Australian Defence Force Cover Act 2015

The surviving spouse of a covered ADF member who dies may, before receiving the spouse’s benefit for the death as a lump sum, choose to receive the benefit as a pension instead. The choice cannot be revoked.

If the surviving spouse makes the choice, the pension is payable for the life of the spouse (and a pension will be payable after the spouse dies to any eligible children of the member who are wholly or substantially dependent on the spouse when he or she dies).

Section 55 also deals with making the choice.

The choice will not have effect if it would result in a pension payable at an annual rate less than that described in section 45.

If the surviving spouse of a covered ADF member who dies chooses to receive the spouse’s benefit as a pension, the annual rate of the pension on a day (the key day) is the rate worked out using the formula:

Subsection (2) has effect subject to section 39 (which deals with how much benefit is payable to each surviving spouse if there is more than one surviving spouse of the covered ADF member).

The rate under subsection (2) (as affected by the section 39, if relevant) of pension for a period when there are one or more eligible children of the covered ADF member is increased by the spouse pension child supplement percentage for those children.

This increase may be reduced or negated under section 41 so that a pension can be paid to someone else for the welfare of those children.