The Morrison-Joyce Government’s response to an independent inquiry into the Defence Force Retirement and Death Benefits (DFRDB) military superannuation scheme is another missed opportunity for Australia’s veterans.
Federal Member for Blair and Shadow Minister for Veterans’ Affairs and Defence Personnel, Shayne Neumann, said Labor established the Senate Foreign Affairs, Defence and Trade References Committee inquiry earlier this year, which found many DFRDB members were given incorrect information about the scheme in the past by Defence.
“These personnel were misled that they could exchange part of their pension for a lump sum and their pension would increase once they reached their life expectancy age,” Mr Neumann said.
“However, this did not happen and their pensions have remained the same.
“The Government and Defence have admitted this was defective administration but have never offered any restitution for financial loss, and there have been no successful claims by DFRDB members under the Commonwealth’s Compensation for Detriment caused by Defective Administration (CDDA) scheme,” he said.
The Senate inquiry recommended the Government provide better information to DFRDB and other scheme members and more support to access the CDDA scheme or reparation payments to recognise the confusion and distress caused by the defective administration.
At the time, Labor called on the Government to respond to the committee’s unanimous recommendations in full so that these mainly older veterans and their families would be looked after.
“Labor welcomes that the Government has accepted recommendations to provide better information to Defence superannuation scheme members and agreed to provide some assistance with CDDA applications, including covering professional costs for successful claims.
“However, it is disappointing that in its recent response to the Senate inquiry, the Government rejected the proposal for a reparation payment for DFRDB members that would help remedy their situation.
“Before the 2019 election, Scott Morrison raised veterans’ expectations he would address this issue by announcing a flawed Ombudsman’s review of the DFRDB scheme, only to dash their hopes after the election by doing nothing.
“This is why Labor referred the issue to a Senate inquiry, so that DFRDB members could have their say.
“The Government needs to show compassion for Australia’s 51,000 DFRDB pensioners and do more to right this fundamental wrong.
“It’s just not good enough and these veterans and their families deserve better.”
The Senate inquiry report and Government response can be found here.
