Editor's Choice
Final report into Life Code makes 85 recommendations
The final report of an independent review of the Life Insurance Code of Practice has been finalised, proposing some 85 recommendations across aspects of mental health, customer vulnerability, claims handling, and sales practices.
Treasury looks to reform regulation on consulting firms
Treasury has released an options paper to improve the regulation of accounting, consulting and auditing firms after the blowout from KPMG's whistleblower probe that found it used confidential client data in the pursuit of more tenders.
Bell Potter launches private wealth platform
Bell Financial Group (BFG) has launched Bell Potter Private Wealth (BPPW), a new platform that helps service its 300,000 clients with $92.1 billion in funds under advice.
Esencia seals third merger
Esencia Wealth has continued its national expansion strategy, merging with New South Wales-based Cove Financial Group in a deal that brings around 650 clients and four financial advisers into the business.
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
Judith Fiander
CHIEF EXECUTIVE OFFICER
AUSTRALIAN PHILANTHROPIC SERVICES
AUSTRALIAN PHILANTHROPIC SERVICES
When Judith Fiander first walked in the doors of Australian Philanthropic Services her intention was to volunteer for a few months. Fast forward 14 years and she is the chief executive. Eliza Bavin writes.
ADF members considering switching to the new scheme should definitely consider their options carefully.
While this article mentions the contribution rate to the scheme which will be close to that of existing schemes, it doesn't mention that MSBS members who choose to take their employer benefit on retirement as a pension are able to do so on terms that are generous when compared equivalent rates available on the open market (eg, from annuities).
The public sector scheme that offered the same pension conversion factors was closed to new members from 30 June 2005, so to have the opportunity to join this one for an extra 10 years to 30 June 2015 has been quite the opportunity!
Unless you're an ADF member and have reached your Maximum Benefit Limit (and currently receive just 3% Employer Contribution), or have been in the ADF for less than five years, there really is no incentive for the serving member, receiving 23% or 28% Employer Contribution, to make the switch from MSBS to the new super scheme - ADF Super.
The lack of incentives to switch form MSBS to ADF Super is in stark contrast to when MSBS was introduced, in 1991/92, to lure people away from DFRDB and provide improvements for those (most) people who didn't complete 20 years service, and thus qualify for a military pension.
An MBL member who switches over will see their Employer Contribution Rate increase from 3% to 15%. That's a good incentive.
An ADF member with 5 years of service under their belt now, will be receiving 23% Employer Contribution Rate by the time ADF Super kicks off in July 2016. These folks have some some sums to do. "Should I stay with high, uninvested employer contributions or, opt to go with 15.4% of my salary (and superannuable allowances), that are actively invested?"
The introduction of MSBS came with two significant incentives:
1. The MSBS Retention Benefit. (No longer available).
2. 'Generous' transition arrangements. (Your balance in DFRDB was multiplied by a factor and transferred into. The MSBS Fund).
The Government claims that the closure of MSBS will save $126 billion by 2050.
I wonder how much more could be saved if there was some innovation with the new scheme to compel thousands more ADF members to make the switch?
It would seem the Government has missed an opportunity to virtually rid itself of future unfunded liabilities for the MSBS scheme.