After 15 years of continuous eligible service, you may get the Military Superannuation and Benefits Scheme (MSBS) retention benefit.
The benefit encourages you to serve until you have completed 20 years' service.
To get the benefit you must be a member of the Permanent Forces and a member of MSBS. You must also be:
If you joined MSBS on or after 6 October 2005, you can't get the retention benefit.
You may get an amount equal to one year's salary. This includes Service allowance at your rank and salary.
You may be paid a pro-rata amount if you:
The benefit will be paid in the same way as your pay.
If you want to get the benefit, you must apply within a specific timeframe. This starts 90 days before your 15th anniversary and ends on that anniversary day. There are no exceptions to the 90 day time limit.
If you change your mind about accepting the benefit, you must do so in writing before your 15th year anniversary.
You may be promoted to the rank of Major or Sergeant when you have completed between 15 and 20 years' service. You may elect to accept the benefit no more than 90 days after you are promoted.
If you have become eligible between 15 and 20 years' service, you can't change your mind about accepting the benefit.
You must serve the amount of time agreed.
You must be certified as medically fit by a doctor.
If you have a Return of Service obligation, you usually serve your MSBS retention benefit obligation after that.
You can take the benefit as a cash payment.
You can salary sacrifice your payment. This means that you pay it into an approved superannuation fund.
The payment is taxed as if it were salary. You should seek financial advice about how the payment will affect your tax obligations.
You may have to repay part of the benefit if you:
You won't have to repay the benefit if:
More information about this benefit can be found in Chapter 3 Part 5 Division 1.
As the name suggests, this Member's Guide is designed as a guide to help you understand how your pay and conditions work. It is not a legal document. Therefore, if there is any conflict between the Member's Guide and Defence Determination 2016/19, Conditions of Service (and the Determinations made by the Defence Force Remuneration Tribunal), as compiled in PACMAN, PACMAN is the authority.
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