Contents
Note: Some
diagrams embedded in these chapter listings may not be fully legible on
some browsers. The diagrams can be viewed either in the full PDF document [2.33MB] or in PDF links within
the chapter listings.
Terms of Reference
Background to the Review
Conduct of the Review
Chapter 2: Desirable characteristics of military superannuation in Australia today
Best practice superannuation
Recruitment and retention
Impact of the unique nature of military service
Chapter 3: Assessment of current schemes
The DFRDB
The MSBS
Foreign military superannuation arrangements
Other Australian Government superannuation arrangements
Conclusion
Chapter 4: A New Military Superannuation Scheme
Accumulation retirement plan
Death and disability element
Scheme membership
Transitional arrangements
Chapter 5: The impact on the ADF and ADF members
Overall assessment of the proposed new scheme
Benefit levels and impact on ADF members
Impact on recruitment and retention
Other effects
Impact on Reservists
Flexibility for future adjustments
Chapter 6: Governance arrangements
Legislation
A single military superannuation board
Board composition
Committees
Funding arrangements
Australian Prudential Regulation Authority
Chapter 7: Implementation and transition
Implementation of the retirement accumulation plan
Implementation of the proposed death and disability arrangements
Possible early implementation of some recommendations
Ongoing administration
Transitional arrangements
Chapter 8: Education & awareness
Transitional education and awareness campaign
Ongoing education and awareness of superannuation
Emphasising the total remuneration package for recruitment and retention purposes
Chapter 9: Additional technical issues
Operation of Maximum Benefit Limits
Recognition of interdependent relationships
Indexation of military superannuation pensions
The operation of life expectancy factors
Transition to retirement provisions
Preservation and portability arrangements
Superannuation splitting
The calculation of final salary
Military superannuation scheme complexity
The impact of the Compulsory Retirement Age
The appropriateness of the three-tiered invalidity classification system
Suspension of benefits upon imprisonment
Ordinary Time Earnings
Chapter 10: Financial implications
Employer contribution rates
Cash requirements and impact on unfunded liabilities
Transitional impact – accrued liabilities
Additional technical measures
Departmental expenses
Appendix A. Support to the Review Team
Appendix B. People and organisations consulted and submissions received
Appendix C. Key issues raised in submissions
Appendix D. Contemporary ADF attitudes to superannuation
Defence Attitude Surveys
ORIMA Research results
Focus Group results
Appendix E. History and description of current schemes
The DFRDB
The MSBS
Appendix F. International military scheme comparison
High level summary of Foreign National Military superannuation arrangements*
Appendix G. Australian ‘Uniformed Bodies’ scheme comparison
High level summary of selected Australian ‘Uniformed Bodies’ superannuation schemes
Appendix H. Financial implications
Attachment: Letter from Minister Assisting the Minister for Defence