"Before the election we said that Superannuitants needed a significant cash boost. Today the Government is announcing that the base rate of Superannuation will be lifted to put more than $20 a week extra in the hands of married Superannuitants," Jim Anderton said.
From 1 April, the new base rate of Superannuation will be increased by $21.42 a week, an increase of 6.5 per cent. The new level of $347 a week is equivalent to 67 per cent of average, after tax, ordinary time earnings.
The last time Superannuation was 67% of average, ordinary time, after tax earnings was 1997. The increase announced today is the largest ever dollar increase in Superannuation.
Under the former National Government's formula, the increases would have been 2 cents a week for those living alone, 50 cents for those sharing and $1.66 for a married couple.
"The increases announced today match the increases provided for in the Alliance budget, released prior to the election," Jim Anderton said.
"Superannuitants will be significantly better off because both the Alliance and Labour have been able to deliver on our pre-election commitments. If National had remained in office, Superannuation would have continued to decline and would probably have been replaced by a means tested welfare benefit.
"A cash boost is the most urgent issue for Superannuitants and the Government will now work on achieving a structure that secures the long-term stability of publicly-provided retirement incomes," Jim Anderton said.
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