Who is a re-entrant?
A re-entrant is a former member of the Australian Defence Force (ADF) who contributed to either the Defence Force Retirement and Death Benefit Scheme (DFRDB) or MilitarySuper, and who re-enters the ADF after discharge or retirement. Different rules apply depending on whether you are a former DFRDB or MilitarySuper member, and whether you are a re-entering member or a re-entering recipient.
In 2015 the Australian Government decided to introduce new Defence Force superannuation arrangements. Military Super was closed to new members from 30 June 2016 and from 1 July 2016 all new entrants to the ADF can choose to become members of ADF Super, the default fund, or elect a superannuation fund of their choice.
Who can re-enter Military Super?
If you are a former MilitarySuper member and you have a preserved employer benefit, you must rejoin MilitarySuper when you return to the Permanent Forces or become a continuous full-time Reservist. You will then have the option to transfer to ADF Super or another superannuation fund of your choice.
If you elect to transfer from MilitarySuper to ADF Super, you cannot rejoin MilitarySuper at a later date.
If you are a re-entered recipient–that is, those who retired and received a MilitarySuper Employer Benefit converted to a pension are no longer able to re-enter MilitarySuper. If you rejoin the ADF you will automatically become a member of ADF Super, the default fund, or you can elect to join a superannuation fund of your choice. . For more information on ADF Super please visit adfsuper.gov.au
If you leave before you have reached your preservation age, you will be entitled to an employer-financed benefit which becomes payable on retirement from the workforce at or after you reach your preservation age. This is referred to as a Preserved Benefit. If you rejoin MilitarySuper with a preserved benefit, you will keep your entitlement to that benefit. It will continue to grow at CPI, except for the 3% productivity component, which will continue to grow according to the performance of the Fund’s default investment strategy.
Example 1: MilitarySuper member with previous MilitarySuper service
Deirdre serves for 10 years having previously been a member of MilitarySuper for 12 years. Her FAS on completion of the second period of service is $48,000.
Employer Benefit for second period of service is:
8 years @ 23% = 1.84 times FAS of $48,000
2 years @ 28% = 0.56 times FAS of $48,000
Employer Benefit = 2.40 times FAS of $48,000 = $115,200
The Employer Benefit you receive at your preservation age will be the total of both periods of service.
Other editions in this information series are available from your Pay Office and include:
- About to leave the ADF?
- Dependants’ Benefit
- Invalidity benefits
- Tax on lump sums
- Rejoining the ADF
- Productivity Benefit
- Summary of the scheme
- Superannuation Contributions Surcharge