The Defence Force Welfare Association (DFWA) welcomes the Government’s
announcement yesterday that it would finally commission an independent inquiry
into the commutation arrangements of the Defence Force Retirement and Death
Benefits (DFRDB) superannuation scheme.
In commenting on the announcement, the National President of DFWA, Kel Ryan, stated that he particularly welcomed the Government emphasising the importance of open and transparent discussion around veteran concerns, and that it would consult with the ex-service community about the Terms of Reference for the inquiry.
As for the commutation arrangements, Kel Ryan stated that DFWA and the veterans community as a whole had long sought redress of varying grievances relating to
DFRDB, not the least of which included the continued application in 2019 of out-ofdate 1962 life tables for calculating both commutation entitlements and fortnightly
superannuation payments made to veterans subject to the DFRDB scheme.
Hopefully, the proposed inquiry will uncover the serious financial injustices that
those out-dated life tables have caused to DFRDB superannuants. Life expectancies
have markedly increased from the time since the DFRDB scheme was introduced in
1973. Those increases have meant that the amount of permanent pension reduction
calculated using old tables is far higher than they should be if current tables applied.
The Defence Force Welfare Association, along with its partners in the Alliance of
Defence Service Organisations, will be making written submissions to the inquiry
and looks forward to actively participating in drafting the Terms of Reference.
26th March 2019
DFWA – Voice of the Defence Community
It is believed that the ABC TV’s 7.30 pm Report on Wednesday 27th March 2019 will include an article on the subject DFRDB Commutation