Super salary is the maximum incremental rate that applies to your substantive, provisional or probationary rank, including any recognised allowances. With the introduction of the Military Salary in 2021, salaries shown in the ADF pay rate tables include service allowance and uniform allowance. Prior to 2021, only service allowance was included as part of super salary.
Effective service is the total of your full-time contributory service, plus any periods of past service that you may have bought back. Your Annual Statement lists your accumulated effective service.
The table shows the amount of retirement pay as a percentage of super salary.
Notional retiring age (NRA)
If you are an officer, your retirement pay will be reduced by 3% for each year that your age at retirement is less than your notional retiring age. NRA only applies to officers who retire at their own request or are retired on disciplinary grounds.
More information:
DFRDB Book
Notional retiring age for affected ranks:
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Major (or equivalent) and below
Notional retiring age: 42
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Lieutenant Colonel (or equivalent)
Notional retiring age: 45
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Colonel and Brigadier (or equivalent)
Notional retiring age: 50
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Major General (or equivalent)
Notional retiring age: 52
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Lieutenant General and General (or equivalent)
Notional retiring age: 55
Commutation
If you have retired and are entitled to a retirement benefit, you can elect to commute (exchange) a portion of the retirement benefit you may be paid in the future for a lump sum paid now.
It is the prepayment of part of your future retirement benefit as a lump sum. The maximum you can commute is five times your annual retirement pay.
Under Section 24 of (1AA) of the Defence Force Retirement and Death Benefits Act 1973, an election to commute must be lodged within one year of you becoming entitled to retirement pay.
If you have accessed a commutation during a previous separation and re-entered the ADF, you must elect a commutation in all subsequent separations. Your retirement pay will be permanently reduced to offset your commutation.
Productivity
We will pay your Productivity Benefit to your MilitarySuper as an Ancillary member, or your nominated rollover fund.
If you have reached your preservation age and are permanently retired from the workforce, you can choose to take all or part of your super Productivity Benefit as a cash lump sum. Preservation age is based on your date of birth.
Surcharge
Superannuation surcharge was a debt calculated by the ATO and applied to contributions where your adjusted taxable income (taxable income plus notional employer contributions) exceeded certain levels before 1 July 2005. These amounts are recorded in a surcharge debt account. Although surcharge does not apply from 1 July 2005 onwards, amounts recorded in surcharge debt accounts must still be paid.
Any surcharge debt remaining at the time benefits are payable is normally recovered from the productivity lump sum. You can request that it be recovered from your commutation lump sum (if any), or retirement pay (if you do not elect to commute) instead. You have up to one year to make this decision.
Any amount in your surcharge debt account remaining at 30 June each year is preserved and charged interest at the 10-year Treasury bond rate. Interest is only applied to surcharge debt until the debt is paid.
MilitarySuper Ancillary Benefit
Your Ancillary Benefit may be cashed out when you reach your preservation age and:
- permanently retire from the workforce;
- cease an employment arrangement on or after age 60; or
- reach age 65 (you must claim and take as cash or rollover—even if you haven’t retired).
You can roll over your Ancillary Benefit at any time to another super fund.
We will not deduct tax from any amount rolled over to another fund. However, the receiving fund will deduct 15% tax from any untaxed component of the rollover.
You can nominate two rollover funds to receive all or part of your lump sum benefit. Ensure your nominated rollover account is active and can receive money from other super funds.
