Review of Australian Government Pensions

Minister for Superannuation and Corporate Law, Nick Sherry has announced a review on the way Australian Government super scheme pensions are indexed.

Currently pensions are increased or remain the same according to the Consumer Price Index (CPI). The CPI is announced twice a year, and pensions go up or remain the same as a result of the announcement.

All Australian Government civilian and military super schemes that are indexed in relation to the Consumer Price Index (CPI) will be reviewed including the CSS and PSS.

The Australian Government super scheme pensions (including CSS and PSS) may be indexed using an alternative to the current CPI indexation. The government may also look at changing the indexation method used to determine the social security Age Pension.

The government is reviewing the pensions to ensure that the current indexation methods meet the obligations of the Australian Government as an employer. They also wish to establish whether or not the indexation of pensions in line with CPI is an appropriate measure and if there are perhaps more appropriate measures.

For the moment pensions in the CSS and PSS will remain unchanged.

The review will start in July and is expected to finish by the end of this year.

As further information is released, we will keep members informed through the scheme websites. 

Click here for Senator Nick Sherry’s media release.

More details may also be found on the Department of Finance and Deregulation’s website at http://www.finance.gov.au/super/