From 1 July 2016, all new ADF members will be covered by a new default superannuation accumulation fund – ADF Super.
CAPTION: Chief of the Defence Force Air Chief Marshal Mark Binskin arrives at a Battle of Britain commemoration ceremony in Hobart. Photo by Corporal Shannon McCarthy
The new ADF Super arrangement is accompanied by a new death and invalidity scheme called ADF Cover.
ADF Cover benefits are consistent with those provided by the Military Superannuation and Benefits Scheme (MSBS).
The employer contribution rate under the ADF super arrangement will be 16.4% of salary.
Members under the new arrangement are not required to make personal contributions, but can choose to make salary-sacrificed and after-tax contributions, or roll in money from other super schemes.
Members can also rollover their accumulated superannuation benefits from ADF Super to another complying superannuation fund at any time.
MSBS is now closed to new members.
Existing members of MSBS may choose to transfer to the new ADF super arrangement or stay in MSBS.
There is no time constraint to move to the new arrangement and members should seek independent financial advice before making any decision.
Existing members of the Defence Force Retirement and Death Benefits (DFRDB) scheme cannot transfer to the new scheme.
The Commonwealth Superannuation Corporation will manage ADF Super and ADF Cover.
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