New defence superannuation scheme unveiled

Defence force members will soon be able to sign onto a new superannuation scheme that allows portability off their account when they leave or work part-time.

It is the fourth version of Defence superannuation, each less generous than the one before.

But by community standards, the new ADF Super is still generous with taxpayers contributing 16.4 per cent, compared with 9.5 per cent paid by private sector employers through the superannuation guarantee levy.

Introducing legislation to parliament on Thursday, assistant defence minister Stuart Robert said the new scheme would allow members to join the fund of their choice or a default defence fund.

Whichever fund option they choose, the Commonwealth will still contribute at the rate of 16.4 per cent, compared with 28 per cent for a member of the old MSBS fund after 20 years service.

Unlike earlier schemes ADF Super members aren't obliged to make any personal contributions.

Mr Robert said ADF Super fixed a long-running grievance of the veteran and ex-service community about lack of flexibility and portability.