Member Benefit Limits under MSBS
In the Military Superannuation and Benefits Scheme (MSBS), Maximum Benefit Limits (MBLs) are limits on the maximum amount that the superannuation fund will pay out.
They should not to be confused with Reasonable Benefit Limits (RBLs) which limited the amount that could be contributed and accumulated at concessional tax rates. RBL's were abolished in July 2007 but MBLs were not.
MBLs include the sum of both Employer and Employee benefits.
There are two MBLs:
- All Pension MBL, at which the member must stop contributing because the member's total payout has peaked; and
- Lower Lump Sum MBL at which the member may stop contributing because the member is getting close but is urged to seek specific advice.
The effect of these measures is that many long serving ADF personnel receive no retirement income benefit for their final years of service.
The Report of the Review of Military Superannuation (The Podger Report) recommended that MBLs be scrapped for the MSBS. The combined Ex-Service Organisations response supported that recommendation.
We want the Government to remove immediately MBLs from the MSBS
RSS
Suggest Serving MBL members commence a class action against the Commonwealth for neglecting to make fortnightly employer contributions to the hundreds of members that are currently affected.
So agree! Have created a facebook page for people who have been affected by MBL to discuss ideas and options
http://www.facebook.com/pages/Maximum-Benefit-Limit-MBL-Frustration/252005481515414
Feel free to pass it along. Love to hear if anyone has any ideas!!
How does Defence get away with not paying a fortnightly employer contribution - as required by law, under the Superannuation Industry (Supervision) Act, - to long-serving members who have become an MBL member?In the paraphenalia provided to DFRDB (and prospective MSBS) members in 1991, MBLs were explained with a throwaway line: "only a few members will reach the MBL".
MBLs were effectively withdrawn for the PSS and CSS schemes on 1 January 2008, to "allow members to remain in the workforce for a longer period of time before reaching their benefit limit".
Why are Military members discriminated against in the application of the MBL rule?
Suggest Serving MBL members commence a class action against the Commonwealth for neglecting to make fortnightly employer contributions to the hundreds of members that are currently affected.
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Calculate your loss
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Current Developments from Nov 2010
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DFRDB Meeting Ipswich
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EX-MILITARY FAMILIES OUT IN THE COLD
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History of the Fair Go Campaign
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Keep Informed
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Military Superannuation
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Military Superannuation – Legislative History
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Overview
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Paid leave for dads, the Government’s higher priority than for Diggers’ fair military superannuation indexation?
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SETTING THE RECORD STRAIGHT
Peter Criss Interview
Here it is, the Interview of Peter Criss by John Carroll
