From:	ArFFA [arffa@dynamite.com.au]
Sent:	Friday, 9 February 2001 1:23 PM
To:	'super.sen@aph.gov.au'
Subject:	FW: Senate Review of Superannuation

-----Original Message-----
From:	ArFFA [SMTP:arffa@dynamite.com.au]
Sent:	Friday, February 09, 2001 1:21 PM
To:	'super.sen@aph.au'
Subject:	FW: Senate Review of Superannuation

-----Original Message-----
From:	ArFFA [SMTP:arffa@dynamite.com.au]
Sent:	Friday, February 09, 2001 1:03 PM
To:	'super.cen@aph.au'
Cc:	Shane Layt (E-mail); 'Simon.Willis@defence.gov.au'; Alison Ridley 
(E-mail); Brett Kleidon (E-mail); Bryson Keenan (E-mail); Carol Slaven 
(E-mail); Daryll Topp (E-mail); Dave Malinowski (E-mail); David Johnson 
(E-mail); David Newdick (E-mail); Gavan Ebsworth (E-mail); Glenn Green 
(E-mail); Kevin Yates (E-mail); Lex Roberts (E-mail); Mark Richardson 
(E-mail); Matt McCormack (E-mail); Michael Beinke (E-mail); Michael Flew 
(E-mail); Mick Dunne (E-mail); Nick Read (E-mail); Peter Dean (E-mail); 
Shane Rogers (E-mail); Stuart Polkinghorne (E-mail); Allistar Twigg 
(E-mail); Brett Chinnery (E-mail); Bruce Tunnah (E-mail); Catherine Lamont 
(E-mail); Gary Skewes (E-mail); Graeme Tunks (E-mail); Mal Strachan 
(E-mail); Spike Jones (E-mail); Tony Maple (Work) (E-mail)
Subject:	Senate Review of Superannuation

The Secretary
Senate Select Committee on Superannuation and Finance

The Armed Forces Federation of Australia welcomes the invitation to appear 
at the public hearing on the above matter in Canberra on 14 or 15 Feb 01. 
 Unfortunately our commitments during that week are such that we are unable 
to make a Federation representative available and therefore offer a brief 
submission for your consideration.

There is no doubt, as far as the Federation is concerned, that the current 
methodology applied to the indexing of Military Pensions (CPI or an 
adjusted CPI) is not allowing the milkitary pensioner to retain the value 
of that pension in dollar terms, compared to when it is first received.  It 
is the view of pensioners who raise this concern with the Federation that 
their military pension is in fact being eroded and not keeping pace with 
average weekly earning increases and the like, nor is it keeping pace with 
real cost of living increases in the community.  Spiralling fuel costs are 
cited as just one example.

It is the view of the Federation that the method of indexing would be more 
appropriate if aligned to wage increases.  One option would be to align the 
increase for military pensioners to that applied to Average Weekly Earnings 
they are awarded.  An alternative to that option (which we understand has 
already been suggested to the committee) and a more relative option would 
be to align military pension increases to ADF Enterprise Productivity 
Arrangements, as determined by the Defence Force Remuneration Tribunal.  If 
you were to examine the current EPA for military personnel you would note 
the following increases for the term (three years) of the arrangement:

3% with effect from 11 November 1999;
2% with effect from  6 July 2000;
2% with effect from 1 March 2001;
2% with effect from 8 November 2001; and
1.5% with effect from 9 May 2002.

Aligning military pensions with wage fixing arrangements for the ADF would 
be our preferred option.

For your consideration.

Your sincerely,

Graham Howatt
Industrial Officer
Armed Forces Federation of Australia