Gladys Berejiklian entitled to $2 million pension payment

It’s been reported that Gladys Berejiklian just missed out on a generous pension due to a technicality, but it turns out she’ll be well looked after.

Outgoing NSW Premier Gladys Berejiklian will score pension-for-life after she exits politics and she could opt to take the money in a $2 million lump sum.

Former MPs say her pension, which is calculated on a complex actuarial formula, is likely to be worth as much as $200,000-a-year for life.

But she won’t be able to claim the cash until she turns 55 under the rules of the old super scheme that was closed for MPs elected after 2007.

That means the NSW Premier, who celebrated her 51st birthday on September 22, will need to wait nearly four years for her big payday.

When she turns 60, the old super scheme is tax-free which means the value of the lifetime pension effectively doubles to an amount that will be on a par with her current annual salary as Premier — $407,800.

The state’s first female Liberal leader is sitting on a goldmine because she entered politics twenty years ago in 2003 under the old super scheme.

Outgoing deputy premier John Barilaro, who quit politics today, will miss out because he entered politics after the old scheme was axed.

Liberal MP Andrew Contance is eligible for the old scheme. He’s quitting to enter federal politics, but at 47 is still years away from qualifying for his own big parliamentary super payday.

Gladys Berejiklian will be entitled to a generous pension after all. Picture: NCA NewsWire / Jeremy Piper

However, politicians can be stripped of their taxpayer-funded pension entitlement if they are convicted of a serious criminal offence committed during their time in office, even if they are charged after leaving office.

News.com.au does not suggest that Ms Berejiklian is likely to be the subject of adverse findings by ICAC that might lead to possible charges.

NSW Premier misses out on ‘perks’

While recent media reports suggested Ms Berejiklian is missing out on a $400,000-a-year pension by quitting politics just shy of her five-year anniversary as Premier, news.com.au has confirmed that’s not the case.

She only misses out on an office, a car and various other perks for failing to hit the five-year mark, but she doesn’t miss out on a generous pension from the original pension fund.

The perks she misses out on are at the whim of the Premier and her successor could still choose to offer her some office support or a driver for her post-politics life.

Criticism of the perks provided to former NSW Premiers Bob Carr and Nick Greiner prompted Barry O’Farrell to reform the scheme.

What Ms Berejiklian is eligible for however is nothing to complain about. She gets a pension for life at up to 80 per cent of the base salary for MPs.

The base salary for NSW MPs is $170,000 which means she’s now eligible for a pension for life based on parliamentary service alone worth $136,000.

But that’s not all, because that amount is increased based on her length of service and the seniority of the roles she has held including treasurer and premier.

Former MPs familiar with the scheme estimate confirmed on their calculation she’s likely to secure a pension for life of $200,000 plus.

She could also choose to take that cash as a lump sum worth $2 million. Or, she could choose to take half as a lump sum and continue to secure a $100,000 pension for the rest of her life.

Supporters of Gladys Berejiklian, some of whom left flowers outside her office on Friday, will be pleased she won’t completely miss out. Picture: by Damian Shaw

Corruption prosecution can strip MPs of pension

Four years ago, Ms Berejiklian introduced legislation to strip former politicians of their taxpayer-funded pension entitlement if they are convicted of a serious criminal offence committed during their time in office, even if they are charged after leaving office.

News.com.au does not suggest that Ms Berejiklian is likely to be the subject of adverse findings by ICAC that might lead to possible charges.

Her crackdown on the superannuation entitlements of corrupt politicians followed the convictions of former Labor politicians, Eddie Obeid and Ian Macdonald for misconduct in public office.

“The corrupt actions of former Labor ministers Eddie Obeid and Ian Macdonald constitute a complete betrayal of public trust,” Ms Berejiklian said when she introduced the legislation.

“These changes provide a strong reminder that politicians are here to serve the people of NSW, not to serve themselves.”

Gladys Berejiklian introduced the changes shortly after she first became premier in 2017. Picture: Toby Zerna

Simply being the subject of an adverse finding by ICAC would not be enough to lose a political pension.

A serious offence means an offence committed in NSW that is punishable by imprisonment for life or for a term of five years or more, or an offence committed outside the state that, if committed in NSW, would be an offence so punishable, or “an infamous crime”.

But MPs convicted of serious offences can also be forced to repay the lump sum.

The reforms removed a loophole which allowed convicted politicians to retain their taxpayer-funded pension entitlement if they resigned before being charged with a serious criminal offence committed during their time in office.

“Unless these changes are made, politicians convicted of serious criminal offences will be able to live off their taxpayer-funded pension entitlement and that’s just not fair,” Ms Berejiklian said.

“The days of Obeid, Macdonald and their cronies benefiting at the expense of the people of NSW are over.”

Originally published as Gladys Berejiklian entitled to $2 million pension payment