Hi all,
I want to set up a Self Managed Super Fund. The majority of my super money is with MilitarySuper.
I just called them and they are telling me that I cant access the major of the money in this fund to transfer it to another fund.
They told me that they operate under different legislation and this is why I have to keep the money with them to age 55. Typical military operating under there own rules.
I am interested to know if anyone else has been in this same situation or knows a way around this.
This is a defined benefits scheme probably
Many government jobs are similar
The Military Superannuation and Benefits Scheme (MSBS) was established by the Military Superannuation and Benefits Act 1991 (the MSB Act). The MSBS is a defined contribution/defined benefit scheme administered by ComSuper.
http://www.militarysuper.gov.au/
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I have a couple of clients in the same boat and as Terry has mentioned it is a Defined benefits scheme and not a lot you an do about it.
In 2004, the Federal Government passed their Superannuation Legislation Amendment (Choice of Superannuation Funds) Act but regretfully it did not apply to everyone and Public Servants, members of the Armed Forces etc were excluded.
Some members of the Police Force are able to roll over their Super into a SMSF but in the main you are restricted whilst you are employed by certain organisations. On resigning or moving employment you can start your own SMSF but cannot roll over the prior fund balance.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the info guys.
I have been out of the military for 5 years now. Guess I cant use the $110k I have in the MilitarySuper then.
I was planning to use the $110k as a deposit on property for the SMSF as I believe to LVR for the non recourse lending is 80%??
I guess this mean I have to wait until my current supper fund builds up to a 20% deposit.
Hi Bruno,
I can personally confirm what Terry and Richard are saying. Being an ex School principal my super is locked up in the govt system until I reach 55. Gives me a few more years to work out what & how I'll use it.
Bruno
If you have equity in any of your properties you could always look to lend the 20% from your own funds to the SMSF and borrow the balance from a traditional lender.
Not necessarily a recommended stategy give the level of borrowing but you do have the fall back that you have the funds available to come retirement.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Bruno
In fact if you want to flick me an email i will send you a copy of a SMSF Ebook i put together a year ago.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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