You will probably have heard by now that the superannuation landscape for ADF members is about to change dramatically.
What is changing?
From 1 July 2016, MSBS will be closed to new members, and there will be a new ADF superannuation arrangement (‘the Arrangement’) based on a 16.4% employer (Defence) contribution into a superannuation fund of a members’ choice. In summary, the principal changes are that:
What do I have to do?
If you are a member of MSBS you do not need to do anything. Moving to the new Arrangement is not compulsory. If you decide to move to the Arrangement, you can transfer at any time. However, if you transfer from MSBS, you can’t return. It is therefore important to consider getting independent financial advice before making a decision to move.
If you are a serving member of DFRDB and wish to continue serving full time, you do not need to do anything. If you are thinking about leaving full time service and think that you may at some time conceivably wish to come back on CFTS or re-join, you should consider getting financial advice before making the decision to leave so that you have the full picture of how the new Arrangement may affect you.
You can find a financial adviser through the ADF Financial Advice Referral Program.
Want to know more?
More information on the Arrangement is available at the Commonwealth Superannuation Corporation’s (CSC’s) new website www.adfsuper.gov.au. Information about MSBS and DFRDB is available on the CSC’s main website at www.csc.gov.au. You may also wish to watch the new video on the Arrangement and access other educational information through the Centre’s website www.adfconsumer.gov.au.
Frank Lilley, Operations Manager, ADF Financial Services Consumer Centre