7. Our Superannuation Schemes
ADF Super
Australian Defence Force Superannuation Scheme
Overview of ADF Super
ADF Super is a military superannuation scheme established on 1 July 2016 by the ADF Super Act. It is an accumulation scheme where members and the Department of Defence (as employer) pay money into the scheme on behalf of members, with investment returns calculated as a compound average rate of return after fees and taxes are deducted.
ADF Super is open to new ADF entrants, including reservists who are in full-time continuous service. ADF Super is also open to other eligible ADF members.
ADF Super membership
Table 36. ADF Super members at 30 June 2018
|
2016–17 |
2017–18 |
|
|
Members |
5,539 |
10,044 |
|
Preservers |
129 |
629 |
ADF Super administration
Member contributions
ADF Super members can make voluntary before- and after-tax contributions. Contributions for the 2017–18 financial year were $1.573m, compared with almost $0.667m in 2016–17.
Employer contributions
The Department of Defence contributes 16.4% per annum on behalf of ADF Super members. These contributions for the 2017–18 financial year were $72 million, compared with almost $27 million in 2016–17.
Benefit payments
The most common reason why superannuation benefits are paid out of ADF Super is to consolidate funds into another superannuation fund. Benefit payments in the 2017–18 financial year totaled almost $3.223m, compared with almost $0.369m in 2016–17.
Insurance benefits
There is no insurance available within ADF Super. Instead, eligible members receive automatic invalidity and death cover via ADF Cover.
ADF Cover
ADF Cover pays eligible members a pension if they are discharged from the ADF due to injury and pays their family an automatic death benefit if they die.
Table 37. New ADF Cover pension recipients
|
2016–17 |
2017–18 |
|
|
New pension recipients |
2 |
41 |
Table 38. ADF Cover death benefits paid
|
2016–17 |
2017–18 |
|
|
Death benefits paid |
0 |
2 |
Complaints
One complaint was received in 2017–18 and was resolved.
Changes to ADF’s legislation and trust deed
No changes were made to the Australian Defence Force Superannuation Act 2015 or to the Australian Defence Force Superannuation Trust Deed 2015 during 2017–18.
The amended legal definition of marriage within the new Marriage Amendment (Definition and Religious Freedoms) Act 2017 is now also recognised under the Australian Defence Force Cover Act 2015. The amendments came into force on 9 December 2017.
Also, in February 2018, the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Act 2018 was passed by Parliament which amended the Corporations Act 2001 and repealed the Superannuation (Resolution of Complaints) Act 1993. Consequently, references to the Superannuation Complaints Tribunal within the Australian Defence Force Cover Act 2015 are now replaced by the Australian Financial Complaints Authority.
