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Defence Force Superannuation Legislation Amendment Bill 1991

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House: House of Representatives

Portfolio: Defence Science and Personnel


To make minor amendments to defence superannuation legislation as a consequence of a recent review of this subject and the introduction of the Military Superannuation and Benefits Scheme.


Refer to the Digest for the Military Superannuation and Benefits Bill 1991.

Main Provisions

Amendments to the Defence Force Retirement and Death Benefits Act 1973

Clauses 5, 6, 7 and 8 will amend various sections to provide that appointments, terminations etc. in relation to the Defence Force Retirement and Death Benefits Authority may be made by the Minister rather than the Governor-General.

A new section 18A will be inserted into the Act to provide that members cannot contribute to the scheme after 40 years service. Maximum benefits will have been reached after this period of service.

Section 24 of this Act deals with the commutation of part or all of the pension to a lump sum. Clause 12 will add a number of sub-sections to section 24 which deal with the situation where a person has re-joined the service after receiving retirement benefits. The amendments provide that the person will be taken to have commuted a portion of their entitlement worked out in accordance with the formula contained in the amendments. Where the person previously commuted the maximum amount allowable, they will be deemed to have elected to have commuted the maximum amount and in other cases they will be deemed to have commuted in the same ratio. After their lump sum entitlement is calculated, which is based on their total service, any previous lump sum, adjusted for movements in the CPI, will be deducted.

Clauses 13 and 14 provide that where a member dies while there is an application for a consideration/reconsideration of their degree of incapacity this must be completed to determine the benefit payable to their dependents.

Clause 17 will insert a new section 40 into this Act. The effect of the amendment will be that where a payment is made to a widow from a payment that went into a financial institution account, any loss associated with such a payment will not be recoverable from the financial institution but must be recovered from any subsequent widow payments.

Similar amendments will be made to the Defence Forces Retirement Benefits Act 1948 by Part 3 of the Bill.

Bills Digest Service 5 April 1991

Parliamentary Research Service

For further information, if required, contact the Defence Group on 06 2772450.

This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

Commonwealth of Australia 1991

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Published by the Department of the Parliamentary Library, 1991.