Which scheme are you in?

All three schemes are administered by the Commonwealth Superannuation Corporation (CSC).

DFRDB

• With at least 20 years of effective service, you are entitled to retirement pay – an indexed pension for life.
• You can choose to commute part of your retirement pay into a lump sum, up to five times your annual retirement pay. Commuting permanently reduces your pension.
• The commutation election must be made within one year of becoming entitled to retirement pay, and CSC notes that for tax reasons it should generally be made within six months of retirement. Once made, it can’t be reversed.
• For recipients aged 55 and over, retirement pay is indexed under the “fair indexation” arrangements introduced in 2014.

MSBS (MilitarySuper)

• Your benefit is made up of three parts: your Member Benefit (your own contributions and earnings), your Productivity Benefit, and an Employer Benefit based on your final average salary and length of service.
• When you leave, you can generally preserve your whole benefit in MSBS and take the Employer Benefit later as a lump sum, a pension, or a combination.
• From age 55, once you have left, you can convert 50–100% of your Employer Benefit to an indexed lifetime pension.
• Your preserved Member and Productivity Benefits can be rolled over to another super fund at any time – but think carefully before moving money out of a defined benefit scheme.
• A retention benefit may be available after 15 years of continuous eligible service, if you elect it in time and agree to serve to 20 years.

ADF Super

• ADF Super is an accumulation fund – your balance depends on contributions and investment returns.
• Defence contributes 16.4% of your super salary. You can choose to have this paid to another complying fund.
• You can keep your ADF Super account after you leave (after 12 months of continuous service), and your new employer can contribute to it.

Insurance and invalidity

ADF Cover provides death and invalidity cover to permanent and continuous full-time members under 60, whichever fund they belong to, at no cost. Medically discharged members may be eligible for an invalidity benefit, generally paid as a pension. DFRDB and MSBS also have their own invalidity arrangements, based on your classification (Class A, B or C) according to your reduced capacity for civilian work.

Remember that your insurance cover changes when you leave – see our guide Leaving the ADF: a financial checklist.

How super affects your DVA payments

Commonwealth-funded super benefits, such as military invalidity pensions, can reduce some DVA payments – including Incapacity Payments and the Special Rate Disability Pension. Your super and DVA decisions should always be planned together. Read our guide: Special Rate Disability Pension explained.

Common mistakes to avoid

• Rolling a defined benefit out to another fund without understanding what you are giving up.
• Missing a commutation or election deadline.
• Assuming your insurance continues after you leave.
• Making super decisions in isolation from your DVA entitlements and tax position.