Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Governments Super Policy Threatens ADF



Download PDFDownload PDF

Media Release V

Allan Rocher HP Shadow Minister for Defence Science & Personnel

GOVERNMENT'S SUPER POLICY THREATENS ADF

The Federal Government's proposed changes to superannuation threaten enormous damage to the ADF unless they give special consideration to the unique retirement needs of Defence Force personnel, the Shadow Minister for Defence Science and Personnel, Mr Allan Rocher said today.

Mass resignations and low morale among those who remain with the ADF are some of the possible consequences of the Government's proposals.

The Treasurer's "Security in Retirement" statement of 30 June this year announced that under the Superannuation Guarantee Charge all employer contributions and earnings would be preserved until age 55.

For those born before 1 July 1960, the preservation age will be 55. For those born after June 1960, there would be a gradual increase in the preservation age up to age 60. Anyone born after June 1964 will have a preservation age of 60.

This policy would prohibit ADF personnel from commuting part of their DFRDB superannuation entitlement upon their retirement after 20 years service.

Traditionally, retiring ADF members have used this lump sum payment to establish a career outside the ADF, or to purchase a home, since home ownership can be impractical and difficult to achieve while serving with the Defence Forces.

There is now wide spread concern in the ADF that members will no longer be able to do this.

Under Fightback, the Coalition proposes to gradually raise the preservation age from 55 to 60 over a ten year period commencing 1 July 1994.

However, in recognition of the special needs of ADF personnel, we have specifically stated that those who are required by statute or industrial award to retire early, such as ADF members, will continue to be entitled to access their benefits at the specified age under existing arrangements.

This issue is further complicating the calculations ADF members have to make in deciding if they should change from the DFRDB scheme to the new MSBS or if they should leave the ADF altogether.

I have already called on the Government to postpone the 30 September deadline for ADF personnel to take up membership in the new scheme, which Mr Bilney rejected yesterday in hysterical terms.

C O M M O N W E A L T H P A R L IA M E N T A R Y LIBRARY M IC A H

1 again call upon the Government to recognise the special needs of Defence Force Personnel and exempt DFRDB entitlements from the new preservation requirements, as has been past practice.

The Government will stand condemned if their superannuation policies force ADF personnel to resign en masse and so reduce our defence capabilities.

2 September 1992

For further information: Stephen Kirchner (06) 277 4727 Allan Rocher (09) 325 8227