Services

Military pensions are up for grabs

Military pensions will soon be up for a bidding war between private investors and the Government.

The Government is looking at whether to offer more money to help retirees in the long-term through the retirement fund.

A Government spokeswoman said it was also looking at a new formula for providing pensioners with extra income, including through new government-funded savings accounts.

In a statement, the spokeswoman said: We will consider how best to pay for this new investment in future, but we do not anticipate making any major changes to the formula or to the scheme.

The Government has been asked by the Private Finance Initiative to provide more cash for the scheme, which is a Government funded scheme to help people who are over 65, as well as those aged under 60.

It is also looking to raise up to $6.5 billion to help cover costs of the scheme from the sale of Government bonds, the purchase of commercial property and other financial assets.

This includes the sale and leasing of Government land, and is part of the Government’s “revenue neutral” plan to reduce debt over the next five years.

There are about 3.6 million pensioners in the scheme with an average annual pension of about $75,000.

They are also entitled to a small cash pension, which gives them an average of $30,000 a year.

Some of the more than 2,000 pensioners who are eligible for the fund will have to wait until 2019-20 to get their first payment, while others will have their first payout of about 20 per cent.

“There is no specific date for when the first payment will be made,” the spokeswoman added.

She said it would depend on whether there was a significant change to the funding formula.

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