Federal Parliament has approved amendments to the Commonwealth’s newest superannuation scheme, the Australian Defence Force Superannuation Scheme (ADF Super), to allow employer contributions for members after they leave the ADF.
The changes will allow civilian employers to make contributions on behalf of ADF Super members who had served at least 12 months in the permanent forces or as continuous full-time reservists prior to discharge.
The ADF Super amendments were part of the Defence Legislation Amendment (Miscellaneous Measures) Bill 2020, which also extended the subsidy available after leaving the ADF under the Defence Home Ownership Assistance Scheme (DHOAS) from two years to five years.
The Minister for Veteran’s Affairs and Minister for Defence Personnel, Darren Chester, recognised that transitioning from ADF to civilian life was a significant life event and believed these changes would allow more time for families to make important financial decisions.
“The change to ADF Super will align the fund with broader industry superannuation arrangements as well as other public superannuation schemes, and allows ADF Super members to choose to remain contributing members after they transition to civilian life,” he said.
The changes to ADF Super will commence from 6 July 2020, but will require additional amendments to the ADF Super Trust Deed and Rules to be effective.
The Commonwealth Superannuation Corporation (CSC) is the trustee of ADF Super and has welcomed the changes through an update on its website.
According to the update, the CSC would also be bringing in new insurance products, including Total and Permanent Disability (TPD) and death cover as well as optional income protection, designed especially for ex-service personnel.