Lean Pensions Await Premiers

New South Wales Premier Barry O’Farrell has announced that effective next month, retired premiers of NSW will receive fewer entitlements in the government’s effort to save taxpayers’ money. 

This means that perks like office staff, free air travel, and access to transportation will now be limited. 

Premiers who stayed in office for five years or more will enjoy retirement benefits for only a year after their retirement. Deputy premiers would also be affected by the cuts. 

O’Farrell said it is part of the government’s commitment to cut expenses. He added that former premiers should also contribute to this goal by cutting back on their privileges. What used to be lifelong entitlements would now be stripped back. 

Premiers, who served for many years, enjoy the privilege of a full-time car driver, office suites, two full-time staff, and air travel. The latter, however, will be among the first to be cut back while staff would be reduced to only one. 

Cars and drivers provisions would also be reduced. 

Those affected by the changes include Nick Greiner, Bob Carr, and Neville Wran. Greiner enjoys about $588,000 annually while Wran receives about $602,000 per annum. Carr’s entitlements, however, are currently suspended. 

According to O’Farrell, about $1.6 million were spent in 2010 and 2011 to fund these entitlements. Once the changes are implemented, the government would be able to save about $500,000 of taxpayers’ money.