20.3.12 Constituency Statements: Military Pensions

Mr HAWKE (Mitchell) (16:10): I rise today to support the opposition leader's commitment to change the indexation for our veterans and provide fair indexation for the recipients of the Defence Force Retirement Benefits Scheme and the Defence Force Retirement and Death Benefits military superannuation pensions. After effective lobbying from the Castle Hill RSL sub-branch, the Parramatta RSL sub-branch and the Riverstone RSL sub-branch over some years, this commitment and pledge by the opposition leader and the shadow minister for veterans' affairs, Michael Ronaldson, is an important commitment that veterans know they can hang on to in the lead-up to the next election. Unlike the current government, who in 2007 committed to do something about this, the coalition will deliver this important indexation reform. This is so important to restore trust in government today and to send a signal to our veterans and our service personnel that we do take the standard of living very seriously and that we do not treat them differently from other Commonwealth pensioners and superannuants.

As we know, military pensions were originally indexed by the CPI to maintain their value relative to national wages. However, the CPI has not kept pace with increases in the cost of living and, indeed, we treat the other pensions and payments of the federal government, such as the aged pension and other pensions, differently, from CPI to a combination of CPI and Male Total Average Weekly Earnings (MTAWE). This, of course, has not been adequate for our veteran community.

This affords me the opportunity to congratulate Mr Don Tait and the RSL sub-branch in my electorate for doing such a fantastic job on behalf of their community. It also affords me the opportunity to seek that the same community standard of indexation as adopted for aged and service pensions is applied to the MSBS military superannuation pensions. The issue of maximum benefit limits in the MSBS has been raised by Warrant Officer Dave Cronan, from the Air Force, who has served many tours of Iraq. The maximum benefit limits are limits on the maximum amount that the military superannuation fund will pay out. He has now reached this at the age of 40, after serving just some 15 or 20 years in the Air Force. Maximum benefit limits are the point where a member must stop contributing because the total payout has peaked or the member may stop contributing because they are getting close to the lower lump sum and are urged to seek further advice.

In the current modern environment, given the challenges of our veteran community, the number of tours and the stresses that are placed on families and service personnel in so many difficult and hostile environments, maximum benefit limits have reached their usefulness in many ways and could be better provided with an extension. Further policy in this area should be developed and explored on behalf of our veteran communities.