About Us
Follow the links below to access information about the DFRDB Authority, Financial Services and our Annual Reports.
Establishment of the Scheme
The superannuation schemes established by the Defence Forces Retirement Benefits Act 1948 (DFRB) and the Defence Force Retirement and Death Benefits Act 1973 (DFRDB) are now closed to new members.
Scheme Specifications
Fully defined untaxed benefit scheme. Established 1973. Closed 1 October 1991. Contribution rate 5.5% of highest incremental salary for rank plus allowances.
Coverage
Was compulsory for members of the Australian Defence Force who enlisted before October 1991.
Membership as at 30 June 2011
- Contributors: 3743
- Pension Recipients: 53 253
Contributions received and benefits paid 2010-2011
- Contributions: $21 181 613
- Benefits Paid Lump Sum: $1 477 677 000
- Total Pensions Paid: $1 375 488
Description of the Scheme
The DFRDB Scheme is a fully defined untaxed superannuation scheme which was closed to all new Members on 1 October 1991 following the introduction of the new MSBS Scheme.
Members of the ADF who enlisted prior to 1 October 1991, or who are re-entered recipients and have not elected to transfer to the MSBS, contribute under the DFRDB Scheme at the rate of 5.5% of highest incremental salary for rank plus Service Allowance. Contributions are not invested but are paid directly to the Consolidated Revenue Fund on a fortnightly basis.
Other than in the case of the separate 3% Productivity and SGC arrangements, there is no vesting of the employer element where the Member resigns before completing 20 years service, nor are there any earnings on the employee element. Unlike most other superannuation schemes, age at retirement plays only a minor part in the process of calculating benefit entitlements; the key to the scheme is the length of the Member's effective service. Where a Member retires from the ADF, other than on the grounds of invalidity, with 20 or more years of effective service (or have 15 or more years of service and have reached the compulsory retirement age for rank) he/she is entitled to retirement pay (pension) based on a percentage of annual pay for DFRDB purposes on retirement.
A Member may elect to commute a portion of his/her retirement pay to a lump sum.
Members with less than 20 years service or who have not reached their compulsory retiring age are entitled to a refund of contributions based on their fortnightly contribution rate, plus the possibility of an unfunded gratuity based on completed years of service.