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Military Superannuation and Benefits Trust Deed

Division 1Arrangements for Investment Divisions

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(2) Interpretations of the following matters, for the purposes of these Rules, are provided in Parts 6 to 9 of Schedule 1:

Part 6 Parts of speech and grammatical forms

Part 7 Number

Part 8 Reckoning of time

Part 9 Attainment of particular age.

Part 2—Contributions

3 Contributions by members

(1) A member is required to pay a contribution each fortnight in accordance with this Division. (2) Where contributions by a member fall due during a period when he or she is on leave without pay, the member, or a person acting on his or her behalf, is to pay those contributions: (a) each fortnight; or (b) in such instalments and at such times as CSC approves; or (c) with the approval of CSC, in a lump sum.

4 Amount of contributions

(1) Subject to subrule (2), the amount of the contribution payable by a member in a fortnight is equal to the relevant percentage of: (a) the salary paid to the member in that fortnight; or (b) if in that fortnight the member rendered flexible service—the salary that would have been paid to the member in that fortnight if the member had not rendered flexible service. (2) Where a member elects under subrule (10) to vary the amount of the contribution payable by him or her, that election has effect in relation to the first salary fortnight in relation to which it can be applied in the ordinary course of business. (3) Where a member makes an election under subrule (10), the member is not entitled to make a further election until the expiration of a period of three months after the day on which the earlier election was made. (4) For the purposes of subrule (1), salary is taken not to be paid to a member in respect of a day included in a period that, in accordance with Schedule 2, is a prescribed period. (5) Where: (a) the salary of a member in respect of a period is forfeited, in whole or in part, under regulations made under the Defence Act 1903; and (b) the period does not exceed 21 consecutive days; the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay. (6) Subject to subrule (7), where a member who is granted: (a) long service leave on half pay; or (b) leave without pay for a period not exceeding 21 days; the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay. (7) In a case to which paragraph (6)(b) applies, the member’s salary for the purpose of calculating the contribution payable by the member is taken not to include an allowance unless: (a) the allowance was payable to the member on the day immediately preceding the commencement of the period; and (b) an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, the allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave. (8) In calculating the amount of a contribution payable by a member, the calculation is to be made as if no deductions were made from the member’s salary. (9) Where the amount of a contribution payable by a member includes a fraction of a cent: (a) if the fraction is less than one‑half of a cent—the contribution is taken to be reduced by the amount of the fraction; or (b) if the fraction is one‑half of a cent or more—the contribution is taken to be increased by treating the fraction as one cent. (10) In this rule:

(a) the percentage, being a whole number that is not less than 5 and not more than 10, elected by the member; or
(b) if the member has not made an election—5 per centum.

(1) Where a member is retired on the ground of redundancy or retrenchment or on completion of a limited tenure appointment and he or she is not entitled to an invalidity pension: (a) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and (b) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit. (2) Where a member retires and, on that retirement: (a) he or she has reached his or her retiring age; and (b) that retiring age is less than 55 years; and (c) he or she is not entitled to an invalidity pension; then: (d) subject to Part 10, his or her member benefit is payable to him or her as a lump sum, in accordance with Part 11; and (e) there is applicable to him or her a preserved benefit of the amount of his or her employer benefit. (3) A person who is entitled to be paid a member benefit under paragraph (1)(a) or (2) (d) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the member benefit and if he or she so elects: (a) the member benefit is not payable to him or her as a lump sum; and (b) there is applicable to him or her a preserved benefit of that amount. (4) A person to whom a preserved benefit is applicable under paragraph (1)(b) or (2) (e) may elect that, instead of that benefit being so preserved, it be converted into a pension payable to him or her and if he or she so elects: (a) a preserved benefit of the amount of the benefit is not applicable to him or her; and (b) subject to Parts 10 and 10A, the benefit is converted into a pension payable to him or her. (5) Where: (a) a member retired and, on that retirement, subrule (2) applied to him or her; and (b) he or she again became a member and again retires; and (c) on the last‑mentioned retirement the member is not entitled to an invalidity pension; then, for the purposes of these Rules, the person is taken to be a person to whom subrule (2) applies. (6) If a person who is entitled to be paid a member benefit under paragraph 1 (a) or 2 (d): (a) does not request that the benefit be paid to him or her as a lump sum; and (b) does not make an election under subrule (3); within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.

(1) If a member: (a) retires on or after turning 55; and (b) is not entitled to an invalidity pension; the following benefits are payable to him or her as a lump sum, in accordance with Part 11: (c) subject to Part 10, his or her member benefit; and (d) subject to Parts 10 and 10A, his or her employer benefit. (2) A person who is entitled to be paid a member benefit under subrule (1) may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the member benefit and if he or she so elects: (a) the member benefit is not payable to him or her as a lump sum; and (b) there is applicable to him or her a preserved benefit of that amount. (3) If a person is entitled to be paid an employer benefit under subrule (1): (a) the person may elect that, instead of that benefit being paid to him or her, there be applicable to him or her a preserved benefit of the amount of the employer benefit and, if he or she so elects: (i) the employer benefit is not payable to him or her as a lump sum; and (ii) there is applicable to him or her a preserved benefit of that amount; or (b) the person may elect that, instead of his or her employer benefit being paid to him or her, it be converted into a pension payable to him or her and, subject to Parts 10 and 10A, if he or she so elects, that benefit is so converted; or (c) the person may elect that, instead of his or her employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her and, subject to Parts 10 and 10A, if he or she so elects: (i) that part of the employer benefit is so converted; and (ii) the balance of the employer benefit is payable to him or her as a lump sum. (4) Paragraphs (3) (b) and (c) do not apply to a person whose employer benefit is less than the amount prescribed in rule 65B. (5) If a person who is entitled to be paid a member benefit under subrule (1): (a) does not request that the benefit be paid to him or her as a lump sum; and (b) does not make an election under subrule (2); within the period of 3 months after becoming entitled to the benefit, there is applicable to him or her a preserved benefit of the amount of that benefit.

Percentage of incapacity	Class
60% or more	A
30% or more but less than 60%	B
Less than 30%	C

(1) Where CSC or the Committee, at any time, is satisfied that there has been such a change in the percentage of incapacity in relation to civil employment of an invalidity pensioner that his or her classification should be altered, CSC or the Committee may reclassify him or her in the appropriate classification set out in rule 22 according to the percentage of his or her incapacity in relation to civil employment. (2) Where an invalidity pensioner has attained the age of 55 years and the invalidity pensioner is classified: (a) as Class A—subrule (1) does not apply to him or her; or (b) as Class B—subrule (1) is taken not to empower CSC to reclassify him or her as Class C. (3) In determining, for the purposes of subrule (1), the percentage of incapacity in relation to civil employment of an invalidity pensioner, CSC or the Committee must have regard to the following matters only: (a) the vocational, trade and professional skills, qualifications and experience of the pensioner; (b) the kinds of civil employment which a person with skills, qualifications and experience referred to in paragraph (a) might reasonably undertake; (c) the degree to which any physical or mental impairment of the pensioner, being a prescribed physical or mental impairment, has diminished his or her capacity to undertake the kinds of civil employment referred to in paragraph (b). (4) Where CSC or the Committee reclassifies a person under this rule, CSC or the Committee must specify the date from which the reclassification has effect and, on and after that date, the person is, for the purposes of these Rules, taken to be classified under rule 22 accordingly. (5) Where CSC or the Committee reclassifies a person under this rule, the date specified by CSC or the Committee as the date from which the reclassification has effect is not to be a date earlier than the date on which CSC or the Committee reclassifies the member unless: (a) the person is reclassified as Class A or, having been classified as Class C, is reclassified as Class B; and (b) CSC or the Committee is satisfied that special circumstances exist that justify an earlier date being so specified. (6) Where a person who was retired otherwise than on the ground of invalidity is, by virtue of rule 30, treated as if he or she had been retired on the ground of invalidity, CSC or the Committee may, despite subrule (5), on the same day on which it classifies him or her under rule 22, reclassify him or her under this rule with effect from a date after the date of his or her retirement but before the date on which CSC or the Committee makes the reclassification. (7) The death of a person after he or she has been classified under rule 22 or reclassified under this rule does not prevent the reclassifying of the person under subrule (1). (8) For the purposes of this rule, a person who: (a) is classified as Class C; and (b) immediately before being so classified was an invalidity pensioner other than an invalidity pensioner who had an interim classification made under rule 22A; is taken to be an invalidity pensioner. (8A) This rule does not apply to a person who: (a) is classified as Class C; and (b) immediately before being so classified was an invalidity pensioner; and who either: (c) has, under paragraph 51(1)(c), (d), (e) or (f), been paid the whole of the employer benefit included in his or her preserved benefit; or (d) has attained the age of 55 years and: (i) has been paid the employer benefit included in his or her preserved benefit; or (ii) has elected to have all or part of that employer benefit converted into a pension and has been paid the balance (if any) of the employer benefit. (9) This rule does not apply to a person who has attained the age of 65 years. (10) In this rule:

(a) a physical or mental impairment of the pensioner that was the cause, or one of the causes, of the invalidity by reason of which he or she was retired, whether or not that impairment changed, for better or worse, after that retirement; or
(b) any other physical or mental impairment of the pensioner causally connected with a physical or mental impairment referred to in paragraph (a).

(1) CSC may, by notice in writing given to a person in receipt of an invalidity pension, require him or her: (a) to submit himself or herself for medical examination by a legally qualified medical practitioner at a time and place specified in the notice; or (b) to furnish in writing to CSC, within such period as is specified in the notice, such information as is required by the notice with respect to any employment (whether as an employee or on his or her own account) in which he or she has been engaged during such period as is specified in the notice. (2) A notice under subrule (1) must set out the effect of subrule (3). (3) Where a person fails to comply with a notice given under subrule (1) and CSC is not satisfied that there was a reasonable excuse for the failure, CSC may, by notice in writing given to the person, suspend the person’s invalidity pension with effect from a day determined by CSC, being a day not earlier than: (a) in a case where the first‑mentioned notice required the person to submit to a medical examination on a day specified in the notice—the day next following that day; or (b) in a case where the first‑mentioned notice required the person to furnish information within a period specified in the notice—the day next following the end of that period. (4) A notice to a person under subrule (3) must set out the effect of subrules (7), (9) and (10). (5) An invalidity pension is not payable in respect of a period during which a suspension under subrule (3) is in force. (6) Where: (a) the invalidity pension of a person is suspended under subrule (3); and (b) CSC, having regard to such matters as it considers relevant, is of the opinion that the suspension should be revoked; CSC may, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than the day on which the notice is given. (7) Without limiting subrule (6), where the invalidity pension of a person is suspended under subrule (3), the person may, by notice in writing given to CSC, request CSC to revoke the suspension and, where such a request is made, CSC must, by notice in writing given to the person: (a) if the invalidity pension has been suspended by virtue of the relevant person’s having failed to comply with a notice requiring the person to submit to a medical examination—require the person to submit to a medical examination by a medical practitioner at a time and place specified in the second‑mentioned notice; or (b) if the invalidity pension has been suspended by virtue of the person’s having failed to comply with a notice requiring the person to give information to CSC (in this paragraph called the original notice)—require the person to give in writing to CSC, within such period as is specified in the second‑mentioned notice, such information as was required by the original notice to be given. (8) A notice given by CSC under subrule (7) must set out the effect of subrules (9) and (10). (9) Where: (a) because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person; and (b) either: (i) the person complies with the notice; or (ii) the person fails to comply with the notice but CSC is satisfied that there was a reasonable excuse for the failure; CSC must, by notice in writing given to the person, revoke the suspension with effect from a day determined by CSC, being a day not later than: (c) in a case to which subparagraph (b)(i) applies—the day on which the person so complied with the notice; or (d) in a case to which subparagraph (b)(ii) applies: (i) the day on which CSC became so satisfied; or (ii) if CSC is satisfied that it would be equitable in the circumstances of the case for the revocation to have effect from an earlier day—from that earlier day. (10) Where: (a) because of a request having been made to revoke the suspension of the invalidity pension of a person, a notice under subrule (7) is given to the person; and (b) the person fails to comply with the notice and CSC is not satisfied that there was a reasonable excuse for the failure; CSC must, by notice in writing given to the person, refuse to revoke the suspension. (11) A notice required or permitted to be given: (a) to a person by CSC under subrule (6), (7), (9) or (10) may be given to a person acting on his or her behalf; or (b) to CSC by a person under this rule may be given by a person acting on his or her behalf. (12) Where CSC is required by this rule to give a person a notice, the notice is taken to have been given to the person if: (a) the notice is served on the person personally; or (b) the notice is sent to the person by pre‑paid post as a letter and the person acknowledges receipt of the letter; or (c) where CSC has caused all reasonable steps to be taken to ascertain a reliable address of the person, the notice is sent to the person by pre‑paid post to: (i) in a case where CSC is satisfied that at least one reliable address of the person has been ascertained—that address or one of those addresses; or (ii) in any other case—the last address of the person known to CSC. (13) A reference in subrule (12) to a reliable address of a person is a reference to an address where, if a letter were sent to the person by pre‑paid post to the address, the person would probably receive the letter.

(1) Subject to Parts 10 and 10A, a deceased member’s employer benefit or a pension is payable as follows: (a) if the deceased member is survived by a spouse with or without an eligible child or children, the employer benefit is payable to the spouse as a lump sum; (b) if the deceased member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased member’s notional invalidity pension; (c) if the deceased member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that: (i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and (ii) he or she had made provision for that person or those persons in his or her will; the employer benefit is payable to, or for the benefit of, the person or persons as a lump sum; (d) in any other case the employer benefit is payable to the deceased member’s personal representative as a lump sum. (2) A spouse who is entitled to be paid an employer benefit under paragraph (1)(a) may elect that: (a) instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional invalidity pension and if he or she so elects the benefit is so converted; or (b) instead of that employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional invalidity pension and if he or she so elects: (i) that part of the benefit is so converted; and (ii) the balance of the benefit is payable to him or her as a lump sum. (3) An employer benefits payable under subrule (1) is calculated as if, on the date of the death of the deceased member, he or she had become entitled to invalidity benefits under Division 2 of Part 3 and had been classified as Class A under rule 22. (4) Subrule (3) does not apply where: (a) a member dies and, at the time of his or her death, he or she was absent without leave and had been so absent for a period that exceeds 21 consecutive days; and (b) the salary of the deceased member in respect of the period of absence without leave was forfeited under regulations made under the Defence Act 1903, and an amount equal to the amount of the salary forfeited was not subsequently paid, and is not payable, under those regulations to the deceased member’s personal representative; unless CSC is satisfied that the absence of the member was due to sufficiently mitigating circumstances. (5) In this rule:

(a) he or she had become entitled to invalidity benefits under Division 2 of Part 3; and
(b) he or she had been classified as Class A under rule 22; and
(c) the amount of his or her employer benefit were the amount which his or her spouse elected under paragraph (2)(b) to convert into a pension.

(1) Where a retirement pensioner dies not later than 10 years after his or her pension became payable to him or her and he or she is not survived by a spouse or eligible child to whom, or for the benefit of whom, benefits are payable under this Division, an amount equal to: (a) where the deceased retirement pensioner was an invalidity pensioner immediately before the pensioner’s death: (i) the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the amount of pension paid to the deceased invalidity pensioner since he or she last ceased to be a member; or (ii) the amount of pension which would have been paid to the invalidity pensioner (if he or she had not died) from the date of his or her death until the expiration of a period of 10 years after the invalidity pensioner’s pension became payable to him or her; whichever is the less; or (b) in any other case—the amount (if any) by which the deceased retirement pensioner’s funded employer benefit exceeds the amount of pension paid to the deceased retirement pensioner since he or she last ceased to be a member; is payable as a lump sum as follows: (c) if the deceased member had notified CSC in writing that: (i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and (ii) he or she had made provision for that person or those persons in his or her will; the lump sum is payable to, or for the benefit of, the person or persons; (d) in any other case the lump sum is payable to the deceased member’s personal representative. (2) Where a retirement pensioner dies; and (a) he or she is survived by a spouse to whom a pension is payable under this Division; and (b) the spouse dies not later than 10 years after the retirement pensioner’s pension became payable to him or her and is not survived by an eligible child; there is payable to the deceased spouse’s personal representative as a lump sum an amount equal to: (c) where the deceased retirement pensioner was an invalidity pensioner—the amount (if any) by which the deceased invalidity pensioner’s employer benefit exceeds the total of the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; or (d) in any other case—the amount (if any) by which the deceased retirement pensioner’s funded employer benefit exceeds the total of the amounts of pension paid to the deceased retirement pensioner and his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member. (3) In calculating for the purposes of this rule the period after a pension became payable to a person, any period during which the pension was not payable to the person is disregarded. (4) This rule does not apply in relation to a deceased retirement pensioner who elected under rule 65A not to have his or her funded employer benefit included in the employer benefit that was converted into his or her pension.

(a) where the spouse was in receipt of a pension under subrule 40(2)—the deceased person’s notional invalidity pension, or reduced notional invalidity pension on the date of the member’s death; or
(b) where the spouse was in receipt of a pension under subrule 42(1)—the deceased person’s pension on the date of the member’s death;

(1) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased member under paragraph 40(1)(b) or a deceased former member under paragraph 54(2)(b), an amount equal to the amount (if any) by which the employer benefit of the deceased member or deceased former member (as the case may be) exceeds the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children is payable in accordance with subrule (4). (1A) Where: (a) a pension becomes payable to, or for the benefit of, an eligible child of a deceased member or deceased former member under rule 46; and (b) the deceased spouse’s pension was payable under paragraph 40(1)(a) or 54(2)(a); and (c) the employer benefit converted into that pension included all or part of the funded employer benefit; an amount equal to the amount (if any) by which the funded employer benefit of the deceased member or deceased former member (as the case may be) exceeds an amount equal to the sum of: (d) the amounts of pension paid to the spouse of the deceased member or deceased former member and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and (e) the amount of the funded employer benefit (if any) paid to the deceased spouse as a lump sum; and (f) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children; is payable to the deceased spouse’s personal representative. (2) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased retirement pensioner (other than an invalidity pensioner) under subrule 42(3), an amount equal to the amount (if any) by which the funded employer benefit of the deceased retirement pensioner exceeds an amount equal to the sum of: (a) the amounts of pension paid to the deceased retirement pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and (b) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children; is payable in accordance with subrule (4). (2A) Where: (a) a pension becomes payable to, or for the benefit of, an eligible child of a deceased retirement pensioner (other than an invalidity pensioner) under rule 46; and (b) the deceased spouse’s pension was payable under subrule 42(1); and (c) the employer benefit converted into the deceased retirement pensioner’s pension included all or part of the funded employer benefit; an amount equal to the amount (if any) by which the funded employer benefit of the deceased retirement pensioner exceeds an amount equal to the sum of: (d) the amounts of pension paid to the deceased retirement pensioner, to his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and (e) the amount of the funded employer benefit (if any) paid to the deceased retirement pensioner as a lump sum; and (f) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children; is payable to the deceased spouse’s personal representative. (3) Where a pension becomes payable to, or for the benefit of, an eligible child or children of a deceased invalidity pensioner under subrule 42(3), an amount equal to the amount (if any) by which the employer benefit of the deceased pensioner exceeds an amount equal to the sum of: (a) the amounts of pension paid to the deceased invalidity pensioner and his or her spouse, and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and (b) the amount that CSC determines to be the capital value of the pension payable to, or for the benefit of, the child or children; is payable in accordance with subrule (4). (3A) Where a pension becomes payable to, or for the benefit of, an eligible child of a deceased invalidity pensioner under rule 46, an amount equal to the amount (if any) by which the employer benefit of the deceased invalidity pensioner exceeds an amount equal to the sum of: (a) the amounts of pension paid to the deceased invalidity pensioner, to his or her spouse and to, or for the benefit of, his or her child or children, since he or she last ceased to be a member; and (b) the amount that CSC determines to be the capital value of the pension to be payable to, or for the benefit of, the child or children; is payable to the deceased spouses’s personal representative. (4) Where an amount is payable under subrule (1), (2) or (3): (a) if the deceased person had notified CSC in writing that: (i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and (ii) he or she had made provision for that person or those persons in his or her will; the amount is payable to, or for the benefit of the person or persons as a lump sum; or (b) in any other case, the amount is payable to the deceased person’s personal representative as a lump sum. (5) In determining the capital value of a pension under this rule, CSC must obtain, and have regard to, the advice of an actuary.

(1) Subject to subrules (1AA), (1A), (1B) and (2) and Parts 10 and 10A (but only to the extent that Part 10A relates to a payment to which paragraph (c) relates), if, in relation to a person: (a) to whom a preserved benefit applies; and (b) who has not attained the age of 55 years; one of the following paragraphs applies, the employer benefit and member benefit included in that preserved benefit becomes payable to him or her as a lump sum on the date specified in that paragraph: (c) CSC decides that by reason of the person’s physical or mental incapacity, the person has become unlikely ever to be able to work again in employment for which he or she is reasonably qualified by education, training or experience or for which the person could reasonably be qualified after retraining—the date on which CSC so decides; (d) the person notifies CSC before 1 July 1998 that he or she intends to leave Australia permanently before 1 July 1998 and CSC is satisfied that that intention will be carried out—the date on which CSC became so satisfied; (e) the Australian Prudential Regulation Authority determines that the person satisfies a condition of release on a compassionate ground under subregulation 6.19A(2) of the SIS Regulations—the date CSC approves payment; (f) CSC is satisfied that the person is in severe financial hardship within the meaning of subregulation 6.01(5) of the SIS Regulations—the date when CSC became so satisfied. (1AA) Paragraph (1)(c) does not apply to a person if he or she is either: (a) a member of the Permanent Forces; or (b) a member of the Reserves rendering continuous full‑time service. (1A) An amount that becomes payable under paragraph (1)(e) or (f) is limited to so much of the benefit as is necessary to meet the expenses that give rise to the compassionate grounds or are necessary to alleviate financial hardship. (1B) If only part of a benefit payable under subrule (1) is payable because of subrule (1A), that part may be reduced by part of the surcharge deduction amount before it is paid as a lump sum if CSC considers that there may be insufficient benefit remaining unpaid to pay the surcharge deduction amount. (2) Where a person who is entitled to be paid an employer benefit under subrule (1) is a person to whom paragraph (1)(c) applies, the person may: (a) instead of the employer benefit included in the preserved benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects: (i) the employer benefit is so converted; and (ii) the member benefit (if any) included in the preserved benefit is payable to the person as a lump sum; or (b) instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one‑half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects: (i) that part of the employer benefit is so converted; and (ii) the balance of the preserved benefit is payable to him or her as a lump sum. (3) Subrule (2) does not apply to a person whose employer benefit is less than the amount prescribed in rule 65B. (4) Subrule (2) does not apply to a person if: (a) the person ceased to be a member because he or she chose to become an ADF Super member; and (b) invalidity pension is payable to the person under the Australian Defence Force Cover Act 2015; and (c) the person has not turned 60.

(1) Subject to subrules (1A), (2), (2A) and (3) and Parts 10 and 10A, if employer benefit is included in a preserved benefit that applies to a person aged 55 years or more, the person may, at any time: (a) elect to have that employer benefit paid to him or her as a lump sum in accordance with Part 11 and if the person: (i) makes the election; and (ii) provides CSC with information that CSC requires in order to pay the benefit; the employer benefit is payable to the person from the day CSC receives both the election and the information; or (b) instead of the employer benefit being paid to him or her, elect that it be converted into a pension payable to him or her and if he or she so elects the benefit is so converted; or (c) in the case of a person to whom subrule 51(1A) does not apply—instead of the employer benefit being paid in full to him or her, elect that a specified part of the employer benefit, being not less than one‑half of the employer benefit, be converted into a pension payable to him or her and if he or she so elects: (i) that part of the employer benefit is so converted; and (ii) the balance of the employer benefit is payable to him or her as a lump sum in accordance with Part 11; or (d) in the case of a person to whom subrule 51(1A) applies—instead of the residual employer benefit being paid in full to him or her, elect that a specified part of the residual employer benefit , being: (i) if the residual employer benefit does not exceed the notional employer benefit—not less than one‑half of the notional employer benefit; or (ii) if the residual employer benefit exceeds the notional employer benefit—not less than one‑half of an amount calculated to be the sum of the amount of the residual employer benefit and the amount of benefit that was paid to the person under subrule 51(1A); be converted into a pension payable to him or her, and if he or she so elects: (iii) that part of the residual employer benefit is so converted; and (iv) the balance of the residual employer benefit is payable to him or her as a lump sum in accordance with Part 11. (1A) Subrule (1) does not apply to a person if he or she is either: (a) a member of the Permanent Forces; or (b) a member of the Reserves rendering continuous full‑time service. (2) Paragraphs (1)(b) and (c) do not apply to a person whose employer benefit is less than the amount prescribed in rule 65B. (2A) Paragraphs (1)(b), (c) and (d) do not apply to a person if: (a) the person ceased to be a member because he or she chose to become an ADF Super member; and (b) invalidity pension is payable to the person under the Australian Defence Force Cover Act 2015; and (c) the person has not turned 60. (3) Paragraphs (1)(b) and (d) do not apply to a person: (a) whose residual employer benefit is less than one‑half of his or her notional employer benefit; or (b) whose notional employer benefit is less than the amount prescribed in rule 65B. (4) In this rule:

(1) Upon the death of a person who had been a member but at the time of his or her death was not a member or a retirement pensioner (in this rule called a deceased former member), his or her preserved benefit or a pension is payable in accordance with this rule. (2) Subject to Part 10, a deceased former member’s preserved benefit or a pension is payable as follows: (a) if the deceased former member is survived by a spouse, the preserved benefit is payable to the spouse as a lump sum; (b) if the deceased former member is not survived by a spouse but is survived by an eligible child or children, a pension is payable to, or for the benefit of, the child or children at an annual rate equal to the relevant percentage in Table 2 in Schedule 4 of the deceased former member’s notional pension; (c) if the deceased former member is not survived by a spouse or an eligible child and he or she had notified CSC in writing that: (i) he or she had a person or persons dependent on him or her who would not be eligible to receive benefits as a spouse or eligible child; and (ii) he or she had made provision for that person or those persons in his or her will; the preserved benefit is payable to, or for the benefit of, the person or persons as a lump sum; (d) in any other case, the preserved benefit is payable to the deceased member’s personal representatives as a lump sum. (3) Subject to Part 10, if a pension becomes payable under paragraph (2)(b), the member benefit (if any) included in the preserved benefit is payable, as a lump sum, to, or for the benefit of, the eligible child or children. (4) Subject to Part 10, a spouse who is entitled to be paid an employer benefit under paragraph (2)(a) may elect that: (a) instead of that employer benefit being paid to him or her, it be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s notional pension and if he or she so elects the benefit is so converted; or (b) instead of that employer benefit being paid in full to him or her, a specified part of that benefit, being not less than one‑half of the benefit, be converted into a pension payable to him or her at an annual rate equal to the relevant percentage in Table 1 in Schedule 4 of the deceased member’s reduced notional pension and if he or she so elects: (i) that part of the employer benefit is so converted; and (ii) the balance of the preserved benefit is payable to him or her as a lump sum. (5) Subrule (4) does not apply to a spouse whose employer benefit, or part employer benefit that is to be converted, is less than the amount prescribed in rule 65B. (6) In this rule:

(a) had become entitled, under Division 1 of Part 3, to elect to have part of his or her employer benefit converted into a pension; and
(b) had elected to convert into a pension the same amount of his or her employer benefit as his or her spouse elected under paragraph (4)(b) to convert into a pension.

(1) This rule applies to a pension or associate pension if: (a) the person to whom the pension or associate pension is payable would, but for this rule, be entitled to an increase, in accordance with rule 56, in the rate at which the pension or associate pension was payable to him or her immediately before the commencement of the prescribed half‑year; and (b) the person is: (i) a retirement pensioner and the pension became payable to him or her during the preceding half‑year; or (ii) the spouse of, or eligible child in relation to, a deceased person who was a member immediately before his or her death and the pension became payable to the spouse or child, as the case may be, during the preceding half‑year; or (iii) the spouse of, or eligible child in relation to, a deceased person who was a retirement pensioner immediately before his or her death and the deceased person’s pension became payable to the deceased person during the preceding half‑year; or (iv) a person who receives an associate pension in relation to a member spouse’s pension or associate pension and the member spouse’s pension or associate pension became payable to the member spouse during the preceding half‑year. (2) If: (a) the pension; or (b) where subparagraph (1)(b)(iii) applies—the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child; or (c) where subparagraph (1)(b)(iv) applies—the pension or associate pension that was payable to the member spouse; became payable after 16 June or 16 December in the preceding half‑year, the person is not entitled to the increase. (3) If: (a) the pension or associate pension; or (b) where subparagraph (1)(b)(iii) applies—the pension that was payable to the deceased person in relation to whom the person was a spouse or eligible child; or (c) where subparagraph (1)(b)(iv) applies—the pension or associate pension that was payable to the member spouse; became payable on or before 16 June or 16 December in the preceding half‑year, the amount of the increase is worked out using the formula: Image unavailable in extracted text where:

(1) Where: (a) a person to whom an invalidity pension is payable is reclassified from Class A to Class B or vice versa under rule 23 during a prescribed half‑year; and (b) the person became entitled at the beginning of that half‑year to an increase under this Division in the rate at which that invalidity pension was payable to him or her immediately before the beginning of that half‑year; the rate at which the pension is payable to him or her on and after the date from which the reclassification has effect is the rate at which the pension would have been payable to him or her at the beginning of the half‑year if his or her classification, on and after the date on which he or she became entitled to the pension, had been in accordance with the reclassification. (2) Where: (a) a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and (b) in consequence of a further reclassification under that rule he or she again becomes entitled to an invalidity pension; the rate at which the pension is payable to him or her on and after the date from which the latter reclassification has effect is the rate at which the pension would have been payable to him or her if: (c) he or she had not ceased to be entitled to an invalidity pension in consequence of the first mentioned reclassification; and (d) his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification. (3) Where: (a) a person to whom an invalidity pension was payable ceased to be entitled to an invalidity pension because of his or her reclassification under rule 23; and (b) in consequence of a further reclassification under that rule after his or her death he or she would, had he or she not died, have again become entitled to an invalidity pension; then, for the purpose of calculating benefits for any surviving spouse or eligible child of the invalidity pensioner, the invalidity pensioner is to be taken to have been, immediately before his or her death, in receipt of an invalidity pension at the rate at which that pension would have been payable to him or her if: (c) he or she had not ceased to be entitled to invalidity pension in consequence of the first‑mentioned reclassification; and (d) his or her classification, on and after the date on which he or she first became entitled to an invalidity pension, had been in accordance with the further reclassification.

(a) the year preceding the prescribed year; and
(b) the year that commenced on 1 July 1990.

(1) An election under these Rules is to be in writing. (2) Where a person is about to become, or has become, entitled: (a) to benefits under Part 3 or Part 5; and (b) to make an election in relation to the nature of those benefits; he or she may make that election not earlier than 3 months before he or she is due to become entitled to the benefits and not later than 3 months after becoming entitled to the benefits. (2A) If a person is allowed to make an election under Part 10, he or she may make the election in the same way as an election mentioned in subrule (2). (3) Where an election under these Rules is made by a person after the expiration of the period allowed for the making of the election and CSC is satisfied that, in all the circumstances of the case, it is desirable that the election be recognised, CSC may direct that the election be allowed and if it does so these Rules have effect as if the election had been made within the period allowed. (4) Where a person who is entitled to make an election under these Rules is, by reason of physical or mental incapacity, unable to make that election, CSC may allow such other person as it thinks appropriate to make the election within such period as CSC allows and if it does so and the other person so makes the election these Rules have effect as if the election had been made by the first‑mentioned person within the period allowed. (5) Where: (a) an election under Part 3,4 or 5 is made by the person entitled to make the election or, in accordance with subrule (3), by another person on behalf of the first‑mentioned person; and (b) the person who made the election makes an application to CSC not later than 3 months after the day on which the election is made or within such further period as CSC, in special circumstances, allows requesting that CSC cancel the election; and (c) CSC, having regard to such matters as it considers relevant, is satisfied that the election should be cancelled; CSC may direct that the election is cancelled and if it does so these Rules have effect as if the election had not been made. (6) Where a person who is, or has been, a member is entitled to make an election under Part 3 or 5 and dies without making such an election: (a) if the person is survived by a spouse—the spouse may make the election within 3 months after the person’s death; or (b) if the person is not survived by a spouse, or is survived by a spouse but the spouse dies without making such an election, but the person is survived by an eligible child—the election may be made within that period by such person as CSC permits; and if the spouse, or the person permitted by CSC, does so, these Rules have effect as if the election had been made by the first‑mentioned person.

(1) Where, in the opinion of CSC, the part of: (a) an instalment of spouse’s pension; or (b) a spouse’s lump sum payment; attributable to an eligible child or eligible children, or any portion of that part, should, by reason of the child or children not being in the custody, care and control of the spouse, or for any other reason which CSC thinks proper, be paid to a person other than the spouse, CSC may authorise payment of that part, or a portion of the part, to the other person and if CSC does so payment is to be made to the other person accordingly. (2) For the purposes of subrule (1), the part of a spouse’s lump sum payment attributable to that eligible child or those eligible children is taken to be the amount obtained by multiplying the spouse’s lump sum payment by the percentage applicable in respect of an eligible child or children under rule 42 in relation to a pension. (3) Where, in the opinion of CSC: (a) an instalment, or part of an instalment, of a pension or associate pension; or (b) an amount of any other benefit; should: (c) by reason of the person who, but for this rule, would be entitled to the payment being a child, or being a person who is of unsound mind or undergoing imprisonment or otherwise being under a disability; or (d) for any other reason which CSC thinks proper; be paid to a person other than the person who would be so entitled to the payment, CSC may authorise payment to the other person and if CSC does so payment is to be made to the other person accordingly. (4) It is the intention of this rule that a payment of: (a) the part, or a portion of the part, of an instalment of spouse’s pension attributable to an eligible child that, by virtue of subrule (1), is paid to a person other than the child to which that part or portion is attributable; or (b) an instalment of pension payable to a child that, by virtue of subrule (3), is paid to a person other than the child; be applied for the maintenance, education or other benefit of the child.

(1) A person affected by a decision of CSC (including a decision under subrule 76 (5)), or a decision of a Committee under subrule 76(7), may apply to CSC for reconsideration of the decision within: (a) a period of 30 days after the day on which the person was notified of the decision; or (b) a longer period that, because of special circumstances, CSC allows, either during or after the 30 day period. (2) An application must: (a) be in writing addressed to CSC; and (b) set out particulars of the decision that the person wishes to be reconsidered; and (c) specify the grounds for reconsideration of those particulars; and (d) be accompanied by the prescribed fee (if any). (3) A decision of CSC, or a Committee, must not be reconsidered unless evidence is mentioned in the application for reconsideration that: (a) is not trivial or lacking in substance; and (b) was not previously considered by CSC or Committee in making that decision; and (c) CSC reasonably considers is relevant to the decision. (4) If an application is not supported by evidence in accordance with subrule (3), CSC must dismiss the application. (5) The dismissal of an application in respect of a decision does not preclude the applicant from subsequently submitting another application in respect of the decision. (6) If CSC does not dismiss an application under subrule (4), CSC must refer the decision to which the application relates to a Committee. (7) CSC may also, on its own motion, refer any of its decisions to a Committee. (8) If CSC requests the Committee to reconsider the decision in accordance with subparagraph 74(1)(b)(i), CSC must, after receiving the Committee’s recommendations: (a) take into account the recommendations and any other matter that CSC considers relevant; and (b) affirm or vary the decision, or set the decision aside and substitute another decision for it; and (c) state in writing the results of the reconsideration, including the reasons for CSC’s decision. (9) CSC must give a copy of a document mentioned in subrule (8) to the applicant.

(a) for a splitting agreement—the base amount specified in, or calculated under, the agreement; or
(b) for a splitting order—the amount allocated under subsection 90MT(4) of the Family Law Act 1975.

(a) for a splitting agreement—the percentage specified in the agreement under subparagraph 90MJ(1)(c)(iii) of the Family Law Act 1975; or
(b) for a splitting order—the percentage specified in the order under subparagraph 90MT(1)(b)(i) of the Family Law Act 1975.

(a) if a splitting percentage applies—the amount calculated by multiplying the splitting percentage by the greater of:
(i) the family law value; and
(ii) the scheme value; or
(b) if a base amount applies and the scheme value is not more than the family law value—the base amount; or
(c) if a base amount applies and the scheme value is more than the family law value—the amount worked out using the formula:
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(2) CSC must determine the transfer amount for the non‑member spouse and allocate the transfer amount as associate benefit to the non‑member spouse in accordance with subrules (3) and (4). (3) The value of the following components of the transfer amount is transferred to the non‑member spouse as associate A benefit: (a) any member funded component of the transfer amount; (b) any member unfunded component of the transfer amount; (c) any employer funded component of the transfer amount. (4) Any employer unfunded component of the transfer amount is transferred to the non‑member spouse as associate B benefit. (5) If the non‑member spouse has nominated to CSC the Investment Division or Investment Divisions to which the associate A benefit should be credited (an investment nomination), CSC must comply as far as possible with the nomination. (6) If CSC: (a) has not received an investment nomination from the non‑member spouse; or (b) cannot comply with an investment nomination in relation to all or part of the associate A benefit because the nomination is defective or because the Investment Divisions have changed; CSC must allocate the associate A benefit to the default Investment Division. (7) To derive the transfer amount, the following benefits are reduced in respect of the superannuation interest of the member spouse: (a) any benefit in the member funded account; (b) any benefit in the member unfunded account; (c) any employer funded benefit; (d) any employer unfunded benefit. (8) In allocating the transfer amount to the non‑member spouse: (a) a proportion must be taken from any benefit, in the member funded account, any benefit in the member unfunded account, any employer funded benefit and any employer unfunded benefit; and (b) the proportion taken from each category of benefit must be the same as the category bears to the member spouse’s original interest immediately before the payment split. (9) The total reduction of the benefit is made in accordance with the benefit reduction factors and methodology developed and maintained by an actuary for these Rules.

Step 1	Identify the methodology and factors set out in regulations made for section 90MT of the Family Law Act 1975 that would be used to determine the family law value in relation to the member spouse in accordance with that section as if that section applied in relation to the member spouse.Note: The family law value is determined in accordance with the Family Law (Superannuation) Regulations 2001 that are made for paragraph 90MT(2)(a) of the Family Law Act 1975. The process of determining the family law value may include reliance on methodology and factors approved by the Attorney‑General under subsection 90MT(3) of that Act.
Step 2	Substitute the factors with factors nominated by an actuary for this rule.
Step 3	Use the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse.

Step 1

Identify the methodology and factors set out in regulations made for section 90MT of the Family Law Act 1975 that would be used to determine the family law value in relation to the member spouse in accordance with that section as if that section applied in relation to the member spouse.Note: The family law value is determined in accordance with the Family Law (Superannuation) Regulations 2001 that are made for paragraph 90MT(2)(a) of the Family Law Act 1975. The process of determining the family law value may include reliance on methodology and factors approved by the Attorney‑General under subsection 90MT(3) of that Act.

Step 2

Substitute the factors with factors nominated by an actuary for this rule.

Step 3

Use the methodology identified in step 1, and the factors substituted in step 2, to determine the scheme value in relation to the member spouse.

Step 1	Identify the transfer amount in relation to the non‑member spouse.
Step 2	Identify a pension factor, nominated by an actuary for this rule, based on the non‑member spouse’s age and gender.Note 1: Schedule 4 to the Family Law (Superannuation) Regulations 2001 sets out general pension factors based on age and gender, but those factors are not specific to benefits payable under the Act.Note 2: The associate pension does not include a reversionary component and therefore ceases on the death of the non‑member spouse.
Step 3	Divide the transfer amount by the pension factor.

Step 1

Identify the transfer amount in relation to the non‑member spouse.

Step 2

Identify a pension factor, nominated by an actuary for this rule, based on the non‑member spouse’s age and gender.Note 1: Schedule 4 to the Family Law (Superannuation) Regulations 2001 sets out general pension factors based on age and gender, but those factors are not specific to benefits payable under the Act.Note 2: The associate pension does not include a reversionary component and therefore ceases on the death of the non‑member spouse.

Step 3

Divide the transfer amount by the pension factor.

Step 1	Identify the annual rate of pension that was payable to the member spouse immediately before the operative time.
Step 2	Work out a reduction factor using the formula:
Step 3	Multiply the amount identified in step 1 by the reduction factor.

Division Division 1 - Military Superannuation and Benefits Trust Deed - Arrangements for Investment Divisions | Zoe

Division 1Arrangements for Investment Divisions

Get a plain-English read of Division 1

Part 2—Contributions

3 Contributions by members

4 Amount of contributions

5 Cessation of contributions on reaching maximum benefit limit

6 Contributions while on leave without pay in connection with birth of child etc

7 Contributions while on other leave without pay

8 General conditions applicable to contributions under rules 6 and 7

9 Member contributions to be paid to CSC

10 Liability of Department to pay employer contributions

11 Payment of contributions into Fund

Part 2B—Administration of unitised Fund

Division 1—Arrangements for Investment Divisions

11C Investment Divisions—general

11D Default Investment Division

11E Winding up of Investment Division

11F Net asset value

Division 2—Unitisation procedure

11G Unitisation of an Investment Division

11H Classes of units

11I Unit value

11J Issue price

11K Withdrawal price

11L Division or consolidation of units

Division 3—Arrangements for unitised members

11M Establishment and operation of unitised accounts

11N Annual statement

Division 4—Allocation of contributions to Investment Divisions

11O How contributions are allocated to an Investment Division

11P Allocation of employer contributions

11Q Allocation of member contributions

11QA Treatment of contributions where no tax file number has been provided

11R Suspension of allocations

Division 5—Transferring units from one Investment Division to another

11S How units are transferred from one Investment Division to another

11T Transfer of units in employer accounts on change of default Investment Division

11U Unitised member may apply for transfer of units

11V Transfer applications—day of transfer

11W Limits applicable to transfers

11X Grounds for refusing transfer application

11Y Suspension of transfers

11Z Fees for transfers

11ZA Closed or wound up Investment Division

Division 6—Notice of proposed changes to Investment Divisions

11ZB Members to be informed about proposed changes to Investment Divisions

Division 7—Withdrawal of beneficial interest

11ZC Payment of benefits

11ZD Suspension of withdrawals

Part 3—Members’ benefits

Division 1—Benefits other than Invalidity Benefits

12 Benefits on retirement before reaching 55 years of age or earlier retiring age, otherwise than for redundancy or retrenchment etc

13 Benefits on retirement for redundancy or retrenchment or on completion of limited tenure appointment or on attaining retiring age of less than 55 years

14 Benefits on retirement on or after attaining age of 55 years

14A Benefits on ceasing to be a member because of becoming an ADF Super member

Division 2—Invalidity Benefits

Subdivision A—Incapacity Classification

17 Incapacity Classification Committee

18 Membership of Committee

19 Functions of Committee

20 Proceedings of Committee

21 Decisions by Committee

22 Classification in respect of incapacity

22A Interim classification

23 Reclassification in respect of incapacity

24 Decision as to classification or reclassification to be notified to invalidity retiree

25 Power of CSC to require persons to be medically examined etc

Subdivision B—Invalidity Benefits

26 Entitlement to invalidity benefits

26A Splitting of invalidity benefits after reclassification

27 Invalidity benefits for person classified as Class A

28 Invalidity benefits for person classified as Class B

29 Effect of change of invalidity classification on pension and preserved benefit

30 Person may be treated as having been retired on ground of invalidity

Subdivision C—Invalidity Benefits not Payable

31 Person classified as Class C

32 Pre‑existing condition

33 Invalidity due to intentional act

34 Invalidity arising during absence without leave exceeding 21 days

Division 3—Person rejoining the scheme