- 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 |