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Platinum announces strategic review
Platinum said following the review Platinum Capital and Platinum Asia Investments may be wound up.
Sequoia chief's job at stake in upcoming EGM
Sequoia Financial Group will hold an Extraordinary General Meeting (EGM) in June that will consider a resolution to remove chief executive and managing director Garry Crole.
Scott Farquhar steps down from Atlassian
After more than two decades at the helm, Scott Farquhar will step down as co-chief executive of Atlassian.
Goldman Sachs ditches robo-adviser Marcus Invest
The investment bank is offloading Marcus Invest to Betterment just three years after announcing it will launch the digital adviser.
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Why advisers should consider offering general insurance to HNW clients
I have read many articles over the years about servicing high-net-worth (HNW) clients in the financial services industry.
The role of AI in financial planning: Insights from the US
Ever since ChatGPT burst onto the scene late last year, generative AI has been front and centre of business discussions and financial planning, just like ...
Considerations when nominating a charity for your super upon death
There has been a lot of talk lately about the upcoming great wealth transfer, and you might be wondering where charities fit into all this.
The end of free money
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Fiona Mann
HEAD OF LISTED EQUITIES AND ESG
BRIGHTER SUPER
BRIGHTER SUPER
Brighter Super head of listed equities and ESG Fiona Mann was shaped by a childhood steeped in military-like discipline and global nomadism. Andrew McKean writes.
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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.