Booger and Macchi
I hear you...the MSBS is a typical government 'take three steps forward, one step back' arrangement. But unlike the rest of the super industry, you can be assured that unless your salary drops (unlikely) then your ADF employer benefit is always on the up. If you get promoted, you get a quantum super rise with max benefit after three years at the new rank. This is good - it never drops. So when other funds are draining in 20 years because there are so many retirees, your amount will not drop. But as you rightly pointed out, the benefit of compound interest is lost.
So you decided to put more into the MSBS member side which is funded and so gets compound interest effect! However you are paying tax on this contribution first! You are silly to be putting 10% into the member side of MSBS when you can now salary sacrifice into any other super fund and put away pre-tax dollars - almost doubling your savings.
So using the MSBS employer contribution plus your own salary sacrifice you can have a foot in both super camps. Defence will allow you to sacrifice up to 50% of salary and Service Allow (not other allowances). When you do the sums it is very beneficial for your super. Note I am not a salesman for superannuation, but believe you should get the best from any system.
RM