Dan walks away with eye-watering annual pension

Victorian taxpayers will fork out upward of $300,000 a year to Daniel Andrews for the rest of his life under a controversial superannuation scheme.

Victorian taxpayers will pay Daniel Andrews upward of $300,000 a year for the rest of his life under the state’s controversial political superannuation scheme.

Mr Andrews, who was first elected in 2002, qualifies for the lifelong annual payments, which currently range between $99,000 to $149,000 a year.

But sources confirmed Mr Andrews’ executive roles, including being leader of the Labor Party for 13 years and nine years as Premier, meant he was eligible for the highest pay rates under the state’s super scheme which would push his annual payouts above $300,000.

He also reached the maximum payout rate based on length of service, which is capped at 20.5 years – Mr Andrews surpassed this benchmark in May.

Despite the huge super pay cheque, Mr Andrews will also not be stopped from taking any lucrative jobs in his post-political years with former politicians allowed to keep receiving the pension regardless of other employment.

Daniel Andrews will walk away with an eye-watering annual pension. Picture: Luis Enrique Ascui

One Labor source told the Herald Sun that the premier “certainly won’t be short of a few quid” after exiting parliament.

Mr Andrews announced his surprise retirement from politics on Tuesday.

As a golf fan, he said his immediate future included hitting the green.

“I’m going to have a bit of time off,” he said.

“Play a bit of golf. Read, literally, the pile of books that are sitting in the corner.”

However, in his speech Mr Andrews also acknowledged that he was a the “worst kind of workaholic” indicating he would struggle to take a step back.

Rumours swirling Spring St in recent months, indicate that Mr Andrews has already been sounded out for several lucrative potential jobs in the financial services and consulting sector.

His fat super payouts will also come after Mr Andrews was paid one of the highest salaries among state leaders in the country.

As of July 1, his annual pay packet $481,190 – including up to $60,000 in expenses, which had risen by $16,272 after the Victorian Independent Remuneration Tribunal ­released its annual determination last financial year ruling that every MPs pay will increase by 3.5 per cent.

The controversial pension scheme has previously been criticised as a golden handshake ‘out of step’ with expectations. Picture: James Ross

Victoria’s political pension scheme, which was initially introduced in 1968 has previously been criticised as a golden handshake “out of step with community expectations”.

However, many former parliamentarians have also been known to struggle to establish careers after public life.

Under the most recent state super scheme, members elected before 2004 make voluntary contributions of 11.5 per cent into a fund in exchange for a yearly payment once they retire or lose their seat.

Exiting politicians elected after 2004 receive a lump sum separation payment that replaced the pension.

The payment is six months’ basic salary for MPs who have served at least two terms to help them transition to a new role.