Superannuation Information

Chippy Ned · **Posted:** Sat Oct 13, 2012 7:20 pm

Thanks Brian, I suppose the big difference nowadays is the tens of thousands more older voters.

To only concentrate on aged issues while ignoring the sensitive issues that the silent majority is up in arms about, would be fatal.

BC · **Posted:** Sat Oct 13, 2012 7:31 pm

Hi Ned,

That summary came from Wikipedia.

They did target other national issues and not just aged care. Their problem was, the elderly were too set in their ways and always voted Labor or Liberal!!

gsrobertson · **Posted:** Sat Oct 13, 2012 10:52 pm

A political party such as Grey Power will flourish when times are not good for the populace, particularly when there is a strong sense of indignation against perceived/actual unjust treatment or pig troughing on the part of our elected representatives. At such times, such as now, a candidate will garner quite a considerable portion of the available conservative vote, generally to the detriment of the conservative candidate. There will also be a large swinging vote that will go the Grey Power way.
The problem occurs when the political scene settles down and the perceived/actual issues are addressed or even resolved, then the impetus goes off the need to have a voice acting on our behalf. So after an election or two the Grey Power vote is diminished to a point where it is felt that it is not needed. All is well with the world. We are living comfortably. (to quote a well favoured conservative)
Then the wheels fall off and we go back to the bad old days if perceieved/actual injustice. Remember that after 8 10 years a lot of the grey vote has crossed the bar and the "new" grey voters have not had to deal with the BS and so are not aligned or up to date. It then takes another election or so for them to be like the rest of us and demand a voice. So round we go again.
The pollie (on both sides) know that there is a lag in the response to their stuff ups (from the Grey point of view) so they don't respond to the voters until they are forced to confront another candidate, then they get conscientious but also know that it won't last.

What is needed is a REAL grey party that doesn't go away when the good times return, but keeps the pressure on. Not an easy ask for an old fella. It needs the stamina of youth (relatively speaking) to keep such a thing going and the younger set don't want to know.
I don't have a solution for this but would be willing to vote for someone who would pick up the gauntlet. Me and at least 60,000 others.

Moth · **Posted:** Tue Oct 23, 2012 10:38 am

Heard briefly that Swan is trying to drag the budget into surplus (read.. make up for what is spent on boat people) and one of his strategies will be to increase costs on self managed Super Funds (Me).

Anyone else heard similar?

robert lake · **Posted:** Fri Mar 15, 2013 8:25 am

The games they play.
Mr Stuart Robert MP
Shadow Minister for Defence Science, Technology and Personnel | Federal Member for Fadden
Senator the Hon. Michael Ronaldson
Shadow Minister for Veterans’ Affairs | Liberal Senator for Victoria
Shadow Minister Assisting the Leader of the Opposition on the Centenary of ANZAC
J O I N T M E D I A R E L E A S E
Wednesday, 13 March 2013
MEDIA CONTACT: Richard Briedis (Mr Robert) 0401 056 054
Robert Hardie (Sen Ronaldson) 0418 432 909
Labor again blocks Coalition’s push for Fair Indexation
The Gillard Labor Government has blocked debate on the Veterans’ Affairs Legislation Amendment Bill 2012 in the Senate today because it faced defeat on the question of Fair Indexation.
Coalition amendments proposed to the Bill would have delivered Fair Indexation to DFRB and DFRDB military superannuants aged 55 and over. Labor opposes these changes.
Therefore, in an act of desperation, the Labor Government inexplicably pulled the Bill literally minutes before the debate was due to begin. This prevented the Coalition from debating its amendments which, if passed, would have provided Fair Indexation from 1 July 2013.
Veterans have again been denied a fair go by the Gillard Labor Government.
Shadow Minister for Veterans’ Affairs, Senator the Hon. Michael Ronaldson, said Labor’s chaotic management of the Australian Parliament now extended to meddling with veterans’ entitlements.
“The Senate has now been denied the chance to consider this legislation on more than four occasions. Today’s deferral is just further evidence that the Government is in chaos and is running away from a debate on Fair Indexation”, Senator Ronaldson said.
“Yesterday, the Coalition circulated amendments to provide for Fair Indexation in line with our standing election commitment. Rather than face an embarrassing defeat on the floor of the Senate, the Government pulled the Bill from the daily program and prevented the Coalition from debating the merits of Fair Indexation.”
“Labor can run from this debate, but they cannot hide”.
Shadow Minister for Defence Science, Technology and Personnel, Stuart Robert MP, said the Government needed to justify its 11th hour decision to veterans and their families.
“The Gillard Labor Government must tell us why they blocked the Senate from considering this legislation and when they plan to give the Parliament the chance to debate Fair Indexation”, Mr Robert said.
“The Coalition is the only party with a consistent position on Fair Indexation. We are absolutely committed to supporting our past and present military personnel and absolutely committed to delivering Fair Indexation.”

Seejay · **Posted:** Fri Mar 15, 2013 9:27 am

Tim, I'm a member of a couple of associations up this way and the other members (all old blokes) have heard the same. They have suggested that contacting their accountants - who seem to be in the know on all this - is the best way to find out the latest. Given the current government's track record, I would expect that they will do their worst.

And as far as the LNP boast: “The Coalition is the only party with a consistent position on Fair Indexation." goes, it's something they could have actioned 30 years ago. :roll:

robert lake · **Posted:** Fri Mar 15, 2013 10:56 pm

Interesting.

Military Superannuation – Legislative History

Written by Super User |
The Legislative History

Trace the Legislative history of military superannuation in this table and see the event, the dates and the Government in power at the decision time.

LEGISLATION / UNDERTAKINGRESPONSIBLE PARTYALPCoalition1909. Commonwealth (Central Staffs) Public Service Association proposed a superannuation scheme for PS, could apply to Naval and Military Forces.PROT

1922. Scheme introduced into Parliament under the Defence Act for Army and Air Force personnel + civilian officers of the Commonwealth. Separate benefits for Navy.

NAT/CP1924. Compulsory contributory superannuation scheme designed to provide half of the member’s salary at retirement. Same as PS two years earlier.

NAT/CP1935-36. Compulsory retirement ages redefined – popular move.

UAP/CPJuly 1947. Revised common pay scales and closer alignment of retirement ages for the three services.1948. The DFRB Act – 15,300 contributors and 107 pensioners; pension geared to the conditions of service, surrender values equal to contributions without reduction, available for officers at retiring age or 20 years, OR on completion of engagement after 20years, generally higher pension than PS, 3 classes of invalidity benefits and commutation options for a lump sum in certain circumstance.1959. Contributors total 39,330 with 3110 pensioners. Reduction in compulsory retiring age from 60 to 47 (officers) 55 (OR) creates tension. No compensation paid – virtual breach of contract. Death benefits questioned; widows left with pension. Pensioners not represented on DFRB Board. The fund made bigger profit than expected; surplus returned (eventually) to members.

LIB / CP30 June 1959. Regular Defence Forces Welfare Association (RDFWA) formed to fight inequities in the DFRB scheme.

LIB / CP14 December 1959. New retirement pension schedules and a new method of financing the scheme became effective. 5% of salary adopted.

LIB / CPNovember 1960. RDFWA pension rights, Repatriation Services, War Service homes, the Canteens Trust Fund, Social Services, welfare for dependants of deceased personnel supported by responsible Minister and Treasury.

LIB / CP1960-63. RDFWA active and successful in obtaining additional reforms. Salary increases addressed. Each remedy created new problems – the Act became very complex to interpret. By 1970 the gov’t had to act.

LIB / CPSep 70 – May 72 Jess Committee sat and reported. DFRB Act incomprehensible. Recommended compulsory contributions, 5.5% rate, retired pay or invalidity pay not pension, retired and invalidity pay to be expressed as a percentage of final pay, adjusted annually to ensure relativity with average weekly earnings, scheme not funded, payable to Commonwealth and Government guarantees the benefits, after 20 years service, commutation up to 4 years of retired pay. Bitterly opposed by the PS.

LIB / CP1 October 1972. The DFRB Scheme closed to new members.

LIB / CP2 December 1972. The new Government opted for CPI indexation. However, the CPI became a central plank in the centralised wage fixing system over this period and so effectively a condition of employment became a superannuation system with a cost of living index that maintained real purchasing power.

(Post Dec 1972)1973. Defence Forces Retirement and Death Benefits Act (1973). The May 72 Jess report was fundamentally adopted except provision for relativity with average weekly earnings omitted. Some teething problems, especially relating to ‘No Detriment’ provisions. Jess recommendation for automatic annual adjustment of retired invalidity pay and widows pensions to maintain relativity with average weekly earnings rejected. Nov 73 Defence Minister promised amendment for ‘Notional’ years of service. Nothing happened until Nov 77.
Circa 1973. $126 million in accumulated DFRDB /DFRB superannuation funds reallocated into consolidated revenue. Funds declared untaxed. (The DFRB fund had approximately $160M as at 30 June 1972 but adjustments were required) The final balance of $126M was actually transferred into Consolidated Revenue in 1975 by the Whitlam Government.1976.
New Government in 1976 did not rescind the move into consolidated revenue. A new Commonwealth Superannuation Act for PS. Indexation to CPI changes introduced, along with contributions at 5% and widows to receive 67% of pension – better conditions/provisions than DFRDB.

LIB / NCPFebruary 1977. DFRDB act amended to reflect some PS entitlements including CPI provisions but with 5.5% contributions remaining, many complex provisions and still with detriment, especially to widows. Most of these inequalities still exist today.
LIB / NCP1986.
The Veterans’ Entitlement Act (VEA) under which all entitlements for veterans are administered enacted. The VEA Act excluded the principles of equity (fairness and natural justice) from the administration of all veterans’ entitlements, pensions and otherwise. (Federal Court of Australia ruling).23 October 1986. Indexation unilaterally and arbitrarily cut by 2.0% from military pensions below the CPI percentage that then applied.1989. Government accepted and adopted the new international standard for the compilation and calculation of the CPI, which introduced such things as “quality” into the calculation and which resulted in a major downward shift in inflation.4 November 1989. CPI indexation restored but no compensation paid for the three year loss of retirement income from the cut in indexation.
30 September 1991. DFRDB ceased to be an option for new members joining the ADF. Military Superannuation Benefits Scheme only option for new recruits. Existing members given the option of staying with DFRDB or transitioning to MSBS.Circa 1991-93. (i.e. Prices and Incomes Accords (Mark VII-VIII). With the end of centralised wage fixing, CPI began to delink from wages and become a measure of inflation rather than cost of living.
1997. CPI acknowledged as no longer protecting purchasing power of Age Pension, after a major campaign by pensioners because of falling standard of living. New measure adopted but military superannuation pensions excluded..

LIB / NPA2001. Australian Bureau of Statistics declares that CPI is a measure of inflation, not purchasing power.
LIB / NPAApril 2001.
The Government ignored various Senate select committee recommendations for fair indexation made in Apr 2001 and again in Dec 2002. Finance used the same arguments then as current ministers. The Government did nothing about fair indexation despite the Senate committee recommendations and despite its welfare pension indexation reforms in 1998.

LIB / NPAFrom 2004 ‘salary’ used to calculate entitlements included all income (Service, Specialist and other allowances + basic salary). The effect is significant.
DFRDB and MSBS superannuants discharged pre 2004 receive a pension as much as 50% less than their post 2004 counterparts.

LIB / NPAMay 2006. Superannuation “reforms” declared that military/APS super were ‘untaxed funds’ (see Circa 1973); beneficiaries are liable for income tax on their military super pension (unlike other Australians)..

LIB / NPANov 2007. Parliament, with bi-partisan support, recognised loss of purchasing power for Veteran Disability Pensioners and provided a “one off” catch up increase and also brought their indexation arrangements into line with the other pensions. This “one off” increase did not fully recover the erosion suffered by Veteran Disability Pensioners particularly in the previous 10 years when revised indexation arrangements were introduced for Age and Service Pensions.

LIB / NPA2007. ALP ‘promised’ to fix the indexation in lead up to the 2007 Federal election.
Result in power: Nothing (Matthews Review with constrained TOR recommended CPI be retained for Commonwealth & Military super – (Review widely condemned as superficial and inaccurate)2007. ALP released the Podger Review into Military Superannuation, commissioned under the previous government. The Review Team determined there was an in-principle case for changing the indexation arrangements of DFRDB Pensions. It found the original scheme contained a wage-based indexation element that was removed in mid-1970s when CPI was adopted. It found no case to increase the benefits payable prior to age 55, but it found there was a case for older DFRDB pensioners – “Government should consider indexing DFRDB pensions on a similar basis to that applying to Age Pensions”.
It also recommended fixing the MBL limits for MSBS members and other anomalies. “There should be no change to the MSBS pension indexation arrangements.” For over three years, both Labor Governments have sat on the report and done nothing.
2009. The Harmer Review of Pensions confirmed that at certain times, the rate of change in out of pocket living costs experienced by age pensioner households has moved faster than the rate of change in living costs of households as measured by the CPI. Age pensions indexation further adjusted by adding a pensioner and beneficiary living cost index (PBLCI) together with introducing a structural adjustment of pensions by increasing MTAWE benchmark to 27.5%. Military superannuation pensions ignored.

Budget 2009. The 2007 Veteran Disability Pension benchmark broken in the Federal budget of 2009. The legislation suspended the benchmark for one event only, that of the 2.7% of MTAWE increase of 20 Sep 2009 afforded to all other pension’s arising from the Harmer review in which DPs were promised they would be included – see 23 October 1986 entry – the 2.7% loss is a lifetime loss as was the Keeting loss of 2% for 3 consec years.2009.
Coalition pre-election statement: “if elected to government with a majority, they would on 01 July 2011 submit a Bill to provide for ‘Fair Indexation” of DFRB/DFRDB pensions to a higher level than just CPI indexation.”
2 June 2011. House of Representatives unanimously supported (on voices) a coalition member’s motion acknowledging the unique nature of military service and the need for fair indexation of pensions.
16 June 2011. the Government, The Greens and Senator Xenophon rejected Senator Ronaldson’s Fair Indexation Bill in the Senate

robert lake · **Posted:** Fri Mar 15, 2013 11:22 pm

Something else to think about
http://youtu.be/5bQQtk_LQOc

robert lake · **Posted:** Fri Mar 15, 2013 11:25 pm

And again

http://youtu.be/VvgoL2INeWI

Hippy Chippy · **Posted:** Sat Mar 16, 2013 5:14 pm

Hope you guys are sending those links to you local Members... :-k

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