Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Act 2014 (Cth)

Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Act 2014

No. 22, 2014

An Act to amend the law in relation to defence force retirement benefits, and for related purposes

Contents 1 Short title 2 Commencement 3 Schedule(s) Schedule 1—Amendments Defence Force Retirement and Death Benefits Act 1973 Defence Forces Retirement Benefits Act 1948

Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Act 2014 No. 22, 2014

An Act to amend the law in relation to defence force retirement benefits, and for related purposes

[Assented to 9 April 2014]

The Parliament of Australia enacts:

1 Short title This Act may be cited as the Defence Force Retirement Benefits Legislation Amendment (Fair Indexation) Act 2014.

2 Commencement This Act commences on the day after this Act receives the Royal Assent.

3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Defence Force Retirement and Death Benefits Act 1973

1 Before section 98A Insert:

Division 1—Introduction

98AA Simplified outline of this Part

Certain pension benefits are indexed each 1 January and 1 July. For pensioners aged under 55, the indexation is based on positive movements in the consumer price index. For pensioners aged 55 or older, the indexation is based on the more favourable of positive movements in: (a) the consumer price index; and (b) the pensioner and beneficiary living cost index; with an adjustment if needed to ensure that affected pension benefits are increased by at least the percentage required to maintain a hypothetical pension at 27.7% of male total average weekly earnings.