Step 1: work out which scheme you are in
Your scheme depends mainly on when you joined. All three are run by the Commonwealth Superannuation Corporation (CSC).
| Scheme | Who is in it | Type |
|---|---|---|
| ADF Super | Generally members who joined from 1 July 2016 (and some who chose to switch) | Accumulation: your balance depends on contributions and earnings |
| MSBS (Military Superannuation and Benefits Scheme) | Generally members who joined from October 1991 to 30 June 2016. Closed to new members. | Hybrid: part of the benefit is worked out by formula, not market returns |
| DFRDB | Members who joined before October 1991. Closed. | Defined benefit pension |
Your CSC member statement or myGov will confirm it. If you are not sure, check before making any decision.
ADF Super in plain English
Defence pays employer contributions into your ADF Super account (or another fund you choose, subject to the rules). It works like most accumulation funds: what you end up with depends on what goes in, investment returns and fees. Separately, eligible members get death and invalidity cover through ADF Cover, which is not a super product and does not come out of your balance.
MSBS: why leaving is a big decision
MSBS benefits have parts with different rules. When you leave Defence, some members can take part of their benefit as a lifetime pension, and in some cases convert (commute) part of it to a lump sum. A lifetime, indexed pension can be valuable, and choices about commuting are generally permanent. Get the official CSC estimate first and take your time.
Questions to ask before you discharge
- What is my scheme, and what are all my options on leaving (preserve, pension, lump sum, rollover)?
- How will each option be taxed, and how does it interact with any DVA payments?
- What happens to my insurance cover when I leave, and what will I have instead?
- Does my partner have any entitlement if I die, and is my nomination up to date?
- Will the choice affect my Age Pension later?
Our Brisbane financial advisers can look at the whole picture, including your CSC estimate, before you choose. We do not guess at your entitlement; we work from CSC’s official figures.
Want this applied to your situation? Book a no-obligation chat with our team on Edward Street.
Quick answers
Which Defence super scheme am I in?
It mainly depends on when you joined. Generally ADF Super from 1 July 2016, MSBS from October 1991 to June 2016, and DFRDB before October 1991. Your CSC statement confirms it.
Can I take my MSBS as a lump sum?
Some members can commute part of their MSBS benefit, depending on their circumstances. These choices are usually permanent, so get CSC’s official estimate and personal advice first.
Is ADF Cover part of my super?
No. ADF Cover is death and invalidity cover provided by the Commonwealth for eligible members. It is separate from your super balance.
Sources
General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules and thresholds change; check the sources above. Past performance is not a reliable indicator of future performance. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is authorised under Financial Force Pty Ltd AFSL 238337. Shay has been authorised since 18 October 2011.