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May I choose a super fund?

2nd August, 2019

Most ADF members are members of longstanding compulsory super funds, DFRDB and MSBS. DFRDB was closed to new members some 30 years ago and MSBS was closed to new members on 30 June 2016.

However, if you joined the ADF on or after 1 July 2016, you will be covered by the new military superannuation arrangement in which you may choose to have Defence’s super contribution of 16.4%pa of your remuneration paid into any complying superannuation fund (ADF Super, a retail, industry or self-managed superfund).

Members of MSBS (not DFRDB) may also choose to join the new military arrangement, but before you do, think very carefully about what you’re giving up. Consider getting financial advice before you make such an important decision.

From 1 November 2021, where a person joins a new employer and the person does not choose a superannuation fund, the employer may have to contribute to the new employee’s previous fund. This change aims to stop new superannuation accounts from being opened every time an employee starts a new job. More details on this on the ATO website.

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