should be cancelled;

CSC may direct that the election is cancelled and if it does so these Rules have effect as if the election had not been made.

if the person is survived by a spouse—the spouse may make the election within 3 months after the person’s death; or

if the person is not survived by a spouse, or is survived by a spouse but the spouse dies without making such an election, but the person is survived by an eligible child—the election may be made within that period by such person as CSC permits;

and if the spouse, or the person permitted by CSC, does so, these Rules have effect as if the election had been made by the first-mentioned person.

Rate of pension where lump sum converted into pension

65. (1) Where a person is entitled under these Rules to have an amount of his or her employer benefit converted into a pension, the annual rate of that pension is calculated in accordance with Schedule 5.

Benefits in unusual or exceptional circumstances

66. Where, in a particular case, CSC is of the opinion that:

the operation of these Rules, other than this rule, with regard to a point at issue produces a result in relation to a person that is not in the spirit of the Rules; and

the relevant circumstances of the case are unusual or exceptional;

CSC may, in relation to that case, having regard to the circumstances of the case, the principles in these Rules and the need to maintain equity between members, determine the point at issue in favour of that person.

Instalments of pensions

67. (1) Pensions are to be paid in fortnightly instalments on pension pay-days.

if the fraction is less than one-half of a cent—the amount of the instalment is taken to be reduced by the amount of the fraction; or

if the fraction is one-half of a cent or more—the amount of the instalment is taken to be increased by treating the fraction as 1 cent.

(a) the spouse of a deceased pensioner to whom retirement pension or invalidity pension (in this rule called the “primary pension”) was payable is entitled to spouse’s pension in accordance with subrule 42 (2); and

(b) an amount, purporting to be an instalment of primary pension payable to the pensioner in respect of a period in respect of which spouse’s pension is payable in accordance with that subrule, is paid into an account with a bank, credit union or building society (in this rule called the “financial institution”); and

the financial institution pays, out of that account, to the spouse of the deceased pensioner an amount not exceeding the amount so paid into the account;

CSC may make arrangements under which the amount so paid to the spouse may be offset against any amount of pension payable to the spouse in accordance with subrule 42 (2).

Interest payable where payment of benefit delayed

69. (1) Where a benefit is payable as a lump sum to a person and the payment of the benefit is delayed, CSC may, in accordance with this rule, approve an increase, by an amount of interest, in the amount of the benefit payable to the person.

in the case of a lump sum payment—in respect of the period of the delay; and

in the case of a pension—in respect of:

each instalment of the pension delayed; and

the period of delay of that instalment.

an instalment of spouse’s pension; or

a spouse’s lump sum payment;

attributable to an eligible child or eligible children, or any portion of that part, should, by reason of the child or children not being in the custody, care and control of the spouse, or for any other reason which CSC thinks proper, be paid to a person other than the spouse, CSC may authorise payment of that part, or a portion of the part, to the other person and if CSC does so payment is to be made to the other person accordingly.

an instalment, or part of an instalment, of a pension; or

an amount of any other benefit;

should:

by reason of the person who, but for this rule, would be entitled to the payment being a child, or being a person who is of unsound mind or undergoing imprisonment or otherwise being under a disability; or

for any other reason which CSC thinks proper;

be paid to a person other than the person who would be so entitled to the payment, CSC may authorise payment to the other person and if CSC does so payment is to be made to the other person accordingly.

the part, or a portion of the part, of an instalment of spouse’s pension attributable to an eligible child that, by virtue of subrule (1), is paid to a person other than the child to which that part or portion is attributable; or

an instalment of pension payable to a child that, by virtue of subrule (3), is paid to a person other than the child;

be applied for the maintenance, education or other benefit of the child.

Withholding payment of benefit where required information not provided

71. CSC may withhold payment of the whole, or a part, of a benefit in relation to a person where that person does not provide, or arrange to be provided, to CSC information required by CSC in connection with the determination of the person’s entitlement to benefits under these Rules or the determination of the amount of those benefits.

Part 9—Reconsideration of Decisions

Establishment of Reconsideration Advisory Committees

72. (1) CSC must establish a Reconsideration Advisory Committee.

to review any decision referred to it under this Part; and

to make recommendations to CSC in relation to the decision.

must take into account any evidence relevant to the decision that is made available or submitted to it; and

may also take steps to obtain any other evidence that it considers necessary for a proper review of the decision.

Proceedings of Committee

75. Subject to any directions given by CSC, a Committee may regulate its proceedings as the Committee thinks fit.

Reconsideration of decision made by delegate

76. (1) A person affected by a decision made by a delegate of CSC may apply to CSC for reconsideration of the decision.

in writing addressed to CSC and setting out the particulars of the decision that the person wishes to be reconsidered; or

in any other form that is acceptable to CSC.

the recommendations of the Committee; and

any other matter that CSC considers relevant;

CSC must, by instrument in writing setting out the reasons for so doing, affirm or vary the decision or set it aside and substitute another decision for it.

be in writing addressed to CSC; and

set out particulars of the decision that the person wishes to be reconsidered; and

specify the grounds for reconsideration of those particulars; and

be accompanied by the prescribed fee.

the recommendation of the Committee; and

any other matter that CSC considers relevant;

CSC must, by instrument in writing setting out the reasons for so doing, affirm or vary the decision or set it aside and substitute another decision for it.

is a child in relation to the deceased person other than (where the deceased person was a retirement pensioner at the time of his or her death) a child who is declared by CSC not to be an eligible child for the purposes of these Rules; and

is a person who has not attained the age of 16 years or:

who has attained the age of 16 years but has not attained the age of 25 years; and

is receiving full-time education at a school, college or university or other full-time education approved by CSC for the purposes of this subparagraph; and

is not ordinarily in employment or engaged in work on his or her own account; and

immediately before the deceased person’s death:

ordinarily lived with the deceased person; or

was, in the opinion of CSC, wholly or substantially dependent upon the deceased person; or

where the person is a child born after the deceased person’s death, ordinarily would have been, in the opinion of CSC, living with the deceased person or so dependent if the person had been born before the death of the deceased person;

“eligible service”, in relation to a person, means service calculated in accordance with Schedule 6;

“Emergency Forces” has the same meaning as in the Defence Act 1903;

“employer benefit”, in relation to a person, means the amount of employer benefit calculated in relation to that person in accordance with Schedule 8;

“final average salary”, in relation to a person, means an amount calculated in accordance with Schedule 7;

“financial year” means a period of 12 months commencing on 1 July;

“foreign service member” means a person (not being a person who has been an eligible member of the Defence Force within the meaning of the 1973 Act):

who, before he or she became a member, had been a member of the armed forces of a country other than ; and

(b) who rendered with those forces a period of service (in this definition called “full-time service”) of a kind similar to continuous full-time service in the Defence Force for a period of or exceeding 12 months; and

with regard to whom CSC has, after consultation with the appropriate authority of the Defence Force, formed the opinion that the full-time service or a part of that service of that person with those forces should be regarded as eligible service;

“Fund” means the fund established, and vested in CSC, by the Trust Deed;

“funded employer benefit”, in relation to a person, means the sum of:

the amount of employer contributions paid by the Department, in relation to the person, under rule 10 less the amount of income tax paid or payable by the Fund in respect of those contributions; and

the interest (if any) in respect of the amount in paragraph (a) in accordance with a determination or determinations by CSC as to rates of interest and the method of allocation of interest to such amounts;

“higher duties allowance” means the allowance of that name determined under Part IIIA of the Defence Act 1903;

“invalidity”, in relation to a person, includes physical or mental incapacity of the person to perform his or her duties;

“invalidity pension” means a pension payable under rule 27 or 28;

“invalidity pensioner” means a person who is entitled to invalidity pension or would be so entitled if payment of that pension had not been suspended under subrule 25(3);

“invalidity retiree” means a person who is about to be, or has been, retired from the Defence Force on the ground of invalidity and includes a person who, in accordance with rule 30, is to be treated as if he or she had been retired on that ground;

“lump sum maximum benefit limit”, in relation to a person, means an amount calculated in accordance with paragraph 1 of Schedule 3;

“MBL member” means a member who has ceased to pay contributions in accordance with rule 5;

“member” means a person who, in accordance with section 6 of the Act, is a member of the Scheme;

“member benefit”, in relation to a member, means an amount calculated in accordance with Schedule 9;

“membership” means membership of the Scheme;

“month” means calendar month;

“Parliamentary Candidates Act” means the Defence (Parliamentary Candidates) Act 1969;

“pension” means a pension payable under these Rules;

“pension maximum benefit limit”, in relation to a person, means an amount calculated in accordance with paragraph 3 of Schedule 3;

“Permanent Forces” has the same meaning as in the Defence Act 1903;

“prescribed fee” means a fee prescribed in regulations made in pursuance of section 52 of the Act;

“prescribed year” means the year commencing on 1 July 1991 or a subsequent year;

“previous contributions”, in relation to a person, means contributions made by him or her under the previous legislation, less any such contributions refunded to him or her under that legislation;

“previous legislation” means the 1948 Act and the 1973 Act;

“relevant percentage”, in relation to a spouse or eligible child of a deceased person, means the percentage applicable to that spouse or child in accordance with Schedule 4;

“relevant period”, in relation to a person to whom Part 7 of these Rules applies, means the period referred to in a relevant provision in the application of that provision to that person;

“relevant provision”, in relation to the Parliamentary Candidates Act, means subsection 10 (2), 11 (2) or 12 (2), as the case requires;

“Reserve Forces” has the same meaning as in the Defence Act 1903.

“retirement pensioner” means a former member to whom a pension is payable but does not include a person to whom a pension is payable only because he or she is the spouse or the child of a deceased member;

“salary”, in relation to a person:

includes, in relation to the person’s service as a member, service allowance and higher duties allowance payable to that person; and

means, in relation to the person’s service on a particular day as an eligible member of the Defence Force within the meaning of the 1973 Act, the amount that, for the purposes of that Act, was the annual rate of pay applicable to the person on that day;

“Scheme” means the Military Superannuation and Benefits Scheme established by the Trust Deed;

“service” means service as a member of the Defence Force;

“service allowance” means the allowance of that name determined under Part IIIA of the Defence Act 1903;

“service offence” has the same meaning as in the Defence Force Discipline Act 1982;

“spouse’s pension” means pension payable to a spouse under Part 4 of these Rules;

“Statistician” means the Australian Statistician;

“total benefit”, in relation to a person, means the sum of the person’s member benefit and employer benefit;

“transferred person” means a person who became a member in consequence of his or her having made an election to do so under section 132 of the 1973 Act;

“transfer value”, in relation to a transferred person, means an amount calculated in accordance with Schedule 10;

“unfunded preserved benefit”, in relation to a person, means so much of the employer benefit included in the preserved benefit applicable to the person as is not funded;

“1948 Act” means the Defence Forces Retirement Benefits Act 1948;

“1973 Act” means the Defence Force Retirement and Death Benefits Act 1973;

“1973 Scheme” means the retirement and death benefits scheme provided for in the 1973 Act;

“1973 Scheme recipient member” means a member who:

began to render continuous full-time service on or after the date of commencement of the Scheme; and

immediately before beginning to render that service was a 1973 Scheme retirement pensioner;

“1973 Scheme re-entrant” means a person who became a member because he or she made an election to do so under section 61B of the 1973 Act immediately before he or she began to render the period of continuous full-time service which he or she is rendering;

“1973 Scheme retirement pensioner” means a person to whom retirement pay is payable under the 1973 Act;

“1991 Scheme” means the Scheme;

“1991 Scheme re-entrant” means a member who, having been a member and retired, again became a member after a break in the continuity of his or her service.

Part 2—Resign to contest an election

2. A reference in these Rules to a person who resigns to contest an election is a reference to a member:

who is transferred to a Reserve (being a Reserve within the meaning of the Parliamentary Candidates Act); or

who is discharged from the Defence Force; or

has his or her continuous full-time service terminated;

under the Parliamentary Candidates Act.

Part 3—Retirement

3. A reference in these Rules to the retirement of a person is a reference to his or her retirement from the Defence Force and includes:

any voluntary or involuntary termination of the person’s services as a member of that force; or

in the case of a person who is an officer of the Permanent Forces—the transfer of the officer to the Emergency Forces or the Reserve Forces if, on that transfer, the person ceases to render continuous full-time service; or

in the case of a person who is a member of the Emergency Forces or the Reserve Forces and is rendering continuous full-time service—the cessation of that service.

4. Where a person retires and, without a break in the continuity of his or her service, again becomes a member of the Defence Force serving on continuous full-time service, the person is to be treated, for the purposes of these Rules, as not having retired by reason only of that retirement.

Part 4—Retiring age

5. A reference in these Rules to the retiring age of a member is:

(a) in the case of a member who is a member of the Permanent Forces—the age for the compulsory retirement of the member ascertained in accordance with, or in accordance with regulations under, the Defence Act 1903, the Naval Defence Act 1910 or the Air Force Act 1923; or

in the case of a member who is not a member of the Permanent Forces—the age that would be the age for the compulsory retirement of the person if the person were a member of the Permanent Forces.

6. Where the age for the compulsory retirement of a member is, in accordance with a law referred to in paragraph 5, extended, the member is treated for the purposes of these Rules, on his or her subsequent retirement, as if:

where he or she is subsequently retired on the ground of invalidity—he or she had been retired on that ground; or

where he or she retires or is retired on any other ground—he or she retired on reaching the age for his or her compulsory retirement.

7. In paragraph 5:

“Permanent Forces” does not include the Regular Army Supplement.

Part 5—Spouse

8. In this Part:

“deceased person” means a person who:

has died; and

was, at the time of his or her death, a member or a former member.

9. Subject to this Part, a reference in these Rules to a spouse of a deceased person is a reference to:

a person who was legally married to the deceased person at the time of his or her death and who, at that time, was ordinarily living with the deceased person on a permanent and bona fide domestic basis; and

a person who was legally married to the deceased person at the time of his or her death but who was not ordinarily living with the deceased person on a permanent and bona fide domestic basis at that time and who, in the opinion of CSC, was wholly or substantially dependent upon the deceased person at that time; and

a person who was not legally married to the deceased person at the time of his or her death but who, for a continuous period of not less than 3 years immediately before the deceased person’s death, had ordinarily lived with the deceased person as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis; and

a person who was not legally married to the deceased person at the time of his or her death but who, for a continuous period of less than 3 years immediately before the deceased person’s death, had ordinarily lived with the deceased person as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis and who, in the opinion of CSC, was wholly or substantially dependent upon the deceased person at the time of his or her death.

10. Where:

(a) a deceased person was, at the time of his or her death, a retirement pensioner (in this paragraph called the “pensioner”); and

the marriage of the pensioner to the person to whom the pensioner was legally married at the time of his or her death took place after the pensioner had become a pensioner and had attained the age of 60 years;

a reference in these Rules to a spouse of a deceased person is, in relation to the pensioner, a reference to the person to whom the pensioner was so married if:

the marriage took place not less than 5 years before the pensioner’s death; or

the marriage took place less than 5 years before the pensioner’s death but:

the person had, immediately before the marriage, for a continuous period that commenced not later than 5 years before the pensioner’s death but after the pensioner became a pensioner and attained the age of 60 years, ordinarily lived with the pensioner as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis; or

the person had, immediately before the marriage, for a continuous period that commenced not later than 3 years before the pensioner’s death but before the pensioner became a pensioner or attained the age of 60 years, whichever last occurred, ordinarily lived with the pensioner as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis; or

the person had, immediately before the marriage, for a continuous period that commenced later than 3 years before the pensioner’s death but before the pensioner became a pensioner or attained the age of 60 years, whichever last occurred, ordinarily lived with the pensioner as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis and was, in the opinion of CSC, wholly or substantially dependent upon the pensioner at the time of his or her death;

but not otherwise.

11. Where:

(a) a deceased person was, at the time of his or her death, a retirement pensioner (in this subrule called the “pensioner”); and

a person who was not legally married to the pensioner at the time of his or her death commenced living with the pensioner as his or her husband or wife, as the case may be, on a permanent and bona fide domestic basis after the pensioner had become a pensioner and had attained the age of 60 years;

a reference in these Rules to a spouse of a deceased person is, in relation to the pensioner, a reference to the person with whom the pensioner had so lived if the person had ordinarily lived with the pensioner for a continuous period of not less than 5 years immediately before the pensioner’s death, but not otherwise.

12. In spite of anything in this Part, a person is not, for the purposes of these Rules, a spouse in relation to another person if he or she is of the same sex as that other person.

Part 6—Parts of speech and grammatical forms

13. In these Rules, unless the contrary intention appears, where a word or phrase is given a particular meaning, other parts of speech and grammatical forms of that word or phrase have corresponding meanings.

Part 7—Number

14. In these Rules, unless the contrary intention appears, words in the singular number include the plural and words in the plural number include the singular.

Part 8—Reckoning of time

15. Where, in these Rules, any period of time, dating from a given day, act or event, is required or allowed for any purpose, the time is, unless the contrary intention appears, to be reckoned exclusive of that day or the day of that act or event.

16. Where the last day of any period required or allowed by a provision of these Rules for the doing of anything falls on a Saturday, on a Sunday or on a day which is a public holiday or a bank holiday in the place in which the thing is to be or may be done, the thing may be done on the first day following which is not a Saturday, a Sunday or a public holiday or bank holiday in the place.

Part 9—Attainment of particular age

17. For the purposes of these Rules, unless the contrary intention appears, the time at which a person attains a particular age expressed in years is the commencement of the relevant anniversary of the date of the birth of that person.

Schedule 2—Prescribed periods for the purposes of rule 4

Rule 4

1. Where:

(a) the salary and allowances of a member in respect of a period were, on or after the date of his or her entry into the Scheme, forfeited, in whole or in part, under regulations made under the Defence Act 1903; and

the period exceeded 21 consecutive days; and

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;

that period is a prescribed period.

2. Where:

(a) a member was in custody under the Defence Force Discipline Act 1982 awaiting or undergoing trial for a service offence; and

the period for which the member was in custody awaiting or undergoing trial commenced on or after the date of his or her entry into the Scheme and exceeded 21 consecutive days; and

the member was subsequently convicted of the offence or another service offence at the trial; and

either of the following subparagraphs apply:

the conviction was not quashed or set aside;

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;

that period is a prescribed period.

3. Where:

(a) a member was in custody under the Defence Force Discipline Act 1982 awaiting or undergoing trial for a service offence; and

the period for which the member was in custody awaiting or undergoing trial commenced before the date of his or her entry into the Scheme and ended on or after that date and exceeded 21 consecutive days; and

the member was subsequently convicted of the offence or another service offence at the trial; and

either of the following subparagraphs apply:

the conviction was not quashed or set aside;

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;

so much of that period as commenced on that date is a prescribed period.

4. Where:

2 or more consecutive periods of 24 hours or more would, but for subparagraph 1 (b), 2 (b) or 3 (b) or 2 or all of those provisions, be prescribed periods for the purposes of subrule 4 (4) in relation to a member; and

the periods exceed, in the aggregate, 21 days;

those periods are prescribed periods.

5. Where:

a period of 24 hours or more would, but for subparagraph 1 (b), 2 (b) or 3 (b), be a prescribed period for the purposes of subrule 4(4) in relation to a member; and

the period is consecutive with a period that, under paragraph 1, 2 or 3, is a prescribed period for the purposes of subrule 4 (4);

the period referred to in subparagraph (a) is a prescribed period.

6. Where:

a period of 24 hours or more would, but for subparagraph 1 (b), 2 (b) or 3 (b), be a prescribed period for the purposes of subrule 4 (4) in relation to a member; and

the period is consecutive with a period that, under paragraph 5 or this paragraph, is a prescribed period for the purposes of subrule 4 (4) in relation to the member;

the period referred to in subparagraph (a) is a prescribed period.

Schedule 3—Calculation of maximum benefit limits

Rule 5

1. The lump sum maximum benefit limit, in relation to a person, is the product of the person’s final average salary and the person’s lump sum maximum benefit multiple.

2. In paragraph 1:

“lump sum maximum benefit multiple”, in relation to a person, means the number obtained by dividing the sum of:

8 times $39,970 or, if the person’s final average salary is less than $39,970, 8 times the person’s final average salary; and

6 times the part (if any) of the person’s final average salary that exceeds $39,970 but does not exceed $74,220; and

3 times the part (if any) of the person’s final average salary that exceeds $74,220;

by the person’s final average salary.

3. The pension maximum benefit limit, in relation to a person, is the product of the person’s final average salary and the person’s pension maximum benefit multiple.

4. In paragraph 3:

“pension maximum benefit multiple”, in relation to a person, is the number obtained by dividing the sum of:

10 times $39,970 or, if the person’s final average salary is less than $39,970, 10 times the person’s final average salary; and

7 times the part (if any) of the person’s final average salary that exceeds $39,970 but does not exceed $74,220; and

4 times the part (if any) of the person’s final average salary that exceeds $74,220;

by the person’s final average salary.

Schedule 4—Percentage of employer benefit or deceased pensioner’s pension applicable to spouse or eligible child

Rule 42

1. The percentage of an employer benefit or deceased pensioner’s pension applicable to a spouse or eligible child of a deceased person is the percentage in whichever of the following tables is applicable according to the relationship of the person to the deceased person and the number of such persons.

TABLE 1

Relevant Percentage where Deceased Person is Survived by a Spouse with or without Eligible Children

TABLE 2

Relevant Percentage where Deceased Person is Survived by an Eligible Child or Eligible Children only

Schedule 5—Calculation of rate of pension by conversion of employer benefit

Rule 65

1. For the purpose of converting an employer benefit into a pension, the annual rate of that pension is calculated by dividing the amount of the benefit that is to be so converted by:

if the person’s age, in years, on the day on which he or she becomes entitled to the benefit is 65 years—a factor of 10; or

in any other case where the person’s age is an exact number of years—a factor of 10 increased by 0.2 in respect of each year by which the person’s age, in years, on the day on which he or she becomes entitled to the benefit is less than 65 years; or

(c) in any case where the person’s age is not an exact number of years—the factor that would be applicable if paragraph (b) applied to the person’s age in years, reduced by a number in respect of the number of days in the person’s age in excess of the person’s age in years (in this paragraph called “excess days”), being a number which bears to 0.2 the same proportion as the number of excess days bears to the number of days in a year.

2. In the application of paragraph 1 in relation to a person who is entitled to invalidity benefits and is classified as Class A, the references in that paragraph to the person’s age on the day on which he or she becomes entitled to a benefit are read as references to:

his or her retiring age immediately before his or her retirement; or

the age of 55 years;

whichever is the greater.

Schedule 6—Calculation of eligible service

Schedule 1 (Definition of “eligible service”)

1. The eligible service of a member is the sum of:

subject to paragraph 2, service by the person as a member; and

in the case of a person entitled to an invalidity pension who is classified as Class A—a period equal to the period commencing on the day immediately following the last day of the person’s service and concluding on the day on which the person would have retired if he or she had not been retired on the ground of invalidity but had served until attaining:

the age that was the age for the compulsory retirement of the member immediately before his or her retirement; or

the age of 55 years;

whichever is the greater; and

in the case of a transferred person—a period specified in the following table in relation to that person:

2. Service referred to in subparagraph 1 (a) does not include service during a period:

prescribed in Schedule 2 in respect of which, under subrule 4 (4), salary is taken not to be paid to the member; or

that was a period of leave of absence without pay granted to the member in respect of which the Department did not pay contributions to the Fund in relation to the member; or

(except in the case of a person entitled to an invalidity benefit) that occurred after the member’s total benefit reached his or her lump sum maximum benefit limit and in respect of which the member, in pursuance of rule 5, did not pay contributions to the Fund; or

(except in the case of a person entitled to an invalidity benefit) that occurred after the member’s total benefit reached his or her pension maximum benefit limit; or

in respect of which the person accrued an employer benefit:

which was paid to a preservation fund, or used to purchase a deferred annuity, in pursuance of subrule 15 (2) or paid to the person as a lump sum in pursuance of subrule 15 (3); or

which was otherwise paid to the person as a lump sum, converted into a pension or became applicable to the person as a preserved benefit.

Schedule 7—Calculation of final average salary

Schedule 1 (Definition of “final average salary”)

1. The final average salary in relation to a person who is or was a member is an amount equal to:

in the case of a person with less than 3 years’ eligible service—an amount calculated in accordance with the formula:

where:

“Salary”, in relation to the person, means the amount of salary received by the person during his or her service; and

“Number of days of eligible service”, in relation to the person, means the number of days of eligible service of the person; or

in any other case—one-third of the amount of salary payable to the person in his or her last 3 years of eligible service.

2. In paragraph 1, any reference to eligible service includes, in the case of a person whose total benefit reached his or her lump sum maximum benefit limit, any period in respect of which the person, in pursuance of rule 5 and by reason only of that rule, did not pay contributions to the Fund.

3. For the purpose of ascertaining the amount of salary payable to a member in his or her last 3 years of service in a case where that service included a period in respect of which the member:

was in receipt of half-pay; or

was not entitled to be paid salary; or

forfeited his or her salary;

the member is taken to have been in receipt of salary in respect of that period at the fortnightly rate that was applicable to the member immediately before that period.

Schedule 8—Calculation of employer benefit

Schedule 1 (Definition of “employer benefit”)

Part 1—Calculation of employer benefit of person with not less than 7 years’ eligible service or Invalidity Retiree or 1973 Scheme Recipient Member (other than 1973 Scheme Re-Entrant or 1991 Scheme Re-Entrant or MBL Member or Foreign Service Member)

1. The employer benefit, in relation to a person (other than a 1973 Scheme re-entrant, a 1991 Scheme re-entrant, an MBL member or a foreign service member) who:

has not less than 7 years’ eligible service; or

is a person who is retired on the ground of invalidity; or

is a 1973 Scheme recipient member;

is calculated in accordance with the formula:

where:

“FAS” means the person’s final average salary; and

“FPES” means the person’s first period of eligible service; and

“SPES” means the person’s second period of eligible service; and

“TPES” means the person’s third period of eligible service.

2. For the purposes of paragraph 1:

“first period of eligible service”, in relation to a person, means:

the first 7 years of eligible service of the person; or

if the person did not complete 7 years of eligible service—the period of eligible service of the person;

“second period of eligible service”, in relation to a person, means:

the first 20 years of eligible service of the person exclusive of the first 7 years of that service; or

if the person completed 7 years but did not complete 20 years of eligible service—the period of eligible service of the person after completing 7 years of eligible service;

“third period of eligible service”, in relation to a person, means the period of eligible service of the person after completing 20 years of eligible service.

Part 2—Calculation of Employer Benefit of Person with less than 7 years’ eligible service (other than Invalidity Retiree or 1973 Scheme Recipient Member or 1973 Scheme Re-Entrant or 1991 Scheme Re-Entrant or Foreign Service Member)

3. The employer benefit, in relation to a person who has less than 7 years’ eligible service (other than a person who is retired on the ground of invalidity, is a 1973 Scheme recipient member, is a 1973 Scheme re-entrant, is a 1991 Scheme re-entrant or is a foreign service member), is calculated in accordance with the formula:

where:

“FEB” means the sum of:

the amount of the person’s funded employer benefit; and

(b) in the case of a transferred person—the amount (if any) of the interim benefit that accrued, in respect of the person, in accordance with clause 7 of the Defence Force (Superannuation Interim Arrangement) Determination made under Defence Act 1903 while the person was an eligible member of the Defence Force within the meaning of the 1973 Act; andsection 52 of the

interest in respect of the amount (if any) in paragraph (b) which would have accrued before the date of the person’s transfer if so much of that amount:

as accrued before 1 October 1991 had been earning interest at the rates applicable in accordance with Schedule 11; and

as accrued on or after 1 October 1991 had been funded; and

interest in respect of the amounts (if any) in paragraphs (b) and (c) which would have accrued after the date of the person’s transfer if those amounts had been funded: and

“NEB” means the notional employer benefit in relation to the person obtained by calculating an employer benefit for the person in accordance with Part 1 as if that Part applied to the person; and

“P” means the percentage derived from the following table in relation to the period of the person’s eligible service as if the table included a factor, in respect of the number of days in excess of the total number of whole years of the person’s eligible service (in this paragraph called “excess days”), being a factor which bears, to the difference between the factor for that whole number of years and the next higher factor in the table, the same proportion as the number of excess days bears to the number of days in a year:

Part 3—Calculation of Employer Benefit of 1973 Scheme Re-Entrant, 1991 Scheme Re-Entrant or Foreign Service Member, with not less than 7 years’ aggregated service

4. The employer benefit, in relation to a 1973 Scheme re-entrant, a 1991 Scheme re-entrant or a foreign service member who:

has not less than 7 years’ aggregated service; or

is a person who is retired on the ground of invalidity;

is calculated in accordance with the formula:

where:

“FAS” means the person’s final average salary; and

“FPES” means so much of the person’s eligible service (if any) as is included in the person’s first period of aggregated service; and

“SPES” means so much of the person’s eligible service (if any) as is included in the person’s second period of aggregated service; and

“TPES” means so much of the person’s eligible service (if any) as is included in the person’s third period of aggregated service.

5. For the purposes of paragraph 4:

“first period of aggregated service”, in relation to a person, means:

the first 7 years of aggregated service of the person; or

if the person did not complete 7 years of aggregated service—the period of aggregated service of the person;

“second period of aggregated service”, in relation to a person, means:

the first 20 years of aggregated service of the person exclusive of the first 7 years of that service; or

if the person completed 7 but did not complete 20 years of aggregated service—the period of aggregated service of the person after completing 7 years of aggregated service;

“third period of aggregated service”, in relation to a person, means the period of aggregated service of the person after completing 20 years of aggregated service.

Part 4—Calculation of Employer Benefit of 1973 Scheme Re-Entrant or Foreign Service Member, with less than 7 years’ aggregated service (other than Invalidity Retiree)

6. The employer benefit, in relation to a 1973 Scheme re-entrant or foreign service member, who has less than 7 years’ aggregated service, (other than a person who is retired on the ground of invalidity), is calculated in accordance with the formula:

where:

“FEB” means the sum of:

the amount of the person’s funded employer benefit; and

(b) the amount (if any) of the interim benefit that accrued, in respect of the person, in accordance with clause 7 of the Defence Force (Superannuation Interim Arrangement) Determination made under Defence Act 1903 while the person was an eligible member of the Defence Force within the meaning of the 1973 Act; andsection 52 of the

interest in respect of the amount (if any) in paragraph (b) which would have accrued before the date of the person’s transfer if so much of that amount:

as accrued before 1 October 1991 had been earning interest at the rates applicable in accordance with Schedule 11; and

as accrued on or after 1 October 1991 had been funded; and

interest in respect of the amounts (if any) in paragraphs (b) and (c) which would have accrued after the date of the person’s transfer if those amounts had been funded; and

“NEB” means the notional employer benefit in relation to the person obtained by calculating an employer benefit for the person in accordance with Part 3 as if that Part applied to the person; and

“P” means the percentage derived from the following table in relation to the period of the person’s aggregated service as if the table included a factor, in respect of the number of days in excess of the total number of whole years of the person’s aggregated service (in this paragraph called “excess days”), being a factor which bears, to the difference between the factor for that whole number of years and the next higher factor in the table, the same proportion as the number of excess days bears to the number of days in a year:

Part 5—Calculation of employer benefit of MBL Member

7. The employer benefit, in relation to an MBL member, is calculated in accordance with whichever formula in this Part is applicable to the member.

8. In the case of an MBL member who elected under subrule 5 (2) to cease paying contributions, the formula is:

where:

“FASC” means the person’s final average salary on ceasing contributions; and

“FASR” means the person’s final average salary on retirement; and

“LSMBMC” means the person’s lump sum maximum benefit multiple on ceasing contributions; and

“LSMBMR” means the person’s lump sum maximum benefit multiple on retirement; and

“MB” means the amount of the person’s member benefit on ceasing contributions; and

“TB” means the sum of the person’s employer benefit and member benefit on ceasing contributions.

9. In the case of an MBL member who:

ceased paying contributions because of the operation of subrule 5 (1); or

being a transferred member, did not pay contributions because of the operation of that subrule;

the formula is:

where:

“FASC” means the person’s final average salary on ceasing contributions; and

“FASR” means the person’s final average salary on retirement; and

“PMBMC” means the person’s pension maximum benefit multiple on ceasing contributions; and

“PMBMR” means the person’s pension maximum benefit multiple on retirement; and

“MB” means the amount of the person’s member benefit on ceasing contributions; and

“TB” means the sum of the person’s employer benefit and member benefit on ceasing contributions.

Part 6—Interpretation

10. A reference in this Schedule to a person who retires on the ground of invalidity does not include a reference to a person who, by reason of rule 32, 33 or 34, is not entitled to invalidity benefits.

11. A reference in this Schedule to the aggregated service of a foreign service member or a 1973 Scheme re-entrant is a reference to the sum of:

the eligible service of that person; and

either:

in the case of a 1973 Scheme re-entrant—any period that, before the person became a member, was a period of effective service in relation to the person for the purposes of the 1973 Act; or

in the case of a foreign service member—so much of the person’s full-time service with the forces of a country other than as CSC approves calculated in such manner as CSC approves.

Schedule 9—Calculation of member benefit

Schedule 1 (Definition of “member benefit”)

1. A member benefit, in relation to a person who is or was a member, is an amount equal to the sum of:

the contributions that have been paid under these Rules by the person on or after he or she began his or her current period of membership; and

in the case of a member to whom a preserved benefit is applicable—the amount of the member benefit (if any) included in that preserved benefit; and

the interest (if any), in respect of the amount in subparagraph (a) and of such of the amount in subparagraph (b) as is funded, in accordance with a determination or determinations by CSC as to rates of interest and the method of allocation of interest to such amounts; and

an amount equal to the interest, in respect of such of the amount in subparagraph (b) as is not funded, which would have accrued after the person last became a member if that amount had been funded; and

in the case of a member who transferred from the 1973 Scheme and who has not since retired:

the person’s transfer value; and

an amount equal to the interest in respect of that transfer value which would have accrued on or after the date of the person’s transfer if the transfer value had been funded.

Schedule 10—Transfer value

Schedule 1 (Definition of “transfer value”)

1. The transfer value, in relation to a transferred person, is an amount equal to the sum of:

previous contributions made by the person under the previous legislation; and

interest in respect of the amount in subparagraph (a) which would have accrued before the date of his or her transfer if so much of that amount:

as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid before 1 October 1991 had been earning interest at the rates applicable in accordance with Schedule 11; or

as comprised contributions and additional contributions (within the meaning of the 1973 Act) paid on or after that date had been funded;

less the amount (if any) remaining unpaid to the Commonwealth by the person in respect of:

an election by him or her under the previous legislation to have a period of service taken into account as service for pension or as qualifying service; and

an advance payment made to him or her in respect of a gratuity under:

the previous legislation; or

the Defence Force (Bounties and Gratuities) Regulations; or

(iii) Determination 0705 made under Defence Act 1903; andPart IIIA of the

an amount required to be paid by him or her under subsection 87 (3) of the 1973 Act.

2. For the purpose of subparagraph 1 (b), where, for any period, official records of the fortnightly amounts of contributions paid by a member when he or she was a member of the retirement benefits scheme under the 1948 Act are not available, the contributions paid by the member during that period are taken to have been paid on the date at the middle of that period, unless CSC, having regard to documentary evidence of those contributions produced to CSC by the member, otherwise determines.

Schedule 11—Rates of interest applicable in respect of certain unfunded amounts

(Schedules 8 and 10)

1. For the purposes of sub-subparagraphs 3 (c) (i) and 6 (c) (i) of Schedule 8 and sub-subparagraph 1 (b) (i) of Schedule 10:

the rate applicable in relation to:

the last complete salary fortnight in a financial year; or

where the rate applicable in relation to that financial year is the same as the rate applicable in relation to the immediately preceding financial year—any salary fortnight in the first-mentioned financial year;

is the rate applicable in relation to that financial year in accordance with the table; and

the rate applicable in relation to any other salary fortnight is the rate ascertained in accordance with the following formula:

where:

“A” is the rate applicable in relation to a financial year in accordance with the table; and

“B” is the rate applicable in relation to the immediately succeeding financial year in accordance with the table; and

“C” is the number of salary fortnights which have elapsed since the last complete salary fortnight in the financial year to which A relates; and

“D” is the number of salary fortnights in the financial year to which B relates.

RATES APPLICABLE IN RELATION TO FINANCIAL YEARS

A reference in this table to a year is a reference to the financial year ending on 30 June in that year:

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under Legislation Act 2003.section 15V of the

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

(a) The Military Superannuation and Benefits Act 1991 was amended by Schedule 4 only of the Defence Legislation Amendment Act 1995, subsection 2(1) of which provides as follows:

(b) The Military Superannuation and Benefits Act 1991 was amended by Schedule 2 (item 2) only of the CFM Sale Act 1996, subsection 2(1) of which provides as follows:

(c) The Military Superannuation and Benefits Act 1991 was amended by Schedule 2 (items 28, 85, 111 and 145) only of the Defence Legislation Amendment Act (No. 1) 1997, subsection 2(1) of which provides as follows:

(d) The Military Superannuation and Benefits Act 1991 was amended by Schedule 3 (item 104) only of the Income Tax (Consequential Amendments) Act 1997, section 2 of which provides as follows:

2. This Act commences on 1 July 1997.

(e) The Military Superannuation and Benefits Act 1991 was amended by Schedule 2 (items 937 and 938) only of the Audit (Transitional and Miscellaneous) Amendment Act 1997, subsection 2(2) of which provides as follows: