Effect on your retirement pay or deferred benefit

Re-entering the ADF | Who is a re-entrant | Make your scheme election | Effect on your retirement pay or deferred benefit

Returning to the ADF in the reserves for less than 12 months

If you are

receiving retirement pay
or
invalidity pay,
or
you have a deferred benefit that you have not claimed,
and
you intend to return to the ADF on Continuous Full-time Service (CFTS) in the Reserve Forces for less than 12 Months

If you elect not to become an MSB Scheme Member

Your fortnightly DFRDB Scheme retirement pay or invalidity pay will continue to be paid during the period of your current engagement.

You do not contribute to the DFRDB Scheme and you will not receive any further invalidity cover.

You will have an entitlement to a productivity superannuation benefit. It is important you claim this benefit within 2 months of your discharge, using the Form D10 which is available on the DFRDB Scheme website. If you do not claim the benefit within 2 months, it will be rolled over to:

AMP Eligible Rollover Fund
GPO Box 5400
PARRAMATTA NSW 2124

Your election applies only to the current engagement. You will have to make a new election each time before you reenter the Reserves for less than 12 months (including extensions of an engagement or engagements that are continuous with an existing engagement) (unless you have elected to join the MSBS).

Note: A person with a deferred benefit cannot make a scheme election. You will become a Member of the MSB scheme automatically. Please complete Form M100 if this is your situation. The DFRDB Scheme deferred benefit ceases to apply but you will receive a credit towards your MSB Scheme benefit.

Returning to the ADF in the reserves for more than 12 months or the permanent forces

If you are

receiving retirement pay
or
invalidity pay
or
you have a deferred benefit that you have not claimedand
and
you intend to return to the ADF on Continuous Full-time Service (CFTS) in the Reserves Forces – for 12 months or more
or
the Permanent Forces – for any period of full-time service in the ADF (including a short service commission)

If you elect to become a contributing DFRDB Member:

Your DFRDB Scheme retirement pay or invalidity pay will be cancelled during your re-entry.

You will contribute to the DFRDB Scheme.

Your election continues to apply to all future full-time service in the Reserve for at least 12 months or for any period in the Permanent Forces and you won’t be allowed to make another election in that situation.

When you conclude your service, your DFRDB Scheme benefit will be re-calculated based on total years of service (including your reentry period). You may also be entitled to an additional DFRDB Scheme commutation on your exit.

You will have an entitlement to a productivity superannuation benefit.

Please complete Form D20 at discharge to claim your benefit

Note: If you had a deferred benefit, the deferred benefit will cease but your previous service will count when your DFRDB Scheme benefit is determined on exit.

Note: DFRDB Scheme invalidity pay does not resume after discharge unless you are again retired on invalidity grounds and classified Class A or B.

Effect on your retirement pay or deffered benefit part b

The following comments apply to each of the above types of engagement.

If you elect to become an MSB scheme Member:

MSB Scheme Entitlements:

MSB Scheme membership is final and irreversible. You will be in the MSB Scheme for your current engagement and all future full-time engagements. You can never go back to the DFRDB Scheme as a contributor.

You will be required to contribute to the MSB Scheme. You will accrue an additional benefit under that Scheme in respect of your current engagement. You will accrue both a Member Benefit and Employer Benefit in the MSB Scheme (see the MilitarySuper website for more information)

DFRDB Retirement Pay:

Your DFRDB Scheme retirement pay will be suspended during your period of re-entry. Payment will resume after your service ends. The retirement pay will be adjusted based on the Consumer Price Index (CPI) during your current engagement and will resume at the adjusted rate upon discharge.

DFRDB Invalidity Pay:

Your DFRDB Scheme invalidity pay will be cancelled while you are contributing to the MSB Scheme. It will NOT recommence after your service ends unless before receiving invalidity pay, you had a total

is a period of non-effective service in relation to him; or

is a period that, under section 57 or 58, is to be disregarded as a period of effective service in relation to him; and

any period that is deemed to be a period of effective service in relation to him under section 21, subsection 62(3) or section 64 or 91.

"> period of effective service of at least 20 years. However, your DFRDB Scheme service will give you a credit towards your MSB Scheme benefit.

DFRDB Deferred Benefit:

Your DFRDB Scheme deferred benefit will cease to apply but you will receive a credit towards your MSB Scheme benefit.

If you do not make a required election before re-entry:

You will become a Member of the MSB Scheme. This situation will be final and irreversible and will apply to all future periods of full-time service in the ADF. You will be treated as if you had elected to join the MSB Scheme (as explained in the box above).