Super Bonanza

Multi million dollar super surplus distributed

"I came across," said Melbourne wharfie Doug Morris. "I had some top financial brains take a look at SERF accumulation and they told me it was a very, very good scheme. I had a suspicion it was good even before I went to the gurus to check it out. I didn't think the MUA would give me bad advice. After all what are we in the union for if we don't let them help us. But super is what you work all your life for. So I wanted to make sure. Now I know for certain I did the right thing."

Stevedoring members, like Doug, who opted to move to accumulation benefits in December gained a one off New Year windfall of 14 per cent on their retirement benefits as the SERF $100 million plus surplus was redistributed.

"It's excellent," said Doug's mate Kevin Goss (far left). "The union supported this was the way to go and they were right. It's paying more now. So I've got no complaints. Everyone is happy, I don't know anyone who isn't."

On December 12, nine in every 10 members in the Stevedoring Industry Retirement Fund (92.27 per cent) elected to move to a new accumulation section.

This followed an extensive round of written information on the offer and port visits by national officers of the MUA and SERF staff.

"This change came after nearly four years of negotiations with the stevedoring companies on better early retirement outcomes," said National Secretary Paddy Crumlin. "We made the claim after the Patrick Enterprise agreement in 2001. Deputy National Secretary Jim Tannock and I have been meeting with the companies again and again in order to settle the claim. The results speak for themselves."

All stevedoring members who made the move are receiving a letter from SERF in March specifying exactly what figure they get from the extra surplus. Quarterly statements also due out in the next month will then translate the super redistribution in terms of retirement dollars.

The 297 members who are remaining in the defined benefit commenced a contribution holiday the same day and will now remain in the old scheme for the foreseeable future.

Long standing members are now looking forward to up to $45,000 extra on retirement with younger members having even greater benefits to look forward to.

Ken Bracken, 19 (below), says the best thing about it is that now supps and PGEs get a fair go.

"It's great for us," he said. "Now we're getting paid on our full rate including penalties, not the base rate. At my age I'm not really thinking about retiring. I don't know anyone who is. But it's great to think I don't have to think about it, that it's all set up for 40 years ahead."

"This new scheme provides for higher employer contributions based on total earnings. This means casuals as well as permanents benefit," said Paddy Crumlin. "The employers have foregone a large surplus they had previously secured out of the last surplus distribution in favour of enhanced benefits for all stevedoring workers in the new scheme. It will deliver financial independence and dignity in retirement to our members much earlier than would otherwise have been the case. That's unionism in action."

Meanwhile SERF reports it was the leader of the superannuation funds again in 2004 posting an 18 per cent net growth according to a survey of 36 funds conducted by Rainmaker and published in The Financial Review (21/7/2004)

Allocated pensioners received a net tax-adjusted return of 18.84 per cent. SERF is also a top performer over five years, averaging 7.03 per cent.