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Productivity benefit

A productivity benefit has been accruing on behalf of all Defence Force Members since 1 January 1988. This benefit is paid for completely by the Department of Defence and is separate from the DFRDB benefits outlined in this booklet.

When is the benefit payable?

Under certain circumstances, the productivity benefit is payable immediately after you leave the Defence Force. However, in most cases it must be paid into a rollover fund of your choice until you retire from the workforce on or after reaching your preservation age.

Preservation ages
Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 to 30 June 1961 56
1 July 1961 to 30 June 1962 57
1 July 1962 to 30 June 1963 58
1 July 1963 to 30 June 1964 59
After 30 June 1964 60

Immediate payment

If you leave the DFRDB Scheme and you satisfy any of the following criteria, the productivity benefit is payable to you or your family immediately:

  • if you retire from the workforce on or after preservation age

    or

  • if you reach age 60 and change employer

    or

  • in the event of your death.

Later payment

If you cannot gain immediate access to your productivity benefit, you must nominate a rollover fund (e.g. an approved deposit fund) into which your benefit will be deposited until one of the above conditions is met. The rollover fund may allow early release of some part of the productivity benefit should you find yourself in a position of financial hardship. Early release from the rollover fund is subject to you meeting prescribed conditions.