Author Topic: ADF Superannuation info  (Read 1249 times)

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Offline Dimsum

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ADF Superannuation info
« on: March 21, 2018, 12:47:32 »
Not really news per se, but I got this from a different forum and thought it may be of interest to some folks.  I'm not 100% up on our pension so I can't say whether our system or theirs is better.

TL;DR - The Aussies don't have a pension as we think of it, but a Superannuation investment fund.  Also, it can't be accessed until age 60 (or later as this person suggests).

Quote
There is no pension in the ADF. The pension scheme known as DFRDB ended in 1992. The scheme which replaced it could give something similar to a pension (depending on your circumstances) known as MSBS, however this scheme closed in 2015. You will be given ADF Super which is the normal retirement scheme that civilians get, only with a higher contribution - 15.4% of your salary (5% comes out of your pay, 10.4% is added on top by Defence) gets invested on your behalf by the superannuation investment fund of your choice. You can access this money when you hit retirement age (60 at the moment, be prepared for this to change). Depending on how much you save, you may be able to live indefinitely on this saved money, however it could run out depending on your spending habits.

Note that if you provide operational service you may be entitled to a service pension through the Department of Veterans Affairs - note that this is merely a slightly more generous version of the normal pension that civilians have access to through Centrelink and is means tested (ie. you have to be poor to access it). If you are medically discharged from the ADF for an injury that was caused by your service then you will be entitled to an invalidity pension depending on the scope of your injuries (max 75% of your current wage).

https://www.reddit.com/r/AustralianMilitary/comments/840a1m/considering_overseas_lateral_transfer_but_have_a/
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Offline RDBZ

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Re: ADF Superannuation info
« Reply #1 on: March 21, 2018, 15:53:09 »
I'm not sure that's entirely correct.  According to this DoD advice the employer contribution is currently fixed at 16.4% of salary.  This doesn't include the 'employee' contribution which is usually 5% of salary but can be varied

http://www.defence.gov.au/PayandConditions/ADF/Resources/Super_ADF_FAQ.pdf

http://www.defence.gov.au/PayAndConditions/ADF/Resources/ADF_new_super.pdf
« Last Edit: March 21, 2018, 15:58:43 by RDBZ »