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Proposed ARIA and Military Super Boards merger - further update

We have been advised that the Bills covering the proposed merger and other governance and administration reforms will not be debated in the Senate. This means the proposed merger of ARIA, the Military Superannuation board and the Defence Force Retirement and Death Benefits authority will not go ahead on 1 July 2010.

We will keep you updated on any relevant developments through the news section of the website.

Timeline so far

31 October 2008 The government announced a package of reforms for its superannuation schemes, including a proposed merger of the Australian Reward Investment Alliance (ARIA), the Military Superannuation and Benefits Scheme (MSBS) and the Defence Force Retirement and Death Benefits Scheme (DFRDB) boards. The reforms focus on streamlining governance and administration arrangements, and will not impact members’ super benefits. Each of the schemes will retain their own legislative framework which determines members’ benefits and entitlements.
26 November 2009 The Government announced further reforms to improve the administration arrangements of Australian Government superannuation schemes, including the outsourcing of administration services of PSSap.
22 December 2009 The Government announced the appointment of the appointment of Mr Tony Hyams as the Chairperson to ARIA. Hyams is also Chairperson of the Military Superannuation and Benefits Board of Trustees (MSB Board) and a director of AGEST Super.
4 February 2010 The Minister for Finance and Deregulation, Lindsay Tanner, introduced the Governance of Australian Government Superannuation Scheme Bill 2010 and Superannuation Legislation (Consequential Amendments and Transitional Provisions) Bill 2010.
24 February 2010 The Bills were referred to the Senate Standing Committee on Finance and Public Administration.
15 March 2010

The Senate Standing Committee recommended that the Bills be passed. Its report concluded that:

  • the proposed reforms do not change member benefits, death and disability benefits or any other entitlements such as indexation of pensions
  • individual Military schemes will remain under their own legislative basis and with their own identity
  • ComSuper will remain responsible for administering the schemes
  • the intent of the legislation is to introduce reforms which will improve governance and administration of both military and civilian superannuation funds.
13 May 2010 Department of Defence announced the nomination of General Peter Cosgrove, AC, MC and Mr John McCullagh as the Australian Defence Force member representative directors on the proposed Commonwealth Superannuation Corporation.
2 June 2010 Bills passed by the House of Representatives
15 June 2010 Bills introduced into the Senate.
24 June 2010 Bills not being debated by the Senate – 1 July merger not proceeding.