Govt Pension vs Centrelink Pension

LLD · Guru

Govt Pension vs Centrelink Pension

rockylizard · Guru

Gday...

Quite perceptive of you Leo.

Definitely not in any way comparable.

Cheers - John

2foot6 · Veteran Member

Most people need or deserve the pension,pollies Don't qualify......................Peter.

darjak · Senior Member

I think gov pensions are taxed and Centrelink are not.
Could be wrong as don't get neither.

X2. 2foot6

Warren-Pat_01 · Guru

darjak, that is correct. However I think someone on a pension of $200,000 a year for life + other perks can afford to pay tax!

rockylizard · Guru

darjak wrote:
I think gov pensions are taxed and Centrelink are not.
Could be wrong as don't get neither.

X2. 2foot6

Gday...

Paliamentarians are part of a 'defined benefit scheme' - here's some info ...

Membership of the scheme is compulsory for all Senators and Members. Contribution rates are given as a fixed percentage of the Annual Allowance, or basic parliamentary salary, and of any additional salary payable to Ministers and Parliamentary Office-holders. Contributions are paid into the Consolidated Revenue Fund.

Current Contribution Rates for Senators and Members:

11 1/2 per cent of Annual Allowance until completion of 18 years service;
5 3/4 per cent of Annual Allowance after completion of 18 years service

Current Contribution Rates for Office-holders receiving additional salary:

11½ per cent of the monthly amount of additional salary received is contributed by those Office-holders who have not attained their maximum additional pension entitlement;

For Office-holders who have attained their maximum additional pension entitlement, the contribution rate reduces to 5 3/4 per cent while that maximum applies.

Contributions are only paid while any additional salary is received.

Parliamentarians currently receive an Annual Allowance of $185 000 per annum. Information about the Annual Allowance can be found in The annual allowance for senators and members and Parliamentary allowances, salaries of office and entitlements.

Former parliamentarians gain an entitlement to a pension, called a Retiring Allowance, if they meet the minimum eligibility requirements set out in the Act. The Scheme provides an additional pension entitlement for Office-holders. The benefits payable depend upon a parliamentarian's length of service, the mode of retirement and the receipt of any additional salary. In certain circumstances a portion of the retiring allowance may be converted to a lump sum. If no retiring allowance is payable, former parliamentarians are entitled to a lump sum benefit that may include a refund of their contributions.

Retiring allowances are payable fortnightly from the Consolidated Revenue Fund and are subject to income taxation.

If really interested, you can read all about it here

Cheers - John

LLD · Guru

Politicians get a bum rap, particularly about their salaries. They often have to give up a good career for a thankless task where they may be retrenched (voted out) after 3 years.

Many years ago when there was outrage over politicians salaries after a big increase, I saw a current affairs show where the interviewer was talking to a big business staff recruiter. The interviewer read out the job description of both a federal back bencher and the PM. He then asked the recruiter what salaries these descriptions should draw. The answer was at least 2 times what we were paying them. When told that what the jobs actually were the interviewer asked if the recruited wanted to change his mind. No! was the answer. He thought we underpaid politicians given the sacrifices to their career and family they made.

Having said that, there are some duds who would struggle as a public servant or in private industry.

PeterX · Senior Member

Government pension benefits should become self funded , like most other people.

I do think some should earn more. ie Im Ok with a wage rise.

LLD · Guru

PeterX wrote:
Government pension benefits should become self funded , like most other people.

I do think some should earn more. ie Im Ok with a wage rise.

PeterX. I think you will find that pollies have deductions into their super. They are on a salary package that includes super (as per the super guarantee for all employees) where they have to rollover their money if they havent been a pollie long enough to draw a defined benefit when they retire or lose their seat. The concept is not a lot different to the Public Service or the Private Sector.

PeterD · Guru

The link where Rocky has a lot of reading to do if you want to get the full picture. There was a big change in pensions for members of parliament. Prior to 2002 if a member was a member for 6 or more years he (or she) got a full superannuation pension immediately upon retiring. A member who was first elected after that now can look forward to a much reduced pension if they were only there for a reduced time. Their super pension is now similar to public servants super, the payment rate is dependent upon how long they served and I think that no payments are made until they reach the age of 55. A lot of the members retiring at the forthcoming elections are retiring before the sizeable payouts of members elected before 2002 cease and they will be on lower rates of super pensions.

I may not have things quite correct above but rest assure, in future the fortnightly super payments to retired pollies will be similar to public servants and nothing like the excessive rates of their former colleges.