Your preserved benefit comprises four benefit components;
- your member benefit
- your taxed productivity benefit
- your untaxed productivity benefit (if you transferred from DFRDB), and
- your untaxed employer benefit.
Your member benefit
Your preserved member benefit may comprise two components:
- Any pre 1 July 1999 amount which comprises all contributions prior to this date and interest earned on those contributions
- Your post 30 June 1999 amount which comprises all contributions made after this date and interest earned on those amounts.
Your preserved member benefit is updated in accordance with scheme investment performance. Until June 2002, that was the annual crediting rate. Since July 2002, investment performance has been represented by the daily unit price for the investment option selection you have chosen for your preserved member benefit.
As you are not a contributing member, your preserved member benefit is shown on your annual Member Statement as a fixed number of units. When you withdraw your benefit at retirement, its value will be calculated on that day’s prevailing unit price.
Your taxed productivity benefit
Your productivity benefit forms part of the employer component of your preserved MilitarySuper benefit. Since MilitarySuper began, your employer has 'funded' this benefit while you were in the ADF. Your productivity contributions were actually paid by your employer into MilitarySuper on your behalf.
Just like your member benefit (see above), investment performance over time has been represented in the daily unit price of the default investment strategy. It is applied to the number of units corresponding to the value of your taxed productivity benefit at the time you left the ADF. Your number of units does not change because productivity contributions are not paid into MilitarySuper while you are a preserved benefit member.
Your untaxed productivity benefit (if former DFRDB scheme member)
If you transferred to MilitarySuper from the now closed DFRDB scheme, you have a component of your productivity benefit which is not taxed. It increases annually in line with any rises in the March to March Consumer Price Index.
Your untaxed employer benefit
Most of your preserved employer benefit is untaxed, meaning your employer provides it when your benefit is paid, not in regular contributions along the way. It is equal to your total employer benefit less the value of your productivity benefit at the time you left the ADF. It also increases in line with the Consumer Price Index. You can roll over your preserved employer benefit to any fund of your choice from age 55.