Mr. Tim Duggan:

We are looking at the State pension in its totality. The Senator will know that since 1961 a yearly averaging approach has been taken. In recent times we have started to seriously examine - and have tried working on - the design of a total contributions approach. One is not necessarily better than the other in dealing with the particular question the Senator has raised. It is accepted that a total contributions approach is somewhat fairer in that the pension a person ultimately receives reflects the level of contributions they have made to the fund. However, as I said in my opening statement, part of the design will have to take into consideration periods that people have had to take out of the workforce, for caring duties, home-making duties and things of that nature. Part of our current deliberations therefore include teasing through how those things might work in practice, and what options might be available for consideration and consultation with this committee and other stakeholders, before the Minister and the Government decide on a full design for it. So, yes, we are looking at it and we are acutely aware of some anomalies that occur with the averaging system. That is why we are pushing ahead in trying to get this design done as quickly as we can.