The deed establishes and governs the Military Superannuation and Benefits Scheme and its trust fund for Australian Defence Force members (permanent and reservists on continuous full‑time service). It sets contribution rules (member and employer), unitised investment management by CSC, and outcomes for retirement, invalidity and death, plus family‑law splits and modern contribution options. It ensures ADF members and their families receive tailored financial security and protections, including for service‑related injury or death.
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Current sections
Direct links to the current provisions in Military Superannuation and Benefits Trust Deed.
189
1
Interpretation
1 Interpretation
(1) In this Deed, where the context requires or admits, a reference to the Deed shall include a reference to the Rules, as set out in the Schedule (in this Deed called the Rules), and the Rules shall form part of the Deed. In the case of an inconsistency between the provisions of the Deed and the Rules, the provisions of the Deed shall prevail.
(2) In this Deed, where the context requires or admits, words and expressions defined in the Act or the Rules have the same meanings when used in the Deed. The headings in this Deed and the Rules are for the convenience of reference only and shall not affect their interpretation.
(3) In this Deed Minister means:
(a) the Commonwealth Minister of State for Defence;
(b) if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or
(c) a member of the Executive Council acting for the time being for and on behalf of any of those Ministers.
2
Establishment of the Superannuation Scheme and the Fund
2 Establishment of the Superannuation Scheme and the Fund
(1) An occupational superannuation scheme, known as the Military Superannuation and Benefits Scheme (in this Deed called the Superannuation Scheme), in force on 1 October 1991, has been established for the benefit of:
(a) members of the Permanent Forces; and
(b) members of the Reserves rendering continuous full‑time service;
and, from 1 July 2011, is to be administered in accordance with the Deed by CSC.
(2) A fund, known as the Military Superannuation and Benefits Fund No. 1 (in this Deed called the Fund), has been established for the purposes of the Superannuation Scheme and, from 1 July 2011, vested in CSC.
3
Functions and powers of CSC
3 Functions and powers of CSC
(1) The functions of CSC are to administer the Superannuation Scheme and to manage and invest the Fund in accordance with the provisions of the Act and this Deed including, without limiting the generality of the foregoing, the following functions:
(a) to pay benefits to or in respect of members, and to make payments to and receive payments from the Commonwealth, as provided for in the Act;
(b) to provide advice to the Minister on proposed changes to the Act and the Deed;
(c) to determine interest rates for the purposes of the Superannuation Scheme;
(d) to determine, from time to time, the issue price and withdrawal price of a unit in an Investment Division of the Fund.
(2) CSC has power in Australia and elsewhere to do all things necessary or convenient to be done for, or in connection with, the performance of its functions and, in particular, may do any of the following:
(a) give guarantees;
(b) underwrite or sub‑underwrite any form of investment including the underwriting or sub‑underwriting of the issue of shares, debentures or units in a unit trust;
(c) borrow moneys and give security over the whole or any part of the assets of the Fund;
(d) appoint agents and attorneys;
(e) act as agent for other persons;
(f) engage consultants and investment managers;
(g) establish an Incapacity Classification Committee to determine members’ incapacity classifications under the Rules;
(h) establish one or more Reconsideration Committees:
(i) to examine and report on decisions of CSC and its delegates under the Rules relating to members’ entitlements to benefits; and
(ii) to reconsider decisions of CSC and its delegates under the Rules relating to members’ entitlements and benefits;
(i) establish one or more other committees to assist CSC on any matter within the CSC’s functions and powers, including in relation to the investment of the Fund;
(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the Fund, or to enhance or protect, the return on any such investment.
(3) Subject to the SIS Act, in exercising its functions and powers CSC must have regard to:
(a) the interests of members and the Commonwealth; and
(b) any statement of policy of the Commonwealth Government on any matter that is relevant to the performance of the functions, duties and powers of CSC by the Minister with a request that CSC consider that policy.
9
Operation of the Fund
9 Operation of the Fund
(1) All contributions and other moneys paid to CSC, or as directed by CSC, shall be held in trust by CSC in the Fund. The Fund shall be managed and invested by CSC in accordance with the Act and the Deed.
(2) The Fund shall comprise:
(a) contributions made by members;
(b) contributions made by the Commonwealth pursuant to the Act and the Deed;
(c) any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;
(d) the income arising from investments; and
(e) any accretions to or profits on realisation of investments.
(3) The Fund shall be used by CSC to pay benefits to or in respect of members, to make payments to the Commonwealth in respect of members’ benefits as provided for in the Act and to pay the costs and expenses of the management and investment of the Fund.
10
Investment of the Fund
10 Investment of the Fund
(1) For the purposes of this clause:
(a) invest means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and
(b) profit includes capital profit.
(2) Moneys standing to the credit of the Fund which CSC, after consultation with its investment manager, is of the opinion are moneys that are not for the time being required for the purpose of making payments out of the Fund under the Act and the Deed shall, so far as is practicable, be invested by CSC in accordance with the Act and the Deed, but CSC shall so manage the Fund that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.
(3) Moneys that, by virtue of subclause (2), are required to be invested by CSC may be invested in any manner and, without limiting the generality of the foregoing, may be invested by CSC jointly with another person or other persons.
(4) CSC must:
(a) establish at least one Investment Division of the Fund as the means of investing the Fund; and
(b) establish an investment strategy for each Investment Division; and
(c) regularly review the effectiveness of each Investment Division and investment strategy; and
(d) maintain records to identify the assets, liabilities and income of each Investment Division; and
(e) maintain records to identify payments made from each Investment Division.
(4A) CSC may:
(a) create an Investment Division; or
(b) refuse to issue further units for an Investment Division; or
(c) wind up an Investment Division; or
(d) merge 2 or more Investment Divisions; or
(e) divide an Investment Division into 2 or more Investment Divisions;
if CSC decides that it is necessary or desirable to do so.
(4B) In acting under subclause (4A), CSC may consult any person or body.
(4C) If CSC decides to act under subclause (4A), CSC must give the unitised members who would be affected by the action reasonable notice of the action before the action takes effect.
(5) CSC shall invest moneys standing to the credit of the Fund that are available for investment only through an investment manager or managers who undertake to invest, and manage the investment of, those funds on behalf of CSC.
(6) CSC shall ensure that any investment manager:
(a) operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and
(b) reports to CSC on the state of CSC’s investments and the investment market at such times and in such manner as CSC determines.
10A
Unitisation of Investment Divisions
10A Unitisation of Investment Divisions
CSC must:
(a) divide each Investment Division of the Fund into units; and
(b) issue units to each unitised member that represent the member’s beneficial interest in the fund; and
(c) record the issue, withdrawal and transfer of the units of each member in a unit record system maintained by CSC for the Fund.
11
Requests by Minister for Information
11 Requests by Minister for Information
CSC shall furnish to the Minister such information relating to the general administration and operation of the Superannuation Scheme and the Fund as the Minister may from time to time require.
12
Delegation by CSC
12 Delegation by CSC
CSC may by instrument under its seal delegate all or any of its powers under the Deed to a person or committee mentioned in subsection 36(1) of the Governance of Australian Government Superannuation Schemes Act 2011, other than its powers under Part 9 of the Rules and this power of delegation.
13
Saving provisions for amendment of this Deed by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
13 Saving provisions for amendment of this Deed by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
(1) This clause applies to a pension that was suspended under rule 35 of the Rules immediately before the repeal of that rule by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015.
(2) That rule continues to apply to the pension, despite the repeal.
(3) Rule 57 of the Rules, as in force before its amendment by that Part, continues to apply to the pension, despite the amendment.
14
Application provision for amendments of this Deed by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
14 Application provision for amendments of this Deed by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
The amendments of paragraph 7(2)(a), and rule 10, of the Rules made by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015 apply in relation to:
(a) leave granted on or after the commencement of that Part; and
(b) leave referred to in subparagraph 7(2)(a)(i) of the Rules, as in force immediately before the commencement of that Part, that was granted before that commencement, if an election relating to the leave was not made under subrule 7(2) of the Rules before that commencement.
IN WITNESS whereof the Honourable Gordon Neil Bilney, Minister for Defence Science and Personnel, has hereunto set the name of the Commonwealth of Australia and affixed his own seal the day and year first above written.
SIGNED, SEALED AND DELIVERED )
by the Honourable GORDON NEIL )
BILNEY, Minister for Defence )
Science and Personnel, for and ) Gordon Bilney
on behalf of THE COMMONWEALTH OF )
AUSTRALIA, in the presence of: )
Elizabeth Cowan )
Parliament House ) Elizabeth Cowan
Departmental Liaison Officer )
Part 1
Preliminary
Schedule—Military Superannuation and Benefits Rules
(clause 1)
Part 1—Preliminary
1 Citation
These Rules may be cited as the Military Superannuation and Benefits Rules.
2 Definitions and interpretation
(1) The following expressions are defined or interpreted, for the purposes of these Rules, in the Glossary in Schedule 1. Unless otherwise stated, the expressions are in Part 1 of the Schedule.
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1 Interpretation
1 Interpretation
(1) In this Deed, where the context requires or admits, a reference to the Deed shall include a reference to the Rules, as set out in the Schedule (in this Deed called the Rules), and the Rules shall form part of the Deed. In the case of an inconsistency between the provisions of the Deed and the Rules, the provisions of the Deed shall prevail.
(2) In this Deed, where the context requires or admits, words and expressions defined in the Act or the Rules have the same meanings when used in the Deed. The headings in this Deed and the Rules are for the convenience of reference only and shall not affect their interpretation.
(3) In this Deed Minister means:
(a) the Commonwealth Minister of State for Defence;
(b) if 2 or more Commonwealth Ministers administer Departments which have functions in relation to the administration of matters to which the Deed relates, the Minister who administers the Department which has the function in relation to each of those matters; or
(c) a member of the Executive Council acting for the time being for and on behalf of any of those Ministers.
2 Establishment of the Superannuation Scheme and the Fund
2 Establishment of the Superannuation Scheme and the Fund
(1) An occupational superannuation scheme, known as the Military Superannuation and Benefits Scheme (in this Deed called the Superannuation Scheme), in force on 1 October 1991, has been established for the benefit of:
(a) members of the Permanent Forces; and
(b) members of the Reserves rendering continuous full‑time service;
and, from 1 July 2011, is to be administered in accordance with the Deed by CSC.
(2) A fund, known as the Military Superannuation and Benefits Fund No. 1 (in this Deed called the Fund), has been established for the purposes of the Superannuation Scheme and, from 1 July 2011, vested in CSC.
3 Functions and powers of CSC
3 Functions and powers of CSC
(1) The functions of CSC are to administer the Superannuation Scheme and to manage and invest the Fund in accordance with the provisions of the Act and this Deed including, without limiting the generality of the foregoing, the following functions:
(a) to pay benefits to or in respect of members, and to make payments to and receive payments from the Commonwealth, as provided for in the Act;
(b) to provide advice to the Minister on proposed changes to the Act and the Deed;
(c) to determine interest rates for the purposes of the Superannuation Scheme;
(d) to determine, from time to time, the issue price and withdrawal price of a unit in an Investment Division of the Fund.
(2) CSC has power in Australia and elsewhere to do all things necessary or convenient to be done for, or in connection with, the performance of its functions and, in particular, may do any of the following:
(a) give guarantees;
(b) underwrite or sub‑underwrite any form of investment including the underwriting or sub‑underwriting of the issue of shares, debentures or units in a unit trust;
(c) borrow moneys and give security over the whole or any part of the assets of the Fund;
(d) appoint agents and attorneys;
(e) act as agent for other persons;
(f) engage consultants and investment managers;
(g) establish an Incapacity Classification Committee to determine members’ incapacity classifications under the Rules;
(h) establish one or more Reconsideration Committees:
(i) to examine and report on decisions of CSC and its delegates under the Rules relating to members’ entitlements to benefits; and
(ii) to reconsider decisions of CSC and its delegates under the Rules relating to members’ entitlements and benefits;
(i) establish one or more other committees to assist CSC on any matter within the CSC’s functions and powers, including in relation to the investment of the Fund;
(j) take action to control or manage, or to enhance or protect, the value of, any investment made out of the Fund, or to enhance or protect, the return on any such investment.
(3) Subject to the SIS Act, in exercising its functions and powers CSC must have regard to:
(a) the interests of members and the Commonwealth; and
(b) any statement of policy of the Commonwealth Government on any matter that is relevant to the performance of the functions, duties and powers of CSC by the Minister with a request that CSC consider that policy.
(1) All contributions and other moneys paid to CSC, or as directed by CSC, shall be held in trust by CSC in the Fund. The Fund shall be managed and invested by CSC in accordance with the Act and the Deed.
(2) The Fund shall comprise:
(a) contributions made by members;
(b) contributions made by the Commonwealth pursuant to the Act and the Deed;
(c) any other moneys paid or transferred to CSC pursuant to the Act and the Deed or which become subject to the trusts of the Deed;
(d) the income arising from investments; and
(e) any accretions to or profits on realisation of investments.
(3) The Fund shall be used by CSC to pay benefits to or in respect of members, to make payments to the Commonwealth in respect of members’ benefits as provided for in the Act and to pay the costs and expenses of the management and investment of the Fund.
10 Investment of the Fund
10 Investment of the Fund
(1) For the purposes of this clause:
(a) invest means expend moneys with a view to obtaining a present or future financial return (whether by way of income, profit or otherwise); and
(b) profit includes capital profit.
(2) Moneys standing to the credit of the Fund which CSC, after consultation with its investment manager, is of the opinion are moneys that are not for the time being required for the purpose of making payments out of the Fund under the Act and the Deed shall, so far as is practicable, be invested by CSC in accordance with the Act and the Deed, but CSC shall so manage the Fund that moneys that are from time to time required to pay benefits that are payable out of the Fund are available for that purpose.
(3) Moneys that, by virtue of subclause (2), are required to be invested by CSC may be invested in any manner and, without limiting the generality of the foregoing, may be invested by CSC jointly with another person or other persons.
(4) CSC must:
(a) establish at least one Investment Division of the Fund as the means of investing the Fund; and
(b) establish an investment strategy for each Investment Division; and
(c) regularly review the effectiveness of each Investment Division and investment strategy; and
(d) maintain records to identify the assets, liabilities and income of each Investment Division; and
(e) maintain records to identify payments made from each Investment Division.
(4A) CSC may:
(a) create an Investment Division; or
(b) refuse to issue further units for an Investment Division; or
(c) wind up an Investment Division; or
(d) merge 2 or more Investment Divisions; or
(e) divide an Investment Division into 2 or more Investment Divisions;
if CSC decides that it is necessary or desirable to do so.
(4B) In acting under subclause (4A), CSC may consult any person or body.
(4C) If CSC decides to act under subclause (4A), CSC must give the unitised members who would be affected by the action reasonable notice of the action before the action takes effect.
(5) CSC shall invest moneys standing to the credit of the Fund that are available for investment only through an investment manager or managers who undertake to invest, and manage the investment of, those funds on behalf of CSC.
(6) CSC shall ensure that any investment manager:
(a) operates within the investment powers of CSC and the investment strategy and policy as determined for the time being by CSC; and
(b) reports to CSC on the state of CSC’s investments and the investment market at such times and in such manner as CSC determines.
10A Unitisation of Investment Divisions
10A Unitisation of Investment Divisions
CSC must:
(a) divide each Investment Division of the Fund into units; and
(b) issue units to each unitised member that represent the member’s beneficial interest in the fund; and
(c) record the issue, withdrawal and transfer of the units of each member in a unit record system maintained by CSC for the Fund.
11 Requests by Minister for Information
11 Requests by Minister for Information
CSC shall furnish to the Minister such information relating to the general administration and operation of the Superannuation Scheme and the Fund as the Minister may from time to time require.
12 Delegation by CSC
12 Delegation by CSC
CSC may by instrument under its seal delegate all or any of its powers under the Deed to a person or committee mentioned in subsection 36(1) of the Governance of Australian Government Superannuation Schemes Act 2011, other than its powers under Part 9 of the Rules and this power of delegation.
13 Saving provisions for amendment of this Deed by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
13 Saving provisions for amendment of this Deed by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
(1) This clause applies to a pension that was suspended under rule 35 of the Rules immediately before the repeal of that rule by Part 1 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015.
(2) That rule continues to apply to the pension, despite the repeal.
(3) Rule 57 of the Rules, as in force before its amendment by that Part, continues to apply to the pension, despite the amendment.
14 Application provision for amendments of this Deed by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
14 Application provision for amendments of this Deed by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015
The amendments of paragraph 7(2)(a), and rule 10, of the Rules made by Part 2 of Schedule 1 to the Military Superannuation and Benefits Amendment (Trust Deed—ADF Super Consequential) Instrument 2015 apply in relation to:
(a) leave granted on or after the commencement of that Part; and
(b) leave referred to in subparagraph 7(2)(a)(i) of the Rules, as in force immediately before the commencement of that Part, that was granted before that commencement, if an election relating to the leave was not made under subrule 7(2) of the Rules before that commencement.
IN WITNESS whereof the Honourable Gordon Neil Bilney, Minister for Defence Science and Personnel, has hereunto set the name of the Commonwealth of Australia and affixed his own seal the day and year first above written.
SIGNED, SEALED AND DELIVERED )
by the Honourable GORDON NEIL )
BILNEY, Minister for Defence )
Science and Personnel, for and ) Gordon Bilney
on behalf of THE COMMONWEALTH OF )
AUSTRALIA, in the presence of: )
Elizabeth Cowan )
Parliament House ) Elizabeth Cowan
Departmental Liaison Officer )
Part 1 Preliminary
Schedule—Military Superannuation and Benefits Rules
(clause 1)
Part 1—Preliminary
1 Citation
These Rules may be cited as the Military Superannuation and Benefits Rules.
2 Definitions and interpretation
(1) The following expressions are defined or interpreted, for the purposes of these Rules, in the Glossary in Schedule 1. Unless otherwise stated, the expressions are in Part 1 of the Schedule.
1 Citation
1 Citation
These Rules may be cited as the Military Superannuation and Benefits Rules.
2 Definitions and interpretation
2 Definitions and interpretation
(1) The following expressions are defined or interpreted, for the purposes of these Rules, in the Glossary in Schedule 1. Unless otherwise stated, the expressions are in Part 1 of the Schedule.
Part 2 Contributions
(2) Interpretations of the following matters, for the purposes of these Rules, are provided in Parts 6 to 9 of Schedule 1:
Part 6 Parts of speech and grammatical forms
Part 7 Number
Part 8 Reckoning of time
Part 9 Attainment of particular age.
Part 2—Contributions
3 Contributions by members
(1) A member is required to pay a contribution each fortnight in accordance with this Division.
(2) Where contributions by a member fall due during a period when he or she is on leave without pay, the member, or a person acting on his or her behalf, is to pay those contributions:
(a) each fortnight; or
(b) in such instalments and at such times as CSC approves; or
(c) with the approval of CSC, in a lump sum.
4 Amount of contributions
(1) Subject to subrule (2), the amount of the contribution payable by a member in a fortnight is equal to the relevant percentage of:
(a) the salary paid to the member in that fortnight; or
(b) if in that fortnight the member rendered flexible service—the salary that would have been paid to the member in that fortnight if the member had not rendered flexible service.
(2) Where a member elects under subrule (10) to vary the amount of the contribution payable by him or her, that election has effect in relation to the first salary fortnight in relation to which it can be applied in the ordinary course of business.
(3) Where a member makes an election under subrule (10), the member is not entitled to make a further election until the expiration of a period of three months after the day on which the earlier election was made.
(4) For the purposes of subrule (1), salary is taken not to be paid to a member in respect of a day included in a period that, in accordance with Schedule 2, is a prescribed period.
(5) Where:
(a) the salary of a member in respect of a period is forfeited, in whole or in part, under regulations made under the Defence Act 1903; and
(b) the period does not exceed 21 consecutive days;
the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.
(6) Subject to subrule (7), where a member who is granted:
(a) long service leave on half pay; or
(b) leave without pay for a period not exceeding 21 days;
the amounts of the contributions payable by the member in respect of that period are to be calculated as if the member were on full pay.
(7) In a case to which paragraph (6)(b) applies, the member’s salary for the purpose of calculating the contribution payable by the member is taken not to include an allowance unless:
(a) the allowance was payable to the member on the day immediately preceding the commencement of the period; and
(b) an appropriate authority of the Defence Force has notified CSC that, but for the member’s absence on leave without pay, the allowance would have been payable to the member in respect of the whole of the period of his or her absence on that leave.
(8) In calculating the amount of a contribution payable by a member, the calculation is to be made as if no deductions were made from the member’s salary.
(9) Where the amount of a contribution payable by a member includes a fraction of a cent:
(a) if the fraction is less than one‑half of a cent—the contribution is taken to be reduced by the amount of the fraction; or
(b) if the fraction is one‑half of a cent or more—the contribution is taken to be increased by treating the fraction as one cent.
(10) In this rule:
relevant percentage, in relation to a member, means:
(a) the percentage, being a whole number that is not less than 5 and not more than 10, elected by the membe
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