Member Benefit Limits under MSBS

20 Sep 2011


In the Military Superannuation and Benefits Scheme (MSBS), Maximum Benefit Limits (MBLs) are limits on the maximum amount that the superannuation fund will pay out.

They should not to be confused with Reasonable Benefit Limits (RBLs) which limited the amount that could be contributed and accumulated at concessional tax rates. RBLs were abolished in July 2007 but MBLs were not.

MBLs include the sum of both Employer and Employee benefits.

There are two MBLs:

  1. All Pension MBL, at which the member must stop contributing because the members total payout has peaked; and
  2.  Lower Lump Sum MBL at which the member may stop contributing because the member is getting close but is urged to seek specific advice.

The effect of these measures is that many long serving ADF personnel receive no retirement income benefit for their final years of service.

The Report of the Review of Military Superannuation (The Podger Report) recommended that MBLs be scrapped for the MSBS. The combined Ex-Service Organisations response supported that recommendation.

We want the Government to remove immediately MBLs from the MSBS