Minister for Superannuation and Corporate Law
3 December 2007 - 8 June 2009
Indexation of Australian Government Superannuation Schemes to be Examined
Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has today announced the delivery of a Labor election commitment to review the pension indexation arrangements for Australian Government superannuation schemes.
Schemes subject to examination include all Australian Government civilian and military superannuation schemes that are indexed to increases in the Consumer Price Index (CPI).
Some stakeholders have proposed that indexation of these payments be changed so that they are indexed using alternative methods, including the indexation method currently used by the Age Pension, Australia's social security safety net for older Australians.
Importantly, the review will consider and report on:
- whether the purpose of indexation in these schemes meets the obligations of the Australian Government as an employer; and
- whether indexation of superannuation pensions by growth in the CPI, over a specified period, is an appropriate measure and/or whether there are more appropriate measures.
Mr Trevor Matthews, MA, FIA, FIAA, ASA, has accepted an invitation to lead the review. Mr Matthews, an international leader in the global pensions and life insurance industry, is an Australian citizen, past president of the Institute of Actuaries of Australia, and is currently a prominent actuary in the United Kingdom.
"The Rudd Government made an election commitment to review the indexation of Australian Government superannuation pensions and we're honouring that commitment," said Minister Sherry.
Information about the review, including its terms of reference will be available at www.finance.gov.au/super. The review will commence in July and is expected to be concluded within the 2008 calendar year.
26 June 2008