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Commonwealth Superannuation



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74/153

12/9/74

. . Γ COMMONWEALTH SUPERANNUATION x?.

X deplore the contInning procrast inat ion* -;and delay by the Labor Government in introducing a new Commonwealth; superannuation— -j scheme" for Commonwealth public servants q ; . · : . L j—i_/-J

I am most concerned for those public servant-s* experiencing ; personal hardship because of anomolies in the present scheme,

It is seventeen months since -the- -Treasury Committee on Superannuation, which was appointed by the previous Liberal Country Party Government, recommended a; paw scheme, . ioXTH

Since then Cabinet members have argued and disputed aspects of the scheme. The Treasurer has introduced his own version, Cabinet has not been able to decide whether to accept it, it To avoid embarrassment the Government referred/to independent

actuaries and further delays resulted. The acturies reported last June and accepted the need for a new scheme. They suggested further amendments to Mr Green*s proposals.

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We have not yet heard a clear statement of Government intention since the release of the actuaries report.

The Liberal and Country Parties have long recognised the serious anomolies in the present scheme which place unnecessary burdens on a large number of public servants and their families. Their situation has been aggravated by the present economic crisis.

X have received a very large number of representations on this matter. Instances have been brought to my notice where employees are losing a very substantial portion of wage increases granted because of the amount of superannuation they are required to pay. In one case brought to my attention the superannuation payment amounts to 28.5$ of salary after deduction of tax. Superannuation and income tax payments

combined left the person 310 of the $16 rise recently granted.

Introduction of a new scheme must now proceed as a matter of urgency. Preparation of the necessary legislation should receive very high priority. The Liberal and Country Parties will be anxious that the legislation receive prompt attention

once it is introduced.

Until legislation is introduced outlining the full details of a new scheme it is not possible for me to state an

attitude on aspects of the scheme. Nevertheless the Liberal and Country Parties wish to see a new scheme operating at the earliest opportunity.

A basic attitude we will adopt in considering the legislation will be to ensure that existing contributors and pensioners do not suffer as a result of being transferred to a new s cheme. '

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A matter of particular concern to existing pensioners is whether the present automatic pension updating formula, of 1.4 times the Consumer Price Index will continue. This formula was recommended;'h>r Professor Pollard in 1973 and was accepted by the Government. The actuarial report . recommended that: a new 'scheme should alter the formula, to .

1.1' tittiee CPI'.; : It is necessary that the rights of: existing pensioners be fully protected in any revision that occurs.

I ur£e' the"Government to speed the introduction of a new . scheme. · · ' · · ' · ■ ■ . .

CANBERRA. •12 SEPTEMBER

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