Sent:	Wednesday, 31 January 2001 4:43 PM
To:	super.sen@aph.gov.au
Subject:	Indexation of CSS pensions

I am in the CSS super scheme, and will be 54 this year. I am concerned at
the method used to index my pension when I retire.

In the last four years, CSS pensions have been indexed by 1.3% in ?97; 0% in
?98 (CPI was actually -0.2% whereas the Macquarie Bank?s retirement index
was 5%);
1.1% in ?99 (CPI was actually 1.3% but the pension rise was discounted by
0.2% for the previous negative CPI); and 2.8% in ?00.
Over the same period, the movements in average weekly earnings (AWOTE) were
3.5%; 4.3%;3.2% and 4.4% (source: Personal Investment).

Is there any wonder why politicians have seen fit to further improve their
already overgenerous superannuation scheme by changing its indexation from
CPI to the movement in AWOTE. 

The CPI is a poor index for those who are retired as witnessed by other
retirement indices (ASSIRT, Macquarie Bank) that are invariably higher than
CPI.

For example
A retired SPO-C 4 years ago on 42% of  salary of $55170 receives $23171.40.
Public servant salaries have been deregulated and now each department is
slightly different but the average SPO-C is now on $60,091. So retiring
today a SPO-C would get $25238.22 whereas a SPO-C retired 4 years indexed
pension has only risen to $24186 ie in the space of 4 yrs a loss of $1000. 

I urge the Senate Committee to look closely at the method used to indexi PS
pensions, and to at least change to the AWOTE method.
If it is OK for the employer (politicians) it should be good enough for
their employees (Public Servants)

Colin Johnson

Australian Geological Survey Organisation
Information Management Branch
*  colin.johnson@agso.gov.au
*  02 6249 9117