DFRDB and MSBS invalidity pensions are military superannuation benefits for people who leave the ADF because of a physical or mental condition that limits the civilian work they can do. They're paid by the Commonwealth Superannuation Corporation (CSC), not DVA. The condition doesn't have to be caused by your service, and CSC's decision is separate from any DVA compensation claim.
What DFRDB and MSBS are
- The Defence Force Retirement and Death Benefits Scheme (DFRDB) is a defined benefit scheme for people who joined the ADF between 1 October 1972 and 30 September 1991.
- The Military Superannuation and Benefits Scheme (MSBS), now called MilitarySuper, opened on 1 October 1991 and closed to new members on 30 June 2016.
- Members who joined from 1 July 2016 are in ADF Super, and their invalidity cover comes from ADF Cover, which uses the same A, B and C classes.
Contributing DFRDB and MilitarySuper members have death and invalidity cover automatically, at no cost.
What invalidity means
Invalidity here means being retired from the ADF because of a physical or mental incapacity. CSC works out how much your condition reduces your capacity for civilian work that suits your qualifications, skills and experience. It doesn't assess you against ADF duties.
Invalidity classes A, B and C
| Class | Incapacity for civilian work | MSBS (MilitarySuper) | DFRDB |
|---|---|---|---|
| Class A | 60% or more | A fortnightly pension, based on the employer benefit you'd have built up by your compulsory retiring age (usually 60) | Invalidity pay of 76.5% of your annual salary for superannuation purposes |
| Class B | 30% to less than 60% | A fortnightly pension of half the Class A pension, or the pension based on your actual service if that's higher | Invalidity pay of 38.25% of your salary, or more if you have 23 or more years of effective service |
| Class C | Less than 30% | No invalidity benefit. Your benefit is the same as if you had resigned | Under 20 years' service: a lump sum of your contributions multiplied by 1.5. 20 years or more: a pension equal to retirement pay |
Class A and B pensions are paid fortnightly and indexed to the CPI in January and July. They can't be taken as a lump sum. MSBS pensions aren't reduced because of other income, but some other payments may be reduced because of your pension.
How CSC decides your class
If you're medically transitioning from the ADF, CSC contacts you and gives you a Case Manager; application forms are being phased out. CSC looks at your qualifications, skills and work experience, the civilian jobs they suit, the conditions that led to your transition, and how much those conditions limit that work. It uses the medical assessment from your Transition Health Examination. Your Case Manager explains a draft decision before CSC sends a formal Decision Notice.
If you left the ADF for other reasons but had a condition that could have led to a medical discharge, you may be able to apply for retrospective invalidity. CSC first decides whether you could have been medically transitioned, then decides your class. Contact CSC's casework team to find out how to apply for your scheme.
Read CSC's guide to ADF medical transition and retrospective invalidity
Reviews and challenging a decision
If you disagree with your classification, apply to CSC for reconsideration within 30 days of the decision. For MilitarySuper, it then goes to the Military Superannuation and Benefits Committee, and after that you can go to the Australian Financial Complaints Authority. For DFRDB, it goes to the Defence Force Case Assessment Panel, and after that to external review; check the current route with CSC.
Classes can also be reviewed later. An initial Class C can't be reviewed. For MilitarySuper, CSC or you can start a review up to age 65, but your class can't be lowered after 55. For DFRDB, you can ask CSC to review your class.
Is an invalidity pension paid for life?
CSC says a MilitarySuper Class A or B pension "is not guaranteed for your lifetime". If a review moves you to Class C, the pension stops straight away, and it may be cancelled if you return to the ADF. MilitarySuper classes can't be lowered after age 55. Ask CSC how this applies to you.
Tax and the Douglas decision
In December 2020 the Full Federal Court decided in the Douglas case that DFRDB and MSBS invalidity pensions that started on or after 20 September 2007 are taxed as superannuation lump sums, not income streams. A 2023 law kept that treatment for these pensions and added the veterans' superannuation (invalidity pension) tax offset, so no one pays more tax because of the decision. You don't apply for the offset; the ATO works it out after you lodge your tax return.
Since 31 May 2024, a separate law sets how these pensions count in the income test for payments such as the service pension, and they're exempt from the assets test.
Read about the Douglas decision and what it means for veterans, or the ATO's guidance on military invalidity pensions.
How DVA payments and invalidity pensions interact
- Incapacity payments under the MRCA or DRCA are reduced dollar for dollar by the Commonwealth-funded part of your CSC pension. The part from your own contributions isn't counted.
- The Special Rate Disability Pension is reduced by 60 cents for each dollar of the Commonwealth-funded part.
- The VEA Disability Compensation Payment isn't reduced by super payments.
If you get retrospective invalidity arrears, DVA recovers any overpaid incapacity payments from the arrears before they reach you.
Read how DVA calculates incapacity payments
Is there a DFRDB or MSBS pension calculator?
CSC doesn't have a public calculator for DFRDB or MSBS invalidity pensions. Contributing MilitarySuper members can use the i-Estimator after logging in to CSC's member portal. DFRDB members can ask CSC for an estimate. ADF Cover, for members who joined from 1 July 2016, has a public benefit calculator. Other calculators you find online aren't CSC's.
Go to ADF Cover and its calculator
Contacting CSC
DFRDB and MilitarySuper pensioners can call CSC on 1300 001 877, 8:30am to 5pm Canberra time, Monday to Friday. For medical transition or retrospective invalidity, email [email protected] or call 02 6192 9530.
Read CSC's information on tax changes to invalidity pensions
Checked against DVA's website on 25 September 2026.