Military Superannuation and Benefits Board of Trustees No 1 v Batt [2003] FCA 71

FEDERAL COURT OF AUSTRALIA

Military Superannuation and Benefits Board of Trustees No 1 v Batt [2003] FCA 71 MILITARY SUPERANNUATION AND BENEFITS BOARD OF TRUSTEES NO 1 v ROSS ANDREW BATT V 1209 OF 2001 NORTH J 10 FEBRUARY 2003 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 1209 OF 2001

BETWEEN: MILITARY SUPERANNUATION AND BENEFITS BOARD OF TRUSTEES NO 1

APPLICANT

AND: ROSS ANDREW BATT

RESPONDENT

JUDGE: NORTH J

DATE OF ORDER: 10 FEBRUARY 2003

WHERE MADE: MELBOURNE

THE COURT ORDERS THAT: 1. The appeal is allowed.

2. The determination of the Superannuation Complaints Tribunal that "[i]nterest on the difference between the Class B pension and the Class A pension should be paid from the first pension payday on or after 12 June 1997 at the fund earning rate or the rate as otherwise provided by the Rules" is set aside (this question is hereinafter referred to as "the matter").

3. The matter is remitted to the Superannuation Complaints Tribunal to determine whether interest on the difference between the Class B pension and the Class A pension should be paid from the first pension payday, on or after 12 June 1997, at the fund earning or the rate, or the rate as otherwise provided by the Rules.

Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY V 1209 OF 2001

BETWEEN: MILITARY SUPERANNUATION AND BENEFITS BOARD OF TRUSTEES NO 1

APPLICANT

AND: ROSS ANDREW BATT

RESPONDENT

JUDGE: NORTH J

DATE: 10 FEBRUARY 2003

PLACE: MELBOURNE

REASONS FOR JUDGMENT 1 When the respondent, Mr Batt, was discharged from the army, he was classified as entitled to a Class B pension under the Military Superannuation and Benefits Scheme. He asked the applicant, the Military Superannuation and Benefits Board of Trustees No 1 (the Board), to review his classification. On 12 June 1997, the Incapacity Classification Committee (the Committee) rejected the claim for reclassification. Mr Batt then asked the Board for a reconsideration of this decision on 28 August 1998. The Board also rejected Mr Batt's claim for reclassification. Mr Batt then lodged a complaint with the Superannuation Complaints Tribunal (the Tribunal). 2 On 31 October 2001, the Tribunal determined that Mr Batt was entitled to a Class A pension. It backdated that entitlement to the date of the Committee's original decision on 12 June 1997. The Tribunal then continued: "Interest on the difference between the Class B pension and the Class A pension should be paid from the first pension payday on or after 12 June 1997 at the fund earning rate or the rate as otherwise provided by the Rules." 3 The applicant appealed to the Court under s 46 of the Superannuation (Resolution of Complaints) Act 1993 (Cth) (the Act). The grounds of appeal were: "(a) The Tribunal erred in law in that it made a decision on review in respect of a matter which was not before it because there had been no MSB Board decision on interest which was the subject of the complaint to the Tribunal;