The Military Superannuation and Benefits Scheme, also called MSBS or MilitarySuper, is a hybrid scheme combining accumulation and defined benefit components. Your member benefit and any ancillary benefit depend on contributions and investment performance, while your employer benefit is calculated using a formula.
The scheme opened on 1 October 1991 and closed to new members on 30 June 2016. Confirm your actual membership rather than relying only on the date you joined the ADF. Some former MilitarySuper members with a preserved employer benefit must rejoin the scheme when returning to eligible ADF service.
The components of your benefit
Your member benefit is based on member contributions and investment performance. Your employer benefit is calculated using your final average salary and employer benefit multiple. An ancillary benefit may also apply where the scheme receives additional contributions or rollovers that cannot be paid into your member or employer benefit.
Productivity contributions and their investment earnings form part of your employer benefit. They are not a separate benefit alongside the member, employer and ancillary components.
Your statement can help identify these components, but access and payment options depend on your circumstances and the applicable rules.
Leaving service and preserving benefits
Leaving the ADF does not necessarily mean every part of your military superannuation can be withdrawn immediately. Access depends on how you leave service and whether you meet the relevant release requirements. Benefits that cannot yet be accessed remain preserved in MilitarySuper.
Depending on your circumstances, your employer benefit may be payable as a pension, a lump sum or a combination of both. Member and ancillary benefits are payable only as lump sums.
Before choosing a payment option or transferring an amount, check which component it relates to and the consequences of that choice. Ask CSC for an explanation specific to your membership and circumstances.
Invalidity under MSBS
When you medically transition from the ADF, CSC assesses your eligibility for invalidity benefits under the scheme rules. Your invalidity classification reflects assessed incapacity for civilian employment suited to your skills, qualifications and experience, taking account of your retiring impairments.
Class A means incapacity of 60% or more. Class B means at least 30% but less than 60%. Class C means less than 30%. Eligible Class A and Class B members receive an invalidity pension. Class C does not provide an invalidity pension; other superannuation benefits remain subject to the applicable access rules.
These percentages describe assessed incapacity, not the percentage of salary payable as a pension. The benefit calculation also depends on the scheme rules and your individual membership details.
Getting the right help
Ask CSC for information about your account and benefit options. If your concern involves a legal entitlement, medical transition or invalidity decision, KSC Law can help review the relevant records and explain the possible next steps.
Personal financial and tax decisions may also require advice from an appropriately qualified adviser.
Book a free consultation about an MSBS invalidity matter and bring your statement and any decision letter.
Related reading: CSC claims lawyers for ADF members and veterans · Understanding your CSC pension after an invalidity decision
Further reading
CSC — MilitarySuper (MSBS) member information · ADF member superannuation fact sheets · DVA — Veteran support and services guide · Commonwealth Superannuation Corporation · Moneysmart