Any financial product advice in this chapter is general advice only and has been prepared without taking account of members' personal objectives, financial situations or needs.

Before acting on any such general advice, a member should consider the suitability of the advice, having regard to their own objectives, financial situation or needs.

A member may wish to do so with or without the assistance of a licensed financial adviser.

Belonging to a superannuation scheme ensures that a member will have an income when they stop working.

It also covers the member for death and disability during their working life. In this way the member will have an income should they need to stop working before reaching retirement age, and their family will receive a benefit if the member dies before retirement.

Superannuation is not payable to Reservists working Reserve days.

From 1 July 2016, all new permanent members of the ADF will become a member of ADF Super (the default employer fund) or another fund of their choice.



Note: Members should complete an ADF Superannuation Funds (AE689) form to advise their pay area where their employer contribution is to be paid to. Members can download this from the Web Forms portal on the Defence Protected Network (DPN).

Members will receive an employer contribution from Defence of 16.4% also death and invalidity cover under ADF cover.

Member are not required to make personal contributions but can choose to do so.

Member of ADF Super will receive a lump sum of their entitlements on retirement from the workforce and on reaching preservation age. Members who elect another fund should contact that fund to find out the options available to them on retirement.

MSBS closed to new members on 1 July 2016. This scheme is also known as Military Super.

Current contributing MSBS members can remain in MSBS or elect to transfer to ADF Super or another fund of their choice.

MSBS members who have a preserved benefit in MSBS and re-join the ADF must re-join MSBS. They may choose to transfer to ADF Super or another fund of their choice.



Note: To ensure returning MSBS members are enrolled in the correct fund, they should complete an ADF Superannuation Funds (AE689) form. Members can download this from the Web Forms portal on the Defence Protected Network (DPN). This will inform their pay area that they have a preserved MSBS benefit and whether they wish to remain in MSBS or to elect another fund.

MSBS members are required to contribute a minimum of 5% of their fortnightly salary.

MSBS offers a range of investment strategies to members which allows them to choose how to invest their member benefit.

The funds that are paid to a member when they retire will come from the following two sources.

1. A benefit made up of the member's fortnightly contributions and the interest it earns, paid as a lump sum on retirement from the workforce and on reaching preservation age.
   
   
   
   Note: Member benefits accrued before 1 July 1999 can be taken as a lump sum on leaving the ADF, before reaching preservation age.

2. An employer benefit which is the Government's contribution, to the member's superannuation. This includes a productivity benefit.

   1. A life time CPI indexed pension can be taken from age 55 on leaving the ADF.

   2. A lump sum can be taken on retirement from the workforce and on reaching preservation age.

DFRDB closed to new members on 1 July 1991 and closed to re-entrants on 1 July 2016.

Members contributing to DFRDB cannot transfer to the new superannuation arrangements.

DFRDB contributors and pension recipients on continuous full-time service that commences prior to 1 July 2016 will remain on their current superannuation arrangements. They will transfer to the new superannuation arrangements when they meet any of the following conditions.

1. Their period of continuous full-time service is extended.

2. They start a new period of continuous full-time service.

3. They rejoin the permanent force.

DFRDB pension recipients who rejoin will automatically join the new superannuation arrangements.

DFRDB members are entitled to a life-time pension, calculated as a percentage of their final superannuation salary, based on the total number of years served. The member can choose to take part of their pension as a lump sum along with a permanently reduced pension.



Note: Members should complete an ADF Superannuation Funds (AE689) form to advise their pay area where their employer contribution is to be paid to. Members can download this from the Web Forms portal on the Defence Protected Network (DPN).

Further information can be found on the ADF super page.

The Commonwealth Superannuation Corporation (CSC) is the administrator of the military superannuation schemes.

 Check the CSC website for information about a specific scheme.

Website: https://www.csc.gov.au/

Please contact your relevant scheme above for further information on the following.

1. Annual statements.

2. Online benefit estimator.

3. Seminars held throughout Australia.

Policy related questions can be directed by email to dmr.policy@defence.gov.au.