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An independent review of military superannuation arrangements has been
commissioned.
The Minister Assisting the Defence Minister Bruce Billson said, “superannuation
benefits are a key component of the total remuneration package for ADF
members and the overall aim of the independent review is to ensure that
the military schemes continue to meet the needs of our people and reflect
contemporary superannuation standards in a sustainable manner.”
“Serving and former ADF members can be assured that there will be
no detriment to their accrued superannuation entitlements no matter what
the outcome of the review.”
The last review of military superannuation occurred in 1990 and there
have since been many changes in the wider community superannuation environment
and in the demographics and career aspirations of ADF members, he said.
Mr Billson said the current ADF superannuation benefits were specifically
designed to reflect the unique nature of military service and provide
retirement, invalidity and death benefits that in many ways rightly exceeded
the community standard.
The review will be led by Mr Andrew Podger, a former Public Service Commissioner
with strategic Defence experience. He will be assisted by Dr David Knox,
a superannuation expert and former APRA Board member, and AIRCDRE Lee
Roberts, who will provide advice about ADF personnel and bring a military
perspective to the review team.
Mr Billson said the review team would consult widely with members of the
ADF, who would be able to contribute through their personnel areas, consultations
at major Defence facilities or Defence’s website.
The review team will also consult with representative ex-service organisations,
superannuation industry bodies and other Government departments. Information
about the review can be found at www.defence.gov.au/militarysuperreview
By Mrs Heather Gill, Acting Director Superannuation
Are you considering retirement or are you electing to receive a retention
bonus or benefit that will take effect after July 1, 2007?
If the answer is yes, you need to be aware of proposed changes to superannuation.
Seeking financial advice before you elect to take a retention bonus or
other benefit will help you decide how to gain the most from your bonus.
Government has introduced new superannuation Bills that are aimed at simplifying
and streamlining superannuation. If passed, these changes will come into
effect on July 1 this year. The proposed Bills involve changes to both
retirement incomes and superannuation contributions. Some of the proposed
changes include:
- Abolishing Reasonable Benefit Limits;
- New caps for pre- and post-tax contributions; and
- New tax rules for retirement benefits.
Even though these changes are not yet in effect, it is a good idea to
seek financial advice as soon as possible, especially if your personal
financial situation is expected to change after July 1. If you are considering
taking a retention benefit or thinking about retiring, superannuation
is just one of the considerations a financial advisor can help you with.
The proposed super changes include new tax rules for pre-tax (salary-sacrificed)
contributions. For more information check out the official Government
website at www.simplersuper.treasury.gov.au
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