From 2016, the default super fund for new members will be ADF Super.
MILITARY superannuation membership is set to become portable and more flexible from mid-next year.
The new arrangements seek to establish ADF Super and ADF Cover on July 1, 2016.
From that date, it is proposed the current Military Superannuation Benefits Scheme (MSBS) will be closed to new members.
New superannuation arrangements will apply to:
anyone joining the permanent ADF for the first time; and
serving and returning MSBS members, as well as reservists on continuous full-time service, who choose to move to the new scheme.
Under these arrangements, existing members will be able to choose which superannuation fund they belong to.
The default fund for all new permanent members, ADF Super, will be a fully funded accumulation plan with an employer contribution rate of 15.4 per cent, increasing to 18 per cent during periods of warlike service.
Head People, Policy and Culture Richard Oliver said these new arrangements would be the most contemporary military superannuation arrangements available.
“It’s important to note that no current serving members will be required to move to the new arrangements,” he said.
“However, if they wish, serving and returning members of MSBS may choose to move to the new arrangements at any time from July 1, 2016.”
Members will have the ability to transfer their accumulated benefits to a new fund if they leave the ADF and will no longer be required to make personal contributions, unless they elect to. Individual circumstances will determine whether changing to the new military superannuation arrangements will provide better value for the individual, according to Head People Capability AVM Anthony Needham.
“If you are a current MSBS member wishing to consider changing to the new military superannuation, I strongly encourage you to seek independent financial advice,” AVM Needham said.
“These new superannuation arrangements will contribute to the flexible career options Project Suakin is delivering.” The new arrangements will be underpinned by a death and invalidity scheme that will continue to recognise the unique nature of military service.
The new scheme, to be known as ADF Cover, will be consistent with what is available now under MSBS.
Any members considering options will have ample opportunity to consider the finer details as they are finalised and before the new military superannuation is introduced.
Source: Army Newspaper FEBRUARY 26TH 2015