- 2.1% adjustment on the indexed portion of DFRDB and DFRB pensions for recipients under 55 years of age
- At least 2.1% adjustment on the indexed portion of DFRDB and DFRB pensions for recipients aged 55 and over
From 1 January, recipients under 55 will receive a 2.1% increase to the indexed portion of pensions payable from the Defence Force Retirement and Death Benefits (DFRDB) Scheme and the Defence Force Retirement Benefits (DFRB) Scheme.
Recipients aged 55 and over will receive a 2.3% increase to the indexed portion of pensions payable from the DFRDB Scheme and the DFRB Scheme.
A pro rata adjustment will apply for pensions that first became payable less than six months before the increase date.
The current indexation method for income streams payable from the DFRDB and DFRB schemes varies based on the recipient’s age and the type of pension. Therefore, the rate of pension increase for DFRDB/DFRB indexed pension recipients will sometimes vary between the two different age groups.
Indexation method for recipients under 55 (and associate pensioners)
The indexed portion of DFRDB/DFRB pensions payable to recipients who are under 55 years of age at the time of indexation are indexed in line with upward movements of the Consumer Price Index (CPI). CPI indexation also applies to child and orphan pensions.
Associate pensions are income streams paid to the former spouses of DFRDB or DFRB recipients in relation to family law superannuation splitting orders or agreements. DFRDB/DFRB associate pensions receive CPI indexation regardless of age.
Indexation method for recipients over 55 (excluding associate pensioners)
For DFRDB/DFRB pension recipients aged 55 or older on the relevant indexation date, the indexed portion of the DFRDB/DFRB pension will be increased by the better of:
- the CPI increase
- increases in the Living Cost Index (LCI) for Pensioners and Beneficiaries, or
- the percentage required to update the ‘indicative pension’ to an amount that equals 27.7% of the annualised ‘all industries’ Male Total Average Weekly Earnings (MTAWE).
Currently, the indicative pension is higher than 27.7% of MTAWE (known as the MTAWE floor). This has been the case since the new indexation arrangements took effect in July 2014.
Between 1 July 1976 and 30 June 2014, DFRDB and DFRB pensions were increased solely in line with upward movements of CPI.
Historical DFRDB/DFRB pension increases for recipients aged 55 and over
| Date | Actual increase | CPI | LCI (PB) | MTWE |
| January 2026 | 2.3% | 2.1% | 2.3% | n/a |
| July 2025 | 1.6% | 1.2% | 1.6% | n/a |
| January 2025 | 1.6% | 1.2% | 1.6% | n/a |
| July 2024 | 2.2% | 1.6% | 2.2% | n/a |
| January 2024 | 2.0% | 2.0% | 1.6% | n/a |
| July 2023 | 4.0% | 3.3% | 4.0% | n/a |
| January 2023 | 3.6% | 3.6% | 3.2% | n/a |
| July 2022 | 3.5% | 3.5% | 3.1% | n/a |
| January 2022 | 1.5% | 1.5% | 1.4% | n/a |
| July 2021 | 1.1% | 1.1% | 0.6% | n/a |
| January 2021 | 0.0% | 0.0% | 0.0% | n/a |
| July 2020 | 1.5% | 1.0% | 1.5% | n/a |
| January 2020 | 1.1% | 1.1% | 0.9% | n/a |
| July 2019 | 1.0% | 0.5% | 1.0% | n/a |
| January 2019 | 0.8% | 0.8% | 0.6% | n/a |
| July 2018 | 1.5% | 1.1% | 1.5% | n/a |
| January 2018 | 0.8% | 0.8% | 0.7% | n/a |
| July 2017 | 1.3% | 1.0% | 1.3% | n/a |
| January 2017 | 1.1% | 1.1% | 1.1% | n/a |
| July 2016 | 0.4% | 0.2% | 0.4% | n/a |
| January 2016 | 1.1% | 1.1% | 0.8% | n/a |
| July 2015 | 0.4% | 0.4% | 0.3% | n/a |
| January 2015 | 0.9% | 0.9% | 0.6% | n/a |
| July 2014 | 1.5% | 1.3% | 1.5% | n/a |
| January 2014 | 1.6% | 1.6% | n/a | n/a |
Indicative pension versus MTAWE floor
The indicative pension was set at 1 January 2014 as 27.7% of the annualised ‘all industries’ Male Total Average Weekly Earnings (MTAWE). The indicative pension is then increased by the better of CPI or LCI.
If after applying the relevant CPI or LCI increase, the indicative pension is less than 27.7% of the annualised MTAWE, the rate of the increase will be substituted with the percentage required to increase the indicative pension to an amount equal to the MTAWE floor.
Historical rates of indicative pension
| Applicable date | Indicative pension (p/a) | 27.7% of MTAWE (p/a) |
| January 2026 | $28,125.09 | $25,796.12 |
| July 2025 | $27,492.76 | $25,346.72 |
| January 2025 | $27,059.80 | $24,829.62 |
| July 2024 | $26,633.67 | $24,093.57 |
| 1 January 2024 | $26,060.34 | $23,635.52 |
| 1 July 2023 | $25,549.35 | $23,351.76 |
| 1 January 2023 | $24,566.68 | $22,859.15 |
| 1 July 2022 | $23,713.01 | $22,716.55 |
| 1 January 2022 | $22,911.12 | $22,402.54 |
| 1 July 2021 | $22,572.53 | $21,989.15 |
| 1 January 2021 | $22,326.93 | $22,149.03 |
| 1 July 2020 | $22,326.93 | $21,580.07 |
| 1 January 2020 | $21,996.98 | $21,254.54 |
| 1 July 2019 | $21,757.64 | $21,037.04 |
| 1 January 2019 | $21,542.22 | $20,818.10 |
| 1 July 2018 | $21,371.25 | $20,566.03 |
| 1 January 2018 | $21,055.42 | $20,413.35 |
| 1 July 2017 | $20,888.31 | $20,135.35 |
| 1 January 2017 | $20,620.25 | $20,095.02 |
| 1 July 2016 | $20,395.90 | $19,802.62 |
| 1 January 2016 | $20,314.64 | $19,726.28 |
| 1 July 2015 | $20,093.61 | $19,755.09 |
| 1 January 2015 | $20,013.55 | $19,655.70 |
| 1 July 2014 | $19,835.04 | $19,415.15 |
| 1 January 2014 | $19,541.91 | $19,541.91 |
After 35years my Retired Pay has grown to $43,000 – 42% SQUADRON LEADER salary
Current salary for Squadron Leader is $160,000 – 42% = $67200. Somehow military pay is growing at something well above CPI as opposed to DFRDB pensions.
Current ADF salaries and pay are not linked to CPI, but has more in common with ordinary time earnings. For future financial and budgetary modelling, the Australian Government assumes that average weekly ordinary time earnings will grow at an estimated 1.5% higher than CPI, e.g. if CPI were assumed to be 2.5%, then AWOTE would be 4.0%. This is not always the case of course, but this is at least the long term basis for some government financial modelling.
I’am disappointed with this website. It is hard to navigate. A simple task to find what my DFRDB pension rate is impossible to find. There must be a simple way to find the information I’am after. Please advise a easy and fast way to achieve my goals.
Thank you for your feedback and I am sorry that you haven’t found our website helpful. We are a private organisation that is not responsible for the management or administration of the DFRDB or any other financial products. We provide limited factual information, which is general in nature.
If you would like to know information specific to your DFRDB pension, please call the Commonwealth Superannuation Corporation (CSC) on 1300 001 677 or visit http://www.csc.gov.au.
Have a look at your bank account the deposit will show as VETERANS AFFAIRS VET AFFAIRS PPF Ref:
Is the over 55’s increase now established as the cost of living stats were released on the 3 Nov? I’m not sure how to work it out but it appears the CPI is 3% and the LCI is 2.7% ??
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/selected-living-cost-indexes-australia/latest-release
Thank you for reaching out. We have updated the indexation values based on the latest LCI release (1.4% between the March 2021 and September 2021 quarters). The CPI increase was still the highest and the indicative pension was still higher than the 27.7% of the Male Total Weekly Earnings. This means that the indexed portion of DFRDB pensions will increase by 1.5% for all recipients from 1 January 2022.
Thanks Dan! For a couple of days I was hoping for an over 55 increase of 3% or so …. Alas … not to be. Thanks for the reply!
This also applies to MSBS preserved amounts for people like me who have unfunded Employer Benefits sitting in MSBS until I take it?
My wife has applied for an age pension but has been knocked back by centrerlink because they have taken my DFRDB & DVA pension into account???
Same here
John
Get your wife to apply for a carers pension, If you are on a DVA pension then that qualifys for her to get it.
The promise of a DFRDB pension indexed to cost of living was a great scam by our government. The compulsory payment taxed before paying in has seen the value drop significantly as a result of political manipulation.
The university trained wordsmiths and overpaid government accountants attempts to justify the theft of my hard earned super fall short of the reality we face fortnightly.
There has been a nearly 30 year fight on to restore the value of DFRDB which will be over later in 2022, hopefully.
Legislation CHANGE at 20 Oct 2022. The legislation allows for asset-test exemption for defined benefit income stream which DVA determine DFRDB to be a defined benefit income stream.
My personal position:
I’m currently receiving a services pension from DVA they have assessed DFRDB as Defined Benefit income stream. This has reduced my service pension by $400 per fortnight.
Within the legislation para 18 Guidelines for asset-test exempt income stream that is defined benefit income stream The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if the Secretary is satisfied that:
the income stream is a defined benefit income stream and has been so from the day the income stream began being paid.
How do I know what the indexed portion is of my pension payable from the Defence Force Retirement and Death Benefits (DFRDB) Scheme?
Great question Malcolm. The indexed portion of the DFRDB pension will vary depending on how you took your pension originally and the amount of any commuted lump sum. If your pension is retirement pay and you commuted at least 4 times the starting annual rate of pension to a lump sum, then all of your DFRDB retirement pay pension will be indexed. Some invalidity pensions, e.g. Class A and Class B, payable from the DFRDB will be fully indexed as well.
One way of calculating the fortnightly rate of the indexed portion would be to divide the gross increase amount for the July 2022 update by (0.035 / 1.035) and this should get you pretty close to the fortnightly rate of the indexed pension payable to you from 1 July 2022, e.g. $134.25 / (0.035 / 1.035) = $3.969.96 gross per fortnight. Whatever the difference is between the gross amount actually paid and the amount calculated as above is non-indexed pension.
Note: To annualise this, simply multiply the fortnightly indexed portion by 365 and divide by 14.
However, if you are trying to work out what the indexed and non-indexed portions of the reversionary pension would be, you would need to ask the DFRDB administrator, the Commonwealth Superannuation Corporation (CSC) for this information.
Not sure why I ever spent 20 years of my life dedicated to my country and what my government told me where to go and fight when I am effectively denied a comfortable living in my old age unless I have made some serious adjustments
As always, thanks a lot for the latest update. It’s great in these pressing financial times to have advanced notice of changes, especially when they are positive. It’s a great help with budgeting and planning.