Commonwealth of Australia Bills
[Index]
[Search]
[Download]
[Related Items]
[Help]
This is a Bill, not an Act. For current law, see the Acts databases.
DEFENCE FORCE RETIREMENT AND DEATH BENEFITS AMENDMENT (FAIR INDEXATION) BILL 2010
2010
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Defence Force Retirement and Death
Benefits Amendment (Fair Indexation)
Bill 2010
No. , 2010
(Senator Ronaldson)
A Bill for an Act to amend the Defence Force
Retirement and Death Benefits Act 1973 to provide
for fairer indexation, and for related purposes
i Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010
No. , 2010
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Object
.................................................................................................
2
4 Schedule(s)
........................................................................................
2
Schedule 1--Amendment of the Defence Force Retirement and
Death Benefits Act 1973
3
Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010 No.
, 2010 1
A Bill for an Act to amend the Defence Force
1
Retirement and Death Benefits Act 1973 to provide
2
for fairer indexation, and for related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Defence Force Retirement and Death
6
Benefits Amendment (Fair Indexation) Act 2010.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
2 Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010
No. , 2010
1
Commencement information
Column 1
Column 2
Column 3
Provision(s)
Commencement
Date/Details
1. Sections 1 to 4
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
1 July 2011
1 July 2011
Note:
This table relates only to the provisions of this Act as originally
2
enacted. It will not be amended to deal with any later amendments of
3
this Act.
4
(2) Any information in Column 3 of the table is not part of this Act.
5
Information may be inserted in this column, or information in it
6
may be edited, in any published version of this Act.
7
3 Object
8
The object of this Act is to introduce new indexation arrangements
9
for Defence Force Retirement and Death Benefits Scheme
10
members to recognise the unique nature of military service and the
11
need for a fair, equitable and fiscally-responsible military
12
superannuation system.
13
4 Schedule(s)
14
Each Act that is specified in a Schedule to this Act is amended or
15
repealed as set out in the applicable items in the Schedule
16
concerned, and any other item in a Schedule to this Act has effect
17
according to its terms.
18
19
Amendment of the Defence Force Retirement and Death Benefits Act 1973 Schedule 1
Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010 No.
, 2010 3
Schedule 1--Amendment of the Defence
1
Force Retirement and Death Benefits
2
Act 1973
3
4
1 Section 98A
5
Insert:
6
LCI means Pensioner and Beneficiary Living Cost Index.
7
2 Section 98A
8
Insert:
9
LCI number, in relation to a quarter, means the All Groups
10
Pensioner and Beneficiary Living Cost Index number that is the
11
weighted average of the 8 capital cities and is published by the
12
Statistician in respect of that quarter.
13
3 Section 98A
14
Insert:
15
VEA means Veterans' Entitlements Act 1986.
16
4 Subsection 98B(1)
17
After "in this section", insert "and section 98BA".
18
5 Subsection 98B(2)
19
Omit "The", substitute "Subject to section 98BA, the".
20
6 After section 98B
21
Insert:
22
98BA Additional increase in certain pensions
23
(1) The section applies in relation to a pensioner who is 55 or older.
24
(2) In relation to a pensioner to whom this section applies, the
25
prescribed percentage for a prescribed half-year, ascertained in
26
Schedule 1 Amendment of the Defence Force Retirement and Death Benefits Act 1973
4 Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010
No. , 2010
accordance with subsection 98B(3), is taken to be increased in
1
accordance with this section.
2
(3) If the prescribed percentage for a prescribed half-year is less than
3
the percentage for the prescribed half-year worked out using the
4
pension MBR method in section 98BB, the prescribed percentage
5
is taken to be the percentage worked out using the pension MBR
6
method.
7
(4) If, after applying subsection (3), the prescribed percentage for the
8
prescribed half-year is less than the percentage for the prescribed
9
half-year worked out using the LCI method in section 98BC, the
10
prescribed percentage is taken to be the percentage worked out
11
using the LCI method.
12
98BB Percentage increase using the pension MBR method
13
(1) The percentage worked out in relation to a prescribed half-year
14
using the pension MBR method is the percentage that represents
15
A - B expressed as a percentage of B,
16
where:
17
A is the single pension rate MBR amount (see item 1A of the table
18
in section 59A of the VEA) applicable on the adjustment day prior
19
to the first day of the prescribed half year; and
20
B is the single pension rate MBR amount (see item 1A of the table
21
in section 59A of the VEA) applicable on the day before that
22
adjustment day
23
worked out to 3 decimal places.
24
Note:
Changes in the single pension rate MBR amount reflect changes in
25
Male Total Average Weekly Earnings (MTAWE).
26
Rounding
27
(2) If a percentage worked out under subsection (1) would, if it were
28
worked out to 4 decimal places, end in a number that is greater
29
than 4, that percentage is to be increased by 0.001.
30
Amendment of the Defence Force Retirement and Death Benefits Act 1973 Schedule 1
Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010 No.
, 2010 5
Publication of substituted amounts
1
(3) If at any time (whether before or after the commencement of this
2
section), the Australian Statistician publishes an amount in
3
substitution for a particular amount previously published by the
4
Australian Statistician, the publication of the later amount is to be
5
disregarded for the purposes of this section.
6
Interpretation
7
(4) In this section:
8
adjustment day means:
9
(a) 20 March; or
10
(b)
20
September.
11
98BC Percentage increase using the LCI method
12
(1) The percentage worked out in relation to a prescribed half-year
13
using the LCI method is the percentage that represents A - B
14
expressed as a percentage of B,
15
where:
16
A is the LCI number in respect of the first quarter of the most
17
recent half-year; and
18
B is the highest LCI number in respect of the first quarter of any
19
half-year earlier that the most recent half-year
20
worked out to 3 decimal places.
21
Rounding
22
(2) If a percentage worked out under subsection (1) would, if it were
23
worked out to 4 decimal places, end in a number that is greater
24
than 4, that percentage is to be increased by 0.001.
25
Publication of substituted living cost index numbers
26
(3) Subject to subsection (4), if at any time (whether before or after the
27
commencement of this section) the Australian Statistician
28
publishes a living cost index number for a quarter in substitution
29
Schedule 1 Amendment of the Defence Force Retirement and Death Benefits Act 1973
6 Defence Force Retirement and Death Benefits Amendment (Fair Indexation) Bill 2010
No. , 2010
for a living cost index number previously published by the
1
Australian Statistician for that quarter, the publication of the later
2
living cost index number is to be disregarded for the purposes of
3
this section.
4
Change to reference base
5
(4) If at any time (whether before or after the commencement of this
6
section) the Australian Statistician changes the reference base for
7
the Pensioner and Beneficiary Living Cost Index, regard is to be
8
had, for the purposes of applying this section after the change takes
9
place, only to living cost index numbers published in terms of the
10
new reference base.
11
Interpretation
12
(5) In this section:
13
most recent half-year means the half-year immediately preceding
14
the prescribed half-year.
15