Policy

Where a person has multiple periods of service or sources of superannuation (i.e. Defence and Australian Public Service) only the superannuation that is derived from the same period of service that in which the injury was sustained is taken into consideration in incapacity calculations. The calculation of NE or NWE is driven by the type of service that gave rise to the condition/s causing the incapacity.

The ‘SC’ amount is only applicable to incapacity payment calculations under S20, 21 and 21A i.e. calculations where a person has received a Commonwealth superannuation amount.

The SC amount is “the amount of superannuation contributions that would have been required to be paid by the employee in that week if he or she were still contributing to the superannuation scheme”.

The SC amount is added to the superannuation amount (the ‘SA’) and reduced from the incapacity payment.  

'Preservation age' – the age at which preserved superannuation can be accessed by a retired member – varies according to the date of birth of the member.

Under the MSBS a person can access a pension only benefit at age 55 (the option to receive a lump sum is only available after the person reaches their preservation age).

Only superannuation benefits that have been received by a person can be included in incapacity payment calculations.  A superannuation amount which the person cannot access at the time of their retirement i.e. is preserved in a fund until certain conditions are met (age and permanent retirement from the workforce) is not 'received' and is not taken into account in calculating incapacity payments until it is actually paid to the person.

ADF Super has replaced MSBS as of 1 July 2016. ADF Super is the default fund for anyone joining the permanent ADF for the first time, however members will be able to choose a different fund if they wish (though MSBS has been closed to new members from 1 July 2016). ADF Super is underpinned by a death and invalidity scheme called ADF Cover.

The MSBS applies to members of the Permanent Forces who commenced service on or after 1 October 1991 and also is open to members of the Emergency or Reserve Forces who:

• undertake full-time service for 12 months or more

• undertake full-time service for 3 – 12 months and elect to join the Scheme, or

• undertake full-time service in an operational area and elect to join the Scheme.

MSBS is primarily a lump sum scheme with two basic components:

The DFRDB Scheme is a contributory scheme for 'eligible members of the Defence Force’ i.e. all members of the ADF on continuous full-time service for a period of at least one year. The DFRDB scheme is essentially a pension scheme. 

The Commonwealth funded portion of superannuation benefits is called the ‘employer benefit’ and is considered in incapacity payment calculations.

Any part of the superannuation benefit that is attributable to a person's own contributions, the ‘employee benefit’, must be disregarded in calculations i.e. ancillary benefits.

9.3.1 SRCA

• 30 November 1988: A person who 'immediately before' the commencement of the SRCA on 1/12/1988 was in receipt of weekly incapacity payments and had ceased to be a serving member is a former employee under the SRCA and has a different set of weekly incapacity payment entitlements to that of current employees (non-former employees).

Superannuation benefits may be paid in the form of a pension, a lump-sum benefit, or a combination of both pension and lump-sum. Incapacity payments are reduced dollar for dollar by the Commonwealth-funded portion of the pension (a weekly amount). Lump-sum benefits are converted to a weekly amount before incapacity payments are reduced dollar for dollar by the Commonwealth-funded portion.