01 July 2010

Coalition wants to increase payments to Aussie veterans

The Coalition recently announced it will introduce new indexation arrangements for Defence Force Retirement and Death Benefits Scheme (DFRDB) members as part of its commitment to supporting Australia’s veterans and ex-service personnel.

Under a Coalition government, from 1 July 2011 those DFRDB members aged 55 years or older will have their military superannuation pensions indexed to the greater of the Consumer Price Index (CPI), Male Total Average Weekly Earnings (MTAWE) or the Pensioner and Beneficiary Living Cost Index (PBLCI).

The Coalition received submissions from the Returned Services League, or RSL, National President, Rear Admiral Ken Doolan AO RAN (Rtd) on military superannuation together with the long-standing efforts of the Defence Force Welfare Association, or DFWA, Colonel David Jamison (Rtd), National President of the DFWA. As a result, the changes are being made as part of the Coalition’s recognition of the unique nature of military service.

Widows of DFRDB superannuants will also benefit from the announced changes.

This change would bring into line the indexation of DFRDB superannuation with the aged pension. Currently DFRDB superannuation is indexed according to the CPI.

If the indexation rate had increased in line with the aged pension, military superannuants would have received an extra $28.40 per fortnight to their pension (if they received the full pension rate) in March this year.

I have previously discussed the issue of indexation here.

[Disclaimer: I am a member of the RSL.]

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