stop super ripoffs By using this bargaining kit to protect your members superannuation in their EA up for WitH Your union

Transcription

1 top upr ripoff By uing thi bargaining kit to protct your mmbr uprannuation in thir EA

2 Union hav a lot to b proud of whn it com to uprannuation. Not only did w invnt it, but jut thi yar w hlpd win a tagd incra to 1% for all workr by 019. Supr i cor union buin and hould b at th cntr of our bargaining agnda. Too many working popl, including many of our mmbr, ar till facing upr ripoff that ar coting thm darly whn thy try to rtir. Somtim by mployr, omtim by rtail fund and omtim bcau union don t focu on upr a a priority. How union mmbr can avoid upr ripoff Bing in th right upr fund could mak a big diffrnc to th mony your mmbr hav for rtirmnt. It could dramatically impact whn thy ar abl to rtir and th liftyl thy hav whn oldr. Enuring your mmbr ar proprly protctd by a trong Suprannuation Clau in thir Entrpri Agrmnt will man thy can avoid loing out. Rmmbr, undr th Fair Work law, it not nough to rly on th Award union nd to mak ur upr i includd in an Entrpri Agrmnt to top th ripoff. ripoff No.1 No dfault fund or upr clau in EA ripoff No. Ovr 0% of Entrpri Agrmnt do not hav a uprannuation clau that nam a dfault fund. Thi man mployr ar abl to choo poorly prforming and high-f upr fund to b th dfault for potntially million of workr. Suprannuation i not fully dalt with by th Modrn Award. Thr nd to b a trong upr clau in union Entrpri Agrmnt. Without a comprhniv EA clau, important mattr lik how upr i calculatd, whn it i paid, and arrangmnt for alary acrific contribution will b lft up in th air. ripoff No. High f Th f you pay on your upr can gratly affct your final rtirmnt payout. Jut 1% xtra in f chargd ovr 0 yar could rult in tn of thouand of dollar l in rtirmnt bnfit or up to 0% l. (1) Indutry upr fund hav low f, which man your mmbr could b bttr off. Thi booklt i dignd to hlp union top th ripoff and focu on bargaining for upr. Rad it, and pla mak ur it i ditributd and dicud by all organir, indutrial officr and othr official throughout your union. Tim Lyon ACTU Aitant Scrtary Low prformanc For th lat ight yar, 9 of th top 0 prforming fund wr all-profit-to-mmbr fund (which includ indutry, corporat and public ctor fund). By contrat, mot of th rtail fund maurd wr in th bottom half of fund by prformanc. () ripoff No. Commiion Rtail upr fund pay commiion to financial advir, financial plannr, inuranc compani and al agnt. Thy rly on a ntwork of hundrd of branch of th big bank and financial plannr for thir ditribution. Indutry upr fund do not pay commiion. Thi hlp kp thir f down and thir rturn highr for mmbr. (1) Figur, aumption and xampl from () Figur to Jun APRA Suprannuation Fund-lvl Rat of Rturn (9/0/01). Pat prformanc i not a rliabl indicator of futur prformanc. Conidr your own objctiv, financial ituation and nd bfor making a dciion about uprannuation bcau thy ar not takn into account in thi information. ripoff No. Profit go to harholdr Th profit of th rtail upr fund go to thir harholdr, not th mmbr of th fund. And did you know that mot of Autralia biggt rtail upr fund ar alo ownd by th big bank? Whil it i not known how much th rtail fund contribut to th profit of th big bank, you can bt th bank ar alway looking for mor. On th flipid, indutry upr fund ar run only to bnfit mmbr. Whatvr profit indutry upr fund mak go back to th mmbr of th fund. ripoff No.6 No dmocracy Rtail fund ar run by board of dirctor that ar appointd by th harholdr. In many ca thy ar run by popl appointd by thir ownr, th big bank. Thi man rtail fund mmbr hav almot no ay in th running of thir fund. Rtail fund hav fwr womn on thir board and thy pnd much mor on xcutiv pay. Indutry upr fund howvr, hav qual numbr of mploy (union) and mployr rprntativ on thir trut board. Indutry fund alo njoy almot thr tim th proportion of womn dirctor on thir board compard to th avrag company. Having a divr board and bing in touch with th nd of mmbr in th workplac hlp indutry upr fund achiv bttr rturn and lowr f. TIMELin for 1% upr Nw law pad by th Labor Govrnmnt in March 01 will rult in a phad incra in th minimum Suprannuation Guarant (SG) contribution for all workr to 1% by 019. Through union bargaining, around 1.8 million workr alrady rciv mor than th currnt 9% minimum contribution. Union hould bargain for mor than th minimum SG whr you can. It i alo important that union do not trad-off incra in th SG by accpting lowr wag incra from mployr in ntrpri bargaining. Suprannuation Guarant Currnt 9% 1 July 01 9.% 1 July 01 9.% 1 July 01 10% 1 July % 1 July % 1 July % 1 July 019 1% NO WAGE TRAd-off

3 Modl Supr clau for EA Hr ar th ky clau th ACTU rcommnd you includ in your EA. U thm to nur your mmbr gt th uprannuation ntitlmnt and bttr rtirmnt thy drv. Suprannuation contribution will b mad to [inrt nam of Indutry Supr Fund]. Thi clau appli to all mploy covrd by thi agrmnt, rgardl of thir ag and lvl of arning. All tho mploy who wih to mak alary acrific contribution will b ntitld to do o. Th mployr will pay uprannuation contribution, including alary acrific, on bhalf of ach mploy at lat monthly and in full to th nominatd uprannuation fund. At lat monthly, mploy will rciv information on thir paylip that will nabl thm to confirm that all du uprannuation contribution, including alary acrific, hav bn paid to th nominatd uprannuation fund. Contribution will b paid a a prcntag on all arning (all wag, allowanc, bonu and imilar). Salary acrific contribution hall not rduc th calculation and paymnt of contribution for th purpo of thi clau. Th prcntag of contribution will b th prcntag fixd by th Suprannuation Guarant (Adminitration) Act 199 (a amndd). Any incra to th prcntag that occur during th trm of thi agrmnt will not rult in a rduction in any form of paymnt to mploy. Th contribution providd for in thi clau will b mad in rpct of all priod of paid lav, and all priod of lav takn a a rult of a workrlatd injury or illn (providd that th mploy 9 1 i rciving workr compnation or rgular paymnt dirctly from th mployr in accordanc with tatutory rquirmnt and th mploy rmain mployd by th mployr). Employ who tak paid and unpaid parntal lav will b ntitld to a contribution whil on lav that i quivalnt to th avrag contribution paid to thm during th 1 month immdiatly prcding th commncmnt of that lav. Any ba alary incra payabl undr thi agrmnt during th priod of lav will b applid a a prcntag to th contribution amount. NOTES And mor info on THE modl CLAu: On avrag, mot indutry upr fund charg l and prform bttr than mot rtail fund. Entrpri Agrmnt hould thrfor nam indutry fund to rciv upr contribution. Thi modl clau will rult in all contribution bing paid to a ingl indutry fund. Howvr, union mmbr may want an agrmnt that nabl choic in making contribution. If o, you may wih to u ithr: i) Suprannuation contribution will b mad to on of th following fund: [inrt nam of vral Indutry Supr Fund] or ii) Suprannuation contribution will b mad to a fund of th mploy choic. Whr an mploy do not choo a fund, thir contribution will b mad to [Indutry Supr Fund]. 6 7 Th vrion allow mploy to potntially choo btwn a numbr of fund that ar appropriat to your workplac/indutry from an agrd lit. Th cond altrnativ alo provid th protction of an indutry fund for workr who do not lct to choo. Employr ar not rquird to contribut SG contribution for mploy who ar: Paid l than $0 pr month Undr ag 18 and working 0 hour pr wk or l Ag 70 or oldr (thi uppr ag limit may b rmovd by th Govrnmnt) Thi clau nur all mploy covrd by thi agrmnt bnfit from upr, rgardl of thir ag and lvl of arning. At prnt om mployr do not offr a facility to thir mploy to mak alary acrific contribution. Such contribution rciv favorabl tax tratmnt and hlp to incra th valu of final rtirmnt balanc. All mploy hould thrfor b ntitld to mak uch contribution if thy wih. Employr ar currntly only rquird to pay SG contribution on a quartrly bai. To hlp promot full and timly paymnt, Agrmnt hould rquir that all contribution ar paid at lat monthly. Thr i no rquirmnt for mployr to rport on ach pay advic th amount of contribution actually paid to a fund th Govrnmnt i conidring introducing uch a rquirmnt. Thi clau will hlp nur all du uprannuation contribution, including alary acrific, ar not bing withhld. Paymnt uch a allowanc and bonu that ar in addition to th lgilatd dfinition of Ordinary Tim Earning can incraingly compri an important part of what om mploy arn. Whr poibl, th hould b includd in how contribution ar calculatd. An altrnativ clau i: i) Contribution will b paid on ordinary tim arning a dfind in th Suprannuation Guarant (Adminitration) Act 199 (a amndd). Salary acrific contribution hall not rduc th calculation and paymnt of contribution for th purpo of thi clau. At prnt th law allow mployr to u th additional alary acrific contribution mad voluntarily by mploy to hlp fulfil th mployr SG obligation. Thi clau i intndd to nur that thi will not happn. Th SG rat will incra in tp from 9 pr cnt to 1 pr cnt btwn 01 and 019. Th incra in upr hould not b tradd off by workr miing out on a dcnt wag incra or by uffring a rduction in any form of paymnt. Whr union k to maintain or achiv an abovminimum upr contribution, an altrnativ clau i: i) Th prcntag of contribution will b x% plu th 8 9 prcntag fixd by th Suprannuation Guarant (Adminitration) Act 199 (a amndd). Any incra to th Suprannuation Guarant prcntag that occur during th trm of thi agrmnt will not rult in a rduction in any form of paymnt to mploy. Th SG lgilation do not count abnc from work whil bing paid workr compnation a part of Ordinary Tim Earning. Employr ar not prntly rquird to mak SG paymnt in rpct of mploy who tak parntal lav. Thi diadvantag womn in particular, many of whom currntly rtir with uprannuation balanc that ar, on avrag, 0 pr cnt of tho of mn. Employ who hav childrn hould not b pnalid for doing o by having l upr. Thi clau nur that mploy on parntal lav will gt a upr contribution quivalnt to th avrag amount thy got th prviou yar. Don t giv mployr th powr to choo a lowprforming rtail fund. mak ur indutry upr fund ar in ALL EA. Bargaining tip Nominating an indutry fund a th dfault in an EA do not nd to cot th mployr anything. Thrfor, it i not rliant on productivity incra or trading off condition. Th mployr i obligd, undr good-faith bargaining rul, to diclo which fund thy ar uing a th currnt upr dfault fund and to upply a copy of th currnt Product Diclour Statmnt (PDS) for that fund. Union can u th PDS to do a comparion of th rlvant indutry fund againt th compting rtail fund. Thi will allow you to ba your ngotiation on indpndntly vrifid fact. Th comparion hould highlight th ara whr th indutry upr fund provid a bttr offr for both mploy and th mployr. For mploy, thi could includ lowr f and/or bttr invtmnt rturn and option, inuranc offring, and ducation and advic. If th mployr i concrnd about union rprntativ on th Board of an indutry upr fund, you hould point out thr ar qual numbr of mployr rprntativ alo on th Board. Rmmbr, contact your indutry upr fund if you nd advic or rarch to hlp with bargaining.

4 Tip to improv your mmbr rtirmnt Hr ar impl but incrdibly important action that can mak a ral diffrnc: 1 Maintain only on upr account through your working lif Mak additional contribution if you can Choo an appropriat invtmnt tratgy in lin with your rik profil Protct yourlf with adquat inuranc Don t t and forgt gt advic and plan your futur rtirmnt 1 Conolidating upr Having on fund man on t of f and l paprwork. Combin multipl upr account into a on ingl fund to grow upr fatr. Indutry upr fund will track down lot upr for mmbr and can conolidat thm into a ingl fund to maximi mmbr bnfit. Topping up upr Salary Sacrific can provid bnfit to workr upr balanc by minimiing taxation implication. Aftr-tax contribution can mak a big diffrnc to rtirmnt aving. Thy rprnt an altrnativ to invting mony outid upr and poibly paying mor tax. Low and middl incom arnr arning up to $61,90 can tak advantag of th govrnmnt uprannuation co-contribution initiativ. If you mak xtra pronal upr contribution to your upr fund th govrnmnt will thn match thm up to th valu of $1,000 a yar. At lction/invtmnt tratgy Indutry upr fund will work with mmbr to dtrmin th mot appropriat invtmnt option and at lction, bad on thir rik profil, xpctd rturn and invtmnt timfram. Upgrading inuranc Mot indutry upr fund provid baic inuranc automatically. Mmbr can top thi up with incrad covr at comptitiv rat and th prmium can b paid from th upr account, not dirctly out of mmbr pockt. Financial and rtirmnt planning Supr rprnt a ignificant long-trm invtmnt that workr nd to undr and rviw on an ongoing bai. Mot indutry upr fund offr f-forrvic financial advic with no tring attachd no commiion or hiddn or ongoing f. For workr ovr yar, a Tranition to Rtirmnt upr tratgy can av on tax and aftr 60 yar of ag, th bnfit gt vn bttr. Indutry upr fund can xplain and organi tratgi that ar incom and tax-ffctiv for th ovr-. Rfr mmbr to indutry upr fund for financial advic and for mor information - back pag for dtail. Conidr your own objctiv, financial ituation and nd bfor making a dciion about uprannuation bcau thy ar not takn into account in thi information. INDUSTRY upr fund Bnfit ALL mmbr no mattr WHAt you do or HOW OLD You Ar. JOIN THE FIGHT FOR FAIRER BANKING. IT S YOUR RIGHT. Acro th rang of ntial product, th big bank ar alway looking for way to mak mor mony from hard working popl lik you. ME Bank wa tablihd by th indutry upr fund th am popl who brought you low cot, no commiion upr. W wr built to provid a gnuin banking altrnativ a fairr way to bank. Th indutry upr fund and union movmnt hard-fought principl of fairn and collctiv bnfit ar at th vry hart of our buin. W v alway bn a vry diffrnt kind of bank and w alway will it in our blood. MAKE THE SWITCH TO GENUINELY FAIRER BANKING, CALL OR VISIT FAIRERBANKING.COM.AU W r fighting th injutic of th major bank bcau w bliv that vryon drv a fairr dal. Mmbr Equity Bank Pty Ltd ABN /May01

5 ACTU SUPER PARTNERSHIP ACTU Mmbr Connct work with ky indutry upr fund and ntwork, trut, fund managr, adminitrator and financial rvic providr through th ACTU Supr Partnrhip Program. W thank th following organiation for thir upport: agt.com.au unclaimdupr.com.au autralianupr.com carupr.com.au cbuupr.com.au firttatupr.com.au HESTA hta.com.au hotplu.com.au indutryupr.com mdiaupr.com.au rt.com.au twuupr.com.au BANK FAIRER. mbank.com.au if.nt.au ait.an.au indutryfundmanagmnt.com.au uprpartnr.com.au For furthr information, including how to join th ACTU Suprannuation Partnrhip Program, pla contact Ian Wilon, Gnral Managr, ACTU Mmbr Connct on or iwilon@actu.org.au p t l p im to cur r b m m r you futur. 1 dopt a modl uprannuation clau A and ducat union official about upr lan to includ upr in th upcoming P EA campaign Gt hlp with bargaining from an indutry upr fund Inform your mmbr about thir upr ntitlmnt and rtirmnt nd upr, financial advic and banking U a xtra bnfit for mmbr to aid union growth For mor information phon 100 UNION mail upr@actu.org.au ACTU D No./01, May 01. Publicity Work ACTU8