Commonwealth Numbered Acts

DEFENCE FORCE (RETIREMENT AND DEATH BENEFITS AMENDMENTS) ACT 1977 No. 13 of 1977 - SECT 4

PART III-AMENDMENT OF THE DEFENCE FORCE RETIREMENT AND DEATH BENEFITS  ACT 

4. After Part X of the Defence Force Retirement and Death Benefits Act 1973*3*
the following Part is inserted:-

''PART XA-PENSION INCREASES Interpretation.
''98A. (1) In this Part, unless the contrary intention appears-

'prescribed year' means the year commencing on 1 July 1976, or a subsequent
year;

'Statistician' means the Australian Statistician.

''(2) Subject to sub-section (3), if at any time, whether before or after the
commencement of this Part, 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 6 State capital cities in substitution
for an index number previously published by him in respect of that quarter,
the publication of the later index number shall be disregarded for the
purposes of this Part.

''(3) If at any time, whether before or after the commencement of this Part,
the Statistician has changed or changes the reference base for the Consumer
Price Index, then, for the purposes of the application of this Part after the
change took place or takes place, regard shall be had only to index numbers
published in terms of the new reference base.

''(4) Where the prescribed percentage for the purposes of section 98B is or
includes a fraction of one-tenth of 1 per centum-

   (a)  if that fraction is less than one-half of one-tenth-that fraction
        shall be disregarded; and

   (b)  if that fraction is not less than one-half of one-tenth-that fraction
        shall be treated as one-tenth. Increase in certain pension benefits.
''98B. (1) Subject to this Part, if the all groups consumer price index number
for the weighted average of the 6 State capital cities published by the
Statistician in respect of the March quarter of the year immediately preceding
a prescribed year exceeds the highest all groups consumer price index number
for the weighted average of the 6 State capital cities published by the
Statistician in respect of the March quarter of any earlier year, not being a
year earlier than the year that commenced on 1 July 1974, a person (in this
section referred to as the 'pensioner') to whom a pension benefit was payable
immediately before the commencement of that prescribed year is entitled, at
the commencement of that prescribed year, to an increase, as ascertained in
accordance with this section, in the rate at which the pension benefit was
payable to him immediately before the commencement of that prescribed year.

''(2) The increase provided for by sub-section (1) in the rate at which a
pension benefit was payable to a pensioner immediately before the commencement
of a prescribed year (in this section referred to as the 'relevant prescribed
year') is the prescribed percentage, ascertained in accordance with
sub-section (3), of the rate of pension benefit that, under sub-section (4),
is the relevant rate of pension in relation to the pensioner.

''(3) For the purposes of sub-section (2), the prescribed percentage, in
relation to a prescribed year, is the percentage that represents A-B expressed
as a percentage of B, where-

A is the all groups consumer price index number for the weighted average of
the 6 State capital cities published by the Statistician in respect of the
March quarter of the year immediately preceding the prescribed year; and

B is the highest all groups consumer price index number for the weighted
average of the 6 State capital cities published by the Statistician in respect
of the March quarter of any year earlier than the year immediately preceding
the prescribed year but not being earlier than the year that commenced on 1
July 1974.

''(4) For the purpose of sub-section (2), the relevant rate of pension benefit
is-

   (a)  in relation to a pensioner who is a recipient member to whom
        invalidity pay is payable or who is the widow of a person who,
        immediately before his death, was such a recipient member or was a
        contributing member-the rate at which pension benefit was payable to
        the pensioner immediately before the commencement of the relevant
        prescribed year;

   (b)  in relation to a pensioner who is a recipient member to whom
        retirement pay is payable-the rate at which retirement pay was payable
        to the pensioner immediately before the commencement of the relevant
        prescribed year or, if a notional rate of retirement pay is applicable
        to the pensioner in accordance with sub-section (5) and the notional
        rate of retirement pay so applicable immediately before the
        commencement of that year is lower than the rate at which retirement
        pay was payable to the pensioner immediately before the commencement
        of that year, the notional rate of retirement pay so applicable
        immediately before the commencement of that year;

   (c)  in relation to a pensioner who is the widow of a recipient member to
        whom, immediately before his death, retirement pay was payable-a rate
        equal to five-eighths of the rate at which retirement pay would have
        been payable to the deceased recipient member immediately before the
        commencement of the relevant prescribed year if he had not died or, if
        a notional rate of retirement pay is applicable to the deceased
        recipient member in accordance with sub-section (5) and the notional
        rate of retirement pay so applicable immediately before the
        commencement of that year is lower than the rate at which retirement
        pay would have been payable to the deceased recipient member
        immediately before the commencement of that year if he had not died, a
        rate equal to five-eighths of the notional rate of retirement pay so
        applicable immediately before the commencement of that year;

   (d)  in relation to a pensioner, other than a pensioner referred to in
        paragraph (e), who is a child-the rate at which pension benefit
        referred to as additional pension was payable immediately before the
        commencement of the relevant prescribed year to the child under
        whichever of sub-sections 42 (2), 42 (3), 43 (2) and 43 (3) is
        applicable; or

   (e)  in relation to a pensioner to whom sub-section 42 (3) or 43 (3)
        applies and who is the child of a recipient member to whom,
        immediately before his death, retirement pay was payable-a rate equal
        to such proportion as, under sub-section (6), is the appropriate
        proportion of the rate at which retirement pay would, immediately
        before the commencement of the relevant prescribed year, have been
        payable to the deceased recipient member if he had not died or, if a
        notional rate of retirement pay is applicable to the deceased
        recipient member in accordance with sub-section (5) and the notional
        rate of retirement pay so applicable immediately before the
        commencement of that year is lower than the rate at which retirement
        pay would have been payable to the deceased recipient member
        immediately before the commencement of that year if he had not died, a
        rate equal to such proportion as, under sub-section (6), is the
        appropriate proportion of the notional rate of retirement pay so
        applicable immediately before the commencement of that year.

''(5) For the purposes of sub-section (4)-

   (a)  a notional rate of retirement pay is applicable to a recipient member
        if and only if that member has not elected under section 24 to commute
        his retirement pay to the maximum extent permitted under that section,
        and the notional rate of retirement pay applicable to the member at a
        particular time is the rate at which retirement pay would have been
        payable to him at that time if he had so commuted his retirement pay
        immediately upon his retirement; and

   (b)  A notional rate of retirement pay is applicable to a deceased
        recipient member if and only if that deceased member had not, before
        his death, elected under section 24 to commute his retirement pay to
        the maximum extent permitted under that section, and the notional rate
        of retirement pay applicable to the deceased member at a particular
        time is the rate at which retirement pay would have been payable to
        him at that time if he had not died and if he had so commuted his
        retirement pay immediately upon his retirement.

''(6) For the purposes of sub-section (4), the appropriate proportion is-

   (a)  in the case of a pension benefit payable under sub-section 42 (3)-
        one-sixth of five-eighths; and

   (b)  in the case of a pension benefit payable under sub-section 43
        (3)-one-eighth of five-eighths.

''(7) Where, by reason of the death of a recipient member on 30 June
immediately preceding the commencement of a prescribed year, a pension benefit
becomes payable, on the following day, to another person, that other person
shall be entitled, at the commencement of that prescribed year, to such an
increase in the rate of that pension benefit as he would have been entitled to
had the pension benefit become payable to him on that 30 June. Application of
increase to suspended pension benefits.
''98C. Where a pension benefit would, but for its suspension under section 35,
be payable to a person immediately before the commencement of a prescribed
year, that pension benefit shall, for the purposes of this Part, be deemed to
have been payable to that person immediately before the commencement of that
prescribed year but any increase in the rate of that pension benefit by virtue
of this Part does not take effect in respect of any part of that period of
suspension. Adjustment of increase in case of certain pension benefits.
''98D. (1) Where a person to whom a pension benefit has become payable would,
but for this section, be entitled to an increase in the rate at which the
pension benefit was payable to him immediately before the commencement of a
prescribed year and-

   (a)  except in a case where the pension benefit became payable to the
        person in accordance with section 78-it became payable to the person
        in respect of-

        (i)    the retirement of a member of the scheme during the year (in
               this section referred to as the 'preceding year') immediately
               preceding the prescribed year; or

        (ii)   the death, during the preceding year, of a member of the scheme
               who was, immediately before the commencement of the preceding
               year a contributing member of the scheme; or

   (b)  in a case where the pension benefit became payable to the person in
        accordance with section 78-

        (i)    if the pension benefit became payable to the person otherwise
               than as a widow or as an eligible child-it became payable
               during the preceding year;

        (ii)   if the pension benefit became payable to the person as a widow
               and pension benefit in accordance with that section was not
               payable to the person's husband immediately before his
               death-the pension benefit became payable to the widow during
               the preceding year;

        (iii)  if the pension benefit became payable to the person as a widow
               and pension benefit in accordance with that section was payable
               to the person's husband immediately before his death-the
               husband's pension became payable during the preceding year;

        (iv)   if the pension benefit became payable to the person as an
               eligible child and pension benefit in accordance with that
               section was not payable to the member of the scheme in relation
               to whom that person is a child-the pension benefit became
               payable to the child during the preceding year; or

        (v)    if the pension benefit became payable to the person as an
               eligible child and pension benefit in accordance with that
               section was payable to a member of the scheme in relation to
               whom that person is a child-the member's pension benefit became
               payable during the preceding year, this section applies to the
               first-mentioned pension benefit.

''(2) If the retirement or death referred to in paragraph (1) (a) took place
after 15 June in the preceding year, or the pension benefit that became
payable by virtue of section 78 became so payable after 16 June in the
preceding year, the person is not entitled to the increase.

''(3) If the retirement or death referred to in paragraph (1) (a) took place
on or before 15 June in the preceding year, or the pension benefit that became
payable by virtue of section 78 became so payable on or before 16 June in the
preceding year, the amount of the increase is so much only of the amount that,
but for this section, would have been the amount of the increase as bears to
that last-mentioned amount the same proportion as the number of months in the
period that commenced on the day next following the day on which retirement or
death took place, or the period that commenced on the day on which the pension
benefit became payable, and ended on 30 June in the preceding year, bears to
12.

''(4) If the period referred to in sub-section (3) is less than 1 month, that
period shall be treated as 1 month.

''(5) If the period referred to in sub-section (3) consists of a number of
whole months and a part of a month-

   (a)  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 shall be
        disregarded; and

   (b)  where the number of days in that part of that month is not less than
        one-half of the number of days in that month-that part shall be
        treated as a whole month.

''(6) For the purpose of the application of sub-paragraph (1) (b) (ii) or
(iii) to a person who is a widow for the purposes of this Act by reason of her
having been a dependent female, the member of the scheme with whom she was,
immediately before his death, living as his wife shall be deemed to have been
her husband. Date of payment of increases.
''98E. Subject to sections 98F and 98G, an increase payable by virtue of this
Part in the rate of a pension benefit that was, or is, under sub- section 98B
(7), to be treated as having been, payable to a person on 30 June in a year
applies in relation to the instalment of pension benefit falling due on the
first pension pay-day occurring after that day and in relation to all
subsequent instalments. Rate of invalidity pay payable on reclassification
during a prescribed year.
''98F. Where-

   (a)  a person to whom pension benefit, being invalidity pay, is payable, is
        reclassified under section 34 during a prescribed year; and

   (b)  the person became entitled at the commencement of that year to an
        increase under this Part in the rate at which the pension benefit was
        payable to him immediately before the commencement of that year, the
        rate at which the pension benefit is payable to him on and after the
        date from which the reclassification has effect is the rate at which
        the pension benefit would have been payable to him at the commencement
        of that year if his classification, on and after the date on which he
        became entitled to the pension benefit, had been in accordance with
        the reclassification. Commutation of pension benefits during a
        prescribed year.
''98G. (1) Section 24 does not authorize the commutation of a pension benefit
in so far as the pension benefit has been increased by virtue of this Part.

''(2) Where-

   (a)  a portion of the pension benefit of a person is commuted during a
        prescribed year; and

   (b)  the person became entitled at the commencement of the year to an
        increase under this Part in the rate at which pension benefit was
        payable to him immediately before the commencement of that year, the
        rate at which the pension benefit is payable to him on and after the
        date on which that portion of the pension benefit is so commuted is
        the rate at which the pension benefit would have been payable to him
        at the commencement of the year if-

   (c)  he had commuted that portion of his pension benefit on the date on
        which he became entitled to the pension benefit; and

   (d)  he had attained, on the date on which he became entitled to the
        pension benefit, the age that is his age on the date of
        commutation.''.
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