Matthew's Report into OZ Defence Pensions Side-Lined
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Matthew's Report into OZ Defence Pensions Side-Lined
In the decade since the method of indexation (i.e. CPI) changed for the Age Pension and other Government funded pensions, these have rightly increased by 51% - Commonwealth superannuation pensions such as DFRDB etc have remained tied to CPI and thus increased by only 29% (i.e. the purchasing power of OZ Defence Pensioners has been eroded at twice the rate)
The pre-elective KRudd promised to review this absolute inequity - but never promised to fix it. The Matthew's report suggested some patchworking but no actual changes. Because of this potentially explosive debacle, the Report has been quietly "put to bed" with nothing further to be said.
That's one of the hidden gotchas in joining today's (or yesterday's) Australian Defence Force. If it was put to recruits up-front at the Recruiting Centre, then how would recruiting suffer? Significantly I'd expect, so that's why the Report has been pigeon-holed without any debate in the House or CDF announcements..
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The pre-elective KRudd promised to review this absolute inequity - but never promised to fix it. The Matthew's report suggested some patchworking but no actual changes. Because of this potentially explosive debacle, the Report has been quietly "put to bed" with nothing further to be said.
That's one of the hidden gotchas in joining today's (or yesterday's) Australian Defence Force. If it was put to recruits up-front at the Recruiting Centre, then how would recruiting suffer? Significantly I'd expect, so that's why the Report has been pigeon-holed without any debate in the House or CDF announcements..
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Quite true, however KRudd is merely following his predecessors. This has been festering for some time and unfortunately looks like it will continue to do so.
This is exactly why I contribute the bare legal minimum to my military superannuation fund (MSBS), but salary sacrifice the maximum amount to another fund.
BTW, thanks KRudd for reducing the maximum amount I can salary sacrifice to superannuation from $50,000 p.a. to $25,000 p.a. Do you actaully want people to be self funded in their retirements? Typical short-sighted Labour government.
This is exactly why I contribute the bare legal minimum to my military superannuation fund (MSBS), but salary sacrifice the maximum amount to another fund.
BTW, thanks KRudd for reducing the maximum amount I can salary sacrifice to superannuation from $50,000 p.a. to $25,000 p.a. Do you actaully want people to be self funded in their retirements? Typical short-sighted Labour government.
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DFRDB inequities
As a recipient of a DFRDB "pension", a quaint name for a superannuation fund to which I contributed for 23 years, I just wonder at which shops, service stations etc those who determine the level of CPI adjustments to apply get their figures.
If anyone believes that there was no increase in the cost of living for the period used to make a determination at the latest adjustment point, when there was no increase, I would like to know what they live on. You can bet your socks that the bureaucrats making the decisions have a much better superannuation outcome than the defence force will ever have, and they only work week-days on fat salaries.
If anyone believes that there was no increase in the cost of living for the period used to make a determination at the latest adjustment point, when there was no increase, I would like to know what they live on. You can bet your socks that the bureaucrats making the decisions have a much better superannuation outcome than the defence force will ever have, and they only work week-days on fat salaries.
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I was having a little read recently. Aren't Oz pensions TAX FREE after the age of 65? Is that any pension i.e. personal as opposed to military?
I may be confusing types of pension here and presumably if you retire before 65 you pay normal tax?
The point I make is - there is still a lot to be said of Oz pensions, even if they are CPI tracking?
Ginge
I may be confusing types of pension here and presumably if you retire before 65 you pay normal tax?
The point I make is - there is still a lot to be said of Oz pensions, even if they are CPI tracking?
Ginge
MSBS
Whilst we are talking about pensions is there likely to be any development or changes in regards to the "preserved amount" or employer contributions in MSBS funds.
I have a couple of hundred K sitting in a MSBS preserved fund earning bugger all (CPI I think) and I can't do anything with it, can't move it etc. So it is not doing too much towards my self funded retirement.
Are other government/state government funds the same?
I have been out of the loop for a while and haven't looked too much at my MSBS fund in recent times so apologies if this is a stupid question.
Thanks
Turkey
I have a couple of hundred K sitting in a MSBS preserved fund earning bugger all (CPI I think) and I can't do anything with it, can't move it etc. So it is not doing too much towards my self funded retirement.
Are other government/state government funds the same?
I have been out of the loop for a while and haven't looked too much at my MSBS fund in recent times so apologies if this is a stupid question.
Thanks
Turkey
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Worth Reading (if you like being depressed)
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.
____________________________________________________________ _________
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.
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.
____________________________________________________________ _________
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.
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The Reason why the Silence is Deafening
CDF was told that he was NOT to comment upon the Report and has passed this on to the individual service chiefs.
One of the first major KRUDD FUDGEs.
It'd be nice if he ultimately had cause to regret putting this FIX in. However with all serving members gagged, there's little chance of that.
But what about the remainder? i.e. actual superannuants. Many serve on in the Reserves, are expats or "soldier on" as public servants [or have shuffled off this mortal coil, leaving spouse and dependants ignorant of what they're being robbed of].
The KRUDD SS knows that any likely resistance is token and futile and that the media would always find it un-newsworthy.
One of the first major KRUDD FUDGEs.
It'd be nice if he ultimately had cause to regret putting this FIX in. However with all serving members gagged, there's little chance of that.
But what about the remainder? i.e. actual superannuants. Many serve on in the Reserves, are expats or "soldier on" as public servants [or have shuffled off this mortal coil, leaving spouse and dependants ignorant of what they're being robbed of].
The KRUDD SS knows that any likely resistance is token and futile and that the media would always find it un-newsworthy.
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I appreciate and totally agree with what UNCTUOUS has posted. However a word of warning to those uniformed members who are contemplating writing to Komrade Krudd. Don't do it!
Should you choose do do so anyway I can guarantee Komrade Krudd will yell at the CDF, who will yell even more loudly at the appropriate Service Chief and so on down the chain. By the time it gets to you the sh!t storm will be of a sufficient magnitude to either end your career or stop it in it's tracks.
We in the ADF do have the same freedoms of speech as those whom are not. It's wrong, it p!sses me off sometimes, but it's a fact nevertheless. Even this website is monitored. If you think you are being anonymous by posting on here you're deluding yourself.
In my opinion you are better off supporting the DFWA, reducing your MSBS contributions to the bare legal minimum required and salary sacrificing to a private fund, and then making your feelings known at the next election.
Finally although I rarely pass up a chance to stick it to a Labour government' I should note that this problem goes back to the Howard years and even before.
As long as the pig-ignorant general public can afford plasma TVs, beer and cigarettes while still on welfare I don't think they give a sh!t about ADF superannuation. It will take bombs on Australia again to do that.
Should you choose do do so anyway I can guarantee Komrade Krudd will yell at the CDF, who will yell even more loudly at the appropriate Service Chief and so on down the chain. By the time it gets to you the sh!t storm will be of a sufficient magnitude to either end your career or stop it in it's tracks.
We in the ADF do have the same freedoms of speech as those whom are not. It's wrong, it p!sses me off sometimes, but it's a fact nevertheless. Even this website is monitored. If you think you are being anonymous by posting on here you're deluding yourself.
In my opinion you are better off supporting the DFWA, reducing your MSBS contributions to the bare legal minimum required and salary sacrificing to a private fund, and then making your feelings known at the next election.
Finally although I rarely pass up a chance to stick it to a Labour government' I should note that this problem goes back to the Howard years and even before.
As long as the pig-ignorant general public can afford plasma TVs, beer and cigarettes while still on welfare I don't think they give a sh!t about ADF superannuation. It will take bombs on Australia again to do that.
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The previous advice given in this forum is very valid, and to disregard it by any member is paramount of the kiss of death to any member who thinks otherwise.
In 1961 I was serving with 5ACS in Darwin ( I was at that time a LAC) when a burst came around to every member on the base about the then current DFRB system, which was sadly lacking. The submission was made by the base commander, a very long serving member, Group Captain Dixie Chapman. He also called a parade and indicated that by speaking up about how poor the then DFRB system was, he had no doubt that his career was finished.
One must consider that it was just as unsavoury then as it would be today, except I suspect that the aces in the nerve centre in Canberra would by now be even more touchy about the matter.
Dixie was shoved out of the RAAF on medical grounds and not so long ago passed away.
Was saddened to see recently his medals for sale on E Bay, hope it did not mean that his lady was battling to make ends meet.
The Krudds of the world when in the spotlight, say all the right things but as for action for a fair go, that is another story.
Those who are thinking of stirring the stew, need to clearly understand that this government is no different to any previous, as far a defense staff are concerned.
Regards
Col
In 1961 I was serving with 5ACS in Darwin ( I was at that time a LAC) when a burst came around to every member on the base about the then current DFRB system, which was sadly lacking. The submission was made by the base commander, a very long serving member, Group Captain Dixie Chapman. He also called a parade and indicated that by speaking up about how poor the then DFRB system was, he had no doubt that his career was finished.
One must consider that it was just as unsavoury then as it would be today, except I suspect that the aces in the nerve centre in Canberra would by now be even more touchy about the matter.
Dixie was shoved out of the RAAF on medical grounds and not so long ago passed away.
Was saddened to see recently his medals for sale on E Bay, hope it did not mean that his lady was battling to make ends meet.
The Krudds of the world when in the spotlight, say all the right things but as for action for a fair go, that is another story.
Those who are thinking of stirring the stew, need to clearly understand that this government is no different to any previous, as far a defense staff are concerned.
Regards
Col
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Your Chance to input
From:
Steve Hartigan Email: [email protected]
Subject: AVADSC Indexation initiative
Recipient Group:
AVADSC Indexation initiative
Ladies and Gentlemen,
I have been requested to pass on the following information Please note that if you respond your personal details will not be included in any onwards submission.
The Australian Veterans and Defence Services Council Inc (AVADSC), a national organisation which represents its member ex-service organisations, provides a forum for consideration of and, where necessary, joint representations on repatriation and conditions of service matters of importance and concern to the Defence and veteran communities.
For many years the erosion of the superannuation benefits to retired service personnel has been a major source of concern, particularly the method of indexation, which has resulted in a decline of living standards of retired service personnel.
A number of government enquiries have occurred to which the RSL, DFWA and AVADSC have made submissions. However, nothing has been changed and no progress has been made to adjust the declining situation.
AVADSC, in its submissions, has argued, amongst other issues, the uniqueness of military service highlighting that those who join the Defence Force commit to conditions distinct from other employment. The submissions have also highlighted that the readiness of the Defence Force is, and always has been, a critical factor that allows this country to grow its international standing with all the economic, political and social benefits that go with it.
The regular Defence Force is the force at immediate readiness to meet government commitments and is custodian of the integrity and quality of the capabilities and values that have made it possible for governments to commit the Defence Force in ways that have advanced Australia’s national objectives. Also members of the Defence Force experience conditions of the military lifestyle that disadvantage them when compared with civilian employment whether private sector or the Public Service.
This contribution to an Australian lifestyle enjoyed by the general community and the disadvantages of military service, recognised by government studies over many decades, set the Defence Force apart from all others in the community. In view of this uniqueness of military service, AVADSC has argued that the superannuation provisions of defence personnel should be segregated from those in civilian employment whether in the private sector or the Public Service.
However, despite the force of AVADSC and other submissions, nothing has been changed and the deterioration of the standard of living of retired service personnel continues to decline to the extent that many are now being forced to seek financial assistance from the safety net provided by social services. This is degrading to those who are forced to do this and is an inappropriate image of the outcome of Defence Force service. Hence, AVADSC and the other larger organisations of current and ex-military personnel have committed to continue the fight to achieve an improved standard of living of ex-military personnel. – all that is expected is that they will be able to live to a reasonable standard, not an unreasonable expectation of people who have served this country in its military services and one which places a true value on their worth.
To further its case with the Government, AVADSC is developing a portfolio of actual case studies without names but based on real people to demonstrate in each case the failure of retired pay to maintain quality of life standards. The information we are seeking is:
• Rank on discharge;
• Number of years’ service;
• Age on discharge;
• Retired pay on discharge;
• Current retired pay under military superannuation;
• Employment and superannuation history after discharge;
• Employment and superannuation history of spouse;
• Home ownership factors, ie, whether still paying a mortgage;
• Sources of income other than superannuation and social welfare;
• Annual rate of pay for same rank in Defence Force;
• Access to social welfare.
• Children still living at home.
Accordingly, it would be appreciated if your organisation could distribute this request for case studies amongst your members or constituencies and request their consideration of it. Any queries or responses to this letter should be sent to
Doug Roser
C/o AVADSC
PO Box Q314
QVB Post Office
SYDNEY NSW 1230
or to him at email [email protected].
We are encouraged in the merit of our argument for recognition of the unique circumstances of military service by an article in the respected UK weekly, The Economist, which states that there is ‘an argument for giving some public-sector workers, such as the police or the armed forces, higher pay and benefits in the form of pensions’.
Ian Crawford
RADM RAN (RET’D)
National President
Steve Hartigan Email: [email protected]
Subject: AVADSC Indexation initiative
Recipient Group:
AVADSC Indexation initiative
Ladies and Gentlemen,
I have been requested to pass on the following information Please note that if you respond your personal details will not be included in any onwards submission.
The Australian Veterans and Defence Services Council Inc (AVADSC), a national organisation which represents its member ex-service organisations, provides a forum for consideration of and, where necessary, joint representations on repatriation and conditions of service matters of importance and concern to the Defence and veteran communities.
For many years the erosion of the superannuation benefits to retired service personnel has been a major source of concern, particularly the method of indexation, which has resulted in a decline of living standards of retired service personnel.
A number of government enquiries have occurred to which the RSL, DFWA and AVADSC have made submissions. However, nothing has been changed and no progress has been made to adjust the declining situation.
AVADSC, in its submissions, has argued, amongst other issues, the uniqueness of military service highlighting that those who join the Defence Force commit to conditions distinct from other employment. The submissions have also highlighted that the readiness of the Defence Force is, and always has been, a critical factor that allows this country to grow its international standing with all the economic, political and social benefits that go with it.
The regular Defence Force is the force at immediate readiness to meet government commitments and is custodian of the integrity and quality of the capabilities and values that have made it possible for governments to commit the Defence Force in ways that have advanced Australia’s national objectives. Also members of the Defence Force experience conditions of the military lifestyle that disadvantage them when compared with civilian employment whether private sector or the Public Service.
This contribution to an Australian lifestyle enjoyed by the general community and the disadvantages of military service, recognised by government studies over many decades, set the Defence Force apart from all others in the community. In view of this uniqueness of military service, AVADSC has argued that the superannuation provisions of defence personnel should be segregated from those in civilian employment whether in the private sector or the Public Service.
However, despite the force of AVADSC and other submissions, nothing has been changed and the deterioration of the standard of living of retired service personnel continues to decline to the extent that many are now being forced to seek financial assistance from the safety net provided by social services. This is degrading to those who are forced to do this and is an inappropriate image of the outcome of Defence Force service. Hence, AVADSC and the other larger organisations of current and ex-military personnel have committed to continue the fight to achieve an improved standard of living of ex-military personnel. – all that is expected is that they will be able to live to a reasonable standard, not an unreasonable expectation of people who have served this country in its military services and one which places a true value on their worth.
To further its case with the Government, AVADSC is developing a portfolio of actual case studies without names but based on real people to demonstrate in each case the failure of retired pay to maintain quality of life standards. The information we are seeking is:
• Rank on discharge;
• Number of years’ service;
• Age on discharge;
• Retired pay on discharge;
• Current retired pay under military superannuation;
• Employment and superannuation history after discharge;
• Employment and superannuation history of spouse;
• Home ownership factors, ie, whether still paying a mortgage;
• Sources of income other than superannuation and social welfare;
• Annual rate of pay for same rank in Defence Force;
• Access to social welfare.
• Children still living at home.
Accordingly, it would be appreciated if your organisation could distribute this request for case studies amongst your members or constituencies and request their consideration of it. Any queries or responses to this letter should be sent to
Doug Roser
C/o AVADSC
PO Box Q314
QVB Post Office
SYDNEY NSW 1230
or to him at email [email protected].
We are encouraged in the merit of our argument for recognition of the unique circumstances of military service by an article in the respected UK weekly, The Economist, which states that there is ‘an argument for giving some public-sector workers, such as the police or the armed forces, higher pay and benefits in the form of pensions’.
Ian Crawford
RADM RAN (RET’D)
National President
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DFRDB ABC Q and A Monday 9.30 PM 15th February 2010
Dear All,
By way of introduction, and for those who don’t know me, my name is Peter Thornton and as an Ex-Military and Commonwealth Superannuant. I am seeking your IMMEDIATE ASSISTANCE PLEASE to broadcast this message as widely as possible and to take part in the action as detailed below.
To explain, and if you are not aware; there has been a long term plight by a large number of Ex-Military and Commonwealth Retirees and Representative Bodies to seek justice in correcting the ongoing erosion of Government Retirement Pensions ( i.e. to correct the poor indexation mechanism of DFRB/DFRDB, MSBS, CSS and PSS Superannuation benefits). If you need some instant measure of how much Government Retirees have been shafted over the last 20 years or so (or will likely to be shafted into the future .... attention to all those who are yet to retire!) then the graph below will be a stark reminder and/or an instant reference to the injustice that has been perpetrated against Military and Commonwealth Superannuants ..... the erosion effectively forcing many onto welfare over time.
As a consequence, and to aid in this fight, 3 audience seats have been secured at the last minute for myself, John Coleman (Indexation Manager - SCOA) and Ian Scott (NSW State President - DFWA) in the upcoming ABC ‘Q and A’ program, this Monday evening, 15th of February, from 9:30-10:30pm. Here’s the link Q&A | ABC TV .
The purpose of obtaining seats on this specific occasion is because Lindsay Tanner (Minister for Finance) and Barnaby Joyce (Shadow Minister for Finance) will be on the panel and they are directly responsible for the carriage of this matter. As a consequence, the 3 of us will have the same pre-prepared question ready to ask the two Ministers about the ongoing injustice of current indexation arrangements and what the Government/Opposition intends to do about it.
HOWEVER, we face a major uphill battle (without your specific and collective help) because the erosion of Military/C’wlth Superannuation Pensions is not in the media spot light at the moment ..... and because we will be overshadowed by approximately 220 other people in the audience who will be eager to ask questions about other current affairs issues such as the ceiling installation deaths, the Emissions Trading Scheme etc.
BUT .... we believe that if everybody rallies as soon as possible to create a constant barrage of information flows on the Q and A website ... i.e. through their blog, submission of online questions, uploading of video questions etc ..... then maybe .... just maybe ..... it might be enough to convince Program Staff that our issue is truly a nationwide affair that affects up to 600,000 people (not including extended family) ... and is therefore worthy of a question to be asked.
ACTION PLAN:
1. We ask that upon receipt of this email that you all IMMEDIATELY ON FORWARD it to your extended networks .... and in turn .... we ask that these subsequent contacts to do the same (even if they are not affected) so we can generate a multiplier effect in generating the numbers and action needed.
2. We ask if everybody could access the Q and A website here Q&A | ABC TV and begin immediately to submit a barrage of questions in text, video, SMS and/or Twitter formats where possible. WE NEED TO TRY AND DROWN OUT ALL THE OTHER ISSUES/QUESTIONS IF WE CAN!!!!
3. We need everybody to be as active as possible on the night in question .... i.e. in blogging in your feelings before and particularly during the program ..... because .... we need you all to turn up the heat big time during the program so that Program Staff / Tony Jones will feel compelled to nominate one of us to ask the question.
DO YOU NEED MORE INFORMATION OR SOURCES OF INSPRIATION? ...... THEN PLEASE ACCESS THE FOLLOWING WEBSITES ......
SCOA: Superannuated Commonwealth Officers Association (Superannuated Commonwealth Officer’s Association)
http://www.dfwa.org.au/ (Defence Force Welfare Association ..... click on ‘WHAT’S NEW’ ..... )
I trust and hope you will all rally to this occasion .... and I apologise in advance if you have received this message in error or will receive it more than once in the next few days ... but under the circumstances ... I hope you will understand.
Kind regards
Peter Thornton
DFRDB (Ex-Army 1980-2001) & PSS Superannuant (C’wlth 2001 – 2007)
02 6296 7003
0406 1944 69
By way of introduction, and for those who don’t know me, my name is Peter Thornton and as an Ex-Military and Commonwealth Superannuant. I am seeking your IMMEDIATE ASSISTANCE PLEASE to broadcast this message as widely as possible and to take part in the action as detailed below.
To explain, and if you are not aware; there has been a long term plight by a large number of Ex-Military and Commonwealth Retirees and Representative Bodies to seek justice in correcting the ongoing erosion of Government Retirement Pensions ( i.e. to correct the poor indexation mechanism of DFRB/DFRDB, MSBS, CSS and PSS Superannuation benefits). If you need some instant measure of how much Government Retirees have been shafted over the last 20 years or so (or will likely to be shafted into the future .... attention to all those who are yet to retire!) then the graph below will be a stark reminder and/or an instant reference to the injustice that has been perpetrated against Military and Commonwealth Superannuants ..... the erosion effectively forcing many onto welfare over time.
As a consequence, and to aid in this fight, 3 audience seats have been secured at the last minute for myself, John Coleman (Indexation Manager - SCOA) and Ian Scott (NSW State President - DFWA) in the upcoming ABC ‘Q and A’ program, this Monday evening, 15th of February, from 9:30-10:30pm. Here’s the link Q&A | ABC TV .
The purpose of obtaining seats on this specific occasion is because Lindsay Tanner (Minister for Finance) and Barnaby Joyce (Shadow Minister for Finance) will be on the panel and they are directly responsible for the carriage of this matter. As a consequence, the 3 of us will have the same pre-prepared question ready to ask the two Ministers about the ongoing injustice of current indexation arrangements and what the Government/Opposition intends to do about it.
HOWEVER, we face a major uphill battle (without your specific and collective help) because the erosion of Military/C’wlth Superannuation Pensions is not in the media spot light at the moment ..... and because we will be overshadowed by approximately 220 other people in the audience who will be eager to ask questions about other current affairs issues such as the ceiling installation deaths, the Emissions Trading Scheme etc.
BUT .... we believe that if everybody rallies as soon as possible to create a constant barrage of information flows on the Q and A website ... i.e. through their blog, submission of online questions, uploading of video questions etc ..... then maybe .... just maybe ..... it might be enough to convince Program Staff that our issue is truly a nationwide affair that affects up to 600,000 people (not including extended family) ... and is therefore worthy of a question to be asked.
ACTION PLAN:
1. We ask that upon receipt of this email that you all IMMEDIATELY ON FORWARD it to your extended networks .... and in turn .... we ask that these subsequent contacts to do the same (even if they are not affected) so we can generate a multiplier effect in generating the numbers and action needed.
2. We ask if everybody could access the Q and A website here Q&A | ABC TV and begin immediately to submit a barrage of questions in text, video, SMS and/or Twitter formats where possible. WE NEED TO TRY AND DROWN OUT ALL THE OTHER ISSUES/QUESTIONS IF WE CAN!!!!
3. We need everybody to be as active as possible on the night in question .... i.e. in blogging in your feelings before and particularly during the program ..... because .... we need you all to turn up the heat big time during the program so that Program Staff / Tony Jones will feel compelled to nominate one of us to ask the question.
DO YOU NEED MORE INFORMATION OR SOURCES OF INSPRIATION? ...... THEN PLEASE ACCESS THE FOLLOWING WEBSITES ......
SCOA: Superannuated Commonwealth Officers Association (Superannuated Commonwealth Officer’s Association)
http://www.dfwa.org.au/ (Defence Force Welfare Association ..... click on ‘WHAT’S NEW’ ..... )
I trust and hope you will all rally to this occasion .... and I apologise in advance if you have received this message in error or will receive it more than once in the next few days ... but under the circumstances ... I hope you will understand.
Kind regards
Peter Thornton
DFRDB (Ex-Army 1980-2001) & PSS Superannuant (C’wlth 2001 – 2007)
02 6296 7003
0406 1944 69
Last edited by UNCTUOUS; 14th Feb 2010 at 13:37.
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The CPI measurement is the greatest rubbery measurement stunt, ever pulled on an unsuspecting population. The CPI measurement methods have been "adjusted" so much by politicians, the CPI measurement is now meaningless.
Google "CPI measure flawed" and you'll get plenty of food for thought. When the CPI measurement was introduced, a set basket of "goodies", the average purchasing requirements for a family or individual, to live satisfactorily, was the measurement standard.
Along the way, the CPI basket has been adjusted, screwed with, and generally made so irrelevant, to any actual living costs - by political influences - it is high time it was abandoned, and an independent, highly accurate measurement method, installed in its place.
Typical of the cunning CPI rorts, is the "discretionary" method of measurement, introduced by political forces, in years gone by (both Labour and Liberal).
The "discretionary" line says that any particular item in the basket can no longer be set as a fixed % of expenditure - but that it can be adjusted downwards, if prices rise.
The argument goes, that if fuel prices rise, you can use the car less - and therefore, fuel costs can be reduced as a % of weekly expenditure, when it comes to measuring fuel costs in the CPI figures.
The same "discretionary" line applies all across the board. They reckon that if wheat goes up, you can eat less Weeties, and eat something else that uses a cheaper grain.
This goes on, all across the board, and using this "discretionary" style of measurement means that no item can ever have a set % of expenditure attached to it.
This kind of "measurement" is the same kind of rubbery figures applied to everything that politicians ever have a hand in. No longer is your money fixed to a set value. No, it "floats", and has a different value every day. Guess who benefits out of this? Of course, not the average Joe Bloggs - but the national and global banks and finance houses! - as they trade in our currency, every minute of every hour of the day! - surprise! surprise!
A rubbery CPI gives politicians wondrous powers. They live and die by the CPI figures. A bad CPI is political death - but a good CPI makes them look like heroes! - and they get voted back in!! "Why not have a CPI we can 'adjust' at will, to suit our political ends", says the pollies?? What a wondrous idea! Fuel goes up? - they can ride bicycles! Bread goes up? - they can eat cake!! Marie Antionette would rejoice, having access to the current CPI measurements - she could prove that the people weren't starving, and were more than comfortable, with a spreadsheet full of CPI figures to flourish ....
Google "CPI measure flawed" and you'll get plenty of food for thought. When the CPI measurement was introduced, a set basket of "goodies", the average purchasing requirements for a family or individual, to live satisfactorily, was the measurement standard.
Along the way, the CPI basket has been adjusted, screwed with, and generally made so irrelevant, to any actual living costs - by political influences - it is high time it was abandoned, and an independent, highly accurate measurement method, installed in its place.
Typical of the cunning CPI rorts, is the "discretionary" method of measurement, introduced by political forces, in years gone by (both Labour and Liberal).
The "discretionary" line says that any particular item in the basket can no longer be set as a fixed % of expenditure - but that it can be adjusted downwards, if prices rise.
The argument goes, that if fuel prices rise, you can use the car less - and therefore, fuel costs can be reduced as a % of weekly expenditure, when it comes to measuring fuel costs in the CPI figures.
The same "discretionary" line applies all across the board. They reckon that if wheat goes up, you can eat less Weeties, and eat something else that uses a cheaper grain.
This goes on, all across the board, and using this "discretionary" style of measurement means that no item can ever have a set % of expenditure attached to it.
This kind of "measurement" is the same kind of rubbery figures applied to everything that politicians ever have a hand in. No longer is your money fixed to a set value. No, it "floats", and has a different value every day. Guess who benefits out of this? Of course, not the average Joe Bloggs - but the national and global banks and finance houses! - as they trade in our currency, every minute of every hour of the day! - surprise! surprise!
A rubbery CPI gives politicians wondrous powers. They live and die by the CPI figures. A bad CPI is political death - but a good CPI makes them look like heroes! - and they get voted back in!! "Why not have a CPI we can 'adjust' at will, to suit our political ends", says the pollies?? What a wondrous idea! Fuel goes up? - they can ride bicycles! Bread goes up? - they can eat cake!! Marie Antionette would rejoice, having access to the current CPI measurements - she could prove that the people weren't starving, and were more than comfortable, with a spreadsheet full of CPI figures to flourish ....
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The Notorious Graph that Tells it all
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Not Only But Also
To get a handle on the overall inequity, it must also be observed that:
a. Unlike politician's pensions, DFRDB is self-funded (deductions from pay throughout one's career)
b. Unlike pensions derived from super, the DFRDB pension is fully taxable.
c. Over the same period (shown in the graph above, the possibility of receiving any augmentative Veteran's Affairs pension due to a medical disability (injury, disease etc due to service) has diminished quite appreciably. The burden of proof has shifted from the Dept essentially having to disprove the claim, to the individual having to prove the claim. Whilst you may not see that as inequitable, the shifting of the goal-posts has meant that many disabilities (such as tinnitus and monocular vision impairment) are now dismissed as being "ageing related". In other words, you have Buckleys of ever getting a 100% TPI classification unless you've lost at least two limbs, two eyes etc.
That the service pensions situation is totally unfair and inequitable and that ex-servicemen are being exploited is 100% apparent. Because this situation is embedded in legislation, it's not going to change any time soon...... probably never. However that should just serve to further infuriate you and make you resolve to work to undermine those MP's who will soon seek to be re-elected. You should also advise generally against "signing on" for govt service whilst this "rip-off" continues.
a. Unlike politician's pensions, DFRDB is self-funded (deductions from pay throughout one's career)
b. Unlike pensions derived from super, the DFRDB pension is fully taxable.
c. Over the same period (shown in the graph above, the possibility of receiving any augmentative Veteran's Affairs pension due to a medical disability (injury, disease etc due to service) has diminished quite appreciably. The burden of proof has shifted from the Dept essentially having to disprove the claim, to the individual having to prove the claim. Whilst you may not see that as inequitable, the shifting of the goal-posts has meant that many disabilities (such as tinnitus and monocular vision impairment) are now dismissed as being "ageing related". In other words, you have Buckleys of ever getting a 100% TPI classification unless you've lost at least two limbs, two eyes etc.
That the service pensions situation is totally unfair and inequitable and that ex-servicemen are being exploited is 100% apparent. Because this situation is embedded in legislation, it's not going to change any time soon...... probably never. However that should just serve to further infuriate you and make you resolve to work to undermine those MP's who will soon seek to be re-elected. You should also advise generally against "signing on" for govt service whilst this "rip-off" continues.
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The Minister's Rejoinder on QandA
a. Too complex an issue to discuss in that forum. Always being looked at and "not to forget that the welfare system would pick up those that dropped below the poverty line". Others in the injured, wounded, dying and crazed categories could always go begging bowl in hand to DVA for any hand-outs that are within their policy guidelines.
b. The disputed schemes are complicated beyond belief by generically being a "defined benefits" scheme (as though anybody knew at the stage they were forced into it that successive govts would be continually changing the CPI goal-posts so that the overall effect would be to index at exactly 50% of the rate at which politicians' pensions were being increased (see graph)).
c. Any changes would be quite unfair to those who had not maximized their lump-sums when they had that choice so many years ago. I've never met anybody that didn't, actually!!!!!
d. Overall it seems impossible to rectify the inequity but, obviously with an eye to "maintaining recruitment levels", watch out for a future (election-time) new scheme for new recruits. All present pensioners will have to be written off as the unfortunate casualties of some other previous govt's scheme.
e. Obviously Labor govts have studied the election clout and cohesiveness of the ex-serviceman groups and are unafraid of continuing to demean them collectively. Only time will tell whether or not they've got that sum right.
But Lindsay Tanner is obviously only spouting the party-line. He's overall a much more impressive pollie than the hapless Barnbaby Joyce.
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b. The disputed schemes are complicated beyond belief by generically being a "defined benefits" scheme (as though anybody knew at the stage they were forced into it that successive govts would be continually changing the CPI goal-posts so that the overall effect would be to index at exactly 50% of the rate at which politicians' pensions were being increased (see graph)).
c. Any changes would be quite unfair to those who had not maximized their lump-sums when they had that choice so many years ago. I've never met anybody that didn't, actually!!!!!
d. Overall it seems impossible to rectify the inequity but, obviously with an eye to "maintaining recruitment levels", watch out for a future (election-time) new scheme for new recruits. All present pensioners will have to be written off as the unfortunate casualties of some other previous govt's scheme.
e. Obviously Labor govts have studied the election clout and cohesiveness of the ex-serviceman groups and are unafraid of continuing to demean them collectively. Only time will tell whether or not they've got that sum right.
But Lindsay Tanner is obviously only spouting the party-line. He's overall a much more impressive pollie than the hapless Barnbaby Joyce.
.
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RBA urges CPI overhaul
RBA urges CPI overhaul
By a staff reporter
The Reserve Bank of Australia (RBA) is urging an overhaul of Australia's approach to its consumer price index (CPI) to improve accuracy, and has asked an inquiry to recommend changes.
The central bank said that some practices surrounding Australia's CPI lagged behind other advanced economies, and said a monthly rather than quarterly report would help improve Australia's monetary policy framework.
"The Bank is strongly of the view that a monthly CPI constitutes best practice, and that more frequent data on prices would assist in the assessment of inflation trends in the economy," the RBA said in its submission to the 16th Series Review of the Consumer Price Index.
The RBA said the move would help bring Australia into line with other nations.
"The timely provision of accurate inflation data is critical to ensuring the sound conduct of monetary policy."
The central bank said that concerns held by the Australian Bureau of Statistics that issuing a monthly CPI report would be expensive would be outweighed by the benefits of ensuring that monthly interest rate adjustments were gotten right.
"Australia and New Zealand are the only countries in the Organisation for Economic co-operation and Development without an official monthly consumer price series ... Australia is the only economy in the G-20 without an official monthly consumer price series," the RBA said.
The central bank said that more timely data would help provide an earlier indication of the trend in inflation.
"It could also be helpful in distinguishing between signal and noise. In recent years there have been a couple of instances of quarterly readings for inflation that subsequently proved not to be representative of the general trend," its submission noted.
The RBA also said that the methodology used to measure price changes in the deposit and loan (D&L) facilities expenditure class were problematic, and the weighting of this component of the CPI, should be reassessed.
The central bank said that if improvements to the D&L methodology are not feasible, this item should be removed from the CPI, as it has been responsible for skewing the overall index, as its fourth largest component.
The RBA also recommended that expenditure weights in the CPI should be updated more frequently to reduce potential bias in the CPI, as practised in most advanced economies.
link
By a staff reporter
The Reserve Bank of Australia (RBA) is urging an overhaul of Australia's approach to its consumer price index (CPI) to improve accuracy, and has asked an inquiry to recommend changes.
The central bank said that some practices surrounding Australia's CPI lagged behind other advanced economies, and said a monthly rather than quarterly report would help improve Australia's monetary policy framework.
"The Bank is strongly of the view that a monthly CPI constitutes best practice, and that more frequent data on prices would assist in the assessment of inflation trends in the economy," the RBA said in its submission to the 16th Series Review of the Consumer Price Index.
The RBA said the move would help bring Australia into line with other nations.
"The timely provision of accurate inflation data is critical to ensuring the sound conduct of monetary policy."
The central bank said that concerns held by the Australian Bureau of Statistics that issuing a monthly CPI report would be expensive would be outweighed by the benefits of ensuring that monthly interest rate adjustments were gotten right.
"Australia and New Zealand are the only countries in the Organisation for Economic co-operation and Development without an official monthly consumer price series ... Australia is the only economy in the G-20 without an official monthly consumer price series," the RBA said.
The central bank said that more timely data would help provide an earlier indication of the trend in inflation.
"It could also be helpful in distinguishing between signal and noise. In recent years there have been a couple of instances of quarterly readings for inflation that subsequently proved not to be representative of the general trend," its submission noted.
The RBA also said that the methodology used to measure price changes in the deposit and loan (D&L) facilities expenditure class were problematic, and the weighting of this component of the CPI, should be reassessed.
The central bank said that if improvements to the D&L methodology are not feasible, this item should be removed from the CPI, as it has been responsible for skewing the overall index, as its fourth largest component.
The RBA also recommended that expenditure weights in the CPI should be updated more frequently to reduce potential bias in the CPI, as practised in most advanced economies.
link
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As the Election remorselessly approaches...
......this matter needs to be kept in the forefront of the minds of serving and ex-Defence members alike - not to mention those considering joining up.
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Senator Steve Fielding's Petition - Sign up now
A Fairer Go For Our Veterans Petition :: Senator Steve Fielding
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for a fairer deal for military superannuitants and future pensioners
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for a fairer deal for military superannuitants and future pensioners
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Election Time Update is......
at this link
If a Coalition Government is elected, they will probably honour this promise. If a Labour Govt, the record shows that they will not even address this issue.
If a Coalition Government is elected, they will probably honour this promise. If a Labour Govt, the record shows that they will not even address this issue.