Ley Finds $250,000 Silver Lining After Ouster

After her recent departure from public office, Sussan Ley stands to gain significantly from her post-politics pension. Her pension, which may exceed $250,000 annually, comes as a result of her lengthy career in the Australian Parliament.

Political Career and Ouster

Sussan Ley was the first female leader of the Liberal Party, serving for a brief term of just nine months. She announced her decision to “step away completely and comprehensively from public life” after being replaced by Angus Taylor.

Financial Implications of Her Exit

With her departure, Ley will lose her substantial salary of $442,649. This figure comprises a base salary of $239,270, plus an 85 percent additional loading. Despite this loss, her exit from politics entitles her to a pension that surpasses what she would earn as a backbencher.

Pension Details

Sussan Ley benefits from the Parliamentary Contributory Superannuation Scheme (PCSS), which was closed to new members after the 2004 election. However, her election as the Member for Farrer in 2001 allows her to retain benefits under the old scheme.

Defined Benefit Scheme Advantage

The PCSS is a defined benefit scheme, offering a lifelong, inflation-linked pension based on her final salary and length of service. Ley is among the few remaining politicians under this arrangement, alongside notable figures like Anthony Albanese and Senator Penny Wong.

Estimated Pension Amount

The exact details of Ley’s pension are not publicly available. However, estimates based on PCSS calculations and her career history suggest her annual payment could range from $250,000 to $280,000.

• Maximum base rate: 75% of MP salary.
• Additional annual increase: Over 6% for senior roles held.
• Pension indexed to salaries of sitting MPs.

Options Under PCSS

Under the PCSS regulations, Ley has the option to receive a one-off tax-free lump sum payment, trading in up to 50 percent of her lifetime pension. This choice would, however, reduce her annual pension amount.

In conclusion, despite exiting politics, Sussan Ley’s financial positioning remains strong, emphasizing the advantages of the PCSS scheme for long-serving politicians.