According to news reports, Robert McClelland is retiring from Federal Parliament with an indexed pension of $225,000 per annum. He just misses out on the gold card that would offer free transport.
The Federal Parliamentary pension is indexed to Parliamentary pay increases. Assuming that McClelland lives to his full life expectancy as a 55-year-old (according to ABS Life Tables), he will survive another 27.5 years.
The present value (discounting for an average CPI of 2.5%) of his pension (excluding any residual that would flow to his spouse) is therefore just under $9.5 million. It is actually more than this given that the surviving spouse is entitled to receive a pension equal to 5/6 of the main pension.
Who says Australian politicians are underpaid?