Thirty-eight years of public service, then booted off the pension

by Noel Towell May 26, 2016

"Phil Pellatt never thought the Australian government would repay his 38 years of loyal service by booting him and his wife off the age pension.

But Mr and Mrs Pellatt are among tens of thousands of former public servants, firefighters and nurses who had their Centrelink payments reduced under new rules, known as the "10 per cent cap" from January 1 this year.

Government ministers sold the changes by arguing some retired public servants were drawing more than $120,000-a-year from their employer super schemes and still getting an age pension from Centrelink.

But Mr and Mrs Pellatt, like the vast majority of pensioners hit by the changes, can only dream of those income levels and while the Canberra couple say they will be able to survive, they are worried about the fate of thousands of other retirees.

It was revealed on Wednesday that the poorest public service pensioners are bearing the brunt of the government's $465 million cuts to their income payments."

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