Resettlement Seminar: Discharge/Retirement Summary and Checklist

Benefit Application Forms

Form M1 - Resignation (PDF, 123KB)

If voluntary discharge or dismissal before age 55 or before Statutory Retiring Age

Form M10 - Retrenchment (PDF 213KB)

Form M20 - Retirement (PDF 227KB)

If age 55 or more or retiring at Statutory Retiring Age

Form M40 - Invalidity (PDF 206KB)

Medical Discharge

When to complete your benefit application

No earlier than three months before and no later than three months after discharge/retirement
Benefit applications are available from the MilitarySuper website (link to forms sections) or by calling the MilitarySuper Contact Centre on 1300 006 727.

Normal Processing Time

The lump sum payment is usually 8-10 working days after the later of the discharge date or receipt of the benefit application form
Pension – allow 3 weeks

Payment

Payment can only be made to an account in Australia
The account must be in your name – it may be a joint account
Pension paydays are the alternate Thursdays to Defence paydays
Deductions from pension are limited to tax, Medicare, and child support
The first pension increase is pro-rata:
- The first pension increase is pro-rata for the number of months you have been in receipt of pension
- If you are retiring and taking all or part of your employer benefit as pension, or claiming your preserved benefit as pension, you should be aware you will receive an extra 1/6th of the next CPI pension increase if you retire, or claim the preserved benefit as pension, on or before 14 February or on or before the 15th day of any other month

Taxation

A rollover Fund must be nominated for any compulsory preserved amount being withdrawn if under preservation age, or continuing in the workforce
Rollover documentation is not required by ComSuper – the rollover cheque/s and ETP Rollover Statement/s will be sent to you to provide to the rollover Fund
Taxation eligible service period start date (pre July 1983 entrants only)
- If you joined the Defence Force prior to 1 July 1983 and you have a long service leave start date that is earlier than your DFRDB membership start date, you can claim the long service leave start date as your Taxation eligible service period start date (this will reduce the tax payable on your lump sum)
- If this applies to you, you should attach to your benefit application a copy of the Defence Force’s acceptance of the long service leave period/s
An ETP Rollover Statement/s and Group Certificate will be sent to you by ComSuper with the payment approval letter. These documents provide important details concerning your ETP for your rollover deposit and/or your next Tax Return.
THESE ARE IMPORTANT DOCUMENTS WHICH MUST BE RETAINED
IF YOU MISLAY THESE DOCUMENTS IT WILL DELAY DEPOSIT OF ANY AMOUNT BEING ROLLED OVER AND DELAY SUBMISSION OF YOUR NEXT TAX RETURN

Benefit Applications – Some Operational Problems Which Cause Delays in Payment

Applications lodged earlier than 3 months before the discharge date
No date of discharge shown
Incorrect BSB and Account Numbers
Change in discharge date not advised
Use of an incorrect benefit application form
The address field is either blank or shown as To Be Advised
Tax File Number Declaration not included with Pension Applications
Benefit Application delayed/mislaid in Pay Unit, Pay Office, Orderly Room or similar administration point or internal distribution system. If possible mail your application direct to ComSuper yourself
Note that ComSuper does not acknowledge receipt of applications – if you wish to confirm receipt ring the enquiry service on 1300 006 727about one week after mailing (this should allow sufficient time for receipt by ComSuper, scanning into the system and entry of the application details onto your computer record)

Rejoining the ADF after Retirement/Discharge

Membership continuity provisions apply if you are discharged and rejoin IMMEDIATELY AFTER discharge – note continuity may apply even if you have a break of one or more working days. It depends on matters such as whether the subsequent engagement was arranged before you ceased the first employment and the reason for the break
If you re-enter the ADF on continuous full time duty any MilitarySuper pension is suspended for the period and the previous membership period will be taken into account in determining your new Employer Benefit accrual
- It is a good idea to formally advise ComSuper that you have re-entered so that your records can be linked immediately.

Daily Unit Prices

Any amount paid out of the MSB Fund will be determined based on the daily unit price applying on the later of:
- On the day after your date of discharge, or
- The day after a completed benefit application with all the details required to process the benefit is received by ComSuper
The daily unit prices for the investment options are generally updated by 12 pm the following business day on the MilitarySuper website
Check the daily unit price at the time of submitting your application for a benefit
As an alternative to claiming your benefit, you may wish to preserve your benefit in the MilitarySuper scheme.

Death Benefits – Spouse Eligibility

Eligible Spouse
- A person of the opposite sex, ordinarily living in a marital relationship with the Member at the time of death
- Marital relationship
  - Living as a person’s husband or wife on a permanent and bona fide domestic basis, for a continuous period of at least three years or for less than three years where relevant evidence is satisfied, including that:
  - The couple were legally married, or
  - The person was wholly or substantially dependant on the other person, or
  - There is a child of the relationship which was adopted by the parents, or
  - There is joint ownership of a residential home
If legally married but separated – eligibility exists provided the surviving legal spouse was wholly or substantially dependent on you at the time of death
If a pensioner at the time of death – eligibility exits provided:
The marital relationship began before becoming a pensioner; or
After becoming a pensioner but before age 60, or
The marital relationship has continued for at least 5 years

Death Benefits – Child Eligibility

Eligible child – a child of the deceased Member including:
An ex-nuptial child
A stepchild
An adopted child
A foster child or a ward
Eligibility of a child is automatic up to age 16 and continues up to age 25 whilst in full time education
An orphan’s benefit is payable where there is an eligible child but no eligible spouse
Eligibility must be established as at the date of death

Death of a Member - Benefits – Spouse and Children

Based on the deceased Member’s Class A invalidity entitlement at the date of death
The Member component is payable as a tax free lump sum
The Employer Benefit is payable as:
A total tax free lump sum benefit, or
A total pension benefit of 67% of the Class A pension, or
Part pension (minimum 50% conversion) and part tax free lump sum
If the pension option exercised, the pension percentage rate is increased by:
11% of 1 eligible child
22% for 2 eligible children
33% for 3 or more eligible children
orphans
based on the deceased Member’s Class A invalidity entitlement at the date of death
the Member component is payable as a tax free lump sum
the Employer Benefit is payable as a pension which is a percentage of the deceased Member’s Class A invalidity entitlement as follows:
45% for 1 orphan
80% for 2 orphans
90% for 3 orphans
100% for 4 or more orphans

Death of a Pensioner

a spouse is entitled to 67% of the pension at date of death, the pension is increased by:
11% for 1 eligible child
22% for 2 eligible children
33% for 3 or more eligible children
orphans - % of pension at date of death
45% for 1 orphan
80% for 2 orphans
90% for 3 orphans
100% for 4 or more orphans

Death of a Member – No Eligible Spouse or Children

The benefit is a lump sum of the deceased’s Member and employer components
The employer component is based on the deceased’s notional Class A invalidity lump sum
The lump sum benefit is payable to:
The deceased’s personal representative ie to the estate, or if applicable, to the person or persons nominated in a written advice to the MSB Board to the effect that:
The person or persons are dependent on the Member and are not eligible as a spouse or child/children, and
Provision has been made for the person or persons in the Will

Death of a Preserved Benefit Member

he Member (if any) and Employer Benefit is payable as a tax free lump sum to an eligible spouse. The spouse may exercise a pension option in respect of the value of the Employer Benefit at date of death
If there is no eligible spouse but there is an eligible child or eligible children the value of the Employer Benefit at the date of death is payable as a pension in respect of the child or children
If there is no eligible spouse or child the benefit is a lump sum payable to the estate or to the dependent person/s nominated

More Information

Customer Service Centre

For information about your superannuation entitlement, the payment of your benefit or about any other superannuation related matter, see the Customer Service Centre.