MILITARY SUPERANNUATION AND BENEFITS ACT 1991

This compilation was prepared on 10 October 2005
taking into account amendments up to Act No. 121 of 2005

[NOTE: The Military Superannuation and Benefits Trust Deed and Rules were made by the rule-maker on 18 September 1991 as a stand alone instrument. This instrument, not the Act, has been amended by amending legislative instruments see s. 5(1).

An up-to-date electronic compilation of the Deed and Rules is available in ComLaw at:

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General's Department, Canberra

Contents

Part 1--Preliminary 1

1............ Short title [see Note 1] ....................................................................... 1

2............ Commencement [see Note 1] .............................................................. 1

3............ Interpretation ...................................................................................... 1

3A......... Application of the Criminal Code ...................................................... 2

Part 2--The Trust Deed 3

4............ Deed to establish Superannuation Scheme etc. ................................... 3

5............ Amendment of Trust Deed [see Note 2] ............................................ 3

5A......... Amendments of Trust Deed to implement family law interest splitting 4

Part 3--Members of Superannuation Scheme 6

6............ Membership of Superannuation Scheme ............................................ 6

8............ Cases where person taken not to have ceased to be a member ........... 6

Part 4--Contributions 7

9............ Contributions of members to Superannuation Scheme etc. to be deducted from salary 7

10.......... Contributions to Superannuation Scheme etc. by Department .......... 7

Part 5--Payment of benefits 8

11.......... Interpretation ...................................................................................... 8

12.......... Member benefits ................................................................................. 8

13.......... Employer benefits .............................................................................. 8

14.......... Preserved benefits ............................................................................... 9

15.......... Payment by or to the Commonwealth on reclassification of invalidity pensioner 10

16.......... Payment by Commonwealth where an invalidity pensioner again becomes a member 10

16A....... Payments relating to associate benefits ............................................ 10

17.......... Appropriation .................................................................................. 10

Part 6--The Military Superannuation and Benefits Board of Trustees No. 1 11

18.......... Establishment ................................................................................... 11

19.......... Incorporation etc. ............................................................................. 11

20.......... Functions etc. ................................................................................... 11

21.......... Membership of Board ...................................................................... 11

22.......... Defective appointment not invalid etc. ............................................ 12

23.......... Trustee Act of ACT to apply .......................................................... 12

24.......... Exemption from taxation .................................................................. 12

25.......... Banking ............................................................................................. 13

25A....... Accounting records ........................................................................... 13

25B....... Audit ................................................................................................. 13

26.......... Annual report and financial statements ............................................ 14

Part 7--Commissioner for Superannuation 16

27.......... Functions of Commissioner .............................................................. 16

28.......... Other functions of Commissioner not to be prejudiced ................... 16

Part 9--Miscellaneous 17

42.......... Cost of administration of Act etc. .................................................... 17

42A....... Board liable to pay surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 .......................................................................................................... 17

43.......... Recovery of unpaid contributions etc. ............................................. 17

44.......... Payment of fees ................................................................................ 18

45.......... Assignment of benefits ..................................................................... 18

46.......... Member etc. bound by Rules ........................................................... 18

47.......... Indemnification of trustees etc. ........................................................ 18

48.......... Bank not liable in respect of certain payments out of account of deceased pensioner 19

51.......... Delegation by Minister ..................................................................... 20

51A....... Transitional--MSB Instrument No. 3 of 1993 to have retrospective effect 20

52.......... Regulations ....................................................................................... 21

Part 10--Amendments of the Defence Force Retirement and Death Benefits Act 1973 22

Sections 53-61 ................................................................................................. 22

Schedule--Form of Trust Deed [see Note 2] 23

Military Superannuation and Benefits Rules 31

Part 1--Preliminary 37

Citation . .......................................................................................................... 37

Definitions and interpretation ......................................................................... 37

Part 2--Contributions 40

Contributions by members .............................................................................. 40

Amount of contributions ................................................................................. 40

Cessation of contributions on reaching maximum benefit limit ....................... 41

Contributions while on leave without pay in connection with birth of child etc. 42

Contributions while on other leave without pay ............................................. 42

General conditions applicable to contributions under rules 6 and 7 ................ 43

Member contributions to be paid to Board ..................................................... 43

Liability of Department to pay employer contributions ................................ 44

Payment of contributions into Fund ............................................................... 44

Part 3--Members' Benefits 45

Division 1--Benefits other than Invalidity Benefits 45

Benefits on retirement before reaching 55 years of age or earlier retiring age, otherwise than for redundancy or retrenchment etc. .......................................................................................................... 45

Benefits on retirement for redundancy or retrenchment or on attaining retiring age of less than 55 years 45

Benefits on retirement on or after attaining age of 55 years ............................ 46

Payment of benefits where rule 12 applies and person has less than 12 months' eligible service 46

Limitation on certain benefits in case of certain transferees who retire before completing 731 days' service after 30 September 1991 .................................................................................................. 47

Division 2--Invalidity Benefits 49

Subdivision A--Incapacity Classification 49

Establishment of Incapacity Classification Committee ................................... 49

Membership of Committee ............................................................................. 49

Functions of Committee .................................................................................. 49

Proceedings of Committee ............................................................................... 49

Decisions by Committee ................................................................................. 49

Classification in respect of incapacity ............................................................. 50

Reclassification in respect of incapacity ......................................................... 50

Decision as to classification or reclassification to be notified to invalidity retiree 52

Power of Board to require persons to be medically examined etc. .................. 52

Subdivision B--Invalidity Benefits 55

Entitlement to invalidity benefits .................................................................... 55

Invalidity benefits for person classified as Class A ........................................ 55

Invalidity benefits for person classified as Class B ......................................... 55

Effect of change of invalidity classification on pension and preserved benefit 56

Person may be treated as having been retired on ground of invalidity ............ 56

Subdivision C--Invalidity Benefits Not Payable 57

Person classified as Class C ............................................................................. 57

Pre‑existing condition ...................................................................................... 57

Invalidity due to intentional act ....................................................................... 57

Invalidity arising during absence without leave exceeding 21 days ................. 58

Division 3--Person Rejoining the Scheme 59

Suspension of pension of retirement pensioner other than invalidity retiree .. 59

Cancellation of pension etc. of invalidity retiree ............................................. 59

Continuation of previous election to cease paying contributions ................... 59

Part 5--Spouses' and Children's Benefits 60

Division 1--Death of a Member 60

Applicability of benefits ................................................................................. 60

Payment of deceased member's member benefit ............................................. 60

Payment of deceased member's employer benefit .......................................... 60

Division 2--Death of Retirement Pensioner 63

Applicability of benefits ................................................................................. 63

Pensions payable ............................................................................................. 63

Final benefit payable in relation to deceased retirement pensioner ................. 63

Death in certain cases due to retirement disabilities ........................................ 64

Effect of death of invalidity pensioner while pension suspended ................... 65

Division 3--Death of Spouse 66

Child's benefit upon death of spouse .............................................................. 66

Division 4--Miscellaneous 67

Entitlements where two spouses ..................................................................... 67

Payment of balance of benefit where pension becomes payable to child in certain cases 67

Part 5--Payment of Preserved Benefits 69

Drawing on member benefit included in preserved benefit .............................. 69

Fee for payment of part of person's member benefit ..................................... 69

Payment of employer benefit included in preserved benefit before person attains age of 55 years 69

Payment of employer benefit included in preserved benefit to person who has attained 55 years of age 70

Compulsory payment of preserved benefit to person on attaining 65 years of age 71

Payment of deceased former member's preserved benefit .............................. 71

Part 6--Increases in Maximum Benefit Limits, Pensions and Certain Unfunded Preserved Benefits 73

Division 1--Increases in Maximum Benefit Limits 73

Increases in maximum benefit limits ................................................................ 73

Division 2--Increases in Pensions and Certain Unfunded Preserved Benefits 74

Increases in pensions and certain unfunded preserved benefits ...................... 74

Application of increase to suspended pension ................................................ 75

Proportionate increase for part of a year ......................................................... 75

Adjustment in connection with invalidity reclassification .............................. 76

Date of effect of increase ................................................................................. 78

Interpretation ................................................................................................... 78

Part 7--Candidates at Parliamentary Elections 80

Re‑instated member ......................................................................................... 80

Death or physical or mental incapacity of person .......................................... 80

Part 8--General Provisions Applicable to Contributions and Benefits 81

Provisions applicable to elections under the Rules ......................................... 81

Rate of pension where lump sum converted into pension .............................. 82

Benefits in unusual or exceptional circumstances ............................................ 82

Instalments of pensions ................................................................................... 82

Set off against pension in certain cases ............................................................ 83

Interest payable where payment of benefit delayed ....................................... 83

Payment of benefit otherwise than to person entitled .................................... 84

Withholding payment of benefit where required information not provided .... 85

Part 9--Reconsideration of Decisions 86

Establishment of Reconsideration Advisory Committees ............................... 86

Membership of Committee ............................................................................. 86

Functions of Committee .................................................................................. 86

Proceedings of Committee ............................................................................... 86

Reconsideration of decision made by delegate ................................................. 86

Reconsideration of decision made by Board .................................................... 87

Content of statements of reasons for decisions ............................................... 88

Interpretation ................................................................................................... 88

Schedule 1--Glossary 89

Part 1--Definitions 89

Part 2--Resign to contest an election 94

Part 3--Retirement 95

Part 4--Retiring age 96

Part 5--Spouse 97

Part 6--Parts of speech and grammatical forms 99

Part 7--Number 100

Part 8--Reckoning of time 101

Part 9--Attainment of particular age 102

Schedule 2--Prescribed periods for the purposes of rule 4 103

Schedule 3--Calculation of maximum benefit limits 105

Schedule 4--Percentage of employer benefit or deceased pensioner's pension applicable to spouse or eligible child 106

Schedule 5--Calculation of rate of pension by conversion of employer benefit 107

Schedule 6--Calculation of eligible service 108

Schedule 7--Calculation of final average salary 110

Schedule 8--Calculation of employer benefit 111

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) 111

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) 113

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 115

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) 116

Part 5--Calculation of employer benefit of MBL Member 118

Part 6--Interpretation 120

Schedule 9--Calculation of member benefit 121

Schedule 10--Transfer value 122

Schedule 11--Rates of interest applicable in respect of certain unfunded amounts 123

Notes 125

Notes to the Military Superannuation and Benefits Act 1991

Note 1

The Military Superannuation and Benefits Act 1991 as shown in this compilation comprises Act No. 135, 1991 amended as indicated in the Tables below.

All relevant information pertaining to application, saving or transitional provisions prior to 22 March 2001 is not included in this compilation. For subsequent information see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Military Superannuation and Benefits Act 1991	135, 1991	7 Sept 1991	Parts 1 and 2 (ss. 1-5), 6 and 7 (ss. 18-28), ss. 42, 47 and 50-52: Royal Assent S. 61: 1 Sept 1991 Remainder: 1 Oct 1991
Defence Legislation Amendment Act 1992	91, 1992	30 June 1992	Ss. 13 and 14: 1 Sept 1992 (see Gazette 1992, No. S211) Remainder: Royal Assent	--
Superannuation Guarantee (Consequential Amendments) Act 1992	92, 1992	30 June 1992	1 July 1992	--
Superannuation Industry (Supervision) Consequential Amendments Act 1993	82, 1993	30 Nov 1993	Ss. 1, 2, 14, 16(2), 41, 42, 45, 46, 48(1) and 52-64: 1 Dec 1993 Remainder: 1 July 1994	S. 40
Defence Legislation Amendment Act 1993	95, 1993	22 Dec 1993	22 Dec 1993	S. 17
Defence Legislation Amendment Act 1995	43, 1995	15 June 1995	Schedule 4: Royal Assent (a)	--
CFM Sale Act 1996	58, 1996	20 Nov 1996	Schedule 2 (item 2): Royal Assent (b)	--
Defence Legislation Amendment Act (No. 1) 1997	1, 1997	19 Feb 1997	Schedule 2 (items 28, 85, 111, 145): Royal Assent (c)	--
Income Tax (Consequential Amendments) Act 1997	39, 1997	17 Apr 1997	Schedule 3 (item 104): (d)	--
Audit (Transitional and Miscellaneous) Amendment Act 1997	152, 1997	24 Oct 1997	Schedule 2 (items 937, 938): 1 Jan 1998 (see Gazette 1997, No. GN49) (e)	--
Superannuation Legislation Amendment (Superannuation Contributions Tax) Act 1997	187, 1997	7 Dec 1997	Schedule 7: Royal Assent (f)	--
Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999	44, 1999	17 June 1999	Schedule 7 (items 119-121): 1 July 1999 (see Gazette 1999, No. S283) (g)	S. 3(2)(e) (am. by 160, 2000, Sch. 4 [item 4])
as amended by
Financial Sector Legislation Amendment Act (No. 1) 2000	160, 2000	21 Dec 2000	Schedule 1 (item 21): Royal Assent Remainder: 18 Jan 2001	--
Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Act 2001	10, 2001	22 Mar 2001	Schedule 2 (items 66, 94, 95): 19 Apr 2001 (h)	Sch. 2 (items 94, 95) [see Table A]
Defence Legislation Amendment (Application of Criminal Code) Act 2001	141, 2001	1 Oct 2001	S. 4: Royal Assent Schedule 1 (item 106): 15 Dec 2001	S. 4 [see Table A] S. 2(2) (am. by 135, 2003, Sch. 2 [item 28])
as amended by
Defence Legislation Amendment Act 2003	135, 2003	17 Dec 2003	Schedule 2 (item 28): (i)	--
Superannuation (Government Co‑contribution for Low Income Earners) (Consequential Amendments) Act 2003	111, 2003	12 Nov 2003	12 Nov 2003	Sch. 1 (item 25) [see Table A]
Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004	58, 2004	4 May 2004	Schedule 1: 18 May 2004 Remainder: Royal Assent	S. 4 [see Table A]
Defence Legislation Amendment Act (No. 1) 2005	121, 2005	6 Oct 2005	Schedule 5: (j) Remainder: Royal Assent	Sch. 4 (item 4) [see Table A]

(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:

(1) Except as indicated in subsections (2), (3) and (4), this Act commences on the day on which it receives the Royal Assent.

(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:

(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(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:

(1) Subject to subsections (2) and (3), this Act commences on the day on which it receives the Royal Assent.

(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:

(2) Schedules 1, 2 and 4 commence on the same day as the Financial Management and Accountability Act 1997.

(f) The Military Superannuation and Benefits Act 1991 was amended by Schedule 7 only of the Superannuation Legislation Amendment (Superannuation Contributions Tax) Act 1997, subsection 2(1) of which provides as follows:

(1) Subject to subsection (2), this Act commences on the day on which it receives the Royal Assent.

(g) The Military Superannuation and Benefits Act 1991 was amended by Schedule 7 (items
119-121) only of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, subsections 3(2)(e) and (16) of which provide as follows:

(2) The following provisions commence on the transfer date:

(e) subject to subsection (12), Schedule 7, other than items 43, 44, 118, 205 and 207 (the commencement of those items is covered by subsections (10), (11) and (13)).

(16) The Governor‑General may, by Proclamation published in the Gazette, specify the date that is to be the transfer date for the purposes of this Act.

(h) The Military Superannuation and Benefits Act 1991 was amended by Schedule 2 (item 66) only of the Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Act 2001, subsection 2(1) of which provides as follows:

(1) Subject to this section, this Act commences on the 28th day after the day on which it receives the Royal Assent.

(i) Subsection 2(1) (item 9) of the Defence Legislation Amendment Act 2003 provides as follows:

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.

Commencement information
Column 1	Column 2	Column 3
Provision(s)	Commencement	Date/Details
9. Schedule 2, item 28	Immediately after the commencement of section 2 of the Defence Legislation Amendment (Application of Criminal Code) Act 2001	1 October 2001

(j) Subsection 2(1) (item 3) of the Defence Legislation Amendment Act (No. 1) 2005 provides as follows:

(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Provision(s)	Commencement	Date/Details
3. Schedule 5	Immediately after the commencement of section 3 of the Legislative Instruments Act 2003.	1 January 2005

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Part 1
S. 2......................................	am. No. 121, 2005
S. 3......................................	am. No. 58, 2004
S. 3A...................................	ad. No. 141, 2001
Part 2
S. 5 .....................................	am. No. 82, 1993; No. 43, 1995; No. 111, 2003; No. 121, 2005
S. 5A...................................	ad. No. 58, 2004
	am. No. 121, 2005
Part 3
S. 6 .....................................	am. No. 92, 1992; No. 10, 2001
S. 7 .....................................	rep. No. 92, 1992
Part 5
S. 16A.................................	ad. No. 58, 2004
Part 6
S. 19....................................	am. No. 152, 1997
S. 20....................................	am. No. 121, 2005
S. 24....................................	am. Nos. 39 and 187, 1997
S. 25....................................	rs. No. 152, 1997
Ss. 25A, 25B.......................	ad. No. 152, 1997
S. 26 ...................................	am. No. 43, 1995
Part 8...................................	rep. No. 121, 2005
S. 29....................................	rep. No. 121, 2005
S. 30....................................	am. No. 1, 1997; No. 121, 2005
	rep. No. 121, 2005
Ss. 31-35............................	rep. No. 121, 2005
S. 36....................................	am. No. 1, 1997
	rep. No. 121, 2005
Ss. 37-40............................	rep. No. 121, 2005
Part 9
S. 41 ...................................	rep. No. 58, 1996
S. 42A.................................	ad. No. 187, 1997
S. 46....................................	am. No. 58, 2004
S. 47 ...................................	am. No. 91, 1992
Heading to s. 48..................	am. No. 44, 1999
S. 48....................................	am. No. 44, 1999
S. 49....................................	rep. No. 121, 2005
S. 50 ...................................	rep. No. 43, 1995
S. 51A ................................	ad. No. 95, 1993
S. 52 ...................................	am. No. 43, 1995; No. 121, 2005

Table A

Application, saving or transitional provisions

Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Act 2001 (No. 10, 2001)

Schedule 2

94 Saving--old regulations

(1) Regulations that were in effect under any Act immediately before the commencement of this item continue to have effect after that time as if members of an arm of the Defence Force who were members of a particular part or component of that arm immediately before the commencement of this item were still members of that part or component after that time, even if that part or component no longer exists.

Example: Assume that, immediately before the commencement of this item, regulations imposed training obligations on members of the Air Force Specialist Reserve. Those obligations would continue to apply to former members of that Reserve after commencement, even though the Air Force Specialist Reserve itself is no longer mentioned in the Air Force Act 1923 and the members have now become members of the Air Force Reserve.

(2) However, regulations that continue in effect under this item do so only to the extent that they are not amended or revoked by later regulations.

95 Regulations about transitional matters

(1) The regulations may make provision in relation to other saving and transitional matters in connection with the amendments made by this Schedule.

(2) In particular, such regulations may deal with the status, after the commencement of the amendments, of persons who were members of the Defence Force immediately before that time.

(3) Subitem (2) does not limit the scope of subitem (1).

Defence Legislation Amendment (Application of Criminal Code) Act 2001
(No. 141, 2001)

4 Application of amendments

(1) Each amendment made by this Act applies to acts and omissions that take place after the amendment commences.

(2) For the purposes of this section, if an act or omission is alleged to have taken place between 2 dates, one before and one on or after the day on which a particular amendment commences, the act or omission is alleged to have taken place before the amendment commences.

Superannuation (Government Co‑contribution for Low Income Earners) (Consequential Amendments) Act 2003 (No. 111, 2003)

Schedule 1

25 Application of amendments

The amendments made by Part 1 of this Schedule apply in relation to contributions made to complying superannuation funds and RSAs on or after 1 July 2003.

Superannuation Legislation Amendment (Family Law and Other Matters) Act 2004 (No. 58, 2004)

4 Application of family law interest‑splitting amendments

(1) The family law interest‑splitting amendments apply to:

(a) any splitting agreement, or splitting order, that has an operative time after the commencement of Schedule 1; and

(b) a splitting agreement, or splitting order, with an earlier operative time, if no benefits had become payable before the commencement of Schedule 1 in respect of the superannuation interest to which the agreement or order relates.

(2) In this section:

family law interest‑splitting amendments means the amendments made by Schedule 1, other than items 24 and 34.

Defence Legislation Amendment Act (No. 1) 2005 (No. 121, 2005)

Schedule 4

4 Saving provision

(1) Despite the repeals and the amendment made by this Schedule, the Military Superannuation and Benefits Act 1991 continues to apply, in relation to a person who was a member of the Scheme immediately before commencement, as if those repeals and that amendment had not happened.

(2) For the purposes of Part 8 of the Military Superannuation and Benefits Act 1991 as continued in force by this item, salary has whichever of the following meanings is applicable:

(a) the meaning prescribed by regulations under this paragraph;

(b) if no regulations are in force under paragraph (a)--the meaning given by Part 8 of the Military Superannuation and Benefits Act 1991, as in force immediately before commencement.

(3) In this item:

commencement means the time at which this item commenced.

Scheme has the same meaning as in the Military Superannuation and Benefits Act 1991.

Commonwealth Consolidated Acts

MILITARY SUPERANNUATION AND BENEFITS ACT 1991 - NOTES