Superannuation Issue

• Background
• Action
• Timing
• For Information

Background:

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).

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
Deputy Chair

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Action:

The AGS have finished reviewing all files.  At present there are 936 former employees whose personnel files require further action while another 1,301 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 provides a superannuation update letter twice per year to keep former employees updated on the progress of the superannuation issue.

A number of meetings have been held with the AGS, ComSuper, the Australian Government Employees Superannuation Trust (AGEST) and our acturies.  These meetings have been very successful with co-operation in the exchange of information and acceptance of data requirements.

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Timing:

The TCI Board anticipates that the superannuation project will be completed by 30 June 2010, with any outstanding liabilities being transferred to the ACT Government's superannuation provision account.

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For Information:

For information please contact my project team leader, Sue Lebish by email at;

sue.lebish@totalcare.com.au

Tom McDonald
Deputy Chair.

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