Source: Herald Sun
OPPOSITION Leader Tony Abbott has committed to bringing the indexation of superannuation payments for some current and former defence personnel into line with old age pensions.
It would apply to 57,000 military superannuants and cost $98 million over four years, under the Defence Forces Retirement Benefit (DFRB) and the Defence Force Retirement and Death Benefit (DFRDB).
The Labor Government has previously said such a change would cost $175 million.
But Mr Abbott said the policy was fully costed and fully funded, and would be introduced for recipients aged 55 and over if the coalition won the September 14 federal election.
He signed a pledge promising to deliver on the commitment from the first coalition budget.
"I am making you a promise that we will keep, that we will appropriately index the DFRDB and the DFRB," he said today. "They will be appropriately indexed and it will happen in our first budget."
A change in the indexation of the benefits has long been sought by ex-services groups.
It has been previously promised and not delivered by both former coalition and Labor governments.
The DFRB and DFRDB schemes are defined benefit schemes.
They currently pay a percentage of the final wage as a pension, indexed twice yearly according to the consumer price index (CPI).
Under the coalition proposal, payments would be indexed to the higher of increases in the CPI, male total average weekly earnings (MTAWE) or pensioner and beneficiary living cost index (PBCLI).
This would bring them into line with how the aged and other welfare pensions are indexed.
The DFRB scheme closed in 1972 and the DFRDB in 1991.
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