Australian Defence Force Cover Scheme (ADF Cover)

ADF Cover is the Australian Defence Force Cover Scheme, established by the Australian Defence Force Cover Act 2015. In conjunction with the introduction of ADF Super, a new statutory death and invalidity scheme, to be known as ADF Cover, is being established to come into effect from 1 July 2016. The Superannuation Guarantee Act 1992 provides that, in order for employer superannuation contributions to satisfy the choice of fund requirements, the relevant fund to which the contributions are paid must comply with various prescribed requirements, one of which applies to insurance in respect of death. ADF Cover has been established to meet the requirement for death and invalidity cover for new members of the ADF. From 1 July 2016, ADF Super members will be covered under this statutory scheme, as will members who could have been ADF Super members but for choosing another fund into which the Department's employer contributions are to be paid. The reason for this is that it is difficult for ADF members to obtain death and invalidity cover at a reasonable cost under group insurance arrangements. There will be no contributions required for ADF Cover (either from Defence or those who are covered under the statutory scheme) as the benefits will be paid from the Consolidated Revenue under a specific appropriation. ADF Cover is designed to be consistent with the death and invalidity benefits provided under the current Military Superannuation and Benefits Scheme (MSBS).