The budget will be handed down on Tuesday, answering many questions. What will be cut, what will be extended and what from the long National Commission of Audit report will be adopted.
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One of the changes recommended by the commission is the closure of the Military Superannuation Benefits Scheme to new members.
It is unlikely to be adopted in time for this budget, in part because the government has promised the Defence Force Welfare Association it will be consulted before any major changes are made.
However, it has brought the scheme to the forefront of mind for many people. Not least of all, for those who are members of the scheme.
The Australian Government Actuary, speaking through the Treasury office, has said that the notional employer contribution rate for the MSBS is 30.4 per cent. For many people working in the private sector, their employer contribution to superannuation will be 9.25 per cent this year, while Commonwealth public servants receive a more generous 15.4 per cent in employer superannuation contributions.
However, many people have argued the MSBS is not at all generous, despite the notional employer contribution being so much higher than for workers in the private sector.
This is because of many factors, including that it cannot be rolled over into another super fund when members leave the Australian Defence Force and members are forced to make contributions of at least 5 per cent of their salary every pay period.
The new scheme would be an accumulation plan, which would force the government to put money aside now, rather than build up liabilities. However, there is no indication in the National Commission of Audit report of what the new level of employer contribution would be.
The last government report to recommend the closure of the MSBS was resisted by the Defence Force Welfare Association because it was understood the replacement scheme would have limited the employer contribution by the Commonwealth to just 16 per cent for ADF personnel during their first six years of service.
The current scheme clearly has flaws, but any new scheme that offered less in employer contributions is also likely to be met with fierce resistance. Depending on how you look at it, the MSBS is generous or not generous but it certainly looks like it could get worse.