Industry Superannuation Fund Accused of Leaving Transport Workers $40 Million Out of Pocket

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Industry Superannuation Fund,Transport Workers,Legal Case

A big industry superannuation fund is accused of failing to include penalty shift allowances in transport workers' super payments, leaving them with a shortfall of $40 million. The legal case raises questions about the accountability of the $3.6 trillion industry in meeting its trustee duties.

A big industry superannuation fund is accused of leaving transport workers more than $40 million out of a pocket in a legal test case on how rigorously the $3.6 trillion industry is held accountable for meeting its trustee duties.

The lead claimant is suing for a shortfall of about $300,000 for contributions and earnings dating back decades.funds to improve their service or face tougher regulation last year, and the prudential and corporate watchdogs have warned they are taking a tough approach to super fund trustees meeting their legal duties to customers.

While unpaid super is typically blamed on employers, she said this was “a unique case” as it was based on fiduciary duties owed by the fund to beneficiaries, and could “quite possibly” be a test case for similar claims. ESSSuper, also known as Emergency and State Services Super, is a default fund for emergency services workers and Victorian government employees. It has 127,000 members and more than $36 billion under management.

 

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