Federal President of the Superannuated Commonwealth Officers Association, Dr Annette Barbetti, today condemned the 10% cap on the amount of a defined benefit pension that can be excluded from the Age Pension income test, included in last year’s federal Budget. The measure came into effect on 1 January 2016.
Dr Barbetti said that as a result of the new measure, many defined benefit pensioners lost part of their part Age Pension today (pension payday). Most of them have relatively low super pensions.
Dr Barbetti said the 10% cap was not grandfathered, whereas the earlier changes to the treatment of account-based pensions were grandfathered, even though those on account-based pensions were better placed to cope with a sudden reduction in income because they could access their capital, whereas CSS and PSS pensioners cannot do that.
Read the full press release here.
The Australian Council of Public Sector Retiree Organisations (ACPSRO) has put out a number of press releases regarding this issue.
You can read them here.
Be afraid, be very afraid! (64 KB)
No, Minister, it was not an anomaly (65 KB)
Effect of the 2015 budget 10% cap (81 KB)
Ten percent cap very poor policy (88 KB)
14 January 2016