More woes in Unisuper saga
My most recent article highlighting the inadequate regulatory protection for university employees forced to join the UniSuper Defined Benefit Fund provoked a justified response from a reader.
"You mention that new employees are the sacrificial lambs'' helping to fund the larger benefits provided to older members and those with higher salary progression. "Well, I think that former employees are in a far worse situation,'' she wrote.
The reader retired in 2006 and accepted the assurances of both UniSuper staff and union reps that the UniSuper DBD lifetime pension option was very safe and a great way to provide a pension for one's later years.
Instead, only seven years later, this retiree is one of more than 6000 DBD pensioners uncertain whether they will receive all the benefits promised to them. She is particularly concerned that a widespread lump-sum bailout of current contributors from the DBD would worsen these pensioners' situation. She is correct.
This is another example of the regulator (APRA) being asleep at the wheel and most likely to again wait until the horse has bolted to shut the gate.