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Proposed merger of the DFRDB Authority, MSB Board and ARIA

On Thursday 24 March 2011, Bills covering the proposed board merger of the DFRDB Authority, MSB Board, ARIA and other governance and administration reforms were introduced into the House of Representatives.

If passed, these Bills are due to take effect on 1 July this year.

Central to the reforms will be the establishment of a new Board of trustees for the military and civilian government superannuation schemes. In essence, the Boards of MilitarySuper, and ARIA (the trustee for the CSS, PSS and PSS Accumulation Plan Schemes) as well as the DFRDB Authority will merge to form a single trustee Board. The new Board will be the trustee of the main civilian and military super schemes.

Importantly, the reforms will not affect members’ superannuation benefits in any way. Each scheme will retain its own legislative base and provisions.

The DFRDB Authority will continue to keep Members advised of progress in this matter.

Timeline so far

15 June 2011

Bills passed by the House of Representatives.

24 March 2011

Bills introduced into the House of Representatives.

24 June 2010

Bills not being debated by the Senate – 1 July merger not proceeding.

15 June 2010

Bills introduced into the Senate.

2 June 2010

Bills passed by the House of Representatives.

13 May 2010

Department of Defence announced the nomination of General Peter Cosgrove, AC, MC and Mr John McCullagh as the Australian Defence Force member representative directors on the proposed Commonwealth Superannuation Corporation.

15 March 2010

The Senate Standing Committee recommended that the Bills be passed. Its report concluded that:

  • the proposed reforms do not change member benefits, death and disability benefits or any other entitlements such as indexation of pensions
  • individual Military schemes will remain under their own legislative basis and with their own identity
  • ComSuper will remain responsible for administering the schemes
  • the intent of the legislation is to introduce reforms which will improve governance and administration of both military and civilian superannuation funds.

24 February 2010

The Bills were referred to the Senate Standing Committee on Finance and Public Administration.

4 February 2010

The Minister for Finance and Deregulation, Lindsay Tanner, introduced the Governance of Australian Government Superannuation Scheme Bill 2010 and Superannuation Legislation (Consequential Amendments and Transitional Provisions) Bill 2010.

22 December 2009

The Government announced the appointment of Mr Tony Hyams as the Chairperson to ARIA. Hyams is also Chairperson of the Military Superannuation and Benefits Board of Trustees (MSB Board) and a director of AGEST Super.

26 November 2009

The Government announced further reforms to improve the administration arrangements of Australian Government superannuation schemes, including the outsourcing of administration services of PSSap.

31 October 2008

The government announced a package of reforms for its superannuation schemes, including a proposed merger of the Australian Reward Investment Alliance (ARIA), the Military Superannuation and Benefits Scheme (MSBS) and the Defence Force Retirement and Death Benefits Scheme (DFRDB) boards. The reforms focus on streamlining governance and administration arrangements, and will not impact members’ super benefits. Each of the schemes will retain their own legislative framework which determines members' benefits and entitlements.