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Retirees accuse Govt of 'betrayal'

10 Nov, 2009 08:18 AM
Some 500 retired public servants and Defence Force members condemned as a ''betrayal'' yesterday the Federal Government's decision not to boost public service and military pension schemes.

But in a letter issued yesterday, Federal Finance Minister Lindsay Tanner bluntly rejected calls to increase public service and military superannuation beyond rises in the consumer price index.

''The Government has no plans to move away from the CPI for indexing the pensions of Commonwealth superannuants,'' Mr Tanner wrote in a letter sent to ACT Labor Senator Kate Lundy on October 22 and issued by her late yesterday.

Mr Tanner was a no-show at yesterday's combined meeting of the Superannuated Commonwealth Officers Association and the Defence Force Welfare Association that vowed to continue to campaign for fairer pension indexation in line with increases in the married rate of age pension.

Mr Tanner had been invited to address the packed meeting at the Ainslie Football Club to justify the Government's decision to renege on an election promise to boost public service and military pensions and to instead accept a recommendation by economist Trevor Matthews to continue to use the CPI to index public service and defence superannuation. Mr Tanner didn't attend the meeting, sending a junior staffer instead. Mr Tanner had, however, undertaken to meet members of the association.

Vice-president of the superannuated officers association, Annette Barbetti, dismissed Professor Matthews' review as ''a cut and paste effort with the fingerprints of [the Department of Finance and Deregulation] all over it''.

The Government's decision directly affects about 300,000 Australians, including more than 40,000 in the Canberra region.

Over the past 20 years, Federal MP's pensions have increased by 130 per cent and the aged pension has risen by 110 per cent.

However, public service and military pensions have increased by only 70 per cent.

Labor MPs Mike Kelly, Bob McMullan and Annette Ellis and Senator Lundy wrote to Mr Tanner last month, saying that the Government had ''abandoned the spirit of the election commitment to a review that would address the inadequacy and inequality of the indexation method''.

Senator Lundy told the meeting she had arranged for a delegation from the two associations to meet Mr Tanner, but she only issued the minister's letter rejecting any change to indexation arrangements some hours after yesterday's meeting.

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comments


Date: Newest first | Oldest first
Dont like it....get on a boat!
Posted by Trevor, 10/11/2009 10:16:29 AM, on The Canberra Times
Thanks Trevor. Very constructive.
Posted by what a winner, 10/11/2009 11:33:28 AM, on The Canberra Times
Maybe that was only meant to be a "non-core" promise ? We superannuated public servants have forgotten that we are not a real electoral force.
Posted by pekingduck45, 10/11/2009 12:27:16 PM, on The Canberra Times
What a daft comment Trevor.
Posted by jayell, 10/11/2009 12:35:00 PM, on The Canberra Times
I take it that the recruitment drive is over then?
Posted by bo, 10/11/2009 1:27:44 PM, on The Canberra Times
Serves them right for voting Labor!
Posted by Chris King, 10/11/2009 1:43:46 PM, on The Canberra Times
Why on earth should their pensions be adjusted for more than CPI increase while other pensions are adjusted this way. Sheer arrogence and obviously they feel they're more entitled than anyone else. Forget it guys you're all much better off than those on the aged pension in any event.
Posted by Felix, 10/11/2009 5:16:04 PM, on The Canberra Times
And which election promises has Kev and his cowboys actually delivered on Folks? Did anyone really believe for one second that the Govt would boost pension payments to PS and Veterans! They picked the 'no cost' option as they always do. But Kev, a word of advise from a voter.... don't get too settled in your seat because its only a short term job for you.
Posted by phantom, 11/11/2009 8:11:40 AM, on The Canberra Times
Dear Felix, A pity you don't have your facts straight. All Commonwealth pensions other than Defence and some Public Service (e.g. air traffic controllers) are adjusted by means of the 'average weekly earnings' index, a much more equitable method. After retiring from the RAAF as a senior Wing Commander some 25 years ago, I now find my military pension has decayed to the point where I have become eligible for the old age pension, which, ironically will be adjusted with reference to the average weekly earnings index!
Posted by beebee, 11/11/2009 2:11:07 PM, on The Canberra Times
The ongoing contempt shown by the Federal Labour Party for retired Defence personnel is a continuation of that started by Jim Cairns in the Vietnam era. Like beebee my superannuation has also decayed to the point I have now applied for the Service pension. Not so long ago a self funded retiree I now feel like a 2nd class citizen rather than a once proud defender of this great country. Had the Labour Party been honest in their dealings with the DFRDB scheme contributors none of us would be in this situation. Also, the manner in which they have trashed "the Unique Nature of Military Service" and therefore the memory of those who served to defend this country for 20 or more years is itself an insidious move and should be condemend.
Posted by Colin Alexander, 12/11/2009 7:53:37 AM, on The Canberra Times

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The packed meeting at the Ainslie Football Club yesterday. Photo: RICHARD BRIGGS
The packed meeting at the Ainslie Football Club yesterday. Photo: RICHARD BRIGGS

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