DFRDB Board lets Superannuants down

I agree. I served from 1960 until 1984 and have taken my allowed commutation. Having at that time just completed a retirement seminar that explained that we were expected to live until our early 70,s and at that time our commutation will be repaid, and our pension returned to its pre commutation level.[Ray Carnell] I have since been informed that this is not true.Since that time my pension has diminished to the extent, that in now represents less than 20% of the basic rate of pay for my rank in today’s military.

As you point out contribution to the then DFRB was a condition of service and the contributions were accumulated in a separate fund. The fact that the Labor government of the time seized our funds and added them to consolidated revenue to me mean's that having taken our money they would be obligated in turn to make the contribution on behalf of the government. This would make the scheme was fully funded and that apart from anything else, we would be entitled to the tax benefits that are new extended to other funds.

From what I can remember there were very few people outside of government employment that contributed to a retirement fund. So it appears that the people that created the funds that most employers (Assisted by government contributions) are too say the least much better money managers than the government as most of these funds have a huge surplus. It is sad to think that another labor government facilitated this (at least in part) by allowing shares to accrue franked dividends there-by doing away with the double tax that was until that time payable on investments

We may have to tread lightly just at the moment when 'Defined Pensions' are also under threat from the GFC fallout.  This would be the only time in our lifetimes when the Govt's neglect may be welcomed (ie they continue to pay the defined pension without discount).  There was a time in the late 70's (I think) when DFRDB pensions were discounted because the CPI was too high (interest rates were up around 18% and inflation was also at an all time high).  If commercial 'defined pension' plans risk bankrupcy because they simply cannot pay the 'dividends' required in the current financial climate, they will either fold or reduce their pensions until they regain their footing.  We should not draw undue attention to this in case the Govt thinks it is appropriate to do the same to us, even tho they do not have any 'invested' funds at risk to pay us (they 'stole' that years ago as was mentioned by another comment), as it simply comes out of consolidated revenue which is budgetted for each year.  It may be interesting to see what problems this poses for MSBS.