Family Law - Defence Forces Retirement & Death Benefits Scheme
- Arnold Shields
- Nov 10, 2009
- 2 min read
Updated: Jun 23
Background to the DFRDB Scheme
The Defence Force Retirement and Death Benefits Scheme (DFRDB) is a fully defined, unfunded superannuation scheme that was closed to new members on 1 October 1991. The scheme continues to provide benefits to eligible members who enlisted prior to that date.
Retirement Benefits
Members become eligible for retirement pay after 20 years of service, meaning that retirement under age 40 is possible. Benefits include:
A CPI-indexed pension based on final salary and years of service
An option to commute part of the pension to a lump sum
These benefits form a significant component of a defence member’s long-term financial position, particularly in family law and estate matters.
Valuing the DFRDB in Family Law
While alternate methods of valuation were approved in May 2004, trustees of the DFRDB do not provide direct valuations for family law purposes. Instead, it is necessary to:
Obtain relevant family law information from the trustee
Apply actuarial or accounting methods to determine a fair value based on Form 6 information
Form 6 applications are available via the Commonwealth Superannuation Corporation (CSC) website and cost $150 per calculation date.
The CSC website also offers:
Fact sheets
Application forms
Sample court orders
Guidance on family law procedures
Website: www.comsuper.gov.au
Transfer of Non-Member Entitlements
Importantly, a non-member spouse’s entitlement cannot be transferred to another super fund. Instead, the interest is treated as an associate interest within the Military Superannuation &
Benefits Scheme (MSBS). Funds will remain preserved until the associate member satisfies a condition of release (e.g. reaching preservation age or retirement).
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
