{"id":"F2009L04057","name":"Military Superannuation and Benefits (Delayed Payment of Benefits) Determination 2009","slug":"military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":81581,"registerId":"commonwealth-F2009L04057-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"part","heading":"Name of Determination","content":"## 1 Name of Determination\n\nThis Determination is the Military Superannuation and Benefits (Delayed Payment of Benefits) Determination 2009.","sortOrder":0},{"sectionNumber":"2","sectionType":"part","heading":"Commencement","content":"## 2 Commencement\n\nThis Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.","sortOrder":1},{"sectionNumber":"3","sectionType":"part","heading":"Revocation","content":"## 3 Revocation\n\nThe Military Superannuation and Benefits (Delayed Payment of Benefits) Determination 2004 and each determination that amends that determination are revoked.","sortOrder":2},{"sectionNumber":"4","sectionType":"part","heading":"Interpretation","content":"## 4 Interpretation\n\n(1) In this Determination:\n\nAct means the Military Superannuation and Benefits Act 1991.\n\nBoard means the Military Superannuation and Benefits Board of Trustees No. 1 established by section 18 of the Act.\n\nperiod of delay is the period determined by the Board under rule 69 of the Rules where payment of a benefit is delayed.\n\nRules means the Military Superannuation and Benefits Rules set out in the Schedule to the Trust Deed made under Part 2 of the Act.\n\n(2) Words and expressions used in this Determination that are defined in the Act or the Rules have the same meaning in this Determination as in the Act or the Rules.","sortOrder":3},{"sectionNumber":"5","sectionType":"part","heading":"Calculation of interest ‑ rule 69(4)(a)","content":"## 5 Calculation of interest ‑ rule 69(4)(a)\n\n(1) Where, pursuant to rule 69(1) of the Rules, a benefit is payable as a lump sum and the Board approves an increase, by an amount of interest, in the amount of the benefit payable to the person, interest will be calculated in accordance with this clause.\n\n(2) Interest on the lump sum is equal to the sum of the interest for each relevant period.\n\n(3) Interest on the lump sum will be calculated for each relevant period in accordance with the following formula:\n\n(LS + AI )  (1 + i)n ‑ (LS + AI)\n\nwhere\n\nLS is the amount of the lump sum benefit that has been delayed.\n\nAI is the accumulated interest, if any, on the lump sum amount from the prior relevant periods.\n\ni is the rate of interest applicable to the relevant period as determined under clause 7, divided by 365 (or in a leap year, by 366).\n\nn is the number of days in the relevant period.\n\nrelevant period is a year or part of a year for which interest has been determined under clause 7 and which occurs during a period of delay.","sortOrder":4},{"sectionNumber":"6","sectionType":"part","heading":"Calculation of interest ‑ rule 69(4)(b)","content":"## 6 Calculation of interest ‑ rule 69(4)(b)\n\n(1) Where, pursuant to rule 69(2) of the Rules, the Board approves an increase, by an amount of interest, in the rate of the pension or associate pension payable, interest will be applicable in respect of:\n\n(a) the first relevant period; and\n\n(b) any other relevant periods occurring during the period of delay;\n\nand will be calculated under subclause (3).\n\n(2) In this rule:\n\nfirst relevant period means the period beginning on the first day of the period of delay, and ending on the first pension pay day occurring after that date.\n\nrelevant period means:\n\n(a) the first relevant period; or\n\n(b) a period of a year or part of a year during a period of delay for which the Board has determined interest under cl 7, which begins immediately after the end of another relevant period, and concludes on the earliest of the following dates:\n\n(i) the date on which an increase to the pension or associate pension is applicable, including an increase under Division 2 of Part 6 of the Rules;\n\n(ii) the end of a calendar year; or\n\n(iii) the end of the period of delay.\n\nNote: This means that a constant pension rate and interest rate will be applicable during each period of delay\n\n(3) Interest determined under this rule is equal to the following:\n\n(accumulated amount) - (delayed pension instalments)\n\nwhere\n\naccumulated amount means the sum of any accumulated amount applicable under subclause (4) or (5) for the last occurring relevant period in the period of delay.\n\ndelayed pension instalments means the sum of the pension or associate pension instalments that were payable between the date the pension or associate pension became payable, and the end of the period of delay.\n\n(4) The accumulated amount for the first relevant period is calculated as follows:\n\nLSA x (1 + i)n\n\nwhere\n\nLSA is the lump sum arrears of pension or associate pension instalments that were payable between the date the pension or associate pension became payable and the date of the last pension instalment before the period of delay commenced.\n\ni is the interest rate determined under cl 7 for the calendar year in which the pension became payable, divided by 365 (or in a leap year, by 366) and multiplied by 14.\n\nn is the number of fortnights occurring during the relevant period, and may include a partial fortnight.\n\n(5) The accumulated amount for each subsequent relevant period is calculated as follows:\n\n\\[A x (1 + i)n\\] + \\[P x \\[((1+i)n - 1)/i\\] x (1 + i)\\]\n\nwhere\n\nA is the accumulated amount calculated under this subclause or subclause (4) in respect of the previous relevant period.\n\nP is the amount of the pension instalment payable on each pension payday occurring in the relevant period.\n\ni is the interest rate determined under cl 7 for the calendar year in which the relevant period occurs, divided by 365 (or in a leap year, by 366) and multiplied by 14.\n\nn is the number of fortnights occurring during the relevant period.","sortOrder":5},{"sectionNumber":"7","sectionType":"part","heading":"Rate of interest","content":"## 7 Rate of interest\n\nThe interest rate determined for each calendar year is the 10 year Treasury Bond yield last published by the Reserve Bank of Australia in the previous December of the calendar years over which the arrears of pension accrued.","sortOrder":6}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This Determination expressly revokes the 2004 Determination and its amendments (cl 3) and replaces those instruments with detailed, formulaic rules for calculating interest on delayed payments. Its scope is limited to calculation mechanics and the interest rate determination (cls 5–7), not to substantive entitlements under the Act or the Rules."},"complexity_factors":["Technical compound‑interest formulas for lump sums (cl 5) and for pension instalments with accumulated amounts (cl 6).","Recursive accumulation of prior periods’ interest (AI / A) creating multi‑period dependencies (cl 5(3); cl 6(5)).","Different time bases and units: daily rates for lump sums, fortnight counts for pensions, and leap‑year adjustments (cl 5(3); cl 6(4)‑(5)).","Multiple defined terms and cross‑references to the Act, the Rules and Board powers (cls 4, 5, 6; rule 69).","Interest rate linkage to an external published yield (10‑year Treasury Bond as published in prior December by RBA) introduces market volatility dependency (cl 7).","Administrative precision required to track paydays, calendar years, partial periods and prior instalments for correct computation (cls 5‑6)."],"plain_english_summary":"This Determination prescribes how interest is calculated when the Military Superannuation and Benefits Board delays payment of lump‑sum benefits or pension instalments. The Board decides the period of delay and approves the interest increase; the instrument fixes the interest rate as the prior December’s 10‑year Treasury bond yield (cl 7) and specifies day‑ and fortnight‑based compound formulas with leap‑year adjustments. Beneficiaries receive the accrued interest; the Scheme bears the payment and administrative calculation burden."},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This Determination maintains its original narrow purpose: prescribing interest calculation methodologies for delayed superannuation payments. It replaces the 2004 version but does not expand beyond the technical mathematical specifications required by rule 69 of the Military Superannuation and Benefits Rules."},"complexity_factors":["Multiple nested mathematical formulas with variables (LS, AI, i, n, LSA, A, P) requiring careful substitution","Different calculation methods for lump sums (Clause 5) versus pensions (Clause 6), with pensions having significantly more complex recursive formulas","Defined terms rely on external documents (the Act, the Rules, and the Trust Deed) not contained in this instrument","Time-based complexity: different rules for leap years (366 vs 365 days), fortnightly calculations, and calendar year boundaries","Recursive definitions: Clause 6(5) references accumulated amounts from previous periods, creating multi-step calculations","Cross-references to rule 69 of the Rules, which governs the underlying delay mechanism not explained here"],"plain_english_summary":"This Determination prescribes the formulas the Military Superannuation and Benefits Board must use to calculate interest when lump‑sum or pension superannuation payments to current or former ADF members are delayed. Rates are set annually and tied to the 10‑year Treasury bond yield.\n\nIt affects ADF members and veterans owed late benefits and the Board that must apply the rules, ensuring members are compensated for administrative payment delays and replacing the 2004 Determination."}},"importantCases":[],"_links":{"self":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009","history":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009/history","analysis":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009/analysis","conflicts":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009/conflicts","importantCases":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009/important-cases","documents":"/api/acts/military-superannuation-and-benefits-delayed-payment-of-benefits-determination-2009/documents"}}