Approximately 2 years ago, a promoter of self-managed superannuation schemes approached various members of both AMIEU and MIESF at an abattoir in Victoria. The promoters of the fund promised returns in excess of 20% per annum. One of the promoters of the scheme on the worksite was promised a fee for any members he signed over and it is now known whether this fee was in fact paid.

After investigating a number of requests for transfer MIESF found that the fund was indeed properly registered with the Tax Office. However, as the workers at the particular site were employed under an EBA which stipulated MIESF as the superannuation fund, the Fund contacted the employer in question and stated that we were not legally able to transfer the money to the fund in question and that they were not legally able to pay the superannuation contributions to the fund.

It was thus possible to stop transfers for members of MIESF who were still employed at the meatworks and for three months thereafter. In the event there were three or four individuals who had left employment at the meatworks and the Fund had no option but to transfer the money. This has been confirmed by ASIC.

As time went on, it was clear that not only the promised 20% return not achievable, but, in fact, the monies had been stolen and in recent months MIESF has been served a subpoena to produce files of various individuals and the Fund Manager will be required to give evidence in a criminal prosecution against the promoters of the scheme.

Thus, through the existence of an EBA that specified the superannuation fund and through the diligence of the AMIEU officials and MIESF, it was possible to protect a large number of members who may well have been convinced to transfer their superannuation. It was not possible to protect those who no longer enjoyed such protection.

Under the new rules allowing greater choice of superannuation and portability, it will not be so easy to protect workers in the future. Certainly the existence of an EBA that stipulates one or more reputable funds will enable the Union to stop SG contributions going to shonky operators. However, under portability rules, there is still the possibility of members transferring their money to another fund.

It is therefore extremely important for members contemplating exercising their rights under portability to ensure that the fund they are transferring money to is legitimate and it is suggested that if you have any doubts on this matter you contact either the Fund or a Union official to ensure the legitimacy of the fund.

This is an actual demonstration of how being part of the Union and being part of a union negotiated agreement, was able to protect member's money.

Graham Bird
Secretary