Former Victorian Premier Daniel Andrews recently announced his retirement, sparking surprise among the public as he had previously committed to serving a full third term if re-elected. As discussions about his legacy continue, reports have emerged about his post-retirement earnings. According to the Herald Sun newspaper, Andrews could receive over $300,000 per year under the current superannuation scheme for MPs.
This generous annual remuneration is a result of his 21 years serving as an elected member, 13 years as the leader of the Labor Party, and nine years as premier. While his pension is significantly lower than his premier salary, it is much higher than the basic pensions received by other MPs, which range between $99,000 and $149,000 per year. Previously, Andrews held the title of highest-paid premier in Australia, with an annual salary and expense allowance of $481,190 and $60,480 respectively.
It is worth noting that at 51 years old, Andrews can still pursue other job opportunities after retiring from politics without affecting his pension package. The former premier’s pension is just one aspect of the superannuation system for Victorian MPs. Under current laws, there are two systems in place.
Existing and former MPs elected before November 10, 2004, must contribute a portion of their parliamentary salary to the Parliamentary Contributory Superannuation Fund each year. The contribution is fixed at 11.5 percent of their basic salary, with additional payments required for those holding specified parliamentary positions.
The pension value for MPs who do not hold specified parliamentary offices ranges from 50 to 75 percent of their basic salary, depending on their length of service. Former MPs who meet certain eligibility requirements can receive an annual pension after leaving office, and they also have the option to convert all or part of their pension into a lump sum payment. In the event of their death, a reduced pension may be paid to their partner or eligible children.
For former MPs who are not eligible for a pension, a lump sum payment of up to 3â…“ times their contributions is provided upon leaving their post. However, for existing and former MPs elected after November 10, 2004, there is no lifelong pension. Instead, the state pays them a contribution equal to or greater than 15.5 percent of their basic salary annually to a superannuation fund of their choice.
Upon leaving Parliament, they receive a separation payment equivalent to three months’ basic salary for those who have served one term, and six months’ basic salary for those who have served two or more terms. Some politicians have defended the generous superannuation schemes, highlighting the long hours and difficulty in finding employment after leaving politics. Former Labor MP Luke Donnellan stated that many politicians struggle to secure jobs due to the stigma attached to their political careers.