Parliamentary Pension Schemes
Hook
Why do some ex-MPs draw a lifetime six-figure pension while others get a standard super balance? The answer is a single date: 9 October 2004.
Key Numbers
- PCSS closed to new members 9 Oct 2004 — but existing members remain in it
- Vesting: 8 years / 2 terms
- Maximum accrual: 75% of final salary, indexed for life
- Post-2004 scheme: 15.4% employer contribution (PSSAP)
Context
A plain-English history of the Parliamentary Contributory Superannuation Scheme (PCSS), the 2004 Latham-era reform that closed it to new entrants, and the post-2004 accumulation replacement. Covers vesting, accrual, preservation age, commutation, indexation, and the Department of Finance administration.
Takeaway
The 2004 reform grandfathered every existing PCSS member. A politician first elected in 2003 and still drawing today is on a scheme nobody elected after 2004 can join. This is the single biggest source of "two-tier" outcomes in Australian parliamentary remuneration.
Share Stat
Every dollar of PCSS pension drawn today is a dollar the 2004 reform deliberately left in place for existing members.
Last reviewed: 11 Apr 2026