Account Maintenance
Collection, recording and maintenance of Member information
Maintenance of DFRDB contributor accounts is a significant function undertaken by the Authority’s administrator, ComSuper, in conjunction with the Department of Defence. The process of collecting and applying data to contributor accounts is highly automated. Variations to contributions information are routinely processed within days of the relevant payday. The quality of data processed is generally high, however, any incorrect, inconsistent or missing data is investigated by ComSuper Member Account Maintenance staff in consultation with the Department of Defence and any necessary corrections or updates are carried out.
As the Authority’s administrator, ComSuper:
- maintains records of Contributing Members (including those who have made or are making Ancillary Contributions), preserved benefit Members and pensioners to facilitate, among other things, accurate and timely communications, the accurate and timely payment of benefits and various reporting requirements
- ensures adequate systems, procedures and controls are in place to meet the administration and reporting requirements of the DFRDB Act and associated legislation
- at the direction of the Authority, arranges for an independent audit of those systems and controls to be undertaken from time to time.
system changes
During 2007–08, the Program Management Branch within ComSuper was renamed to the Business Improvement Branch to reflect its new focus on the ComSuper Service Improvement (CSI) Program.
The CSI Program is a major change program, established during 2007–08, which will improve the way ComSuper delivers superannuation administration services. It brings the existing Administration Platform Modernisation (APM) Project, a major upgrade of the IT systems that provide superannuation administration transaction processing, into a broader program of business process improvements. Consolidation of ComSuper’s multiple administrative systems is scheduled for completion by 2010-11.
Pension recipients resuming full time service
An issue of concern for the Authority continued to be the number of DFRDB pension recipients failing to make a valid scheme election prior to re–entering the ADF. Failure to make a valid election to rejoin the DFRDB results in the person becoming, often unintentionally, a member of MilitarySuper by operation of the respective scheme legislation. Overpayment of a DFRDB pension can also result. Considerable efforts were made by ComSuper and the Department of Defence to enhance Member communication on this issue. By the end of the year these measures appeared to be having some success.
Ancillary contributions
The Military Superannuation and Benefits Board of Trustees No. 1 (MSB Board) approved the introduction of an ancillary package for MilitarySuper with effect from 1 August 2005. For equity purposes, the MilitarySuper Scheme rules were amended to allow current contributors to the DFRDB Scheme to make Ancillary Contributions.
There are several types of contributions available under the ancillary package. They are:
- Government (Super) Co-contributions
- Additional Personal Contributions
- Salary Sacrifice Contributions
- Spouse Contributions
- Transfer Amounts
surcharge
Despite the abolishment of Surcharge from 1 July 2005, the Authority is required to continue the maintenance of surcharge debt accounts for DFRDB Members whose surchargeable contributions up to and including the financial year ended 30 June 2005 attracted the surcharge. The Authority is required to impose interest on any amount in a Member’s surcharge debt account at 30 June in any year. Interest is based on the ten–year Treasury bond rate.
A DFRDB Member may choose to acquit the surcharge debt immediately, pay it off in instalments, or have it deducted from his or her benefit on exit.
In 2007–08 the ATO reported surcharge debts incurred by 79 Members totalling $42 630. Twenty-seven Members repaid surcharge debts totalling $83 643, while $1 067 177 was recovered from 154 Member benefits paid during the year. Interest totalling $547 508 was applied to Member surcharge debts that remained outstanding as at 30 June 2008.
A review conducted during the year identified longstanding surcharge system reporting errors in respect of a number of current and former Members. Remedial action has been commenced and, where appropriate, Members affected have been, or will be, notified of the need for amended contribution records and/or the issue of revised tax assessments.