Sent:	Sunday, 28 January 2001 11:26 AM
To:	super.sen@aph.gov.au
Cc:	peter.hopgood@agso.gov.au
Subject:	Submission to Superannuation indexation inquiry

To: The Secretary
    Senate Select Committee on Superannuation and Financial Services
    Parliament House, Canberra, ACT, 2600.

Re: The benefit design of Commonwealth public sector and defence force
unfunded superannuation funds and schemes

I am presently employed in the Commonwealth Public Service and
contribute to the Commonwealth Superannuation Scheme (CSS). When retired
I will be dependent on the indexed pension provided by the CSS and so
have an interest in the method of its indexation.

I therefore wish to make the following submission.

Re: Terms of reference (a) and (b):

It is clear that the Consumer Price Index (CPI) used by the above
superannuation schemes does not keep pace with the real cost of living
nor with the rate at which average wages increase. To keep pace with
these and so maintain the real buying power of the pensions provided by
these superannuation schemes, either the definition of the CPI must be
changed to be realistic or a different method of indexation must be
applied to the benefits.

It is suggested that the indexation of these pensions should be in
proportion to Average Weekly Ordinary Times Earnings (AWOTE), similar to
that used by the Australian Taxation Office for superannuation taxation
purposes; or a similar method based on real wages - possibly linked to a
particular salary level in the Australian Public Service or Defence
Force as appropriate, eg the level at which the employee was at
retirement.

Peter Hopgood
92 Dunstan St, Curtin, ACT, 2605
Tel: (02) 6282 4469 (home);  (02) 6249 9359 (work)