Did you know that some politicians still get paid an annual salary (or in this case, a ‘pension’) upon retiring from Parliament?
The scheme no longer exists, but politicians who were in Parliament prior to it being axed are still eligible.
Peter Dutton, who first entered Parliament in 2001, is one of the eligible politicians.
Here’s what you need to know.
The PCSS
In 1948, the Parliamentary Contributory Superannuation Scheme (PCSS) was created.
This was a scheme that mandated politicians who had completed 12 years of service or more be paid a certain amount each year in retirement.
The amount owed was dependent on how long they were in Parliament, and if they held senior roles, such as being a minister.
According to a committee review, there were three main reasons it was established:
This was a form of superannuation. When it was created, superannuation worked very differently to how it does today.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
It was seen as harder for a politician to re-establish a career once their parliamentary term was over.
To “entice people to enter Parliament who would otherwise not come”.
In 2004, the scheme was abolished by then-Prime Minister John Howard, who noted there was a “community perception” that the scheme was “too generous”.
The scheme is still applicable to anyone who entered parliament before the 2004 federal election.
For those elected after this date, there is a different scheme that is more in line with how superannuation works today.
According to a report by the Department of Finance, the Government will spend about $48 million in the 2024/25 financial year on the PCSS.
Peter Dutton
Dutton has been in Parliament for 24 years.
The equation to work out exactly how much he will get is complex, but news publication Crikey estimates it to be about $258,000 a year.
This is on the higher end of the amount available, because he was in Parliament for so long, and held several ministerial roles when the Coalition was in government.
