Productivity benefit
General
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.
| 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 from another rollover fund
If you cannot gain immediate access to your productivity benefit, you must nominate a rollover fund (for example, 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 is subject to you meeting prescribed conditions.