Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT ACT 2007 (NO. 165, 2007) - SCHEDULE 6

Part 1 -- Reversionary benefits for post‑retirement marriages

Defence Force Retirement and Death Benefits Act 1973

1  Subsection 6B(2)

Repeal the subsection, substitute:

             (2)  For the purposes of this Act, a person is a spouse who survives a deceased person if the person had a marital relationship with the deceased person at the time of the death of the deceased person.

2  Paragraph 6B(3)(c)

Repeal the paragraph.

3  After section 6B

Insert:

6BA   Benefits for certain spouses in post‑retirement marriages

             (1)  This section applies if:

                     (a)  a spouse survives a deceased person (within the meaning of section 6B); and

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

                              (i)  began after the recipient member became a recipient member; and

                             (ii)  began after the recipient member reached 60; and

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

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

             (3)  If the rate worked out under subsection (2) is less than or equal to the rate prescribed by the regulations for the purposes of this section, the spouse is instead entitled to a lump sum payment worked out in accordance with the regulations.

4  Application

The amendments made by this Part apply in respect of any spouse who survives a deceased person if the death of the deceased person occurs after this Part commences.

Part 2 -- Family law superannuation splitting

Defence Force Retirement and Death Benefits Act 1973

5  After subsection 49E(1)

Insert:

Reduction of later standard pensions

          (1A)  If:

                     (a)  the annual rate of a standard pension (the first pension ) payable to the member spouse is reduced under subsection (1); and

                     (b)  after the operative time, another standard pension (the later pension ) becomes payable to the member spouse;

then the annual rate of the later pension is reduced to the amount calculated under the Orders.

Reduction in later payments of lump sum amounts

          (1B)  If:

                     (a)  the annual rate of a standard pension payable to the member spouse is reduced under subsection (1); and

                     (b)  after the operative time, a lump sum amount becomes payable, in respect of the member spouse, under section 32, 48, 48A, 56, 57 or 77;

then the lump sum amount is reduced to the amount calculated under the Orders.

Note:       The heading to section 49E is altered by adding at the end " or lump sum amount ".

6  Application

The amendment made by this Part applies in relation to a later pension, or a lump sum amount, that is paid as a result of a period of effective service that begins on or after the day on which this Part commences.