Sent:	Monday, 29 January 2001 12:53 PM
To:	super.sen@aph.gov.au
Subject:	Superannuation indexation

7 Hughes Cres
Ngunnawal
ACT 2913
29-01-00

Dear Sir/ Madam,
There are two sides to the problem of indexation of pensions, both of which
need to be addressed and both of which need to carry equal importance. These
are the needs of the recipients and the needs of the country to carry a
burden which it can maintain.
Pension recipients are usually completely reliant on their superannuation to
sustain an acceptable standard of living in their vulnerable years. If the
method of indexation used does not maintain this standard and lowers the
buying power of the pension, then the pensioner has not been adequately
rewarded for years of service. The situation could lead to worsening health,
both physical and mental, both areas being more expensive than pension
costs. In some cases the pension will have to be supplemented by normal
pension payments. There could well be increased costs compared with the
costs associated with a genuine indexation system with cost parity.
The ability of the government to cover the costs of true pension indexation
in a country in which pensioner numbers are increasing is part of a bigger
problem which major political parties need to address.
The pension was originally introduced to support those at the end of their
lives who were too frail to support themselves. Now it has become the right
of anyone reaching the age of 65, an age which is rapidly being lowered in
the Public Service. A glitch in the CSS scheme means that workers are
eligible for a higher pension at 55 than if they stay on working. Add to
this the fact that life expectancy was much shorter when the 65 age pension
was introduced, hence pension dependency has increased both in numbers and
number of years per person. The retirement age of  65 should be increased as
life expectancy increases and workers should not be encouraged to retire
before this age, as is currently happening in the public service.
This latter problem cannot be divorced from the question of pension
indxation

Yours sincerely
Audrey Guy