Member's Guide to ADF Pay and Conditions in Australia – see Disclaimer – check PACMAN for full details

 

12.4 Military Superannuation

 

What is Military Super?

Military Super is the common name for the Military Superannuation and Benefits Scheme. All new members of the ADF must become members of Military Super.

 

Military Super pays you when you retire. You may get a benefit if you leave the ADF because of injury or illness. Your dependants may be eligible for benefits when you die.

 

Key features of Military Super

·          The employer benefit is calculated on your length of service and final average salary over the last three years of service.

·          You have death and disability insurance cover at no cost to you.

·          Defence pays all administration fees and charges.

·          When you retire you can take a pension or part pension at 55. You can get a lump sum payment from 55 if certain conditions are met.

·          You can choose how your contributions are invested.

·          There are attractive rates for converting lump sums to pensions.

·          Pensions are fully updated against the Consumer Price Index every six months.

·          The member benefit accumulates separately from your employer-funded benefit. It is paid separately as a lump sum.

 

What happens if you leave the ADF?

Most members will leave the ADF before they retire. Australian law does not let you touch your superannuation until you retire. You may leave your member benefit in Military Super, or you can roll it over to another regulated superannuation fund. Your member benefit and fund earnings which were in the fund before 1 July 1999 may be taken as a lump sum when you leave the ADF. If you rejoin the ADF you can restart your superannuation. You can also have your previous ADF service counted towards your superannuation. The employer benefit must be preserved in the scheme until at least age 55.

 

What happens if you are injured?

You may be eligible to be paid an income if you have to retire because of injury or illness. This income will help you to resettle into the civilian workforce. Unlike retirement pay, it may be reviewed. Depending on your circumstances at the time, it can be increased or decreased. It could also be suspended or cancelled.

 

What happens if you die?

Military Super pays your eligible dependants a benefit when you die. If you do not have any eligible dependants, a benefit is paid to your estate.

 

How do you get an estimate of your superannuation?

ComSuper member services on-line helps you to manage your superannuation. It has an i-Estimator that allows you to see what your superannuation entitlement may be in the future (see http://www.militarysuper.gov.au/general/estimate.html).

 

General

 

Member Investment Choice allows Military Super members to make their own investment choices. We all have different needs and circumstances and some of us are willing to take a bigger risk. Members are offered five investment choices. These cover conservative to high growth strategies. You can choose the one that is right for you. Member Investment Choice only applies to your contributions and fund earnings.

 

'Choice of superannuation fund' allows the general community to choose the fund where they want their money to go. As an ADF member you are not able to choose your fund.

 

What if I want pay extra?                                    

You can pay more money into your superannuation (see 12.5 , Ancillary contributions).

 

What happens if I re-enter the ADF?

If you are already getting a MSBS pension it will not be paid while you are on continuous full-time service. When you stop the continuous full-time service it will start again. Your pension will be updated taking into account the Consumer Price Index movements.

 

More information

Phone:

ComSuper 1300 006 727

Email:

military.members@comsuper.gov.au

Internet:

http://www.militarysuper.gov.au

 

Application to Reservists:  No, except for Reservists on continuous full-time service. If you are already getting a MSBS pension it will not be paid while you are on continuous full-time service. When you stop continuous full-time service it will start again, and your pension will be updated.