Totalcare received a new
Board of Directors in June 2003. The Board commissioned a
series of audits. The Board, following one such audit, notified Voting Shareholders on 19 December 2003 of its
concern that legislative procedures
had not been correctly complied with in previous years because Totalcare
employees had been denied access to the Public Sector
Superannuation Scheme (PSS).
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Totalcare
retained the Australian Government Solicitor (AGS) to advise
on its potential liabilities and an appropriate method of resolving this matter.
The
management of the Superannuation issue was transferred to the
ACT Treasury on 21 May 2004.
Effective 27 July 2004 I took over all residual
Totalcare issues.
Tom McDonald
Director Legal & Insurance Policy
ACT Treasury.
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The AGS finished the reviewing of
files (Stage I) in the second half of 2004. At present there are 1,076 former employees whose
personnel files require further action while another 946
former and current employees’ files require no further
action.
For further action files, we have to review the
individual’s personnel file, and collect the actuarial
information onto a spreadsheet which is then amalgamated and
will be provided to ACT Government Actuaries to calculate employer and employee liabilities.
These calculations will then be sent to ComSuper so
appropriate files can be set up. This is a long and involved
process. Unfortunately,
from 1990 to 1999 all information is in paper format and
requires manual investigation and calculation, file-by-file,
folio by folio.
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A review
mechanism has been set up as part of the overall process
to accommodate any issues that may arise. This has been
approved by both the AGS and the ACT Government Solicitor.
Members
whose files required no further action received a letter from
me by
registered mail, but for staff who transferred to other
government agencies, their letters were included with their
pay slips.
Totalcare
initiated a monthly circular to Totalcare employees updating
them on the superannuation issue.
This process is continuing for all transferred staff
and those now in Rhodium Asset Solutions..
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As a minimum, it is
expected that this project will take up to the end of 2005 to determine amounts owing to the PSS and staff members.
To draft and commence discussions concerning Deeds of
Understanding for affected employees and undertake related
administrative tasks will take at least six months.
Treasury also considers that it is likely that
resolution of compensation issues for ex-employees or
employees who were never offered the opportunity to join the
PSS will take in excess of at least two years
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For information please
contact my project team leader, Sue Lebish by email at;
sue.lebish@totalcare.com.au
Tom McDonald
Director Legal & Insurance Policy
ACT Treasury.
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