The Daily Aus

The politicians who'll get paid for life

May 11, 2025
Discover the intriguing world of political pensions, where some former politicians still receive hefty annual payouts long after leaving office. Learn about the scheme that was scrapped in 2004 but continues to benefit those who served before then. Explore the financial legacy of retiring politicians and how it reflects society’s views on political compensation. Through playful quizzes and insightful discussions, the hosts shed light on the ethical implications of these payments and the lasting impact on taxpayers.
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INSIGHT

1948-politician pension scheme

  • The Parliamentary Contributory Superannuation Scheme, created in 1948, guaranteed lifelong pensions to politicians with 12+ years of service.
  • Payments depend on time served and senior roles, tied to current MP salaries not historical ones.
INSIGHT

Reason for pension scheme

  • The pension scheme was designed as an enticement to enter politics when superannuation wasn't common.
  • It recognized difficulties politicians faced restarting careers after leaving Parliament in that era.
INSIGHT

Abolishment of pension scheme in 2004

  • The scheme was abolished in 2004 as it was seen as too generous by community standards.
  • Politicians elected before 2004 continue under the old scheme; newer ones follow modern superannuation standards.
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