Defence Force Retirement and Death Benefits (Pension Increases) Act 1976
In ForceCTH
Jurisdiction
Commonwealth
Act Number
34 of 1976
Collection
act
Plain English Summary
8/10 complexity
Mechanically, the Act increases certain Defence Force pensions and pension benefits by linking prescribed percentage rises to movements in the Consumer Price Index and, in some cases, average weekly earnings; it applies those increases from specified retrospective dates and charges the Consolidated Revenue Fund. It affects pensioners (retirees, widows, eligible children) and the department that pays benefits by changing how increases are calculated, prorated for part‑year cases, treated on commutation or reclassification, and administered under rounding and suspension rules.
This Act increases specified Defence Force pensions and pension benefits for defined years by reference to officially published index numbers and earnings estimates, and prescribes how those increases are calculated, applied and treated in related circumstances. Mechanically, Part II applies to pensions under the Defence Forces Retirement Benefits Act 1948 (incorporated by s 4) and operates for three relevant years (with different deemed commencement dates in s 2): it establishes entitlement to an increase for pensioners in receipt immediately before 1 July 1973 (s 6) and for prescribed years commencing 1 July 1974 and 1 July 1975 (s 7). Part III applies to pension benefits under the Defence Force Retirement and Death Benefits Act 1973 (incorporated by s 17), triggering increases where the March quarter CPI for 1975 exceeds that for 1974 (s 19) and setting the quantum rules in ss 20-21. Section 3 directs that the incremental amounts created by the Act are payable out of the Consolidated Revenue Fund.
The Act ties increases to specified published statistics: consumer price index (CPI) numbers for the weighted average of the six State capital cities and, in Parts II, estimates of seasonally adjusted average weekly earnings per employed male unit (see s 6(1), s 7(1), s 18(2)). Where applicable, increases are expressed as a prescribed percentage derived from comparisons of those CPI and earnings numbers using formulae in ss 6(3), 7(3) and 18(2), including a floor defined by the lower of two calculations (one CPI-derived and one earnings-derived in Parts II; Part III uses a CPI percentage only). The Act distinguishes the non‑contributory portion of pensions and specifies that increases apply only to that portion (see s 6(2), s 7(2), and the detailed definition in s 8). The Act also prescribes rounding rules for fractional tenths of 1 per cent (ss 5(4), 18(4)), how to treat substituted index publications (ss 5(2)-(3), 18(3)), pro‑rating for pensions that began within the relevant period (ss 10, 11, 21(3)-(6)), and the treatment of suspended pensions (ss 9, 22). The Act prevents commutation of the increased element (ss 14(1), 24(1)) and sets the pay‑date application for increases (ss 15, 25). It also provides for the substitution of earlier pension‑increase entitlements under specified earlier enactments (s 16).
Current sections
Direct links to the current provisions in Defence Force Retirement and Death Benefits (Pension Increases) Act 1976.
28
Part I
Preliminary
Part I—Preliminary
1
Short title
1 Short title
This Act may be cited as the Defence Force Retirement and Death Benefits (Pension Increases) Act 1976.
2
Commencement
2 Commencement
(1) Subject to subsections (2) and (3), this Act shall come into operation on the day on which it receives the Royal Assent.
(2) Part II, other than section 16, shall be deemed to have come into operation on 1 July 1973.
(3) Part III shall be deemed to have come into operation on 1 July 1975.
3
Increases to be paid out of Consolidated Revenue Fund
3 Increases to be paid out of Consolidated Revenue Fund
Amounts by which payments of pensions, or pension benefits, are increased by virtue of this Act are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
Part II
Increases in certain pensions payable under Defence Forces Retirement Benefits Act
Part II—Increases in certain pensions payable under Defence Forces Retirement Benefits Act
4
Incorporation with the Defence Forces Retirement Benefits Act
4 Incorporation with the Defence Forces Retirement Benefits Act
This Part is incorporated, and shall be read as one, with the Defence Forces Retirement Benefits Act 1948 or that Act as amended and in force at any relevant time.
5
Interpretation
5 Interpretation
(1) In this Part, unless the contrary intention appears:
Defence Forces Retirement Benefits Act means the Defence Forces Retirement Benefits Act 1948, and includes any other Act relating to retirement benefits for members of the Defence Force that came into operation before 1 October 1972 and that modifies or affects the provisions of the Defence Forces Retirement Benefits Act 1948.
Defence Forces Retirement Benefits Act 1948 means the Defence Forces Retirement Benefits Act 1948 or that Act as amended and in force from time to time.
pension means a pension payable under the Defence Forces Retirement Benefits Act.
prescribed year means the year commencing on 1 July 1974 or the year commencing on 1 July 1975.
(2) Subject to subsection (3), if, at any time, whether before or after the commencement of this section, the Statistician has published in respect of a particular March quarter or June quarter an all groups consumer price index number for the weighted average of the 6 State capital cities or an estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth in substitution for an index number or estimate previously published by him in respect of that quarter, the publication of the later index number or estimate shall be disregarded for the purposes of this Part.
(3) Notwithstanding subsection (2), if, at any time after the commencement of this section the Statistician changes the index reference period for the Consumer Price Index, then, for the purposes of the application of this Part after the change takes place, regard shall be had only to index numbers published in terms of the new index reference period.
(4) If the prescribed percentage for the purposes of section 6 or 7 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.
6
Increase in certain pensions for 1973‑74
6 Increase in certain pensions for 1973‑74
(1) Subject to this Part, if:
(a) 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 1973 exceeds 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 June quarter of the year 1971; and
(b) the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year 1973 exceeds the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the June quarter of the year 1971;
a person who was in receipt of a pension (other than a pension payable to or in respect of an eligible child) immediately before 1 July 1973 is entitled to an increase, as ascertained in accordance with this section, in the amount of the annual pension that was payable to him immediately before that date.
(2) The increase provided for by subsection (1) in the amount of the annual pension payable to a person immediately before 1 July 1973, is the prescribed percentage of the non‑contributory portion of the amount of the annual pension.
(3) For the purposes of this section, the prescribed percentage is whichever is the lower of:
(a) 1.4 times the percentage that represents A–B expressed as a percentage of B; or
(b) the percentage that represents C–D expressed as a percentage of D;
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 1973;
B 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 June quarter of the year 1971;
C is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year 1973; and
D is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the June quarter of the year 1971.
7
Increases in certain pensions for 1974‑75 and for 1975‑76
7 Increases in certain pensions for 1974‑75 and for 1975‑76
(1) Subject to this Part, if:
(a) 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 1972; and
(b) the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year immediately preceding that prescribed year exceeds the highest estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth 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 1972;
a person who was in receipt of a pension (other than a pension payable to or in respect of an eligible child) immediately before the commencement of that prescribed year is entitled to an increase, as ascertained in accordance with this section, in the amount of the annual pension that was payable to him immediately before the commencement of that prescribed year.
(2) The increase provided for by subsection (1) in the amount of the annual pension payable to a person immediately before the commencement of a prescribed year is the prescribed percentage of the non‑contributory portion of the amount of the annual pension.
(3) For the purposes of this section, the prescribed percentage is whichever is the lower of:
(a) 1.4 times the percentage that represents A–B expressed as a percentage of B; or
(b) the percentage that represents C–D expressed as a percentage of D;
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;
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 1972;
C is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year immediately preceding the prescribed year; and
D is the highest estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth 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 1972.
8
Non‑contributory portion of annual pension
8 Non‑contributory portion of annual pension
(1) For the purposes of this Part, the non‑contributory portion of the amount of annual pension payable to a person at a particular time (in this section referred to as relevant time) is:
(a) in a case to which paragraph (b) does not apply—the amount remaining after deducting from the amount of the annual pension:
(i) subject to subparagraphs (ii) and (iii)—an amount equal to the sum of:
(A) the amount (if any) by which the amount of the annual pension has been increased by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948; and
(B) an amount equal to two‑sevenths of the amount of the person’s contributory pension as ascertained in accordance with subsection (2);
(ii) if the pension is payable to a person under section 52 of the Defence Forces Retirement Benefit Act 1948 and, as a result of the re‑classification of the person under section 53 of that Act, his classification at the relevant time is different from his classification upon retirement—an amount equal to two‑sevenths of the amount that would have been the amount of his contributory pension if his classification at the time of his retirement had been the same as his classification at the relevant time; or
(iii) if a portion of the person's pension had been commuted, or several portions of the person's pension have been commuted, before the relevant time—an amount that bears to an amount equal to two‑sevenths of the amount that would have been the amount of his contributory pension if no portion of his pension had been commuted the same proportion as the amount of the annual pension that would have been payable to the person upon the day following the day on which he retired if that portion or those portions of his pension had been commuted upon the day on which he retired bears to the pension that was payable to him upon the first‑mentioned day; and
(b) in the case of a pension payable to a person by virtue of that person’s being a widow;
(i) in the case of a widow whose husband made, and did not revoke, an election under subsection 47(6) of the Defence Forces Retirement Benefits Act 1959—so much of the amount of the annual pension as is equal to one‑half of the amount that would have been the non‑contributory portion, as ascertained under paragraph (a), of the amount of the annual pension payable to her husband at the relevant time if:
(A) in a case to which clause (B) does not apply—he had not died and, in a case where he had commuted a portion of his pension, he had not done so; or
(B) in a case where he died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act 1948, payable to the widow as if her husband had so died—he had not died but, at the time of his death, had retired on the grounds of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948;
(ii) in the case of a widow whose husband made an election under subsection 47(6) of the Defence Forces Retirement Benefits Act 1959 and an election under section 61A or 61B of the Defence Forces Retirement Benefits Act 1963 or that Act as amended and in force at any time and, after the date on which the later election took effect, he revoked the former election—the amount remaining after deducting from the amount of the annual pension payable to her at the relevant time an amount equal to:
(A) in a case to which clause (B) does not apply—one‑half of the amount that, if her husband had not died, and, in a case where he had commuted a portion of his pension, he had not done so, would, for the purpose of ascertaining the non‑contributory portion of the amount of the annual pension payable to him at the relevant time, have been deducted under paragraph (a) from the amount of the annual pension payable to him at that time; and
(B) in a case where her husband died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act, payable to her as if her husband had so died—one‑half of the amount that, if her husband had not died but, at the time of his death, had retired on the ground of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948, would, for the purpose of ascertaining the non‑contributory portion of the annual pension payable to him at the relevant time, have been deducted under paragraph (a) from the amount of the annual pension payable to him at that time; and
(iii) in any other case—so much of the amount of the annual pension as is equal to five‑eighths of the amount that would have been the non‑contributory portion, as ascertained under paragraph (a), of the amount of the annual pension payable to the husband of the widow at the relevant time if:
(A) in a case to which clause (B) does not apply—he had not died and, in a case where he had commuted a portion of his pension, he had not done so; or
(B) in a case where he died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act 1948, payable to the widow as if her husband had so died—he had not died but, at the time of his death, had retired on the grounds of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948.
(2) In subsection (1), contributory pension in relation to a person referred to in that subsection means:
(a) if the person made an election under section 61A or 61B of the Defence Forces Retirement Benefits Act 1963 or that Act as amended and in force at any time—the pension, other than pension payable to him by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948, that would have been payable to him on his retirement if the category number that was applicable to him immediately before the election took effect had been the category number applicable to him on his retirement; and
(b) in any other case—the pension, other than pension payable to him by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948, that was payable to him on his retirement.
9
Application of increase to suspended pensions
9 Application of increase to suspended pensions
Where a pension would, but for its suspension under section 53B of the Defence Forces Retirement Benefits Act 1948, be payable to a person immediately before 1 July 1973 or immediately before the commencement of a prescribed year, that pension shall, for the purposes of this Part, be deemed to have been payable to that person at that time but any increase in that pension by virtue of this Act does not take effect in respect of any part of that period of suspension.
10
Adjustment of first increase under this Part in case of pensions that first became payable on or after 1 October 1971
10 Adjustment of first increase under this Part in case of pensions that first became payable on or after 1 October 1971
(1) Where a person would, but for this section, be entitled to an increase in the amount of the annual pension that was payable to the person immediately before 1 July 1973, and:
(a) that pension is payable in respect of the retirement or death of a contributor on or after 1 October 1971; or
(b) in the case of a pension payable in accordance with section 82ZB of the Defence Forces Retirement Benefits Act 1948:
(i) if the pension was payable to the person otherwise than as a widow—the pension became payable on or after 1 October 1971; or
(ii) if the pension was payable to the person as a widow:
(A) if a pension in accordance with that section was not payable to the husband of the person immediately before his death—the pension became payable on or after 1 October 1971; or
(B) if a pension in accordance with that section was payable to the husband of the person immediately before his death—the pension that was payable to that husband became payable on or after 1 October 1971;
the following provisions of this section have effect.
(2) Subject to the succeeding provisions of this section, the amount of the increase under section 6 is, by virtue of this subsection, so much only of the amount that, but for this subsection, would have been the amount of the increase under that section as bears to that last‑mentioned amount the same proportion as the number of months in the period that commenced on the day after the day on which the retirement or death referred to in paragraph (1)(a) took place, or the pension referred to in subparagraph (1)(b)(i), clause (1)(b)(ii)(A) or clause (1)(b)(ii)(B), as the case may be, became payable, and ended on 30 June 1973, bears to 21.
(3) If the pension in accordance with section 82ZB of the Defence Forces Retirement Benefits Act 1948 became payable after 15 June 1973, the person is not entitled to the increase under section 6.
(4) If the period referred to in subsection (2) is less than 1 month, that period shall be treated as 1 month.
(5) If the period referred to in subsection (2) consists of a number of whole months and a part of a month:
(a) where the number of days in that part of a month is less than one‑half of the number of days in that month—that part of a month shall be disregarded; and
(b) where the number of days in that part of a month is not less than one half of the number of days in that month—that part of a month shall be treated as a whole month.
(6) Where:
(a) subsection 69(1A) of the Defence Forces Retirement Benefits Act 1948 applied to a pensioner on his again becoming a member; and
(b) that member again retired on a date on or after 1 October 1971, and before 1 October 1972;
the date of retirement of that member for the purposes of this section is the date of his retirement before that subsection applied to him or first applied to him.
11
Adjustment of increase in case of certain pensions that first became payable after previous increase granted under this Part
11 Adjustment of increase in case of certain pensions that first became payable after previous increase granted under this Part
(1) Where a person in receipt of a pension payable in accordance with section 82ZB of the Defence Forces Retirement Benefits Act 1948 would, but for this section, be entitled to an increase in the amount of the annual pension that was payable to the person immediately before the commencement of a prescribed year and:
(a) if the pension became payable to the person otherwise than as a widow—it became payable on or after 1 July in the year immediately preceding the prescribed year; or
(b) if the pension became payable to the person as a widow:
(i) in a case where a pension in accordance with that section was not payable to the person’s husband immediately before his death—the pension became payable on or after 1 July in the year immediately preceding the prescribed year; or
(ii) in a case where a pension in accordance with that section was payable to the person’s husband immediately before his death—the pension became payable on or after 1 July in the year immediately preceding the prescribed year;
the following provisions of this section have effect.
(2) Subject to the succeeding provisions of this section, the amount of the increase under section 7 is, by virtue of this subsection, so much only of the amount that, but for this subsection, would have been the amount of the increase under that section as bears to that last‑mentioned amount the same proportion as the number of months in the period that commenced on the day on which the pension referred to in paragraph (1)(a), subparagraph (1)(b)(i) or subparagraph (1)(b)(ii) became payable, and ended on 30 June of the year immediately preceding the prescribed year, bears to 12.
(3) If the pension in accordance with section 82ZB of the Defence Forces Retirement Benefits Act 1948 became payable after 15 June in the year immediately preceding the prescribed year, the person is not entitled to the increase under section 7.
(4) If the period referred to in subsection (2) is less than 1 month, that period shall be treated as 1 month.
(5) If the period referred to in subsection (2) consists of a number of whole months and a part of a month:
(a) where the number of days in that part of a month is less than one‑half of the number of days in that month—that part of a month shall be disregarded; and
(b) where the number of days in that part of a month is not less than one‑half of the number of days in that month—that part of a month shall be treated as a whole month.
12
Modifications of certain sections of Defence Forces Retirement Benefits Act
12 Modifications of certain sections of Defence Forces Retirement Benefits Act
(1) In calculating, for the purposes of pension payable under paragraph 55(1)(b) or 57(1)(b) of the Defence Forces Retirement Benefits Act 1948, the amount of the annual rate of the pension, being a pension under paragraph 55(1)(a) or 57(1)(a) of that Act, that is, or is to be deemed, by virtue of subsection 55(3) or 57(5) of that Act, to be, payable to a widow, any amount by which that amount is, or would have been, increased by virtue of the operation of this Part shall be taken into account.
(2) In calculating, for the purposes of pension payable under subsection 55(2) or 57(4) of the Defence Forces Retirement Benefits Act 1948, the amount of the annual rate of the pension, being a pension under paragraph 55(1)(a) or 57(1)(a) of that Act, that, but for the death of a widow, would have been payable, or would, by virtue of subsection 55(3) or 57(5) of that Act, have been deemed to have been payable, to the widow, any amount by which that amount would have been increased by virtue of the operation of this Part shall be taken into account.
(3) In calculating, for the purposes of pension payable under subsection 58(1) of the Defence Forces Retirement Benefits Act 1948, the amount of the annual rate of the pension, being a pension under paragraph 55(1)(a) or 57(1)(a) of that Act, that, but for the death or divorce of the wife of a contributor or pensioner, would have been payable to the wife, any amount by which that amount would have been increased by virtue of the operation of this Part shall be taken into account.
13
Rate of invalidity pension payable on re‑classification
13 Rate of invalidity pension payable on re‑classification
(1) Where, on or after 1 July 1973, a person to whom pension is payable under section 52 of the Defence Forces Retirement Benefits Act 1948 and who is entitled to an increase in the rate of his pension under this Part is reclassified under section 53 of that Act, the rate at which pension is payable to him on and after the date (in this section referred to as the re‑classification date) from which the re‑classification has effect is the rate at which pension would have been payable to him upon the date that is the relevant date in relation to the re‑classification date if he had been so re‑classified with effect from 30 June last preceding the relevant date.
(2) In this section, a reference to the relevant date, in relation to the date from which the re‑classification of a person under section 53 of the Defence Forces Retirement Benefits Act 1948 has effect, shall be read as a reference:
(a) if the re‑classification has effect from a date occurring during the year commencing on 1 July 1973—to 1 July 1973;
(b) if the re‑classification has effect from a date occurring during the year commencing 1 July 1974—to 1 July 1974; or
(c) if the re‑classification has effect from 1 July 1975 or a later date—to 1 July 1975.
14
Commutation of pensions on or after 1 July 1973
14 Commutation of pensions on or after 1 July 1973
(1) Section 74 of the Defence Forces Retirement Benefits Act 1948 does not authorize the commutation of a pension in so far as the pension has been increased by virtue of this Part.
(2) Where, on or after 1 July 1973, a portion of the pension of a person who is entitled to an increase in the rate of his pension under this Part is commuted, then, as from the date on which that portion of his pension is so commuted, the annual amount of his pension shall be reduced to such an amount as would, upon the date that is the relevant date in relation to the date on which that portion of his pension is commuted, have been the annual amount of his pension if he had commuted that portion of his pension on 29 June last preceding the relevant date.
(3) In this section, a reference to the relevant date, in relation to the date on which a portion of a pension is commuted, shall be read as a reference:
(a) if that portion of the pension is commuted during the year commencing 1 July 1973—to that date;
(b) if the re‑classification has effect from a date occurring during the year commencing 1 July 1974—to 1 July 1974; or
(c) if the re‑classification has effect from 1 July 1975 or a later date—to 1 July 1975.
15
Dates of effect of increases
15 Dates of effect of increases
An increase payable by virtue of this Part in the amount of the annual pension that was payable to a person on 30 June in a year applies in relation to the instalment of pension falling due on the first pension pay‑day occurring after that day and in relation to all subsequent instalments.
16
Certain entitlements under this Part to be substituted for entitlements under other legislation etc.
16 Certain entitlements under this Part to be substituted for entitlements under other legislation etc.
(1) In this section, superseded enactment means:
(a) the Defence Forces Retirement Benefits (Pension Increases) Act 1973; and
(b) Part II of the Defence Force Retirement and Death Benefits (Pension Increases) Act 1974.
(2) Upon the commencement of this section, but subject to subsection (3), there shall be deemed to be substituted for any entitlement (in this subsection referred to as the superseded pension increase entitlement) of a person to an increase in the rate of a pension provided for by a superseded enactment, the entitlement to the increase in the rate of that pension that is provided for by the preceding provisions of this Part and that has effect from the day from which the superseded pension increase entitlement had effect.
(3) Where an amount of pension that has become payable to a person before the commencement of this section in respect of a period that commenced on or after 1 July 1973 and ended not later than the commencement of this section (whether or not the amount has been paid before the commencement of this section) exceeds the amount that, but for this subsection would be payable to the person in respect of the period by virtue of the operation of subsection (2), the person shall not cease to be entitled to the amount of the excess.
Part III
Increases in certain pension benefits payable under Defence Force Retirement and Death Benefits Act
Part III—Increases in certain pension benefits payable under Defence Force Retirement and Death Benefits Act
17
Incorporation with the Defence Force Retirement and Death Benefits Act
17 Incorporation with the Defence Force Retirement and Death Benefits Act
This Part is incorporated, and shall be read as one, with the Defence Force Retirement and Death Benefits Act 1973 or that Act as amended and in force at any relevant time.
18
Interpretation
18 Interpretation
(1) In this Part, unless the contrary intention appears:
Defence Force Retirement and Death Benefits Act means the Defence Force Retirement and Death Benefits Act 1973 or that Act as amended and in force from time to time.
pension benefit means a pension benefit payable under the Defence Force Retirement and Death Benefits Act.
(2) For the purposes of this Part, the prescribed percentage is the percentage which 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 1975; and
B 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 1974.
(3) If, at any time, whether before or after the commencement of this Part, the Statistician has published in respect of the March quarter of the year 1975 or the March quarter of the year 1974, 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 latter index number shall be disregarded for the purpose of this Part.
(4) If the prescribed percentage for the purposes of this section 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.
19
Increase in certain pension benefits
19 Increase in certain pension benefits
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 1975 exceeds 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 1974 a person to whom a pension benefit was payable immediately before 1 July 1975 is entitled to an increase, as ascertained in accordance with section 20 or 21, in the amount of the annual pension benefit that was payable to him immediately before that date.
20
Amount of increase in certain pension benefits
20 Amount of increase in certain pension benefits
(1) Where, immediately before 1 July 1975, a pension was payable to a person:
(a) being a pension benefit that became payable to the person before 1 July 1974; or
(b) being a pension benefit that became payable, on or after 1 July 1974, to the person as a widow, or as an eligible child, by reason of the death of a member of the scheme who retired before 1 July 1974;
this section applies to the person.
(2) The increase provided for by section 19 in the annual amount of the pension benefit payable to a person to whom this section applies is the prescribed percentage of the annual amount of the pension benefit payable immediately before 1 July 1975 or, if the pension benefit is a child's pension, so much of the annual amount of that benefit so payable as is referred to as additional pension in whichever of subsections 42(2), 42(3), 43(2) and 43(3) of the Defence Force Retirement and Death Benefits Act is applicable.
21
Amount of increase in certain pension benefits to which section 20 does not apply
21 Amount of increase in certain pension benefits to which section 20 does not apply
(1) Where:
(a) immediately before 1 July 1975, a pension benefit (not being a pension benefit that became payable after 15 June 1975) was payable to a person in respect of:
(i) the retirement, on or after 1 July 1974, of a member of the scheme; or
(ii) the death, on or after 1 July 1974, of a member of the scheme who was a contributing member on 30 June 1974; or
(b) immediately before 1 July 1975, a pension benefit was payable to a person in accordance with section 78 of the Defence Force Retirement and Death Benefits Act (not being a pension benefit that became payable after 15 June 1975) and:
(i) if the pension benefit became payable to the person otherwise than as a widow or as an eligible child—it became payable on or after 1 July 1974;
(ii) if the pension benefit became payable to the person as a widow:
(A) if a pension benefit in accordance with that section was not payable to the person’s husband immediately before his death—the pension became payable on or after 1 July 1974; or
(B) if a pension benefit in accordance with that section was payable to the person’s husband immediately before his death—the husband’s pension became payable on or after 1 July 1974; or
(iii) if the pension benefit became payable to the person as an eligible child:
(A) if a 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 on or after 1 July 1974; or
(B) if a 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 on or after 1 July 1974;
this section applies to the person.
(2) For the purposes of the application of subparagraph (1)(b)(ii) to a person who is a widow for the purposes of the Defence Force Retirement and Death Benefits Act by reason of her having been a dependent female, the member of the scheme with whom she had, immediately before his death, lived as his wife shall be deemed to have been her husband.
(3) Subject to the succeeding provisions of this section, the increase provided for by section 20 in the annual amount of the pension benefit payable to a person immediately before 1 July 1975 is, in the case of a person to whom this section applies, an amount that bears to an amount determined in accordance with subsection (4) the same proportion as the number of months in the period that commenced on the day after the day on which the relevant retirement or death referred to in paragraph (1)(a) took place, or the period that commenced on the day on which the pension benefit referred to in subparagraph (1)(b)(i), clause (1)(b)(ii)(A), clause (1)(b)(ii)(B), clause (1)(b)(iii)(A) or clause (1)(b)(iii)(B), as the case may be, became payable and ended on 30 June 1975 bears to 12.
(4) The amount to be determined in accordance with this subsection in relation to the pension benefit payable to a person to whom this section applies is the prescribed percentage of an amount equal to the annual amount of the pension benefit immediately before 1 July 1975, or, if the pension benefit is a child’s pension, so much of the annual amount of that benefit so payable as is referred to as additional pension in whichever of subsections 42(2), 42(3), 43(2) and 43(3) of the Defence Force Retirement and Death Benefits Act is applicable.
(5) If the period referred to in subsection (3) is less than 1 month, that period shall be treated as 1 month.
(6) If the period referred to in subsection (3) consists of a number of whole months and a part of a month:
(a) where the number of days in that part of a month is less than one‑half of the number of days in that month—that part of a month shall be disregarded; and
(b) where the number of days in that part of a month is not less than one‑half of the number of days in that month—that part of a month shall be treated as a whole month.
22
Application of increase to suspended pension benefits
22 Application of increase to suspended pension benefits
Where a pension benefit would, but for its suspension under section 35 of the Defence Force Retirement and Death Benefits Act, have been payable to a person immediately before 1 July 1974 or immediately before 1 July 1975, that pension benefit shall, for the purposes of this Part, be deemed to have been payable to that person immediately before whichever of those dates is relevant, but any increase in that pension benefit by virtue of this Part does not have effect in respect of any part of that period of suspension.
23
Rate of invalidity pension benefit payable on re‑classification
23 Rate of invalidity pension benefit payable on re‑classification
Where, on or after 1 July 1975, a person to whom pension benefit, being invalidity pay, is payable under the Defence Force Retirement and Death Benefits Act and who is entitled to an increase in the rate of his pension benefit under this Part is re‑classified under section 34 of that Act, the rate at which pension benefit is payable to him on and after the date from which the re-classification has effect is the rate at which pension benefit would have been payable to him on 1 July 1975 if he had been so re‑classified with effect on and from 30 June 1975.
24
Commutation of pension benefits on or after 1 July 1975
24 Commutation of pension benefits on or after 1 July 1975
(1) Section 24 of the Defence Force Retirement and Death Benefits Act 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, on or after 1 July 1975, a portion of the pension benefit of a person who is entitled to an increase in the rate of his pension benefit under this Part is commuted, then, as from the date on which that portion is so commuted, the annual amount of his pension benefit shall be reduced to such amount as would, on 1 July 1975, have been the annual amount of his pension benefit if:
(a) he had commuted that portion of his pension benefit on 29 June 1975; and
(b) in a case where an anniversary of his birth occurs after 30 June 1975 and on or before the date of commutation—he had, on 29 June 1975, attained the age that is his age on the date of commutation.
25
Date of effect of increases
25 Date of effect of increases
An increase payable by virtue of this Part in the pension benefit payable to a person applies in relation to the instalment of pension benefit falling due the pension pay‑day that occurred on 3 July 1975, and in relation to all subsequent instalments.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part I Preliminary
Part I—Preliminary
1 Short title
1 Short title
This Act may be cited as the Defence Force Retirement and Death Benefits (Pension Increases) Act 1976.
2 Commencement
2 Commencement
(1) Subject to subsections (2) and (3), this Act shall come into operation on the day on which it receives the Royal Assent.
(2) Part II, other than section 16, shall be deemed to have come into operation on 1 July 1973.
(3) Part III shall be deemed to have come into operation on 1 July 1975.
3 Increases to be paid out of Consolidated Revenue Fund
3 Increases to be paid out of Consolidated Revenue Fund
Amounts by which payments of pensions, or pension benefits, are increased by virtue of this Act are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
Part II Increases in certain pensions payable under Defence Forces Retirement Benefits Act
Part II—Increases in certain pensions payable under Defence Forces Retirement Benefits Act
4 Incorporation with the Defence Forces Retirement Benefits Act
4 Incorporation with the Defence Forces Retirement Benefits Act
This Part is incorporated, and shall be read as one, with the Defence Forces Retirement Benefits Act 1948 or that Act as amended and in force at any relevant time.
5 Interpretation
5 Interpretation
(1) In this Part, unless the contrary intention appears:
Defence Forces Retirement Benefits Act means the Defence Forces Retirement Benefits Act 1948, and includes any other Act relating to retirement benefits for members of the Defence Force that came into operation before 1 October 1972 and that modifies or affects the provisions of the Defence Forces Retirement Benefits Act 1948.
Defence Forces Retirement Benefits Act 1948 means the Defence Forces Retirement Benefits Act 1948 or that Act as amended and in force from time to time.
pension means a pension payable under the Defence Forces Retirement Benefits Act.
prescribed year means the year commencing on 1 July 1974 or the year commencing on 1 July 1975.
(2) Subject to subsection (3), if, at any time, whether before or after the commencement of this section, the Statistician has published in respect of a particular March quarter or June quarter an all groups consumer price index number for the weighted average of the 6 State capital cities or an estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth in substitution for an index number or estimate previously published by him in respect of that quarter, the publication of the later index number or estimate shall be disregarded for the purposes of this Part.
(3) Notwithstanding subsection (2), if, at any time after the commencement of this section the Statistician changes the index reference period for the Consumer Price Index, then, for the purposes of the application of this Part after the change takes place, regard shall be had only to index numbers published in terms of the new index reference period.
(4) If the prescribed percentage for the purposes of section 6 or 7 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.
Where the statutory text creates decision nodes, the Statistician’s published numbers determine the numerical trigger and magnitude; administrative action follows the formulae in the Act to compute entitlements and apply them to pay days. The Act therefore creates an automatic, index‑linked uplift for pensioners subject to the specific statutory calculations and exceptions set out in the relevant Parts.
Main concepts
The Act rests on several recurring statutory concepts and defined terms that structure entitlement and calculation.
• Incorporation and reading‑in. Part II is incorporated with the Defence Forces Retirement Benefits Act 1948 (s 4). Part III is incorporated with the Defence Force Retirement and Death Benefits Act 1973 (s 17). Each Part is to be read as one with the referenced principal Act, so terms and eligibility under those principal Acts determine who is a pensioner or beneficiary for the purposes of this Act.
• Indexation triggers and prescribed percentage. In Part II, increases are conditional on both CPI and average weekly earnings measures (s 6(1), s 7(1)). The prescribed percentage that determines the increase is the lower of two figures: 1.4 times the percentage CPI increase (A-B/B) or the percentage increase in average weekly earnings (C-D/D) (s 6(3), s 7(3)). Part III uses a single CPI comparison to define the prescribed percentage (s 18(2)). The Act therefore explicitly constructs a composite indexation rule in Part II, and a CPI‑only rule in Part III.
• Non‑contributory portion. Increases apply to the non‑contributory portion of the pension only (s 6(2), s 7(2)). Section 8 gives a detailed, formulaic definition of the non‑contributory portion, deducting specified amounts (including increases under s 45 of the 1948 Act and two‑sevenths of a contributory pension as defined in s 8(2)). Section 8 also gives specific rules for widows and for cases of commutation or re‑classification, with percentages and fractional shares (see s 8(1)(b)). The non‑contributory portion is therefore a specific statutory construct, not simply the portion of the pension paid by the Government in a general sense.
• Treatment of timing and pro-rating. The Act contains explicit pro‑rata adjustments when a pension or pension benefit commenced part‑way through the relevant accrual period (ss 10, 11, 21). It prescribes counting rules for months and parts of months (ss 10(4)-(5), 11(4)-(5), 21(5)-(6)). It also sets cut‑off dates (for example, pensions arising after 15 June are excluded from that year’s increase in some instances , ss 10(3), 11(3), 21(3)).
• Suspension and exclusion. Where pensions or benefits were suspended under the relevant principal Act’s suspension provisions, the pension is deemed to have been payable for the purpose of entitlement under this Act but any increase does not take effect for suspended periods (ss 9, 22).
• Commutation constraints and re‑classification effects. The Act forbids commutation of the increased element (s 14(1), s 24(1)) and prescribes how commutation after increases affects the ongoing annual rate (ss 14(2)-(3), 24(2)). Re‑classification of invalidity pensions is addressed: the post‑re‑classification rate is treated as though re‑classification had occurred with effect just prior to the relevant base date (ss 13, 23).
• Administrative numeric particulars. The Act relies on the Statistician’s published CPI (and, for Part II, published estimates of average weekly earnings). It contains rules on which published index to use if revisions or substitutions are later published (ss 5(2)-(3), 18(3)), and rounding rules to deal with fractional tenths of a percentage point (ss 5(4), 18(4)). It apportions financial responsibility to the Consolidated Revenue Fund (s 3).
Together, these concepts define a structured indexation regime tied to particular statistical series, a statutory allocation of increases to a particular pension component (non‑contributory portion), explicit temporal and procedural adjustments, and constraints on commutation and treatment of suspended pensions.
Who it affects
Primary categories of affected persons and entities are identifiable in the text.
• Pensioners under the Defence Forces Retirement Benefits Act 1948. People who were in receipt of pensions under that Act immediately before 1 July 1973, and who meet the exclusions (for example, pensions payable to or in respect of an eligible child are excluded in s 6(1)), are directly affected by Part II (s 6). Part II also affects pensions payable to widows, with specific formulae in s 8 governing the non‑contributory portion in widow cases. Pensions that commenced on or after particular dates (for example, 1 October 1971 or between 1 October 1971 and 30 September 1972 in limited circumstances) have special pro‑rata rules (s 10).
• Pension benefit recipients under the Defence Force Retirement and Death Benefits Act 1973. People to whom pension benefits were payable immediately before 1 July 1975 are affected under Part III (s 19). Part III differentiates between benefits that became payable before 1 July 1974, those becoming payable on or after that date, and special cases where benefits began part‑way through the relevant period (ss 20-21).
• Widows and eligible children. The Act contains multiple specific provisions dealing with pensions payable to widows (s 8(1)(b) and s 21(2)) and eligible children (s 20(1)(b)). Widows’ non‑contributory shares are calculated differently depending on prior elections of the husband under earlier Acts (s 8(1)(b)(i)-(ii)) and general cases (s 8(1)(b)(iii)). Child pensions are handled in relation to the “additional pension” components of specified subsections of the principal Act, and Part III restricts which component the increase applies to for child pensions (s 20(2)).
• Contributors and members of the scheme for specific timing rules. If a pension benefit relates to a member who was a contributing member on 30 June 1974, different application rules apply under s 21(1)(a)(ii). Similarly, re‑classified invalidity pensioners are affected by valuation of reclassification dates under ss 13 and 23.
• The Commonwealth (Consolidated Revenue Fund). Section 3 appropriates the necessary moneys from the Consolidated Revenue Fund to pay the increases. The statutory burden therefore falls on public revenue.
• Administrators and the Statistician. The Act gives a central numeric role to the Statistician’s published CPI and, in Part II, AWE estimates (ss 5(2)-(3), 6(1), 7(1), 18(2)). Administrators implementing the increases must use the specified publications and follow rounding and substitute‑publication rules.
The Act affects the quantum and availability of increases for existing pensioners and beneficiaries rather than creating new categories of entitlement. It affects persons differently depending on when their pension/benefit began, the nature of the pension (contributory versus non‑contributory elements), widow or child status, and whether the pension was suspended or commuted. For pensioners considering commutation, the Act alters the option set by excluding the increased element from commutation (ss 14(1), 24(1)).
Key duties and rights
The Act creates legal rights to increases for those meeting the statutory conditions and imposes obligations on administrators to apply detailed calculation rules.
Rights:
Entitlement to increases where the statutory triggers are satisfied. For Part II, eligible pensioners in receipt immediately before 1 July 1973 or before a prescribed year are entitled to increases as set out in ss 6 and 7, subject to the definitions and exceptions in the Part. For Part III, eligible recipients immediately before 1 July 1975 have an entitlement if the March 1975 CPI exceeds March 1974 CPI (s 19).
Entitlement is limited to the non‑contributory portion of the pension, defined in s 8. Rights for widows and children are specified with different formulae and proportions in ss 8 and 20-21.
Entitlement to pro‑rated increases in cases where the pension first became payable during the relevant period, computed according to the month‑counting and rounding rules (ss 10, 11, 21(3)-(6)).
Where a pension was suspended under the principal Act but would otherwise have been payable immediately before the relevant date, the pension is deemed payable for entitlement purposes, but increases do not take effect for suspended periods (ss 9, 22).
Duties and administrative obligations:
The Commonwealth must pay amounts by virtue of this Act out of the Consolidated Revenue Fund (s 3). This is an appropriation instruction rather than a duty imposed on a specific officer, but it allocates fiscal responsibility.
Administrators are obliged to calculate prescribed percentages using the Statistician’s published indices (ss 6(3), 7(3), 18(2)), and to apply rounding rules where fractions of one‑tenth of 1 per cent occur (ss 5(4), 18(4)).
Where the Statistician replaces previously published index numbers with substitutes, administrators must disregard the superseded number for the purposes of this Act (ss 5(2)-(3), 18(3)). If the Statistician changes the CPI’s reference period, the Act requires using only index numbers in terms of the new reference period for application after that change (s 5(3)).
Administrators must compute the non‑contributory portion in the specific manner set out in s 8, including deductions for increases under s 45 of the 1948 Act and for contributory pension fractions; particular calculations are required for widows, re‑classification, and commuted portions (s 8(1)-(3)).
If a pensioner’s classification changes under the principal Acts (for example, re‑classification of invalidity pensioners), administrators must apply the retrospective effective‑date formulae in ss 13 and 23 to determine the rate payable following re‑classification.
When portions of pensions are commuted on or after 1 July 1973/1975, administrators must reduce the annual amount from the date of commutation to the amount that would have resulted had commutation occurred the day before the relevant base date (ss 14(2)-(3), 24(2)).
Administrators must ensure that increases are applied from the statutory pay date: for Part II from the first pension pay‑day after 30 June (s 15), for Part III from the pay‑day that occurred on 3 July 1975 (s 25).
Constraints on private rights:
The Act expressly limits the right to commute the increased portion: s 14(1) bars commutation of the increased portion of pensions under the 1948 Act; s 24(1) does the same for pension benefits under the 1973 Act. This restricts pensioners’ ability to convert increased annual entitlements into lump sums for those increased amounts.
Interconnected duties:
Section 12 imposes a duty on calculating authorities for the 1948 Act to take into account amounts increased under this Part when computing various linked widow and dependant pensions (s 12(1)-(3)). This creates cross‑statutory computation duties.
In sum, the Act confers statutory entitlements to uplifted pension payments for defined cohorts, imposes precise and prescriptive calculation duties on administrators, limits pensioners’ commutation rights over the increased amounts, and assigns payment responsibility to consolidated public revenue.
Penalties and enforcement
The provided text contains no express criminal offences, civil penalties, enforcement powers or dispute resolution procedures specific to compliance with the calculation, payment or rejection of increases under this Act. The Act establishes rights to increased payments and prescribes computation and timing rules, but does not itself create penalties for administrative failure to follow those rules nor does it specify an administrative review process within the text provided.
Enforcement modalities that can be inferred from the statutory structure include:
Payment obligation enforced by existing remedies and processes under the principal Acts. Because the increases are incorporated into and read as one with the principal Acts (s 4, s 17) and because they change the amounts payable, any enforcement or dispute mechanisms for pensions under the Defence Forces Retirement Benefits Act 1948 or the Defence Force Retirement and Death Benefits Act 1973 would logically govern disputes about entitlement, calculation or arrears. The Act does not amend or add to those dispute resolution regimes in the text supplied; therefore enforcement likely follows the principal Acts’ procedural framework (see s 4 and s 17 which incorporate the Parts into those Acts).
Public accountability and appropriation. Section 3 ties payment to the Consolidated Revenue Fund, which means the fiscal executive must meet the payment obligations from consolidated revenue. While that is an appropriation rather than a sanction mechanism, refusal or failure to pay could be challenged under public law remedies available for public entitlements, subject to the procedural and substantive limits in the principal Acts. The Act itself does not specify a statutory cause of action or timeframe for legal proceedings.
Administrative effect of mis‑calculation. The Act’s detailed formulae and timing rules mean that an administrative mis‑application would create a calculable payment shortfall; correction would be a matter of statutory accounting and arrears payment under the principal Acts and departmental procedures. The Act does address a protective detail for claimants where a superseded pension increase entitlement existed under earlier enactments: s 16(3) preserves any excess amount already payable for a past period.
Matters the Act leaves to other instruments or ordinary law:
The Act does not state sanctions for making false representations to obtain an increased payment, nor does it specify audit, recordkeeping or penalty regimes for administrators. Any such penalties would have to be sought in the principal Acts, in other general statutes (for example, public sector disciplinary provisions), or through common law remedies; none are added by this Act.
There is no internal administrative review mechanism imposed specifically by this text to appeal or review a denial of an increase, nor specified limitation periods for claims to arrears created by the miss‑application of the formulae.
Practically, enforcing compliance with the Act’s obligations will rely on the interplay with the principal Acts and on public administration processes: accurate statutory calculation, internal review under existing pension administration schemes, budgetary provision (s 3), and judicial review or merits review avenues provided by other statutes or by the courts where appropriate. The Act’s silence about specific penalties or enforcement mechanisms concentrates the legal effect on entitlement creation and computation rather than on new enforcement architecture.
How it interacts with other laws
The Act explicitly integrates with two principal Acts and amends or modifies the operation of particular provisions within them. The interaction points are concrete and prescriptive in the text.
Direct incorporation:
Part II is incorporated with and shall be read as one with the Defence Forces Retirement Benefits Act 1948 (s 4). This means Part II operates within the legal framework and definitions of the 1948 Act; references in Part II to the 1948 Act’s sections (for example, s 45, s 52, s 53, s 74, s 55, s 57, s 58, and s 69(1A) as referenced in ss 8, 10, 12-14) indicate that calculations, eligibility and classification determinations under the 1948 Act continue to determine the baseline pension and classification criteria that this Act modifies.
Part III is incorporated with and shall be read as one with the Defence Force Retirement and Death Benefits Act 1973 (s 17). Part III therefore operates within the terms, eligibility rules and definitions of the 1973 Act; it references sections of that Act (for example, s 24, s 34, s 35, s 42-43, s 78) to modify how pension benefits are computed and treated following the Statute’s increases.
Specific computation and substitution provisions:
Section 12 prescribes modifications to particular sections of the 1948 Act so that increases under this Part are taken into account when calculating widow pensions or pensions consequent upon death or divorce where subsections of the 1948 Act are relevant (s 12(1)-(3)). This is an explicit cross‑statutory computational amendment: amounts increased by the operation of this Part must be included in the base used for other entitlements under the principal Act.
Sections 13 and 23 determine how re‑classifications under the principal Acts affect the rate of invalidity pensions when increases under this Act are applicable. They tie the post‑re‑classification rate to a hypothetical re‑classification date just prior to the relevant base date (s 13(1)-(2) and s 23), thereby aligning the increased rates with the principal Act’s re‑classification procedures.
Treatment of prior enactments:
Section 16 addresses interaction with earlier pension‑increase enactments, explicitly deeming that the entitlements created under the 1973 and 1974 pension increases Acts are to be substituted by the entitlements under Part II, but preserving any excess amounts already payable to a person for a period commencing on or after 1 July 1973 and ending before this section’s commencement (s 16(2)-(3)). This is a transitional arrangement that gives precedence to the present Part while protecting previously paid excesses.
Dependence on the Statistician’s publications:
Both Parts incorporate reliance on the Statistician for CPI and, in Part II, for average weekly earnings estimates (s 6(1), s 7(1), s 18(2)). The Act prescribes how to treat substituted publications and changes to CPI reference periods (ss 5(2)-(3), 18(3)). This creates a statutory link between the numerical data produced under the Census and Statistics Act (or equivalent) and the operation of the pension statutes; the Act does not itself amend the Statistician’s functions but uses those publications as determinative inputs.
Limitations on commutation and interplay with commutation provisions of the principal Acts:
The Act expressly overrides the commutation permissions in the principal Acts for the increased portion: s 14(1) states that s 74 of the 1948 Act does not authorise commutation of a pension in so far as it has been increased under this Part; s 24(1) provides the equivalent for the 1973 Act. These are direct interactions that constrain the scope of rights otherwise created by the principal Acts.
Suspension and deemed payability:
The Act addresses pensions suspended under specific sections of the principal Acts. Section 9 treats pensions suspended under s 53B of the 1948 Act as deemed payable for entitlement purposes but excludes the suspended period from payment of the increase. Section 22 imposes an equivalent mechanism for pensions suspended under s 35 of the 1973 Act.
Overall, the Act functions as a set of amendments and cross‑references that must be read together with the principal Acts; it changes calculation inputs and outputs, modifies certain treatment of commutation, and imposes transitional arrangements vis‑à‑vis earlier pension increase enactments. Where it modifies specific sections of the principal Acts (explicitly in s 12 and by operation of s 14 and s 24), those modifications are narrow and computational rather than rewriting eligibility or broad administrative processes in the principal Acts.
Amendment history
The copy of the Act supplied contains internal transitional and substitutional provisions indicating legislative sequencing but does not supply any later amending instruments or external amendment chronology. The text itself records the following internal chronological features and interactions with earlier enactments:
Commencement staging. Section 2 provides staged operation dates: subject to ss 2(2) and (3), the Act commences on Royal Assent (s 2(1)); Part II (other than s 16) is deemed to have come into operation on 1 July 1973 (s 2(2)); Part III is deemed to have come into operation on 1 July 1975 (s 2(3)). These deemed commencement clauses are internal devices to give retrospective effect to the increases for the specified years.
Supersession of earlier pension increase enactments. Section 16(1) defines “superseded enactment” to include the Defence Forces Retirement Benefits (Pension Increases) Act 1973 and Part II of the Defence Force Retirement and Death Benefits (Pension Increases) Act 1974. Section 16(2) deems the entitlements under those earlier enactments to be substituted by the entitlements under Part II of the current Act from the day the earlier entitlements had effect, subject to a protection for persons who already had greater amounts payable in the earlier transitional period (s 16(3)). This records a specific legislative substitution and a preservation rule for prior overpayments.
References to prior Acts and elections. Section 8 refers to elections under subsection 47(6) of the Defence Forces Retirement Benefits Act 1959 and elections under sections 61A or 61B of the Defence Forces Retirement Benefits Act 1963 (or those Acts as amended), and to provisions such as s 45 of the 1948 Act, s 52, s 53 and other sections. These references indicate that the present Act was intended to work alongside and modify calculations under earlier legislative regimes.
The supplied text contains no later amendment dates, schedules of amendment by other Acts, or repeal provisions. It does not itself show changes after its enactment. Therefore, within the constraints of the source provided, the amendment history is limited to the Act’s internal transitional adjustments and its express substitution of earlier pension increase enactments as detailed in s 16. Any further amendments, repeals or judicial modifications occurring after the text supplied are not present in the material and cannot be reported here.
Users needing a complete statutory genealogy should consult an official consolidated version of the statute book or parliamentary amendment records; the supplied text does not include post‑enactment amendment instruments.
Litigation history
The supplied legislation text contains no references to judicial decisions, no listed case authorities, and no statutory notes citing litigation. It names no cases and includes no schedule of reported decisions.
Accordingly, based solely on the text provided, there is no litigation history to report. Any disputes about calculation methods, proper use of Statistician publications, the interpretation of “non‑contributory portion”, pro‑rata calculations, the effect of re‑classification, or the operation of the substitution rule in s 16 would,if litigated,be matters for courts or review bodies applying the principal Acts in conjunction with this Act. Those potential cases are not named in the text and so cannot be summarised here.
Practitioners should therefore treat this section as an absence of litigation data in the source material. For practitioners seeking actual case law, the appropriate next step is to search court databases, law reports and official consolidated statutes for any later judicial consideration of the Act or its provisions, and for interpretations of key terms such as “non‑contributory portion”, rounding rules, or the scope of the commutation bars in ss 14 and 24. None of that external material is included in the source supplied and therefore cannot be articulated here.
Gotchas
The Act’s drafting contains several technical traps for administrators, advocates and pensioners. These are concrete interpretive or operational points that can materially alter entitlements if overlooked.
The increase applies only to the non‑contributory portion. Multiple provisions (s 6(2), s 7(2), s 20(2)) state that the prescribed percentage is applied to the non‑contributory portion rather than to the whole pension. Section 8 contains a complex method for computing that non‑contributory portion, including deductions for increases under s 45 of the 1948 Act and two‑sevenths of contributory pension amounts, and special formulas for widows and commuted portions (s 8). Misclassifying the base can produce systematically wrong calculations.
The prescribed percentage in Part II is the lower of two alternative calculations (1.4 times CPI rise or the percentage rise in average weekly earnings) (ss 6(3), 7(3)). That lower‑of rule can be non‑intuitive: if CPI increases faster than earnings, the 1.4 multiplier on the CPI component may still be constrained by a lower earnings percentage. The Act requires choosing the lesser of those two figures; failing to apply that comparative step will overstate increases.
Different statistical inputs for different Parts. Part II requires both CPI and estimates of seasonally adjusted average weekly earnings per employed male unit (ss 6(1), 7(1)). Part III uses a CPI comparison only (s 18(2) and s 19). Using the wrong series for a Part will yield incorrect prescribed percentages.
Treatment of substituted or revised index numbers. The Act specifies that if the Statistician publishes a later index or substitute in respect of a quarter, the later publication is to be disregarded for the purposes of that Part (ss 5(2)-(3), 18(3)), but also provides an exception if the Statistician changes the CPI reference period (s 5(3)). That means administrators must use the proper historical series and be alert to whether any substitutions have been made; they must also account for a change in reference period by switching only to numbers in the new series for applications after the change. Using an unqualified latest figure or failing to recognise a reference period change will misapply the Act.
Rounding rules are narrow. If the prescribed percentage includes a fraction of one‑tenth of 1 per cent, s 5(4) and s 18(4) provide rounding rules: fractions less than one‑half of one‑tenth are disregarded; otherwise they are treated as one‑tenth. That is an unusual rounding granularity; calculator or spreadsheet implementations must be precise to the required decimal place to avoid off‑by‑one‑tenth errors.
Pro‑rata month counting and cut‑offs. The Act contains many month counting rules for pensions that began part‑way through a period (ss 10(2), 11(2), 21(3)). It treats periods of less than one month as one month, and parts of months less than half a month as zero, otherwise as a whole month (ss 10(4)-(5), 11(4)-(5), 21(5)-(6)). Additionally, pensions that became payable after specific cut‑off dates (for example, after 15 June 1973 or 15 June in the relevant year) are excluded from the increase (ss 10(3), 11(3), 21(3)). Administrators must implement precise day counts to avoid wrongful inclusions or exclusions.
Suspended pensions deemed payable for entitlement but not paid for the suspended period. Sections 9 and 22 deem suspended pensions as payable for the purpose of determining entitlement, but increases do not take effect for any suspended part of the period. That creates a potential reconciliation issue: a pension might qualify for the right to an increase even though the person received no pension during the suspension. Systems must separately track suspended periods to prevent overpayment.
Limits on commutation of increased amounts. Sections 14(1) and 24(1) exclude the increased portion from commutation. Where pensioners or their advisers treat the whole pension as commutable, they risk selecting an option that is invalid for the increased part; the Act further prescribes how the annual amount is reduced where commutation occurs on or after the base date (ss 14(2)-(3), 24(2)). Advisers must calculate commutation values net of the increased portion.
Interactions with elections under earlier Acts. Section 8(1)(b)(i)-(ii) computes widows’ non‑contributory portions differently depending on whether the husband made specified elections under earlier Acts (for example, subsection 47(6) of the 1959 Act, or sections 61A/61B of the 1963 Act). Determining which historic election is operative for a widow requires checking the underlying file and prior legislative elections.
Transitional substitution of earlier pension increase entitlements. Section 16 substitutes the entitlements under earlier pension increase Acts with entitlements under Part II, but protects any amount that is already payable and exceeds the substituted amount. Failure to identify prior entitlements and payments can generate under‑ or over‑payments.
Pay‑day specificity. The enactment prescribes when increases first apply to instalments (s 15 for Part II and s 25 for Part III). Misaligning the date of first application to a pay‑day can create incorrect arrears computations.
In short, precise day counts, the correct selection and historic use of statistical series, careful computation of the non‑contributory portion, and attention to the commutation bars are recurrent pitfalls. Automated or spreadsheet calculations must be validated against these statutory particularities.
How to comply
This section provides a step‑by‑step compliance checklist, grounded in the statutory text, for administrators, advisory counsel, and pensioner representatives implementing the Act’s increases.
Identify affected cohort by reference to the principal Acts and relevant dates.
For Part II, identify persons in receipt of pensions under the Defence Forces Retirement Benefits Act 1948 immediately before 1 July 1973, and those in receipt immediately before the commencement of a prescribed year (s 6(1), s 7(1)). Exclude pensions payable to or in respect of an eligible child where the Part excludes them.
For Part III, identify persons to whom pension benefits were payable immediately before 1 July 1975 (s 19).
Confirm baseline pension amounts and contributory status.
Retrieve pension records showing the full annual rate immediately before the relevant base date (30 June prior to the pay date) and identify any contributory pension components. The prescribed percentage is applied to the non‑contributory portion, defined in s 8.
Compute the non‑contributory portion per s 8.
Apply s 8(1)(a) to deduct applicable amounts from the annual pension: any increase under s 45 of the 1948 Act, and two‑sevenths of contributory pension (subject to the alternatives in s 8(1)(a)(ii)-(iii) for re‑classification or prior commutation). For widows, follow the specific cases in s 8(1)(b)(i)-(iii) which adjust the share (one‑half or five‑eighths as applicable).
Where elections under earlier Acts (for example under s 47(6) of the 1959 Act or ss 61A/61B of the 1963 Act) are relevant, verify election history to apply s 8 accurately.
Determine the prescribed percentage.
For increases under Part II: compute A-B/B (CPI change) and C-D/D (average weekly earnings change) as described in s 6(3) and s 7(3); apply the 1.4 multiplier to the CPI percentage; then take the lower of that result and the earnings percentage. For Part III: compute A-B/B for March 1975 v March 1974 (s 18(2)).
Observe rounding rules: if the prescribed percentage includes a fraction of one‑tenth of 1 per cent, apply s 5(4)/s 18(4) to either disregard fractions < 0.05% or round up to 0.1% where fraction ≥ 0.05%.
Use the correct Statistician publications.
Use the CPI numbers for the weighted average of the six State capital cities and, where required, the seasonally adjusted average weekly earnings per employed male unit as published by the Statistician for the specified quarters (ss 6(1), 7(1), 18(2)).
If the Statistician has published a substituted number for the relevant quarter, disregard the earlier number for purposes of this Act (ss 5(2)-(3), 18(3)). If the CPI reference period is changed, use only index numbers in terms of the new reference period for application after the change (s 5(3)).
Apply pro‑rata rules and cut‑off dates where pensions commenced within the relevant period.
For pensions that first became payable on or after specified dates, compute the months in the prescribed counting period (ss 10(2), 11(2), 21(3)). Treat periods less than one month as one month (ss 10(4), 11(4), 21(5)) and handle parts of months per the half‑month rule (ss 10(5), 11(5), 21(6)). Observe exclusion cut‑offs for pensions becoming payable after 15 June in relevant years (ss 10(3), 11(3), 21(3)).
Address suspended pensions correctly.
If a pension was suspended under the relevant section of the principal Act, treat it as deemed payable for entitlement purposes (ss 9, 22) but do not pay increases for any suspended portion. Reconcile the pension payments and suspended periods to avoid paying increases for suspended dates.
Prevent commutation of increased amounts.
Do not authorise commutation of the portion of a pension or pension benefit increased by this Act (ss 14(1), 24(1)). Where commutation occurs on or after the relevant date, reduce annual amounts from the date of commutation to the amount that would have arisen had commutation occurred on the day before the relevant base date (ss 14(2)-(3), 24(2)).
Adjust for re‑classification of invalidity pensioners.
When a re‑classification under the principal Act occurs on or after the relevant base date, compute the rate payable as if the re‑classification had taken effect with effect from the day before the relevant base date (s 13(1)-(2) and s 23). Use the relevant date definitions in s 13(2) when applying for different years.
Apply increases to downstream calculations.
For calculations under particular provisions of the 1948 Act that use the annual rate of pension as an input (for example, pensions payable under ss 55, 57, 58), include any increase under this Part when determining amounts (s 12(1)-(3)). Ensure linked widow or dependant pensions incorporate the adjusted amounts.
Apply the correct pay‑day timing.
For Part II increases, apply the increase to the instalment of pension falling due on the first pension pay‑day after 30 June and thereafter (s 15). For Part III, the statutory provision applies to the pay‑day that occurred on 3 July 1975 and thereafter (s 25). Reconcile pay‑day schedules accordingly.
Recordkeeping and audit trail.
Maintain documentation showing the Statistician numbers used, the arithmetic for prescribed percentage derivation, month counts and part‑month rounding, non‑contributory portion calculations (including references to any elections or prior commutation), and any decisions to withhold increases for suspended periods. Section 16(3) highlights the need to preserve records of amounts already paid where those amounts exceed substituted entitlements.
Civil and legal review.
If there is dispute about calculation or entitlement, consult the procedural and dispute resolution mechanisms in the principal Acts since this Act is incorporated and read as one with those Acts (s 4, s 17). The Act itself contains no appeal procedure specific to these increases.
Following these steps will align administrative action with the statutory requirements laid out in the Act. Ensure computational processes are validated against the Act’s rounding, pro‑rata, and substitution rules, and preserve records to address any retroactive substitution or reconciliation required under s 16.
(1) Subject to this Part, if:
(a) 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 1973 exceeds 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 June quarter of the year 1971; and
(b) the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year 1973 exceeds the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the June quarter of the year 1971;
a person who was in receipt of a pension (other than a pension payable to or in respect of an eligible child) immediately before 1 July 1973 is entitled to an increase, as ascertained in accordance with this section, in the amount of the annual pension that was payable to him immediately before that date.
(2) The increase provided for by subsection (1) in the amount of the annual pension payable to a person immediately before 1 July 1973, is the prescribed percentage of the non‑contributory portion of the amount of the annual pension.
(3) For the purposes of this section, the prescribed percentage is whichever is the lower of:
(a) 1.4 times the percentage that represents A–B expressed as a percentage of B; or
(b) the percentage that represents C–D expressed as a percentage of D;
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 1973;
B 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 June quarter of the year 1971;
C is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year 1973; and
D is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the June quarter of the year 1971.
7 Increases in certain pensions for 1974‑75 and for 1975‑76
7 Increases in certain pensions for 1974‑75 and for 1975‑76
(1) Subject to this Part, if:
(a) 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 1972; and
(b) the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year immediately preceding that prescribed year exceeds the highest estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth 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 1972;
a person who was in receipt of a pension (other than a pension payable to or in respect of an eligible child) immediately before the commencement of that prescribed year is entitled to an increase, as ascertained in accordance with this section, in the amount of the annual pension that was payable to him immediately before the commencement of that prescribed year.
(2) The increase provided for by subsection (1) in the amount of the annual pension payable to a person immediately before the commencement of a prescribed year is the prescribed percentage of the non‑contributory portion of the amount of the annual pension.
(3) For the purposes of this section, the prescribed percentage is whichever is the lower of:
(a) 1.4 times the percentage that represents A–B expressed as a percentage of B; or
(b) the percentage that represents C–D expressed as a percentage of D;
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;
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 1972;
C is the estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth published by the Statistician in respect of the March quarter of the year immediately preceding the prescribed year; and
D is the highest estimate of the seasonally adjusted average weekly earnings per employed male unit throughout the Commonwealth 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 1972.
8 Non‑contributory portion of annual pension
8 Non‑contributory portion of annual pension
(1) For the purposes of this Part, the non‑contributory portion of the amount of annual pension payable to a person at a particular time (in this section referred to as relevant time) is:
(a) in a case to which paragraph (b) does not apply—the amount remaining after deducting from the amount of the annual pension:
(i) subject to subparagraphs (ii) and (iii)—an amount equal to the sum of:
(A) the amount (if any) by which the amount of the annual pension has been increased by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948; and
(B) an amount equal to two‑sevenths of the amount of the person’s contributory pension as ascertained in accordance with subsection (2);
(ii) if the pension is payable to a person under section 52 of the Defence Forces Retirement Benefit Act 1948 and, as a result of the re‑classification of the person under section 53 of that Act, his classification at the relevant time is different from his classification upon retirement—an amount equal to two‑sevenths of the amount that would have been the amount of his contributory pension if his classification at the time of his retirement had been the same as his classification at the relevant time; or
(iii) if a portion of the person's pension had been commuted, or several portions of the person's pension have been commuted, before the relevant time—an amount that bears to an amount equal to two‑sevenths of the amount that would have been the amount of his contributory pension if no portion of his pension had been commuted the same proportion as the amount of the annual pension that would have been payable to the person upon the day following the day on which he retired if that portion or those portions of his pension had been commuted upon the day on which he retired bears to the pension that was payable to him upon the first‑mentioned day; and
(b) in the case of a pension payable to a person by virtue of that person’s being a widow;
(i) in the case of a widow whose husband made, and did not revoke, an election under subsection 47(6) of the Defence Forces Retirement Benefits Act 1959—so much of the amount of the annual pension as is equal to one‑half of the amount that would have been the non‑contributory portion, as ascertained under paragraph (a), of the amount of the annual pension payable to her husband at the relevant time if:
(A) in a case to which clause (B) does not apply—he had not died and, in a case where he had commuted a portion of his pension, he had not done so; or
(B) in a case where he died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act 1948, payable to the widow as if her husband had so died—he had not died but, at the time of his death, had retired on the grounds of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948;
(ii) in the case of a widow whose husband made an election under subsection 47(6) of the Defence Forces Retirement Benefits Act 1959 and an election under section 61A or 61B of the Defence Forces Retirement Benefits Act 1963 or that Act as amended and in force at any time and, after the date on which the later election took effect, he revoked the former election—the amount remaining after deducting from the amount of the annual pension payable to her at the relevant time an amount equal to:
(A) in a case to which clause (B) does not apply—one‑half of the amount that, if her husband had not died, and, in a case where he had commuted a portion of his pension, he had not done so, would, for the purpose of ascertaining the non‑contributory portion of the amount of the annual pension payable to him at the relevant time, have been deducted under paragraph (a) from the amount of the annual pension payable to him at that time; and
(B) in a case where her husband died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act, payable to her as if her husband had so died—one‑half of the amount that, if her husband had not died but, at the time of his death, had retired on the ground of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948, would, for the purpose of ascertaining the non‑contributory portion of the annual pension payable to him at the relevant time, have been deducted under paragraph (a) from the amount of the annual pension payable to him at that time; and
(iii) in any other case—so much of the amount of the annual pension as is equal to five‑eighths of the amount that would have been the non‑contributory portion, as ascertained under paragraph (a), of the amount of the annual pension payable to the husband of the widow at the relevant time if:
(A) in a case to which clause (B) does not apply—he had not died and, in a case where he had commuted a portion of his pension, he had not done so; or
(B) in a case where he died before retirement or where pension is, under subsection 57(3) of the Defence Forces Retirement Benefits Act 1948, payable to the widow as if her husband had so died—he had not died but, at the time of his death, had retired on the grounds of invalidity and had been classified as class A under subsection 51(2) of the Defence Forces Retirement Benefits Act 1948.
(2) In subsection (1), contributory pension in relation to a person referred to in that subsection means:
(a) if the person made an election under section 61A or 61B of the Defence Forces Retirement Benefits Act 1963 or that Act as amended and in force at any time—the pension, other than pension payable to him by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948, that would have been payable to him on his retirement if the category number that was applicable to him immediately before the election took effect had been the category number applicable to him on his retirement; and
(b) in any other case—the pension, other than pension payable to him by virtue of section 45 of the Defence Forces Retirement Benefits Act 1948, that was payable to him on his retirement.
9 Application of increase to suspended pensions
9 Application of increase to suspended pensions
Where a pension would, but for its suspension under section 53B of the Defence Forces Retirement Benefits Act 1948, be payable to a person immediately before 1 July 1973 or immediately before the commencement of a prescribed year, that pension shall, for the purposes of this Part, be deemed to have been payable to that person at that time but any increase in that pension by virtue of this Act does not take effect in respect of any part of that period of suspension.
10 Adjustment of fi
This is an opening excerpt, not the complete document.