ADMINISTRATORS PENSIONS AMENDMENT BILL 2006 Second Reading Speech

Northern Territory Second Reading Speeches

ADMINISTRATORS PENSIONS AMENDMENT BILL 2006

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Bill presented and read a first time.

Ms MARTIN (Chief Minister): Madam Speaker, I move that the bill be now read a second time.

The purpose of the Administrators Pensions Amendment Bill is to close the Administrators Pensions Scheme to future Administrators of the Northern Territory, and to provide for continuity of pension arrangements for the current Administrator, and retired Administrators and their partners.

By way of background, the Administrators Pensions Act provides for a lifetime pension equivalent to 60% of an Administrator's base salary after five years service. In the event of death, a reversionary pension is payable to the partner of the former Administrator. The Governor-General, on advice from the Northern Territory government, appoints the Administrator of the Northern Territory and, under a cost sharing agreement the Australian government, as employer, is responsible for the payment of the Administrator's salary and the Superannuation Guarantee. The Northern Territory is responsible for the Administrator's office and household, and for the payment of superannuation in accordance with the Administrators Pensions Act.

The act provides for a substantial pension benefit, which accrues over a very short period of time and is out of step with the Superannuation Guarantee arrangements that apply to the general Northern Territory community. Closure of the scheme to future Administrators is consistent with the government's decisions to close the Northern Territory's Public Sector schemes in 1999 and, more recently, the Legislative Assembly Members' Superannuation Scheme in 2004, and replacing these with Superannuation Guarantee Arrangements.

The Australian government has been consulted on this issue, and has indicated that it has no concerns with the Northern Territory closing the scheme to future Administrators, and that the Australian government will continue to be responsible for the payment of Superannuation Guarantee for Administrators.

I commend the bill to the House, and table the explanatory statement to accompany the bill.

Debate adjourned.

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