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Wednesday, 11 May 2011
Page: 2366

Defence Force Retirement and Death Benefits

(Question No. 202)

Senator Humphries asked the Minister for Finance and Deregulation, upon notice, on 16 November 2010:

Given that in the Defence Force Retirement and Death Benefits (DFRDB) annual reports for 2008-09 and 2009-10 (pages 48 and 4 respectively) it states that the 'average annual pensions' as at 30 of June each year were $21 486 for 2008, $22 092 for 2009 and $23 549 for 2010:

(1) Can an explanation be provided as to why there is a seemingly large discrepancy between the COMSUPER annual report figures and that of the average annual pension figures for DFRDB as stated in Table F2 (Appendix F, page 58) of the Matthews Review report (Review of pension indexation arrangements in Australian Government civilian and military superannuation schemes, by Mr Trevor Matthews, dated December 2008).

(2) What bearing did the figures in Table F2 of the report have on the estimates generated by the department.

(3) If the DFRDB figures within the Matthews Review report are in error, what measures will the Government employ to ensure that the estimates within that report are iron clad.

Senator Wong: The answer to the honourable senator's question is as follows:

(1) There is no discrepancy as the tables do not present comparable data.

The ComSuper annual report figures are averages based on the total number of pensions being paid in a particular financial year and the total value of those pensions.

Table F2 of the Matthews Report provides information only for those who became pensioners between 2002-03 and 2007-08 inclusive.

(2) The figures in Table F2 of the report have no bearing on the estimates.

(3) The figures for the DFRDB as stated in Table F2 of the Matthews Review report are not in error.