defence services
DVA Superannuation
DFRDB vs MSBS vs ADF Super Explained
Do you know what DVA Superannuation you are apart of? Do you know the benefits of your superannuation?
Which Military Super Am I In?
Your military super depends primarily on when you joined the ADF, and it plays a critical role in your long-term financial position, especially when combined with DVA compensation and benefits.
If You Joined the ADF:
- Before 1 Oct 1991
- 1 Oct 1991 – 30 June 2016
- From 1 July 2016 Onwards
Your Super Scheme:
- DFRDB
- MSBS
- ADF Super (or your chosen fund)
- MSBS replaced DFRDB in 1991
- ADF Super replaced MSBS for new members from 1 July 2016 [legislation.gov.au]
DFRDB (Pre 1991)
The Defence Force Retirement and Death Benefits Scheme (DFRDB) was introduced in 1973 and closed to new members in 1991. [legislation.gov.au]
Key Features:
- Defined benefit scheme (based on salary and service)
- Provides a structured lifetime pension
- Includes death and invalidity benefits
Typically provides predictable, ongoing income
Less flexibility compared to modern super funds
MSBS (1991–2016)
The Military Superannuation and Benefits Scheme (MSBS) replaced DFRDB in 1991 and closed to new members on 30 June 2016. [legislation.gov.au]
Key Features:
- Hybrid structure:
- Accumulation (your contributions + investments)
- Defined benefit (based on salary and service)
- Member contributions typically 5%–10%
- Employer benefit calculated using a formula
- Option to convert part of the benefit into a lifetime pension, [dva.gov.au]
Balance of certainty + flexibility
More complex structure
ADF Super (From July 2016)
From 1 July 2016, MSBS was replaced with ADF Super for new ADF members.
Key Features:
- Fully accumulation-based (like civilian super)
- Employer contributions of 16.4% of salary [legislation.gov.au]
- Your balance depends on contributions + investment performance
- Includes insurance through ADF Cover
Simple and flexible
No built-in defined benefit or guaranteed pension
Key Differences at a Glance
Feature
Structure
Pension Income
Flexibility
Based on salary & service
Investment Risk
DFRDB
Defined Benefit
Yes (Lifetime)
Low
Yes
Government Based
MSBS
Hybrid
Yes (Option)
Moderate
Partially
Mixed
ADF Super
Accumulation
No Built-in Pension
High
No
Member Based
Need Help Understanding Your Military Super?
Your military super can have a major impact on your retirement, tax position and long-term financial future, especially when combined with DVA compensation and benefits.
At Apex Financial Services Group, we help current and former ADF members understand:
- DFRDB, MSBS and ADF Super
- Retirement income options
- DVA compensation interactions
- Long-term financial planning strategies
- Transition and discharge planning
FAQs: DVA Superannuation
How do I know which military super scheme I’m in?
Your military super scheme is generally determined by the date you joined the ADF:
- Before 1 October 1991 – DFRDB
- Between 1 October 1991 and 30 June 2016 – MSBS
- From 1 July 2016 onwards – ADF Super
Your separation paperwork, annual statements, or Commonwealth Superannuation Corporation (CSC) account can usually confirm your scheme.
What is the difference between DFRDB, MSBS and ADF Super?
DFRDB is a defined benefit scheme that provides a structured pension based on salary and years of service.
MSBS is a hybrid scheme combining defined benefit and accumulation components.
ADF Super is a modern accumulation super fund where your balance depends on contributions and investment performance.
Each scheme has different rules around pensions, flexibility, taxation and retirement outcomes.
Can I access my military super after leaving the ADF?
In many cases, military super cannot be accessed immediately after discharge unless a condition of release is met, such as reaching preservation age or retirement requirements.
However, some invalidity benefits or pension entitlements may become available earlier depending on your scheme and circumstances.
Does DVA compensation affect my military super?
DVA compensation payments can interact with your military super and retirement income differently depending on:
- Your super scheme
- Whether you receive a pension
- Your tax position
- Your age and retirement status
Understanding how DVA benefits and superannuation work together is important for long-term financial planning.
Is MSBS better than ADF Super?
MSBS and ADF Super are structured very differently, so neither is universally “better.”
MSBS offers defined benefit features that can provide greater certainty, while ADF Super offers more flexibility and portability similar to civilian super funds.
The best outcome depends on your length of service, retirement goals and overall financial position.
What happens to my DFRDB pension when I retire?
DFRDB is designed to provide an ongoing lifetime pension after meeting eligibility requirements. The amount is generally calculated using your salary and recognised service.
Additional factors such as commutation options, taxation and DVA entitlements can also affect your retirement income strategy.
Can I combine military super with civilian super?
Yes. Many veterans hold both military super and civilian superannuation accounts.
Combining or managing multiple super funds may help simplify your finances, reduce fees and improve long-term retirement planning, depending on your circumstances.