MSBS death benefits

Frankie dies at the age of 42 while serving in the ADF, with 24 years of service. Her Class A benefit amount would’ve been $160,751.22 a year before tax. Frankie has an eligible spouse and 2 eligible children.

Frankie’s eligible spouse will get a lifetime pension of $107,703.32 ($160,751.22 × 67%) a year before tax.

Frankie's spouse will also get $35,365.27 ($160,751.22 x 22%) for the 2 children.

The total pension amount would be $143,068.59 a year before tax.

The member and ancillary benefit in the account will be paid to Frankie’s spouse as a lump sum.

Once Frankie’s children are no longer eligible, or being paid in their own right, the pension amount will be reduced to the spouse amount, plus CPI increases that have occurred since the pension started.

Sam served in the ADF before medically separating at the age of 55 with an invalidity pension of $132,479.67 a year before tax.

Sam receives the pension for 15 years before he dies. Sam has an eligible spouse and 4 eligible children under 18. Two of his children are cared for by his eligible spouse and the other 2 are from a previous relationship.

His pension is now worth $212,058.50 a year before tax due to CPI increases over those 15 years.

Sam’s eligible spouse will get a lifetime pension of $142,079.20 ($212,058.50 × 67%) a year before tax.

As there are 4 eligible children, they'll get 33% of Sam’s pension divided between them, which will be $17,494.83 each.

For the 2 children in their care, Sam’s spouse will get another $34,989.66 ($17,494.83 × 2). The total to Sam’s spouse would be $177, 068.86 a year before tax, for as long as the children are eligible.

The member and ancillary benefit in the account will also be paid to Sam’s eligible spouse as a lump sum.

Sam’s other 2 children will each get a pension of $17,494.83 a year before tax paid to them, for as long as they’re eligible.