Disgraceful superannuation rules for hardship cases

Karl Pilkington

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Dec 12, 2007
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No, it isn't. Their trustee committees meet much less frequently and they lack the internal processes to deal with financial hardship cases quickly.

And if you think their financial hardship cases are bad, try making an insurance claim through one. Had one client who was permanently disabled and it took 9 months to get his payment from an Industry Fund (a big one).
 

1jasonoz

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Oct 14, 2002
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He won't be lying. The fund might be - we are still trying to get a statement from them. APRA and another superfund told me though that all previous contributions do convert to become preserved.
That's not what he was advised by Centrelink.
Which is ridiculous.

.

Thats incorrect, i received within 36 hours of applying for it, my non-preserved pre 99 super amounts from my industry super fund only in august lat year.
 

1jasonoz

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Oct 14, 2002
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No, it isn't. Their trustee committees meet much less frequently and they lack the internal processes to deal with financial hardship cases quickly.

And if you think their financial hardship cases are bad, try making an insurance claim through one. Had one client who was permanently disabled and it took 9 months to get his payment from an Industry Fund (a big one).

Yes it is; before you post again inform everyone reading your post that you are a financial planner whom only gets paid through commissions, something industry funds do not do!

Also please provide the data supporting your blanket claims regarding industry funds will you?
 

Karl Pilkington

Cancelled
10k Posts
Dec 12, 2007
10,590
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Melbourne
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Yes it is; before you post again inform everyone reading your post that you are a financial planner whom only gets paid through commissions, something industry funds do not do!

I'm salaried actually. And I work for an independent dealer group with no affiliation with any fund. We have clients across Industry, Retail and Corporate Superannuation and a lot of SMSF clients. Believe it or not, not all planners are money grubbing insurance salesmen who work only for commission and don't care for their clients.

And considering my years of experience in financial planning having dealt with hundreds of financial hardship cases and insurance claims, I must ask what your background or employment history is.

Also please provide the data supporting your blanket claims regarding industry funds will you?

The hundreds of claims I've personally managed and the reasons mainly being that:

1. Industry Funds Trustee Committees don't meet as regularly as those of retail or corporate funds.

2. Industry Funds don't have as good service standards as retail funds, with some exceptions, because they've never had to actually submit a tender for a corporate fund. A lot of industry funds actually outsource their admin and customer service, adding another barrier between the trustee committe and the client

3. Retail Funds have financial planners and their administrators/assistants who are (in most cases) experienced and knowledgeable in how the claims process works, and what information is required.
 

Bulldog Joe

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May 23, 2008
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Non-concessionary contributions used to be non-preserved (as they should still be).

Personal contributions (now Non-Concessionary) were only ever non preserved when they were paid into an employer fund.

Unfortunately most employees only made such contributions when they were required to do so.

I would suspect that your friends AMP fund was a personal superannution fund and therefore would not contain any non-preserved. If it has only been running since 99 nor later there is never any non-preserved.

If it is/was an employer fund the pre 99 personal contributions would indeed be non -preserved.
 
Apr 14, 2003
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Personal contributions (now Non-Concessionary) were only ever non preserved when they were paid into an employer fund.

Unfortunately most employees only made such contributions when they were required to do so.

I would suspect that your friends AMP fund was a personal superannution fund and therefore would not contain any non-preserved. If it has only been running since 99 nor later there is never any non-preserved.

If it is/was an employer fund the pre 99 personal contributions would indeed be non -preserved.
The whole super industry is absurdly complex and ridiculous.

His superfund is private and started in 1991. He paid the money into it from his own bank account. The understanding at the time was that being non-concessionary contributions he could withdraw some of them. It's absurd that he can't.
 

Bulldog Joe

Premiership Player
May 23, 2008
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The whole super industry is absurdly complex and ridiculous.

His superfund is private and started in 1991. He paid the money into it from his own bank account. The understanding at the time was that being non-concessionary contributions he could withdraw some of them. It's absurd that he can't.

Well I cannot comment on what he believes he was told, but on the rules applying in 1991 the private super was never available for withdrawal prior to retirement or age 65 whichever came first.

If he has proof that he was told that he could access the funds he would have a case against the adviser. However, the rules on disclosure were not as strong then and his case is not strong.

While I doubt that he would actually have been told he could get access, I would not be surprised if had been allowed to believe it, given the state of the industry at that time.
 

Fire

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Mar 12, 2003
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Anyway, if he has savings and doesn't qualify for Centrelink, he's not really in financial hardship.

You have no idea.

When I lost my job in Brisbane Centrelink refused to pay me for over two months because I had a little bit of money in my account and the company paid me a full weeks worth of severance pay.

On the date of applying for the benefits, I had about $3k in my account. I paid off $2k worth of debt I had aoutstanding when I moved to Brisbane to start my ill fated employment in the first place.

I had $1k to live off for two and a half months. If it were not for my parents, I would have been homeless.

Do not presume that people who do not qualify for centrelink and have some savings have the means to keep themselves off the street.
 
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