Retired Government Ministers and civil servants are to receive pension increases of up to 8.5 percent.

Parliamentary Bills have been tabled for a range of payments dating back to pensions starting before July 2006 to July 2008.

The Pensions (Public Service Superannuation Act 1981) (Increase) Order 2008 authorises the payments under the Public Service Superannuation Board, while the Pensions (Increase) Order 2008 approves the rises under the Minister of Finance — Deputy Premier Paula Cox.

The two Bills state that from July 1, 2008, the annual rate of pensions will be increased by 8.5 percent for those starting on or before June 30, 2006; eight percent for those beginning in the six months to December 31, 2006;

Six percent for those January 1 to June 30, 2007; 4.5 percent for pensions from July to December 31, 2007; and two percent for those starting between January 1 to June 30, 2008.

Pensions for public servants (Government employees and Police officers) are reviewed at two-year intervals. Following the 2006 review, the increases will take effect from July 1, 2008.

The Pensions (Increase) Act 1972 required the Finance Minister to review pensions for retired Government employees, former Ministers and MPs. It relates to those pensioners enrolled in the Public Service Superannuation Fund (PSSF), the Ministers and Members of the Legislature Pension Fund, and all those who have been approved to receive an ex-gratia allowance.

The PSSF provides pensions for former employees of Government and quasi-autonomous non-governmental organisations. An ex-gratia allowance is paid when a Government employee retires but is not eligible for a pension. It is paid out of the Consolidated Fund.

The pensions payments were determined by cost of living increases, as per the Consumer Price Index.