The ADSO welcomes the Coalitions written commitment to index most military pensions fairly should it win the next election.
ADSO notes that the Coalition commitment is limited to superannuation pensions paid under the old DFRB/DFRDB military superannuation schemes, not to todays MSBS
scheme, and is only for those aged over 55 years.
While the Alliance will continue its fight to redress these and other remaining areas of unfairness, the Coalition commitment is a most welcome beginning.
The Government, like the Opposition and all members of military superannuation schemes, knows the current CPI method of indexing super pension payments is unfair.
The only reason to index any taxpayer-funded super or welfare pension payment is to maintain the payments purchasing power over time. Military super pensions were indexed fairly until the late 1980s. They are not now.
The age pension is now indexed fairly, thanks to the Howard and Rudd reforms of 1997 and 2009. But superannuation is not “welfare”, so any thought of singling out military super for some form of means testing (say) must be unacceptable to all Australians.
Would any Australian, including Parliamentarians, tolerate having their
superannuation means tested?
The Alliance challenges the Government to take immediate action to look after ex-service
men and women, and their families, by indexing military super pensions in
exactly the same way (and for the same reason – maintaining purchasing power) as the
age pension.