Pollies keep their cracker super
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A key Senate committee has rejected legislation that would have forced longer-serving Federal Parliamentarians to exit their lucrative Parliamentary super arrangements.
The Senate Finance and Public Administration Committee this week issued a majority report recommending rejection of the Parliamentary Superannuation Amendment (Removal of Excessive Super) Bill 2009 that would have seen the termination of the Parliamentary Contributory Superannuation Scheme.
In doing so, the committee rejected the notion that all parliamentarians should be equal where superannuation is concerned, with all new entrants to Parliament being subject to less lucrative arrangements implemented in 2004 as a result of pressure exerted by former Labor Opposition Leader Mark Latham.
The committee majority report called for a rejection of the legislation even though it acknowledged that the post-2004 arrangements aligned “much more closely with the arrangements of the majority of Australians”.
Among the reasons cited by the committee for recommending rejection of the legislation was the likelihood that the cost of closing the scheme and compensating members would be higher than its unfunded liabilities.
As well, it said it would be unfair and inequitable to reduce MPs' existing superannuation entitlements retrospectively.
AUTHOR
Mike Taylor
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