Page 4618 - Week 15 - Thursday, 21 November 1991
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
This arrangement provides for a once only lump sum benefit on cessation as an Assembly member. Expenditure will be met through the Consolidated Fund as required. Members are entitled to a benefit from the day they cease to be a member. However, consistent with Commonwealth occupational superannuation standards legislation and the objective of providing for retirement, members who leave before the age of 55 would have benefits preserved and paid into an appropriate fund. Such benefits would not be available from the receiving fund before a person reached the age of 55 and retired from the work force.
The Bill provides for an additional lump sum benefit for either invalidity or death. This benefit is calculated as equal to the benefit that would have been received on retirement at age 60. This method reflects that generally used in public sector superannuation legislation. The additional benefit in invalidity cases requires both medical evidence and the board's agreement that the invalidity retirement is necessary.
The proposed superannuation benefit arrangement avoids the need to establish a fund to receive and invest contributions on behalf of members as this would incur substantial costs associated with the cash management, administration and statutory reporting requirements of superannuation funds.
The scheme is voluntary for the life of the first Assembly and obligatory thereafter. There is no minimum qualifying period and the scheme will commence from the date this legislation is gazetted. Members of this first Assembly will have the option to backdate membership in the scheme to the date of taking office by payment of 5 per cent of past salary into the Consolidated Fund.
The cost to the ACT taxpayer is similar to that for the Tasmanian parliamentary lump sum superannuation scheme, which has lower costs than other Australian parliamentary schemes. A critical consideration in recommending this scheme as a lump sum benefit rather than a pension scheme was the need to contain costs whilst allowing members a reasonable benefit. I must emphasise that administrative and benefit costs are significantly lower for lump sum schemes than for those that offer a pension benefit.
Mr Speaker, the Commonwealth is reviewing superannuation policy, and it may be necessary to consider legislative amendments if new Commonwealth occupational superannuation standards are implemented. I present the explanatory memorandum for the Bill.
Debate (on motion by Mr Kaine) adjourned.
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .