MSBS details are in the MS- MilitarySuper book June 2012
The purpose of indexation is to maintain the payments purchasing power.
Military superannuation payments are NOT welfare payments. They are entitlements arising from a "contract of employment" where both the employee (the military service person) and the employer (the Government) contribute to a managed Superannuation Fund from which payments will be made to eligible persons at the appropriate time.
Under current ADF conditions of service, military persons compulsorily contribute 5.0% of their gross salary towards their MSBS.
The MSBS inequities we are addressing are:
- Indexation. We want the government to give indexation, the same percentage increase and the same frequency as used for Age and Service pensions to all components of MSBS pensions and preserved benefits.
- Access to the Preserved Benefit (Employer Contributions) on exit from the ADF. We want the government to give all people leaving the ADF, regardless of age, the option to access the employer benefit for rollover into an approved superannuation fund.
- MBL limits. We want MSBS MBL limits abolished.
- Superannuation for Reserves. We want all personnel in the Reserve to have access to government superannuation.