Pension services Corporation of Australia (PSCA) has committed to paying $1.3 billion to pay back its pensioners, which will include more than $1 billion to the workers and retirees of the corporation.
It will also provide workers with the same support to manage their own retirement costs as they would if they were employed by the Australian Federal Government.
“This will help ensure the future of pensioners in Australia,” PSCA Chief Executive Officer David Rennie said.
In a statement, Mr Rennies said the Government was committed to supporting workers and pensioners who were struggling to maintain their current living standards and contribute to Australia’s future prosperity. “
We will also continue to support the ongoing development of the pension services sector in Australia.”
In a statement, Mr Rennies said the Government was committed to supporting workers and pensioners who were struggling to maintain their current living standards and contribute to Australia’s future prosperity.
“The Government is committed to ensuring pensioners have the support and assistance they need to manage the costs of retirement and make the best decisions for their family and for themselves,” Mr Rynies said.
Pensioner benefits for current and future workers are already set to increase from $13,000 to $20,000 per year under the Coalition Government.
In September, the PSCa said it was “in discussion with our pensioners and others on the current and potential changes to the pension plan”.
It said it hoped the changes would be phased in over time.
It also said it would provide $300 million in funding to support employees to manage retirement costs, including an annual pension for all current and former employees.
“The Government will provide an extra $100 million to support employers to reduce the cost of their employee benefits to retirees,” Mr Jevons said.
The PSC also said the $1,000 annual contribution would be paid by the company and retirees.
Mr Jevon said it had agreed with other PSCs that the changes to its pension system would require an immediate review of the existing benefits package.
“I think the current structure of the system is working well,” he said.
PSC pensioner benefit plans will be changed under the Government’s changes Mr Rynys said the changes were expected to be implemented by July 2021.
He said the PSA was also exploring how to make its pension benefits more flexible for future retirees.
“It’s important to look at all the options available to ensure that all current employees are protected and we can meet our retirement commitments,” Mr Koutsantonis said.