Page 5615 - Week 17 - Thursday, 5 December 1991
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FIRE BRIGADE (ADMINISTRATION)
(AMENDMENT) BILL (NO. 2) 1991
MR CONNOLLY (Attorney-General, Minister for Housing and Community Services and Minister for Urban Services) (11.15): I present the Fire Brigade (Administration) (Amendment) Bill (No. 2) 1991. I move:
That this Bill be agreed to in principle.
This Bill will amend the legislation under which the ACT Fire Brigade is established to make provision for certain members of the brigade who are compulsorily retired on reaching the age of 60 years to be paid a cessation benefit. Prior to 30 June 1991, all members of the ACT Fire Brigade were members of the Commonwealth superannuation scheme. The principal retirement benefit from the Commonwealth superannuation scheme is an indexed pension calculated on years of service and age on retirement. The pension rate reaches its maximum when a contributor retires at the age of 65.
On 1 July 1991 some fire brigade members elected to transfer to the new public sector superannuation scheme, which provides for a lump sum on retirement tailored to each contributor's needs. However, most members have elected to stay with the Commonwealth superannuation scheme.
With a compulsory retirement age of 60 years, this means that those members of the brigade who remain in the Commonwealth superannuation scheme are not able to attain the maximum pension available at age 65 to most other contributors to the Commonwealth superannuation scheme.
This Bill will provide for payment of a lump sum to those firefighters who continue their membership of the Commonwealth superannuation scheme and who are compulsorily retired on reaching the age of 60. The cessation benefit is related to each member's length of service and to the rate of pay immediately prior to retirement and is so constructed as to compensate the member for the reduced pension caused by the requirement to retire earlier than at age 65. Similar benefits have already been approved by the Commonwealth Government in relation to members of the Australian Federal Police and air traffic controllers in the Civil Aviation Authority, where a compulsory retirement age of 60 years also applies.
The negotiations leading to Government agreement to this legislation were concluded during the period of the previous Alliance Government under Mr Duby's ministerial stewardship. Members of the Fire Brigade who join after 30 June 1991 are not eligible to contribute to the Commonwealth superannuation scheme but are required to contribute to the new public sector superannuation scheme, and this Bill therefore will not be applicable to them.
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