Footnotes

Chapter 1 - Introduction

[1]        Parliamentary Superannuation Amendment (Removal of Excessive Super) Bill 2009, cl.3.

[2]        The Parliamentary Retiring Allowances Trust (the Trust) has responsibility for matters where discretion has been given under the Parliamentary Contributory Superannuation Act 1948. The Trust consists of five trustees: the Minister for Finance and Deregulation who is the presiding trustee, plus two Senators and two Members of the House of Representatives appointed by their respective Houses.

[3]        Proposed sections 18C and 22BB–22BE.

[4]        Proposed section 32.

[5]        This section is based on the Parliamentary Library's Bills Digest no. 131, 2003–04, Parliamentary Superannuation Bill 2004, May 2004, www.aph.gov.au/library/pubs/bd/2003-04/04bd131.pdf (accessed 21 August 2009) and Bills Digest no. 42, 2006–07, Parliamentary Superannuation Amendment Bill 2006, October 2006, www.aph.gov.au/library/pubs/bd/2006-07/07bd042.pdf (accessed 21 August 2009).

[6]        If the member or senator does not choose a particular fund – the payments are made into the Australian Government Employees Superannuation Trust (AGEST).

[7]        Mr Mark Latham MP, Statement by Federal Labor Leader Mark Latham: Parliamentary Superannuation, Press Release, 10 February 2004.

[8]        The Hon John Howard MP, Prime Minister, Transcript of the Prime Minister the Hon John Howard MP, Press Conference, Parliament House, Canberra, 12 February 2004.

[9]        This section is based on the Department of Finance and Deregulation's Parliamentary Contributory Superannuation Scheme Handbook, April 2009, www.finance.gov.au/superannuation/docs/parliamentary-superannuation-handbook.pdf (accessed 20 August 2009).

[10]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 1.

[11]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 1.

[12]      25^th Report of the Senate Select Committee on Superannuation, The Parliamentary Contributory Superannuation Scheme and the Judges' Pension Scheme, September 1997, p. 9.

[13]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 1. The Parliamentary Contributory Superannuation Scheme Handbook notes an exception to this general principle where a serving MP who ceases to be a member of the House of Representatives on dissolution of the House to stand for the Senate, or resigns from the Senate to stand for election to the House of Representatives, and is elected to that other House within three months will remain a member of the PCSS.

[14]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 1.

[15]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 2.

[16]      Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 1.

[17]      Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, pp 1–2. Ms Campbell also explained that if the MP were elected after 2001, then a preservation age of 55 applies. Because pension entitlements are expressed as a percentage of the backbench salary as payable from time to time, the actual amount of the pension will increase as the backbench salary (and any other relevant additional salary) is increased (Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 12).

[18]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 2.

[19]      Parliamentary Library, Superannuation Benefits for Senators and Members, June 2007, p. 2, www.aph.gov.au/library/intguide/POL/Super.htm (accessed 20 August 2009).

[20]      A member is considered to have ceased to be a member on the dissolution of the House of which he or she was a member or on the expiration of a term of office on the day on which he or she ceases to receive his or her backbench salary in respect of that term.

[21]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 2.

[22]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 3.

[23]      Department of Finance and Deregulation, Parliamentary Contributory Superannuation Scheme Handbook, April 2009, p. 4.

[24]      This section is based on the Department of Finance and Deregulation's Parliamentary Superannuation Arrangements for New Members of Parliament website, www.finance.gov.au/superannuation/parliamentary-superannuation/new-parliamentary-superannuation-arrangements.htm (accessed 25 August 2009).

[25]      The 9 per cent figure corresponds to the minimum required employer contributions under the Superannuation Guarantee provisions whereas the 15.4 per cent figure corresponds to the Commonwealth’s notional contribution rate of the Commonwealth public servant’s superannuation schemes (the Public Sector Superannuation Scheme and the Public Sector Superannuation Scheme – Accumulation Plan).

[26]      For the purpose of this discussion, 'new MP' refers to an MP first entering or re-entering Parliament, at or after the 2004 election.

[27]      Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 3.

[28]      However, the fund must not be a self managed superannuation fund.

[29]      The Finance Minister has identified the Australian Government Employees Superannuation Trust (AGEST) as the default fund.

[30]      Department of Finance and Deregulation, answer to question on notice, 11 September 2009, p. 3.

[31]      Parliamentary Library, Bills Digest no. 42, 2006–07, Parliamentary Superannuation Amendment Bill 2006, October 2006, p. 3.

[32]      Parliamentary Library, Bills Digest no. 42, 2006–07, Parliamentary Superannuation Amendment Bill 2006, October 2006, p. 3.

Chapter 2 - Key Issues

[1]        There are currently 126 sitting MPs that are members of the PCSS. This means that 100 of a total of 226 members and senators that are now covered by the new arrangements.

[2]        Department of Finance and Deregulation, answer to question on notice, 11 September 2009, p. 23.

[3]        Mr Alan Greenslade, First Assistant Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 7.

[4]        Department of Finance and Deregulation, answer to question on notice, 11 September 2009, p. 23.

[5]        Senate Finance and Public Administration Legislation Committee, Provisions of the Parliamentary Superannuation Bill 2004 and the Parliamentary Superannuation and Other Entitlements Legislation Amendment Bill 2004, June 2004, p. 13.

[6]        The Hon Peter Slipper MP, Parliamentary Secretary to the Minister for Finance and Administration, House of Representatives Hansard, 12 May 2004, p. 28334.

[7]        Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 4.

[8]        Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 5.

[9]        Senate Finance and Public Administration Legislation Committee, Provisions of the Parliamentary Superannuation Bill 2004 and the Parliamentary Superannuation and Other Entitlements Legislation Amendment Bill 2004, June 2004, p. 13.

[10]      Senator the Hon Joe Ludwig, Cabinet Secretary and Special Minister of State, ' Reform of parliamentary entitlements', Press release 35/2009, 8 September 2009.

[11]      Senator the Hon Joe Ludwig, Cabinet Secretary and Special Minister of State, Proof Senate Hansard, 8 September 2009, p. 43.

Family First Dissenting Report

[1]        Senate Finance and Public Administration Legislation Committee, Parliamentary Superannuation Amendment (Removal of Excessive Super) Bill 2009, September 2009, p. 10.

[2]        Ms Kathryn Campbell, Deputy Secretary, Department of Finance and Deregulation, Committee Hansard, 14 August 2009, p. 1.         

[3]        Department of Finance and Deregulation, answer to question on notice, 11 September 2009, p. 22.