Sandy Macdonald (NSW, National Party, Parliamentary Secretary to the Minister for Defence) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

PARLIAMENTARY SUPERANNUATION AMENDMENT BILL 2006

The Parliamentary Superannuation Amendment Bill 2006 proposes amendments to the Parliamentary Superannuation Act 2004 to adjust the level of superannuation for Members of Parliament elected at the 2004 Federal election and subsequently.

In 2004 the Government closed the unfunded defined benefit scheme for parliamentarians, the Parliamentary Contributory Superannuation Scheme. New Members of Parliament elected at the 2004 Federal election and subsequently receive superannuation in accordance with the Parliamentary Superannuation Act 2004. That Act provides for a fully funded accumulation arrangement, including a Government superannuation contribution of 9 per cent of parliamentary salary.

In 2005 the Government made similar changes to the superannuation arrangements for Commonwealth public servants. The Public Sector Superannuation Scheme, a largely unfunded defined benefit scheme, was replaced with a fully funded accumulation scheme, the Public Sector Superannuation Accumulation Plan. That scheme requires an employer superannuation contribution of 15.4 per cent of superannuation salary.

This bill will amend the Parliamentary Superannuation Act 2004 to increase the Government superannuation contribution for Members of Parliament receiving superannuation in accordance with that Act from 9 to 15.4 per cent.

This is in line with the Prime Minister’s announcement of 7 September 2006 that the Government would introduce legislation to adjust the level of superannuation for parliamentarians elected at the 2004 election and subsequently so that it is the same as that paid to Commonwealth public servants.