The Defence Force Retirement and Death Benefits Scheme (DFRDB) was established by the Defence Force Retirement and Death Benefits Act 1973 and commenced on 1 October 1972. The DFRDB Scheme replaced the retirement benefits scheme (DFRB) under the Defence Forces Retirement Benefits Act 1948 (as amended).
The DFRDB Scheme was itself replaced by the Military Superannuation and Benefits Scheme (MSBS) on 1 October 1991. At that time, existing members of the DFRDB Scheme were permitted to elect to join the MSBS or to stay in the DFRDBS. After 1 October 1991, new members of the Defence Forces could only join the MSBS.
The DFRDB Scheme is a contributory scheme for “eligible members of the Defence Force”, which means, essentially, all members of the ADF on continuous full-time service for a period of at least one year. The Scheme pays retirement benefits, invalidity benefits and death benefits, most commonly in the form of a pension based on the annual rate of pay immediately before retirement or discharge.
DFRDB pensions are adjusted for CPI on the first payday in July each year, with the increase taking effect from the first day of that pay period (ie. in late June).
In some circumstances, a part of a DFRDB pension entitlement can be commuted to a lump sum.