Submission to the Review of Indexation Arrangements in Australian ...

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In this example, average high investment returns (of the order of 10% per annum) would have provided a superior financial outcome for the account-based pensions. 22 22 According to the Australian Prudential Regulation Authority superannuation data the ten year average return on assets for entities with at least $100 million in assets from 1997-2006 was 6.7%. (Source: APRA Insight “Celebrating 10 years of superannuation data collection 1996-2006” Issue 2 2007). Page 14 of 28
Chapter 4 –Comparison with State and Territory superannuation schemes Indexed pensions from the superannuation schemes for civilian employees have been indexed using various methods since at least 1947. Changes that have been made to the indexation arrangements over time are described in Attachment B. Pensions payable from State defined benefit civilian superannuation schemes are also indexed by CPI. The timing and frequency of indexation varies across these schemes, as summarised in Table 6. Table 6: Comparison of indexation arrangements – Australian and State Government superannuation schemes Jurisdiction Scheme Basis Frequency Australian Government 23 CSS PSS CPI- All Capital Cities Bi-annual Victoria Revised Scheme CPI-All Capital Cities Bi-annual WA State Pension Scheme CPI-Perth All Groups Bi-annual NSW State CPI – Sydney All Annual Superannuation Scheme Groups Queensland Q Super State CPI – Brisbane All Annual Accounts Groups NT / ACT 24 N/A N/A N/A Tasmania Retirement Benefits Fund Defined Benefit Scheme CPI-All Capital Cities Bi-annual SA Pension Scheme CPI-Adelaide All Groups Bi-annual Source: Department of Finance and Deregulation research Some schemes in the wider community also index their superannuation pensions by the CPI. For example, pensions from the Westpac Staff Superannuation Plan, are indexed each year in line with the September CPI to a maximum of 5% or such higher increase as the Trustee and the Westpac Bank approves. 23 Pensions from the PNG scheme, the 1922 Scheme and the military superannuation schemes are also indexed in the same way as the CSS and PSS. 24 Northern Territory superannuation arrangements are lump sum. However, some NT and ACT Government employees are members of the CSS and some ACT Government employees are members of the CSS or PSS. Page 15 of 28
Page 1 and 2: SUBMISSION TO THE REVIEW OF INDEXAT
Page 3 and 4: Executive Summary The Department of
Page 5 and 6: Chapter 1 - The Occupational Nature
Page 7 and 8: Chapter 2 - The Form of Benefits Ge
Page 9 and 10: Chapter 3 - The Value of Benefits S
Page 11 and 12: eceiving a pension from the CSS and
Page 13: 15 years membership in the PSS, the
Page 17 and 18: Income from Australian Government c
Page 19 and 20: Chapter 6 - The cost to the Governm
Page 21 and 22: For example, analysis by the Depart
Page 23 and 24: Australian Government Superannuatio
Page 25 and 26: • Parliamentarians who commenced
Page 27 and 28: Explanation of Costs Attachment C I

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