Any payments you get from MSBS may impact other benefits you’re getting from the Department of Veterans’ Affairs or other Commonwealth agencies. Contact the relevant agency to find out how your payments may be impacted.
Invalidity benefits
Before making any decisions about your super, you should seek independent financial advice.
Before making any decisions about your super, you should seek independent financial advice.
Frankie is 42 years old and being medically separated from the Permanent Forces after 24 years of service.
As Frankie is being medically separated, her projected years of service to the age of 60 is used to calculate her Employer Multiple (EM) for a Class A pension.
In Frankie’s case, this is an additional 18 years of projected service.
Her actual service of 24 years is calculated as:
7 years × 18% = 1.26
13 years × 23% = 2.99
4 years × 28% = 1.12
Frankie’s projected years of service are calculated as:
18 years × 28% = 5.04
Add them together to get the EM:
EM = 10.41
This number is used to calculate her employer benefit for determining her invalidity pension.
This will mean that her employer benefit and resulting pension will be much greater than if only her actual service had been used.
Sam is 53 and leaving the Permanent Forces after 32 years of service.
Sam has been assessed as Class B, so the pension amount he’ll get will be the higher of:
- a pension based on his actual years of service
- half the Class A pension.
If Sam’s pension was based on his actual years of service, it would be $132,479.67.
If Sam’s pension was based on half the Class A pension amount, it would be $93,902.15 a year before tax ($187,804.29 ÷ 2).
Because the amount based on his actual years of service is higher, Sam will get $132,479.67 a year before tax.
