Changes to indexation of military superannuation payments
The Minister for Defence Science and Personnel Warren Snowdon and the Minister for Defence Materiel Mike Kelly today announced changes to the way in which military superannuation retirement pay will be indexed for the Defence Forces Retirement Benefits (DFRB) scheme and the Defence Force Retirement and Death Benefits (DFRDB) scheme.
The schemes were closed in 1972 and 1991, respectively.
From 1 July 2014, payments to military superannuants aged 65 and over, within the DFRB and DFRDB schemes, will be indexed to the higher of the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI).
The estimated cost over four years is $34 million. Currently, there are some 56,500 superannuants in the two schemes and approximately 26,700 are aged 65 and over who will benefit from this announcement.
This measure strikes the right balance by assisting many of our older military retirees while being fiscally responsible in the current economic climate.
PBLCI was first used as an indexation factor for the age pension in September 2009 and the Government has decided to include it in the indexation of military superannuation retirement pay for the two schemes.
The Government acknowledges the advocacy of ex-service organisations on this issue and in particular the Returned and Services League of Australia and the Defence Force Welfare Association.
Today’s announcement builds on a comprehensive program of support and recognition by the Australian Government for our veteran community since 2007.
The Government will continue its commitment to engage with service and ex-service organisations to consider the benefits and support available to our current and former service personnel.
Mr Snowdon’s office: Marcus Butler (02) 6277 7820
Dr Kelly’s Office: Robbie Rynehart (02) 6277 7730 or 0459 810 654
I emailed Comsuper on receipt of this announcement to ask whether my superannuation currently paid under the MSBS ( I changed over a few months before my retirement in 1993) would also be actioned in this manner as the announcement only mentioned DFRB and DFRDB schemes.
They replied that they had no comment to make as the decision to change the indexation method had not yet been presented to or passed by parliament nor had it been made into law.
So greatcoats off again gents or as we used to say …hurry up and wait !