Commonwealth: Defence Forces Retirement Benefits Act 1948 (Cth)

Defence Forces Retirement Benefits Act 1948 No. 31, 1948 Compilation No. 24 Compilation date: 28 September 2022 Includes amendments up to: Act No. 112, 2020 Registered: 10 October 2022 About this compilation This compilation This is a compilation of the Defence Forces Retirement Benefits Act 1948 that shows the text of the law as amended and in force on 28 September 2022 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part I—Preliminary 1 Short title 2 Commencement 4 Interpretation 4AA National serviceman on leave of absence without pay in excess of 30 days 4A Categories of members 13 Cost of management 15D Benefits to be paid by Commonwealth after 1 October 1972 25 Cessation of membership 26 Application of the Criminal Code Part V—Pensions and benefits Division 1—Grant of pensions and benefits 38 Pension on retirement after 20 years' service for pension—officers 39 Pension on retirement under special circumstances—officers 41 Pension after 20 years' service for pension—other ranks 41A Annual amount of certain pensions to be calculated to nearest dollar 43 Non‑completion of engagement 44 Completion of engagement 45 Pension increase on officer retiring at age of 61 years or over 50 Service on Reserve 51 Classification in respect of incapacity 52 Rate or amount of invalidity benefit 52A Invalidity benefit payable to certain contributors under Superannuation Act 53 Reclassification in respect of incapacity 53B Power to require invalid pensioners to be medically examined and to furnish information as to employment 54 Incapacity due to wilful action 54A Notional retiring age for certain persons not members of the Permanent Forces 55 Pension on death of member 57 Pension on death of pensioner etc. 57A Set off against widow's pension in certain circumstances 58 Pensions payable in respect of orphans 58A Basic rate of pensions 60 Refund of contributions 62 Children's pensions 63 Payment of pensions etc. otherwise than to person entitled 64 Special grant of pension 64AA Special grant of pension where spouse pension would be payable 64AB Special grant of pension where child's pension would be payable to eligible child 64AC Special grant of pension where child's pension would be payable to eligible orphan 64A Restoration of pensions for remarried widows and widowers 65 General provisions as to pensions 66 Instalments of pension 68 Deduction of unpaid contributions from benefits 69 Re‑engagement etc. of pensioners 71 Absence or desertion 72 Reduction of gratuity by reason of non‑effective service 73 Special invalidity benefit to members under 18 years of age Division 2—Commutation of pension 74 Commutation of pension Part VIA—Family law superannuation splitting Division 1—Preliminary 80A Definitions Division 2—Benefits for non‑member spouse 80B Associate pension for non‑member spouse 80C Commutation of small associate pension Division 3—Reduction of benefits for member spouse 80D Reduction of standard pension Division 4—Miscellaneous 80E Ministerial Orders Part VIB—Application of this Act to pensioners who again become contributors 82E Application of Part 82F Contributions 82G Pension or benefit payable 82GA Pension rates in special cases 82H Persons not entitled to double pension and pensions not to be reduced Part VIC—Preservation of rights of certain members and former members Division 1—Preliminary 82J Interpretation 82K Determinations by the Board Division 2—Contributors who have preserved rights from previous employment 82L Transfer value payable in respect of previous employment 82M Pension payable in respect of previous employment 82N Deferred benefits applicable in respect of previous employment 82P Declaration by member who has previously been in employment 82Q Members with superannuation rights from previous employment 82R Rights of members who elect to pay transfer value to Board 82S Category numbers of certain officers to be reduced Division 3—Preservation of Rights of Contributors Ceasing to be Members 82T Interpretation 82U Eligible employment 82V Public employment 82W Eligible superannuation schemes 82X Transfer value 82Y Deferred benefits 82Z Election that Division apply 82ZA Circumstances in which transfer value payable 82ZB Circumstances in which person entitled to deferred benefits 82ZC Person who is entitled to rights under this Division not entitled to other retirement benefits 82ZD Certain former contributors not entitled to benefits under this Division 82ZE Member who resigned to contest an election 82ZF Invalid pensioner restored to health 82ZG Person entitled to deferred benefits again becoming a member Division 4—Miscellaneous 82ZH Special provisions affecting former members of certain superannuation schemes 82ZJ Payments by Commonwealth Part VID—Pension increases Division 1—Introduction 83A Simplified outline of this Part 83 Definitions 83B Substitutions and changes by Statistician 83C Rounding of percentages Division 2—General provisions about pension increases 83D Simplified outline of this Division 84 Increase in certain pensions 84A Application of increase to suspended pensions 84B Adjustment of increases in case of certain pensions 84C Increases in children's pensions 84D Date of payment of increases 84E Rate of invalidity pension payable on reclassification during a prescribed half‑year 84F Commutation of pension benefits during a prescribed half‑year Division 3—Increase for pensioners aged 55 or older 84G Simplified outline of this Division 84H Increase for pensioners aged 55 or older 84J Indicative pension amount 84K LCI percentage 84L MTAWE result 84M 55‑plus percentage if MTAWE result is higher Part VII—Miscellaneous 85 Assignment of pensions 85A Attachment of pensions 86 Recovery of contributions 86A Cancellation of elections 87 Extension or modification of the Act by regulations 88 Regulations The Schedules Second Schedule—Pension factors Fourth Schedule—Period of service for pension referred to in paragraph 39(2)(c) Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Editorial changes An Act to provide Retirement Benefits for Members of the Defence Force of the Commonwealth, and for other purposes Part I—Preliminary 1 Short title This Act may be cited as the Defence Forces Retirement Benefits Act 1948. 2 Commencement This Act shall come into operation on a date to be fixed by Proclamation. 4 Interpretation (1) In this Act, unless the contrary intention appears: annual pay, in relation to a member, means the product of his daily rate of pay and 365, less any cents included in that product. children includes children adopted by a member and dependent on him at the time of his death. contributor means a member who is or has been contributing under this Act to the Fund. CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011. daily rate of pay, in relation to a member, means his maximum daily rate of active pay as ascertained in accordance with the regulations. eligible child means: (a) a child under the age of 16 years; or (b) a child who: (i) has attained the age of 16 years but has not attained the age of 25 years; (ii) is receiving full‑time education at a school, college or university; and (iii) is not ordinarily in employment or engaged in work on his own account. Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013. initial engagement means an engagement as a member which did not commence immediately upon the termination of a prior engagement as a member. invalidity benefit means benefit to which a member is entitled by virtue of subsection 51(1) and includes a deferred benefit that is applicable in respect of a person under Division 3 of Part VIC and is payable by virtue of paragraph 82ZB(2)(a). member means a member of the Defence Force on continuous full time service, but does not include an indigenous inhabitant of Papua New Guinea who, at the time he engaged to serve, or was appointed, as such a member was a resident of Papua New Guinea. officer means: (a) in relation to the Navy—a member who is a commissioned officer or subordinate officer, but does not include a petty officer; (b) in relation to the Army—a member who is a commissioned officer; and (c) in relation to the Air Force—a member who is a commissioned officer; and includes a cadet enrolled at the Royal Australian Naval College or at the Royal Military College or a member enlisted in the Permanent Air Force as an air cadet. period of non‑effective service, in relation to a member, means, subject to subsection 4AA(5), any period of service of the member exceeding 21 consecutive days during which the member was: (a) on leave of absence without pay; (b) absent without leave; (c) awaiting or undergoing trial on a charge in respect of an offence of which he was later convicted; or (d) undergoing field punishment, detention or imprisonment. Permanent Forces means the Permanent Navy, the Regular Army or the Permanent Air Force. rank means: (a) in relation to a member of the Navy: (i) his confirmed rank or, if he is appointed provisionally or on probation, the rank to which he is so appointed; or (ii) if he is provisionally promoted to another rank—that other rank; (b) in relation to a member of the Army: (i) his substantive rank in his permanent corps or unit or, if he is appointed provisionally or on probation, the rank to which he is so appointed in his permanent corps or unit; or (ii) if he is provisionally promoted to another rank in his permanent corps or unit—that other rank; and (c) in relation to a member of the Air Force: (i) his substantive rank or, if he is appointed provisionally or on probation, the rank to which he is so appointed; or (ii) if he is provisionally promoted to another rank—that other rank. Reserve means: (a) in relation to a member of the Navy—the Naval Reserve; and (b) in relation to a member of the Army—the Army Reserve; and (c) in relation to a member of the Air Force—the Air Force Reserve. retirement, in the case of a member not being an officer, includes discharge. retiring age for the rank held, in relation to a member, means the age for compulsory retirement of a member of the rank, branch and group of the member as prescribed, for the purposes of this Act, by regulations under this Act in force at the date of his retirement. service means service as a member. service for pension means continuous full time service as a member after attaining the age of 20 years other than: (a) in the case of a member other than an officer—service not served under engagement for a definite term; or (b) subject to subsection (3), service in respect of which a member is not permitted or required to contribute to the Fund. the appointed date means the date of commencement of this Act. the Authority means the Defence Force Retirement and Death Benefits Authority established by section 8 of the Defence Force Retirement and Death Benefits Act 1973, as in force before its repeal by item 44 of Schedule 1 to the Superannuation Legislation (Consequential Amendments and Transitional Provisions) Act 2011. the Service means the Navy, the Army or the Air Force as the case requires. the Superannuation Fund means the Superannuation Fund established under the Superannuation Act 1922‑1948. (1A) For the purposes of this Act, a person shall be deemed to have served as a member during any period (whether before or after the commencement of this subsection) if he served during that period as a member as defined by this section as in force during that period. (2) For the purposes of this Act, but subject to subsection 4AA(4), a member of the Defence Force on continuous full time service shall not be deemed to have ceased to be on continuous full time service during any period when he is: (a) absent with or without leave; (b) awaiting or undergoing trial on any charge; or (c) undergoing punishment, detention or imprisonment; and any such period shall be deemed to be a period of service. (2A) Where a member of the Defence Force not on continuous full time service commences continuous full time service, then, for the purposes of this Act: (a) if he is an officer on the day on which he so commences—he shall be deemed to have been appointed as an officer on that day for the period for which he is to serve on continuous full time service; and (b) if he is a member other than an officer on the day on which he so commences—he shall be deemed to have engaged to serve as a member of the Defence Force on that day for the period for which he is to be on continuous full time service. (2B) Where a member of the Defence Force on continuous full time service ceases to be on continuous full time service but continues to be a member of the Defence Force, he shall, for the purposes of this Act, be deemed to have retired on the day on which he ceases to be on continuous full time service. (3) In subsections 52(6) and (7), paragraph 52(8)(b) and sections 56A and 72, service for pension includes service in respect of which, by virtue of section 36, a member is not permitted or required to contribute to the Fund. (4) In determining the service for pension of a member for the purposes of a provision of this Act (other than subsections 52(6) and (7), paragraph 52(8)(b) and section 56A), service of the member immediately before a period in respect of which the member was not permitted or required to contribute to the Fund by virtue of section 36 and service of the member immediately after that period shall be deemed to be continuous. (5) In this Act, a reference to a Schedule shall be read as a reference to a Schedule to this Act. (6) Where, by virtue of an election made by a member in pursuance of the Air Force Regulations within a period of 4 months after the commencement of this subsection, the age for compulsory retirement of the member is an age other than the retiring age for the rank held by him, this Act shall apply to and in relation to the member as if the retiring age for the rank held by him were the age for compulsory retirement of the member. (7) For the purposes of this Act, an officer shall be deemed to be serving under a short service commission if his appointment as an officer is for a period specified in the appointment. 4AA National serviceman on leave of absence without pay in excess of 30 days (1) In this section, national serviceman means a member who is a national serviceman or a national service officer for the purposes of the National Service Act 1951‑1968. (2) Where a national serviceman has been absent on leave of absence without pay for a continuous period that exceeds 30 days, he is not permitted, and shall not be required, to contribute to the Fund in respect of such part of the period during which he is so absent as extends beyond 30 days. (3) Where a national serviceman dies or is discharged during any period in respect of which, by virtue of subsection (2), he is not permitted or required to contribute to the Fund, pension under this Act, or gratuity under section 52, is not payable to or in respect of him. (4) In determining the period of service for pension of a national serviceman for the purposes of this Act, any period in respect of which, by virtue of subsection (2), the national serviceman was not permitted or required to contribute to the Fund shall not be treated as a period of service, but service of the national serviceman immediately before such a period and service of the national serviceman immediately after that period shall be deemed to be continuous. (5) In the application of this Act to or in respect of a national serviceman, period of non‑effective service does not include a period during which the national serviceman is absent on leave of absence without pay. 4A Categories of members (1) For the purposes of this Act in its operation before 1 October 1972, members are divided into categories according to their respective rates of annual pay, and each member has a category number ascertained in accordance with subsection (2). (2) The category number of a member is: (a) if the annual pay of the member is less than the prescribed amount—the number ascertained in accordance with the formula , where A is the number of dollars in his annual pay or, if the number of dollars in his annual pay is not a multiple of 130, the next lower number that is such a multiple; and (b) in any other case—the number ascertained in accordance with the formula , where: B is the number of dollars in the prescribed amount; and C is the number by which the number of dollars in the member's annual pay exceeds the number of dollars in the prescribed amount or, if the number so ascertained is not a multiple of 163, the next lower number that is such a multiple. (3) A reference in this Act to a change in the category of a member shall be read as a reference to a change in his category number. (3A) Where, after the expiration of a period of 2 years after a member has attained the retiring age for the rank held by him, his category changes, the change in category shall be disregarded for the purposes of this Act. (3B) Where the category of a member changes and, as a result of the change, the amount of contribution to be paid fortnightly by him to the Fund would, if he did not make an election under this subsection, become less, he may, by notice in writing given to the Board within 4 months after the change, elect to have that change in category disregarded, and, if he so elects, that change in category shall be disregarded for the purposes of this Act. (4) In this section, the prescribed amount means such amount, being a multiple of $130, as is specified in the regulations for the purposes of this section. (5) In making a regulation for the purposes of subsection (4), the Governor‑General shall have regard to any general variations in the rates of annual pay of members that have occurred. (6) A regulation for the purposes of subsection (4) may be expressed to have taken effect from a date earlier than the date on which the regulation is made, being a date not earlier than 6 months before the date on which the regulation is made. 13 Cost of management (1) The cost of the administration of this Act shall be paid out of moneys appropriated from time to time by the Parliament for the purpose. 15D Benefits to be paid by Commonwealth after 1 October 1972 Any instalment of pension or any other benefit that became or becomes payable under this Act on or after 1 October 1972 must be paid by the Commonwealth and the Consolidated Revenue Fund is appropriated accordingly. 25 Cessation of membership (1) Subject to subsection (2), a member who retires ceases to be a member, for the purposes of this Act, on the day following the date of his retirement. (2) Where a contributor retires and, without a break in the continuity of his service, again becomes a member, he shall, for the purposes of this Act, be deemed not to have ceased to be a member by reason of that retirement. 26 Application of the Criminal Code Chapter 2 of the Criminal Code applies to all offences against this Act. Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Part V—Pensions and benefits Division 1—Grant of pensions and benefits 38 Pension on retirement after 20 years' service for pension—officers (1) This section applies to an officer who: (a) is a contributor; (b) has completed 20 years' service for pension; and (c) is not entitled to invalidity benefit. (2) An officer to whom this section applies is entitled, on his retirement on or after attaining the retiring age for the rank held by him, to pension in accordance with the succeeding provisions of this section. (3) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is 60 years or more is an amount per annum ascertained by multiplying the amount of $91 by the number that is his category number on that date. (3A) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is less than 60 years is the amount per annum that would be the rate applicable to him under subsection (3) if he had attained the age of 60 years on that date multiplied by the factor set out in the third column of the Second Schedule opposite to the age set out in the first column of that Schedule that is his age on that date. (4) Where an officer has completed more than 2 years' service after attaining the retiring age for the rank held by him, the pension payable to him under this section shall be the pension that would have been so payable if he had retired upon completing 2 years' service after attaining that retiring age. (5) This section does not apply to a person who retires on or after 1 October 1972. 39 Pension on retirement under special circumstances—officers (1) This section applies to an officer who: (a) is a contributor; and (b) is not entitled on retirement to a pension under section 38 or to invalidity benefit. (2) Where: (a) an officer to whom this section applies: (i) retires on or after attaining the retiring age for the rank held by him; and (ii) had, not later than 2 years after attaining the retiring age for the rank held by him, completed 15 years' service for pension; (b) an officer to whom this section applies: (i) has completed 20 years' service for pension; and (ii) retires before attaining the retiring age for the rank held by him; and the Board is satisfied that the purpose of his retirement is to meet the needs of the Service; or (c) an officer to whom this section applies: (i) has completed a period of service for pension not less than the period specified in the Fourth Schedule in relation to his rank at the date of his retirement; and (ii) retires with the approval of the Service Board before, but within 3 years of, attaining the retiring age for the rank held by him, being a rank the retiring age for which is an age not greater than 55 years; and the Board is satisfied that the purpose of the retirement is to enable him to establish himself in civil employment and approves payment of pension under this section to him; the officer is entitled, on his retirement, to a pension in accordance with the succeeding provisions of this section. (3) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is 60 years or more is an amount per annum ascertained by multiplying the amount of $91 by the number that is his category number on that date. (3A) Subject to this Act, the rate at which pension is payable under this section to an officer whose age on the date of his retirement is less than 60 years is the amount per annum that would be the rate applicable to him under subsection (3) if he had attained the age of 60 years on that date multiplied by the factor set out in the third column of the Second Schedule opposite to the age set out in the first column of that Schedule that is his age on that date. (4) In the application of subsections (3) and (3A) to an officer referred to in paragraph (2)(a), the age of that officer at the date of his retirement shall be deemed to be his actual age on that date reduced by: (a) a period equal to the difference between 20 years and the number of years of service for pension completed by him; and (b) the number of years of service, if any, completed by him after the expiration of 2 years after he attained the retiring age for the rank held by him. (5) This section does not apply to a person who retires on or after 1 October 1972. 41 Pension after 20 years' service for pension—other ranks (1) This section applies to a member, not being an officer, who: (a) is a contributor; (b) has completed 20 years' service for pension; and (c) is not entitled to invalidity benefit. (2) A member to whom this section applies is entitled to a pension on his retirement after completion of his engagement or, if he has had successive and continuous engagements, after completion of the last of those engagements. (3) Subject to this Act, the rate at which pension is payable to a member under this section is an amount per annum ascertained by multiplying the amount of $91 by the number that is his category number on the date of his retirement and, except where he has completed 40 years' service for pension, multiplying the result by the factor set out in the third column of the Second Schedule opposite to the number of years set out in the second column of that Schedule that is the number of years of service for pension completed by him. (4) This section does not apply to a person who retires on or after 1 October 1972. 41A Annual amount of certain pensions to be calculated to nearest dollar Where the amount of pension per annum ascertained under section 38, 39 or 41 includes an amount of cents: (a) if that last‑mentioned amount is less than 50 cents—the amount of pension shall be deemed to be reduced by that last‑mentioned amount; and (b) in any other case—the amount of pension shall be deemed to be increased by treating the cents as $1. 43 Non‑completion of engagement (1) Except as otherwise provided in this Act, where a member (not being an officer), who is a contributor, retires before completing the engagement under which he was serving immediately prior to his retirement, he shall be entitled to a refund of the amount of any contributions paid by him under this Act in respect of the period served under the uncompleted engagement and shall also be entitled, as from the date of his retirement, to the pension or benefits (if any) to which he would have been entitled if he had retired immediately before commencing to serve under that engagement: Provided that a member who has completed 20 years' service for pension prior to attaining the retiring age for his rank and retires with the approval of the Service Board shall not be entitled to a refund under this section, but shall be entitled to the same pension as that to which he would have been entitled if the pension had been granted under section 41 and if the engagement, which was uncompleted at the date of his retirement, had been an engagement for the completed portion thereof and he had retired on the completion of that engagement. (2) This section does not apply to a person who retires on or after 1 October 1972. 44 Completion of engagement (1) Subject to this section, a member shall not, for the purposes of sections 41, 42 and 43, be deemed to have completed an engagement unless he has served under the engagement up to the date on which the engagement was due to terminate. (2) Where a member, before the completion of his engagement, or, if he has had successive and continuous engagements, before the completion of the last of those engagements: (a) retires with the approval of the Service Board; or (b) is retrenched or is otherwise discharged for reasons other than disciplinary reasons; he shall, for the purposes of subsection 42(1), be deemed to have completed his engagement or the last of those engagements, as the case may be, but, for the purposes of subsection 42(2), he shall not be deemed to have completed a period of service for pension longer than the period completed by him immediately before his retirement or discharge. 45 Pension increase on officer retiring at age of 61 years or over Where: (a) a contributor, being an officer, retires on or after the day on which he attains the age of 61 years; (b) the retiring age for the rank held by him is 60 years; and (c) he is entitled to a pension under section 38, or under subsection 52(1); the amount of that pension shall be increased by an amount ascertained by multiplying the portion of the pension equivalent to the contributions paid by him to the Fund by: (d) if his age on retirement is less than 62 years—6%; or (e) in any other case—13%. 50 Service on Reserve (1) Notwithstanding anything contained in this Act, if a person entitled to a pension under this Act is, on retirement, requested by the Service Board to serve on the Reserve maintained by the Service of which the person was a member and the person: (a) does not agree so to serve; or (b) having agreed so to serve, is released at his or her own request from the agreement; there shall, subject to subsection (2), be deducted from each fortnightly instalment of the pension (other than an instalment that becomes payable on or after 1 October 1972) an amount of $4 if the person is a male or $2 if the person is a female. (2) The sum of the deductions made from instalments of the pension of a person under subsection (1) shall not exceed: (a) if the person has not agreed to serve on the Reserve—$400 if the person is a male or $200 if the person is a female; or (b) if the person has agreed to serve on the Reserve but is released at his or her own request from the agreement—such amount as the Board determines, being an amount that does not exceed $400 if the person is a male or $200 if the person is a female. (3) Where, under this section, an amount is deducted from a payment of pension to a person, the amount that, but for this subsection, the Commonwealth would be required to pay to the Fund under this Act in respect of the payment shall be such amount as the Commonwealth would have been required to pay if the deduction had not been made less the amount of the deduction. 51 Classification in respect of incapacity (1) Subject to subsection (3), where: (a) a member who is a contributor has been retired before attaining the retiring age for the rank held by him; (b) an officer who is a contributor has been granted an extension of service for a period that does not extend beyond the period of 2 years after the attainment by him of the retiring age for the rank held by him and has been retired before the expiration of the period of the extension; (c) a member (not being an officer) who is a contributor has been engaged for a period of service extending beyond the date on which he will attain the retiring age for the rank held by him and has been retired before the expiration of a period of 2 years after that date and before the expiration of the period of the engagement; or (d) the age for compulsory retirement of a member (not being an officer) who is a contributor has been extended and the member has been retired before the attainment by him of the extended age and before the expiration of a period of 2 years after the attainment by him of the retiring age for the rank held by him; on the ground of invalidity or of physical or mental incapacity to perform his duties (not, in the opinion of the Authority, due to wilful action on his part for the purpose of obtaining pension or other benefit), he is entitled to benefit in accordance with sections 52, 52A and 53, but, subject to section 60, is not otherwise entitled to benefit under this Act. (2) Where a person (not being a person to whom section 52A applies) is, or is about to become, entitled to benefit by virtue of subsection (1), the Authority shall determine the percentage of total incapacity of the person in relation to civil employment and shall classify the person according to the percentage of incapacity as follows: Percentage of Incapacity Class 60 or over...................................A 30 or over but less than 60 B Less than 30..................................C (2A) Where: (a) a person (other than a person to whom section 52A applies) who is entitled to benefit by virtue of subsection (1) dies; and (b) at the time of his or her death, the Authority has not made a determination in respect of the person under subsection (2); the Authority must: (c) determine what was, immediately before the person's death, his or her percentage of incapacity in relation to civil employment; and (d) classify the person under subsection (1) according to that percentage of incapacity, as if the person had not died. (2B) Where a deceased member of the scheme is classified under this section, the classification is taken to have had effect at all times on and after his or her retirement. (3) Where: (a) a member, within 3 months after becoming a contributor, is retired on the ground of invalidity or of physical or mental incapacity to perform his duties; and (b) the Authority is satisfied that: (i) the invalidity or incapacity was caused, or was substantially contributed to, by a physical or mental condition that existed at the time he became a contributor; and (ii) the condition was not aggravated, or was not materially aggravated, by his service as a member; subsection (1) does not apply in relation to him. (4) Where a person who has ceased to be a member again becomes a member (other than a person referred to in Part VIA as a re‑instated candidate to whom this Part applies), subsection (3) applies in relation to him as if he had become a contributor at the time he commenced to make contributions after again becoming a member. (5) This section does not apply to a person who retires on or after 1 October 1972. (6) Where a member who is a contributor has, before 1 October 1972, been retired otherwise than on the ground of invalidity or of physical or mental incapacity to perform his duties but the Chief of the Defence Force or a person authorized in writing by the Chief of the Defence Force informs the Authority that, at the time the member was retired, grounds existed on which he could have been retired on the ground of invalidity or of physical or mental incapacity to perform his duties, he may, for the purposes of this Act, be treated as if he had been retired on that ground. 52 Rate or amount of invalidity benefit (1) A person who is entitled to invalidity benefit and is classified as Class A under subsection 51(2) is entitled to a pension at a rate of such amount per annum as is ascertained by multiplying the amount of $91 by the number that is his category number on the date of his retirement. (2) A person who is entitled to invalidity benefit, is classified as Class B under subsection 51(2) and was an officer immediately before his retirement is entitled to a pension: (a) if, immediately before his retirement, he had completed 20 years' service for pension but had not attained the retiring age for the rank held by him at that time—at the rate at which pension would be payable to an officer of the same category as the category of the person immediately before his retirement who became entitled to a pension under section 38 upon retiring on attaining the retiring age for the rank held by the person immediately before his retirement; (b) if, immediately before his retirement, he had completed 20 years' service for pension and had attained the retiring age for the rank held by him at that time—at the rate at which pension would be payable to him under section 38 if he were not entitled to invalidity benefit; or (c) in any other case—at whichever is the lesser of the following rates: (i) the rate at which pension would be payable to an officer of the same category as the category of the person immediately before his retirement who became entitled to a pension under section 38 upon retiring on attaining the retiring age for the rank held by the person immediately before his retirement; or (ii) a rate equal to one‑half of the rate at which pension would be payable to him if he were classified as Class A under subsection 51(2). (3) A person who is entitled to invalidity benefit, is classified as Class B under subsection 51(2) and was not an officer immediately before his retirement is entitled to a pension: (a) if, immediately before his retirement, he had completed 20 years' service for pension—at the rate at which pension would be payable to him under section 41 if he were not entitled to invalidity benefit; or (b) in any other case—at the rate at which pension would be payable to a member of the same category as the category of the person immediately before his retirement who became entitled to a pension under section 41 upon retiring on completing 20 years' service for pension. (4) Where a person to whom paragraph (3)(a) applies retired before completing the engagement under which he was serving on the date of his retirement and before attaining the retiring age for the rank held by him, then, for the purpose of determining the rate at which pension is payable to him, his period of service for pension shall be deemed to be the period that would have been his period of service for pension if he had retired upon completing that engagement. (5) A person who is entitled to invalidity benefit, is classified as Class C under subsection 51(2) and was an officer immediately before his retirement is entitled: (a) if, immediately before his retirement, he had completed 20 years' service for pension but had not attained the retiring age for the rank held by him at that time—to a pension at the rate at which pension would be payable to him if, upon retirement, he had become entitled to a pension under section 39 by virtue of paragraph 39(2)(b); (b) if, immediately before his retirement, he had completed 20 years' service for pension and had attained the retiring age for the rank held by him at that time—to a pension at the rate at which pension would be payable to him if he were classified as Class B; or (c) in any other case—in addition to a refund under section 60 of the amount of contributions paid by him under this Act, to a gratuity in accordance with subsections (6) and (7). (6) Subject to subsection (7), the gratuity to which a person is entitled under paragraph (5)(c) is an amount calculated at the rate of $150 if the person is a male, or $75 if the person is a female, for each year of service for pension completed by the person. (7) Where the period of service for pension of a person who was an officer immediately before his retirement includes a period served by the person as a member other than an officer, the gratuity to which the person is entitled under paragraph (5)(c) is the sum of: (a) an amount calculated at the rate of $100 per annum if the person is a male, or $50 per annum if the person is a female, in respect of the period of service for pension completed by the person as a member other than an officer; and (b) an amount calculated at the rate of $150 per annum if the person is a male, or $75 per annum if the person is a female, in respect of the period that is equal to the difference between: (i) the period comprising the years of service for pension completed by the person on retirement; and (ii) the period of service for pension completed by the person as a member other than an officer. (8) A person who is entitled to invalidity benefit, is classified as Class C under subsection 51(2) and was not an officer immediately before his retirement is entitled: (a) if, immediately before his retirement, he had completed 20 years' service for pension—to a pension at the rate at which pension would be payable to a member of the same category as the category of the person immediately before his retirement who became entitled to a pension under section 41 upon retiring on completing a period of service for pension equal to the period of service for pension completed by that person; or (b) in any other case—in addition to a refund under section 60 of the amount of contributions paid by the person under this Act, to a gratuity: (i) if the person is a male—of an amount calculated at the rate of $100 for each year of service for pension completed by him; or (ii) if the person is a female—of an amount calculated at the rate of $50 for each year of service for pension completed by her. (9) For the purposes of subsections (6) and (7) and subparagraphs (8)(b)(i) and (ii), service for pension includes service before attaining the age of 20 years under any engagement under which the person has served, but does not include any period of such service under an initial engagement of less than one year. (10) Where at any time the Authority is satisfied that the value of any invalidity benefit payable to a person who was an officer immediately before his retirement and was retired on or after attaining the retiring age for the rank held by him is less than the value of any benefit to which he would have been entitled under this Act if he had not been entitled to invalidity benefit, the Authority may vary the invalidity benefit to such extent as it thinks proper in the circumstances, but not so as to reduce its value. 52A Invalidity benefit payable to certain contributors under Superannuation Act (1) This section applies to a member who becomes entitled to benefit by virtue of subsection 51(1) of this Act and who, at the time he becomes so entitled, is an employee for the purposes of the Superannuation Act 1922‑1968 whose liability to make contributions to the Superannuation Fund is deferred by virtue of section 35A of that Act or is a person whose entitlement to a pension under that Act is suspended by force of subsection 48C(1) of that Act. (2) Notwithstanding anything contained in section 52, the invalidity benefit to which a person to whom this section applies is entitled is, in addition to a refund under section 60 of the amount of contributions paid by him under this Act, the gratuity to which he would have been entitled if: (a) this section had not applied to him; and (b) he had been classified as Class C under subsection 51(2). 53 Reclassification in respect of incapacity (1) The Authority may, from time to time, if it is satisfied that the percentage of incapacity in relation to civil employment of a pensioner classified under section 51 is such that the classification of the pensioner should be altered, reclassify him in the appropriate classification set out in subsection 51(2) according to the percentage of his incapacity in relation to civil employment. (1AA) If, at a time when the Authority is reviewing, but has not yet determined, for the purposes of subsection (1), the percentage of incapacity in relation to civil employment of a pensioner, the pensioner dies: (a) the Authority must determine what was, immediately before the pensioner's death, his or her percentage of incapacity in relation to civil employment; and (b) where the Authority is satisfied, having regard to that percentage of incapacity, that, if the pensioner had not died, the pensioner would be reclassified and given a classification higher than that of the pensioner at the time of his or her death, the Authority must reclassify the pensioner under subsection (1) according to that percentage of incapacity, as if the pensioner had not died. (1A) In determining: (aa) what is the percentage of incapacity in relation to civil employment of a pensioner; or (aab) what was, immediately before his or her death, the percentage of incapacity in relation to civil employment of a pensioner who has died; the Authority shall 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 or had diminished the capacity of the pensioner to undertake the kinds of civil employment referred to in paragraph (b); (d) such other matters (if any) as are prescribed for the purposes of this subsection. (1B) In subsection (1A), prescribed physical or mental impairment, in relation to a pensioner or a deceased pensioner, means: (a) a physical or mental impairment of the pensioner that was the cause, or one of the causes, of the invalidity or physical or mental incapacity by reason of which the pensioner was retired, whether or not that impairment changed, for better or worse, since 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). (2) Where a person is reclassified under this section, the Authority shall specify the date from which the reclassification has effect and, on and after that date, the person shall, for the purposes of section 52, be deemed to be classified accordingly. (2A) Where a deceased person is reclassified under this section: (a) the Authority must specify the day from which the reclassification has effect; and (b) the person is taken, for the purposes of section 52, to have been classified accordingly on and after that day. (3) If, upon reclassification as Class C, a person would, but for this subsection, be entitled in accordance with section 52 to invalidity benefit consisting of a refund of contributions and a gratuity, he is entitled to that benefit only to the extent that it exceeds the sum of the payments of pension received by him as invalidity benefit. (4) In this section, pensioner includes a person who is classified as Class C by reason of his having been reclassified (whether before or after the commencement of this subsection) under subsection (1) of this section, whether or not the person is entitled to a pension. 53B Power to require invalid pensioners to be medically examined and to furnish information as to employment (1) The Authority may, by notice in writing to a person to whom a pension, being invalidity benefit, is being paid, require that person: (a) to submit himself 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 the Authority, 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 own account) in which the person has been engaged during such period as is specified in the notice. (2) A notice under subsection (1) shall set out the effect of subsection (3). (3) Where a person fails to comply with a notice given under subsection (1) and the Authority is not satisfied that there was a reasonable excuse for the failure, the Authority may, by notice in writing given to the person, suspend the person's pension with effect from such day as the Authority determines, 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 subsection (3) shall set out the effect of subsections (5B), (5D) and (5E). (5) Pension is not payable in respect of a period during which a suspension under subsection (3) is in force. (5A) Where: (a) the pension of a person is suspended under subsection (3); and (b) the Authority, having regard to such matters as it considers relevant, is of the opinion that the suspension should be revoked; the Authority may, by notice in writing given to the person or to the person and a person acting on the person's behalf, as the case may be, revoke the suspension with effect from such day as the Authority determines, being a day not later than the day on which the notice is given. (5B) Without limiting subsection (5A), where the pension of a person (in this subsection called the relevant person) is suspended under subsection (3), the relevant person, or another person acting on the relevant person's behalf, may, by notice in writing given to the Authority, request the Authority to revoke the suspension, and where such a request is made, the Authority shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be: (a) if the pension has been suspended by virtue of the relevant person's having failed to comply with a notice requiring the relevant person to submit to a medical examination—require the relevant 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 pension has been suspended by virtue of the relevant person's having failed to comply with a notice requiring the relevant person to give information to the Authority (in this paragraph called the original notice)—require the relevant person to give in writing to the Authority, within such period as is specified in the second‑mentioned notice, such information as was required by the original notice to be given. (5C) A notice given by the Authority under subsection (5B) shall set out the effects of subsections (5D) and (5E). (5D) Where: (a) because of a request having been made to revoke the suspension of the pension of a person (in this subsection called the relevant person), a notice under subsection (5B) is given to the relevant person or to the relevant person and another person; and (b) either: (i) the relevant person complies with the notice; or (ii) the relevant person fails to comply with the notice but the Authority is satisfied that there was a reasonable excuse for the failure; the Authority shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, revoke the suspension with effect from such day as the Authority determines, being a day not later than: (c) in a case to which subparagraph (b)(i) applies—the day on which the relevant person so complied with the notice; or (d) in a case to which subparagraph (b)(ii) applies—the day on which the Authority became so satisfied. (5E) Where: (a) because of a request having been made to revoke the suspension of the pension of a person (in this subsection called the relevant person), a notice under subsection (5B) is given to the relevant person or to the relevant person and another person; and (b) the relevant person fails to comply with the notice and the Authority is not satisfied that there was a reasonable excuse for the failure; the Authority shall, by notice in writing given to the relevant person or to the relevant person and the other person, as the case may be, refuse to revoke the suspension. (6) The cost of any medical examination carried out for the purposes of this section shall be treated as part of the cost of the administration of this Act. (6A) The power of the Authority under this section to suspend a pension extends to suspending a pension a portion of which has been cancelled by force of subsection 69(1A). (6B) Where a person whose pension has been suspended under this section, dies before the pension again becomes payable, he shall, for the purpose of section 57, be deemed to have been entitled to pension immediately before his death and, for the purposes of that section, the pension shall be deemed to have been payable at the rate at which it would have been payable to him if it had not been suspended. (7) Where the Authority is required by this section to give a person a notice, the notice shall be taken to have been given to the person if: (a) the notice is served on the person personally; (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 the Authority 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 the Authority 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 the Authority. (8) A reference in subsection (7) to a reliable address of a person shall be read as 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. (9) In this section, invalidity benefit includes pension payable under section 73. 54 Incapacity due to wilful action Where a member is retired on the ground of invalidity or physical or mental incapacity to perform his duties and the invalidity or incapacity is, in the opinion of the Board, due to wilful action on his part for the purpose of obtaining pension, he shall, subject to the regulations, be entitled to a refund of his contributions under this Act, and no pension or other benefit under this Act shall be payable to or in respect of the member. 54A Notional retiring age for certain persons not members of the Permanent Forces (1) In this section: non‑Permanent Forces officer means an officer who is not a member of the Permanent Forces. Permanent Forces officer means an officer who is a member of the Permanent Forces. (2) Where: (a) a non‑Permanent Forces officer retires; and (b) the retiring age for the rank held by him on his retirement is greater than it would have been if he had been a Permanent Forces officer on his retirement; the retiring age for the rank held by him on his retirement shall, for the purposes of: (c) subsection 38(2); (d) subsection 39(2), other than subparagraph 39(2)(a)(ii); (e) subsections 52(2) and (5); and (f) if he became a non‑Permanent Forces officer after the commencement of this section and he was, immediately before becoming a non‑Permanent Forces officer, a Permanent Forces officer—subsection 40(2); but not for any other purpose of this Act, be deemed to be the age that would have been that retiring age if he had been a Permanent Forces officer on his retirement. (3) Where: (a) a member who is not an officer and not a member of the Permanent Forces retires; (b) he is entitled to pension under subsection 52(3); (c) paragraph (a) of that subsection applies to him; and (d) the retiring age for the rank held by him on his retirement is a greater age than it would have been if he had been a member of the Permanent Forces on his retirement; the retiring age for the rank held by him on his retirement shall, for the purposes of subsection 52(4), but not for any other purpose of this Act, be deemed to be the age that would have been that retiring age if he had been a member of the Permanent Forces on his retirement. 55 Pension on death of member (1) Subject to subsection (4), on the death before retirement prior to 1 October 1972 of a married member who is a contributor, pension shall be paid to his widow as follows: (a) during her life—a pension at a rate equal to five‑eighths of the rate at which pension would have been payable to her husband if, on the date of his death, he had become entitled to invalidity benefit and had been classified as Class A under subsection 51(2); and (b) in respect of each child of the widow who is an eligible child (other than a child born after the death of the member unless the child is also the child of the member), and in respect of each child of the member who is an eligible child—a pension at the rate of $312 per annum, as indexed in accordance with subsection 84C(2), and an additional pension at a rate equal to one‑sixth of the rate at which pension payable under paragraph (a) is payable to the widow. (2) Subject to subsection (3), on the death of the widow, there shall be payable in respect of each child of the widow who is an eligible child (other than a child born after the death of the member unless the child is also the child of the member), and in respect of each child of the member who is an eligible child, a pension at the rate $5,000 per annum, as indexed in accordance with subsection 84C(2), and an additional pension at a rate equal to one‑eighth of the rate at which pension payable under paragraph (1)(a) would, but for her death, have been payable to the widow. (3) Where the number of children in respect of whom pensions are payable under subsection (2) because of the widow's death is such that the sum of the rates of all the pensions so payable exceeds a rate equal to 1⅗ of the rate at which pension payable under paragraph (1)(a) would, but for her death, have been payable to her, then, while that position exists, there is payable in respect of each of the children, instead of the pensions described in subsection (2), a pension at the rate calculated by dividing the number of children into the rate exceeded. (4) Pension is not payable under this section in respect of a member who, at the time of his death, was an employee for the purposes of the Superannuation Act 1922‑1968 whose liability to make contributions to the Superannuation Fund was deferred by virtue of section 35A of that Act or was a person whose entitlement to a pension under that Act was suspended by force of subsection 48C(1) of that Act. 57 Pension on death of pensioner etc. (1AA) A male person is not to be treated as a male pensioner for the purposes of this section merely because the person, at the time of his death, was receiving associate pension under Part VIA. (1) On the death of a male pensioner, pension shall, subject to this section, be paid to his widow as follows: (a) during her life—five‑eighths of a pension payable to her husband at the time of his death; and (b) in respect of each child of the widow who is an eligible child (other than a child born after the death of the pensioner unless the child is also the child of the pensioner), and in respect of each child of the pensioner who is an eligible child—a pension at the rate of $312 per annum, as indexed in accordance with subsection 84C(2), and an additional pension at a rate equal to one‑sixth of the rate at which pension payable under paragraph (a) is payable to the widow. (2) For the purposes of subsection (1), the pension payable to the widow of a male pensioner during her life shall, in any case where: (a) the male pensioner had commuted any portion of his pension; (b) the rate of the pension of the male pensioner had been reduced by virtue of subsection 42A(9); (c) an amount had been deducted from the last fortnightly instalment of the pension of the male pensioner under section 50; be calculated upon the rate of pension that would have been payable to the male pensioner at the time of his death if no portion of his pension had been commuted, the rate of his pension had not been reduced or the amount had not been deducted from his pension, as the case may be. (3) If: (a) the male pensioner, at the time of his death, was in receipt of a pension, being invalidity benefit; and (b) CSC is satisfied that his death was due to: (i) a physical or mental impairment that was the cause, or one of the causes, of the invalidity or the physical or mental incapacity by reason of which the member was retired; or (ii) a physical or mental impairment causally connected with a physical or mental impairment referred to in subparagraph (i); pension shall be paid to his widow at the rate or rates at which, under section 55, pension is payable to the widow of a married member who was a contributor and died before retirement. (3A) If: (a) a male person who is entitled to invalidity benefit dies and, at the time of his death, he was classified as Class C under subsection 51(2) as a result of a reclassification under section 53 but was not entitled to a pension; and (b) CSC is satisfied that his death was due to: (i) a physical or mental impairment that was the cause, or one of the causes, of the invalidity or the physical or mental incapacity by reason of which the member was retired; or (ii) a physical or mental impairment causally connected with a physical or mental impairment referred to in subparagraph (i); pension is payable to his widow at the rate or rates at which, under section 55, pension is payable to the widow of a married member who was a contributor and died before retirement. (3B) In spite of subsections (1), (2), (3) and (3A), if, on any of the 7 pay‑days immediately following the death of a male pensioner, the rate at which pension would, apart from this subsection, be payable to his widow is less than the rate (in this subsection called the putative rate) at which the pension payable to him immediately before his death would be payable to him on that day if he had not died, the widow is entitled to a pension payable at a rate equal to the putative rate. (4) Subject to subsection (5), on the death of a widow to whom this section applies, there shall be payable in respect of each child of the widow who is an eligible child (other than a child born after the death of the pensioner unless the child is also the child of the pensioner), and in respect of each child of the male pensioner who is an eligible child, a pension at the rate of $5,000 per annum, as indexed in accordance with subsection 84C(2), and an additional pension at a rate equal to one‑eighth of the rate at which pension payable under paragraph (1)(a), or under subsection (3), as the case may be would, but for her death, have been payable to the widow. (5) Where the number of children in respect of whom pensions are payable under subsection (4) because of the widow's death is such that the sum of the rates of all the pensions exceeds a rate equal to 1⅗ of the rate at which pension payable under paragraph (1)(a) or subsection (3), as the case requires, would, but for her death, have been payable to her, then, while that position exists, there is payable in respect of each of the children, instead of the pensions described in subsection (4), a pension calculated by dividing the number of children into the rate exceeded. 57A Set off against widow's pension in certain circumstances Where: (a) the widow of a deceased male pensioner is entitled to a pension under subsection 57(3A); and (b) there is paid into an account with a bank, credit union or building society (in this section called the financial institution) an amount purporting to be an instalment of pension payable to the pensioner in respect of a period in respect of which a pension is payable to the widow under subsection 57(3A); and (c) the financial institution pays, out of that account, to the widow an amount not exceeding the amount so paid into the account; then, in spite of any other law: (d) the financial institution is not liable to the Commonwealth, the personal representative of the deceased pensioner or anyone else for any loss incurred because of the payment of that amount to the widow; and (e) an amount equal to the amount so paid by the financial institution to the widow must be set off against any amount of pension payable to her under subsection 57(3A). 58 Pensions payable in respect of orphans (1) Subject to subsection (1A), where the wife of a member who is a contributor or of a male pensioner is dead or divorced and the member or pensioner dies leaving children of himself or of his wife who are eligible children and who were depende