From
this link (DFWA => Defence Force welfare Assn)
MILITARY SUPERANNUATION PENSIONS (updated 2 October 2009)
The Government announced on 21 August 2009 that it would refuse to provide for ADF families in retirement by adequately indexing their superannuation pensions. The Matthews Report - conveniently released the day Parliament went into recess - blandly recommends that military superannuation schemes continue to be indexed by the CPI. The Government has refused to provide ADF superannuants with adequate protection against cost of living increases despite:
* Six parliamentary inquiries either recommending military superannuation pensions be better indexed or reflecting on the current arrangements.
* The Prime Minister Mr Rudd criticising the Coalition for its failure to implement the findings of these inquiries during the last election campaign along with many Labor candidates who offered their strong support and tempted us with EXPECTATIONS that something would be done – their now convenient about face is offensive. Read what they said here. Also read what Dr Mike Kelly, Labor Candidate and now Member for Eden-Monaro, said - see below !
* The Australian Bureau of Statistics openly stating that the CPI simply does not reflect the cost of living.
WHAT IS IT WE SEEK ?
Quite simply, indexation of your pension using the SAME formula that applies to Aged and Service Pensions. Why should you be treated differently … and why should you have your standard of living continually deteriorate ? Remember you contributed to your superannuation during your working years !
SOME RELATED DOCUMENTS
* The full Matthews Report can be found here.
* A DFWA Facts Sheet on Indexation is here.
* A DFWA Facts Sheet on Defined Vs Accumulation Superannuation Schemes is here.
* A DFWA Facts Sheet on past Government Inquiries is here.
* A graph showing the increases in Aged Pensions, Military Superannuation Pensions and Parliamentary Pensions is here.
* The DFWA Press Release regarding the Matthews Report is here.
* The DFWA Press release on new Indexation arrangements for some Government payments - the PBLCI - is here.
* A comprehensive response to the Matthews Report, written by Peter Thornton and sent to the Minister for Finance and Deregulation, The Hon Lindsay Tanner MP, is here. The Minister's response will be provided when (or if) received.
* NEW ! ADDED 2 OCTOBER 09 ... Our reponse - read our covering letter and our detailed response. Please note that our response places considerable foundation on the initial response made by Peter Thornton, who is a member of not least the DFWA. Our response revisits some of Peter’s assertions by restating and providing additional and qualifying comments. We thank Peter for his assistance and initiative on this matter.
* NEW ! ADDED 5 OCTOBER 2009 ..... Our Press Release regarding our reponse is here
FURTHER INFORMATION
Previous information on this long standing matter is found on this site .. click above Superannuation Indexation.
A TV News Report can be accessed at
Retired public servants continue super campaign - ABC News (Australian Broadcasting Corporation)
The comments by Senator Gary Humphries are especially illuminating: “We have here people who make provision for their retirement through belonging to a superannuation scheme, who are getting lower rates of indexation of their pension than people who made no provisions for their superannuation and who receive the aged pension…. that seems to me to be unfair”.
Read Senator Humphries' speech to the Senate about the Matthews Report on 16 September 2009 here.
Related Sites
The following sites provide further information on this matter:
Senator Kate Lundy
SCOA: Superannuated Commonwealth Officers Association
http://militarysuperannuation.for-our.info/
MILSUPER - How we sat idly by...
Both the SCOA and Senator Lundy's site have an excellent article "what will fair indexation cost".
Senator Lundy, along with the three Labor members in the ACT wrote, to Minister Tanner on 14 September 2009: read it here. The letter skirts around MTAWE and promotes PBLCI.
WHAT DID DR MIKE KELLY - MEMBER FOR EDEN-MONARO - HAVE TO SAY ABOUT INDEXATION ?
Read Dr Kelly's 2007 Press Release (at the time he was a candidate for election) where he expressed his full support to changing the indexation arrangements.
As Minister, Dr Kelly subsequently issued two statements in 2008 when the Matthews Report was announced... one immediately followed the other.
Words taken out of Dr Kelly's original release include:
“Clearly after serving Australia for so long Commonwealth civilian and military superannuants deserve a fair go.”
“People retiring now on a Commonwealth superannuation pension of $20,000 will be $7,000 worse off in 20 years time if their pension continues to be indexed by the CPI.
Words added in to Dr Kelly's revised release include:
"...and how this could be accommodated in forward estimates."
"It has placed us in a difficult position with a lot of work to do.”
On 10 September 2009 Dr Kelly released his comment on the Matthews Report. It is interesting to link his suggestion that that Matthews left the door open to a ....".. better measure of the costs of living ..." ... with the advice offered by Peter Thornton, where the shortcmings of the CPI are discussed in some detail. (Note that DFWA does NOT support the use of a new index - the PBLCI - as the permanent solution. An index that properly reflects the cost of living for military superannuants is required).
WHAT CAN YOU DO - A CALL TO ARMS !
The DFWA will continue to campaign on your behalf on this important issue - but YOU can help by:
* Writing to the Prime Minister (Parliament House, Canberra, ACT, 2600) and your Local Federal Member expressing your disappointment, and ask them to support a change to the index formula used for Military Superannuants. For further information read this.
* Supporting the DFWA by considering JOINING US and / or DONATING so the Association can continue doing all that it does. Tax Deductible Donations can be made at any time to : DFWA, PO Box 4166, KINGSTON ACT 2604 ........OR.... by a Direct Deposit to St George Bank, BSB: 112908; ACCOUNT NUMBER: 040019427; A/C NAME: RDFWA.
If making a direct deposit please email the National Treasurer (
[email protected]) advising address details so a receipt can be sent to you.
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OTHER CURRENT MATTERS
Latest
UPDATE (added 2 October 2009)
Our
response to the Matthews Report (added 2 October 2009)
Submission to the Review of Military Compensation Arrangements (1-7-09)
Response to Budget: Unique Nature of Military Service Recognised (added 16-5-09)
Response to Budget: Defence Pensions Silence (added 16-5-09)
DFWA
Statement - Military pensions fade away too (added 24-4-09)
For older items see the
Previous Matters page.