When you’re entitled to your benefits

IF you resign from ADF service before turning 55 you can immediately take a lump sum payment of your Military Superannuation Benefits Scheme member benefit up to the amount that had accrued (including interest) at June 30, 1999.

The balance, anything accruing after that date, must remain compulsorily preserved, either in the fund (as a number of units) or in a rollover fund. Of course, this means MSBS members who joined after July 1, 1999, must preserve their entire member benefit.

Contrary to common belief, the limitation on the amount of member benefit immediately accessible is not unique to MSBS. Legislation introduced by the Government in 1998 actually means that these compulsory preservation restrictions apply across the whole of the Australian superannuation industry.

Members have the option to roll over their preserved member benefits into another compliant superannuation fund at any time after discharge.

You can establish the amount of restriction that applies to you by referring to your most recent member statement.
You are able to subsequently access your compulsorily preserved amount once you reach your preservation age, provided you have left the workforce. Preservation age differs from member to member according to the following table:

Date of Birth	Preservation Age
June 30, 1960, or earlier	55
July 1, 1960, to June 30, 1961	56
July 1, 1961, to June 30, 1962	57
July 1, 1962, to June 30, 1963	58
July 1, 1963, to June 30, 1964	59
July 1, 1964, or after	60

The other part of your MSBS benefit, the employer benefit, must also be preserved in the fund at the time of your resignation. It cannot be rolled over. The employer benefit, apart from the smaller productivity portion, grows at the rate of increases in the Consumer Price Index. Productivity is expressed in units and will be paid out at the prevailing unit rate when claimed.

When you leave the workforce after turning 55 you can claim your employer benefit:

• as a lump sum (provided you have reached your preservation age);
• as an indexed pension; or
• as a combination of both (where at least 50 percent of the employer benefit is converted to pension).

This column is part of an occasional series contributed by MSBS.

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