About Us
Establishment of the Scheme
MilitarySuper was established by the Military Superannuation and Benefits Act 1991 (the MSB Act). It replaced the Defence Force Retirement and Death Benefits (DFRDB) Scheme for new entrants to the Australian Defence Force (ADF) on 1 October 1991, following government initiatives to improve ADF superannuation arrangements. Existing DFRDB contributors were given the option of transferring to Military Super before 1 October 1992.
| Scheme Specifications | Coverage | Membership as at 30 June 2007 | Contributions received and benefits paid 2006-2007 |
| Partly funded, defined benefit scheme. Established 1991. Minimum contribution rate of 5% of salary. | Compulsory for all new entrants to the Australian Defence Force. | Contributors: 47,721 Preserved Benefit Members: 65,615 Pensioners: 6,409 |
Contributions: $154.2m Benefits Paid Lump Sum: $88m Pensions: $115m |
Description of the Scheme
MilitarySuper is a hybrid defined contribution and defined benefit scheme with benefits being derived from two sources:
- a Member component, comprising the Member’s own contributions, including amounts notionally brought over from the DFRDB Scheme, plus earnings on these amounts. Investment choice is applicable to this component of the benefit and Members can select from one of the five investment options offered by the Scheme.
- an employer component, which is a defined benefit based on the Member’s period of Membership and final average salary (FAS). Except for the portion relating to employer three percent productivity contributions, which are paid on a fortnightly basis to the Scheme by the Department of Defence, this component of the benefit is unfunded. That is, the cost is met by the employer on an emerging cost basis from the Commonwealth’s Consolidated Revenue Fund when the benefit falls due.
Membership of the scheme is compulsory for new entrants to the Defence Force and requires a minimum Member contribution rate of 5% of fortnightly salary for superannuation purposes.
At three-monthly intervals MilitarySuper Members may elect to vary their contributions to the scheme from the minimum 5% to a maximum of 10%.
In addition, Members are able to transfer amounts from other superannuation funds into the MilitarySuper Scheme and make pre-tax Member contributions and contributions for the benefit of their spouse to the MilitarySuper scheme. These additional ancillary benefits are invested according to the Member investment choice and are payable in addition to other benefits.
On resignation from the Defence Force the Member benefit accrued to 30 June 1999 can be paid as a lump sum to the Member, but the balance of the Member benefit must be preserved until the Member’s preservation age; either in the MilitarySuper Fund or in another complying superannuation fund selected by the Member. The employer component, including productivity contributions, must be preserved in the MilitarySuper Fund until the Member reaches age 55, or in another complying superannuation fund until the Member’s preservation age.
More Information
Links
- Statistics
- MSB Board of Trustees
- MSB Board Annual Reports
- Financial Services Guide
- Statement of Intent
Customer Service Centre
MilitarySuper Members can obtain more information about their eligibility to contribute to, and receive benefits from, Military Super by phoning the Customer Service Centre on 1300 006 727.