From Tue 1 Jul 2014, 57,000 veterans aged 55 and over will have their Defence Forces Retirement Benefits (DFRB) scheme and Defence Force Retirement and Death Benefits (DFRDB) scheme superannuation pensions indexed fairly.
Increases were previously tied to the Consumer Price Index (CPI) only. Now - recognising the unique nature of military service - they will be calculated by the better of movements in the CPI, Male Total Average Weekly Earnings (MTAWE) and the pensioner and beneficiary living cost index. These improvements will continue in perpetuity. They are protected from changes announced to other pension indexation arrangements which come into effect in 2017.
The new scale of DFRB and DFRDB increases honours a pre-election commitment by the Government and follows a protracted fight to secure a fair go through intense lobbying and veterans’ forums with the then Shadow Minister and now Veterans’ Affairs Minister Michael Ronaldson, MP.
Fair Indexation Bill (FIB) - Government Delivers on its Promise
(28 Mar 2014)
The Government's FIB has been passed in the Senate in March this year. This means that the implementation for those DFRB/DFRDB superannuates covered by this Bill will be effective from the 1 Jul 2014.
ADSO thanks the Coalition Government for implementing their 2010 pledge and congratulates all, especially Sen. Michael Ronaldson for championing the case, and all those who were involved in contributing to this result.
While pleased with this success, ADSO regards it as a first step to the achievement of the same fairness for those excluded from this Bill: namely, DFRB/DFRDB superannuates under aged 55 years, and MSBS members.
The Hansard report on the Senate debate will be available shortly.
Stop Press(Fri 16 May): DFWA have advised there will be no change to the decision above despite budget changes to the Old Age Pension.
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