Scheme benefits
General
Benefits are payable to you on your resignation or retirement. The Scheme’s range of benefits may be summarised as follows:
- ‘discharge’ benefits, which become payable on:
- your voluntary or compulsory age exit or on your election to preserve your rights or
- ‘in-service’ benefits, which become payable on either:
- your retirement due to physical or mental incapacity to perform your duties
- your death, leaving eligible dependants
- your death, leaving no eligible dependants or
- ‘post-service’ benefits, which become payable following your death to your eligible spouse and children, provided you are receiving a Scheme benefit at the time of your death.Top
Form of benefits
The primary form of Scheme benefit is a combination of an indexed pension, and a lump sum payment, referred to as commutation.
Productivity benefit
DFRDB Members are also entitled to a productivity benefit under the Defence Force (Superannuation) (Productivity Benefit) Determination. The amount of the benefit varies according to the circumstances under which you leave the ADF. ComSuper pays the benefit at the same time as DFRDB benefits are paid. See 'Productivity benefit' section fore more information.
Payment of benefits
Generally, retirement/ invalidity pay is paid fortnightly by direct deposit to an account with any approved bank, building society or credit union. The account must be with a financial institution in Australia and must be in your name. It may be a joint account, provided your name is one of the account holders.Top
Family Law
From 28 December 2002, new Family Law legislation came into effect. The new legislation allows for superannuation to be split on marriage breakdown either by:
- a Court Order (that is, an order made by a court exercising family law jurisdiction such as the Family Court or the Federal Magistrates Court) or
- a Superannuation Agreement between the parties (that is, an agreement between the parties that meets the requirements in the Family Law Act).
From 18 May 2004, further legislative changes came into effect which allow a separate superannuation interest to be created for a Member’s spouse or former spouse once a valid Court Order or Superannuation Agreement has been received.
Family Law content for DFRDB website
The consequence of a family law payment split depends on whether the Member’s benefit is in payment phase or growth phase.Top
Payment phase
DFRDB retirement pay or invalidity pay is being paid fortnightly, so it is regarded as being in ‘payment phase’ for family law purposes.
If DFRDB retirement pay or invalidity pay is subject to a family law payment split, the non-member spouse will become an associate member in the DFRDB scheme and will start to receive fortnightly payment of benefits in his or her own right. The entitlement is indexed twice yearly. If an associate in receipt of an associate scheme pension dies, there is no residual benefit for dependants.
Growth Phase
Each of the following entitlements are regarded as being in ‘growth phase’ for family law purposes:
- an accruing DFRDB benefit
- a DFRDB deferred benefit that has not been claimed
- an entitlement under the Productivity Benefit Scheme.
If any of these entitlements are subject to a family law split, the non-member spouse will become an associate member of MilitarySuper, with an Associate B benefit in MilitarySuper.
The MilitarySuper Associate B benefit is an untaxed benefit that is indexed annually at the long- term bond rate. The benefit may be paid when the person reaches his or her preservation age. The benefit may be rolled out of MilitarySuper when the person reaches age 55.