About the scheme
The Military Superannuation and Benefits Scheme (MilitarySuper, the Scheme) was established by the Military Superannuation and Benefits Act 1991 (the Act). It replaced the Defence Force Retirement and Death Benefits (DFRDB) Scheme for new entrants to the Defence Force on 1 October 1991, following government initiatives to improve Defence Force superannuation arrangements. Existing DFRDB contributors were given the option of transferring to MilitarySuper before 1 October 1992.
Description of the Scheme
MilitarySuper is a hybrid defined contribution and defined benefit scheme with benefits being derived from the following 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. Except for the portion relating to employer three per cent productivity contributions (which are paid on a fortnightly basis to the Fund 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 Members may elect to vary their contributions to the Scheme from a minimum 5% to a maximum of 10%.
In addition, Members are able to transfer amounts from other superannuation funds into the Scheme and make pre-tax Member contributions and contributions for the benefit of their spouse to the Scheme. These additional ancillary benefits are invested according to the Member’s 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 MilitarySuper or in another complying superannuation fund selected by the Member. The employer component, including productivity contributions, must be preserved in MilitarySuper until the Member reaches age 55, or in another complying superannuation fund until the Member’s preservation age.
The Board
The Military Superannuation and Benefits Board (the Board) consists of five trustees appointed by the Minister for Defence Personnel, Materiel and Science (the Minister) under section 21 of the Act. Two of the trustees, nominated by the Minister, must have experience in, and knowledge of, the formulation of government policy and public administration. Two additional trustees must be Members of the Defence Force – one an Officer and the other a Member other than an Officer. They are nominated by the Chief of the Defence Force (CDF) and appointed by the Minister.
With the exception of one of the employer representatives, trustees hold office for a period of up to three years, and can be re-appointed to these positions. When the current employer representative appointed at the Minister’s pleasure ceases office his replacement will be appointed for a term of up to three years. Trustees are removed in the same way they are appointed.
Trustees holding office at 30 June 2009 were:
Chairman
Mr Tony Hyams
Trustee since 1 September 2007
Mr Hyams was formerly Head of Credit Suisse in Australia and is now a senior advisor to the Group. He is a director of the Australian Government Employees Superannuation Trust, Chairman of its Investment Committee and Deputy Chairman of the Australian Maritime Safety Authority. He is also a director of several private sector organisations. He has degrees in Law and Commerce from the University of Melbourne and brings to the role of Chairman an extraordinarily broad knowledge and understanding of investment and financial matters. In addition to his role as Board Chairman, Mr Hyams was also Chairman of the Board’s Investment Committee, prior to the Committee being subsumed by the full Board.
Minister’s Nominees
Mr Gabriel Szondy
Trustee since 1 August 2007
A former senior partner and head of the superannuation tax practice of PricewaterhouseCoopers in Melbourne, Mr Szondy has over 30 years experience in the audit and taxation profession and superannuation industry and is widely acknowledged as one of the foremost superannuation experts in Australia. He is a Fellow of the Institute of Chartered Accountants, Fellow of the Taxation Institute of Australia and a Fellow of the Association of Superannuation Funds in Australia (ASFA). Mr Szondy was a Member of the Victorian Executive Group of ASFA and immediate past Chairman of its National Taxation Policy Committee. He is also an independent director of CARE Super and is a director of Frontier Investment Consulting. He currently serves as Chairman of the Audit and Risk Management Committee.
Mr Felix Bleeser
Trustee since 1 March 2005
Mr Bleeser is a former Assistant Secretary Financial Training in the Defence Chief Finance Office and was also previously the Director General Defence Occupational Health Safety and Compensation. He has extensive experience in personnel policy and management in Defence, and was a Member of numerous Defence review bodies, including the review of the Defence Force Retirement and Death Benefits Scheme, the Defence Efficiency Review and the Strategic Review of Defence Personnel Policies into the 21st Century. He is a past Director of Superannuation Policy in Defence and an alternate Member of the Defence Force Retirement and Death Benefits Authority, the Military Rehabilitation and Compensation Commission and the Government’s Safety Rehabilitation and Compensation Commission. He is a Member of the Australian Institute of Company Directors and serves on the Audit and Risk Management Committee.
ADF Nominees
Brigadier Bob Brown CSC
Trustee since 18 October 2007
Brigadier Brown served for 35 years in the Australian Army, as an infantry officer, including service with the United Nations and in Iran and Iraq. His appointments included Director General Personnel Policy, Headquarters Joint Operations Command Project and Joint Combined Training Capability. He is currently working at Headquarters Joint Operations Command. He has a Masters of Strategic Studies and is a Fellow of the Australian Institute of Company Directors; and currently serves as Chairman of the Military Superannuation Communications Committee.
WOFF Robert Swanwick MAICD
Trustee since 22 September 1997
Warrant Officer Swanwick is an Air Force Loadmaster who has served throughout Australia and overseas for 30 years and is currently the Airmen Aircrew Work Force Planner, within the Directorate of Personnel - Air Force. He has been posted to various Tri Service programs within Defence HQ, Air Force and Army units and attached to Navy establishments. He has completed several operational deployments including to the Sinai Peace Keepers and three recent deployments to the Middle Eastern Area of Operations. He holds diplomas in frontline management and aviation and has extensive training in communications, investment and superannuation administration. Over the past twelve years, he has held the position of other Rank Trustee, and is a Member of the Audit and Risk Management Committee and a Member and former Chairman of the Military Superannuation Communication Committee.
The Board
Standing (from left):
Brigadier Bob Brown, Mr Gabriel Szondy, WOFF Robert Swanwick
Seated (from left):
Mr Felix Bleeser, Mr Tony Hyams
Indemnity Insurance
The Board is required to maintain a Trustee Indemnity Insurance Policy. This is to ensure that the assets of MilitarySuper are protected against losses, liabilities, actions, claims and demands against the Board that may arise from the actions of the Board and staff of the Scheme Administrator acting as authorised representatives of the Board under its Australian Financial Services Licence. The current policy is held with AIG. The Department of Defence also provides an indemnity against errors and omissions by staff of the Board’s Administrator, that cause a loss to the Fund. To date there have not been any claims against the insurance policy or Departmental indemnity, nor have any regulatory penalties been applied to MilitarySuper.
| 15 Jul 2008 |
5 Sept 2008 | 5 Nov 2008 | 3 Dec 2008 | 4 Feb 2009 | 5 Mar 2009* | 7-8 May 2009 | 10-11 Jun 2009 | |
|---|---|---|---|---|---|---|---|---|
Mr Tony Hyamsl |
P | P | P | P | P | P | P | P |
Mr Gabriel Szondy |
P | AP | AP | P | P | P | P | P |
WOFF Robert Swanwick |
P | P | P | P | P | P | P | P |
Mr Felix Bleeser |
P | P | P | P | P | P | P | P |
Brigadier Bob Brown |
P | P | P | P | P | P | P | P |
* Extra-ordinary meeting of the Board
P = Present
AP = Attendance by telephone