RAAF Vietnam Veterans Association

THE INDEXATION BATTLE

INFORMATION BULLETIN ISSUED BY THE
RAAF ASSOCIATION NATIONAL COUNCIL
ON INDEXATION OF MILITARY SUPERANNUATION PENSIONS

Introduction

The National Council of the RAAF Association met on Thursday 11 September 2009 to consider, among other matters, the inadequacy of the current system of indexing military superannuation pensions The purpose of this Bulletin is to inform you of the Councils determination to secure a better deal for our military superannuants and to appraise you of the action that we intend to take.

Background

Those in receipt of a military superannuation pension will be aware that its purchasing power has been declining steadily for many years. The reason for that decline is that the superannuation pension is indexed to the Consumer Price Index (CPI). However, the CPI is a measure of monetary inflation; it does not reflect the cost of living. Because inflation has held fairly steady over recent years, indeed it has registered zero increase for the six months to July 2009, the superannuation level has not increased enough to cover the increased cost of goods and services. The result is that military superannuants are becoming less able to sustain a reasonable standard of living.

The Action Strategy

The National Council has resolved to form a working committee to examine the situation and to identify preferred actions to engage the Government on the matter. The actions that may be adopted by the National Council include either taking political action or providing support for such action. You can help by supporting the campaign and encouraging former and serving Air Force members to join the RAAF Association

R.K. McLennan
National President
16 SEPTEMBER 2009