200,000 reasons to join CEPU

(7 June 2010) The CEPU’s recent success in helping a Telstra employee win thousands of additional superannuation dollars highlights the benefits of union membership.

The member had started working for the PMG (as Telstra then was) in 1966. His superannuation problems arose as a result of his leaving the company (then Telecom) in 1980 and returning to it sometime in 1981, about 9-months later.

When he left Telecom the first time he was told to sign the superannuation papers by the payroll clerk and receive the funds, that was it. He was not told that he could roll his superannuation over or given any other advice.

After returning to the company and then finally leaving it in 2008 he was given a redundancy payout inclusive of the first period of employment, as was correct. But his superannuation status was more of a problem.

In 1990 he had transferred from the Commonwealth to the Telstra superannuation scheme.

Having the earlier 14.5 year period of employment (1966-1980) counted as service would now greatly add to his defined benefit payout from Telstra, outweighing any benefit he had had from the earlier cash payout.

After a lot of letters back and forth to the Commonwealth Superannuation Scheme (CSS) tribunal to explain what had occurred he was successful in obtaining a late election for preservation, and repaid the original amount. This gave him a CSS pension.

The problem now was to convince Telstra Super of the continuity of service and therefore payment for the 14.5 years from 1966 to 1980. The member approached the CEPU at this point and the union helped him draft his claim to the Superannuation Appeals Tribunal. It then continued to support him while many letters went back and forth as Telstra Super investigated the claim thoroughly.

In late May, the member received a call from Telstra Super to inform him of their decision. He was told that after an exhaustive investigation Telstra had directed Telstra Super that they would fund the lost period of service and that Telstra Super would be depositing an amount of approximately $209,000 into his super account that day.

Needless to say he was overjoyed at the news and immediately called the CEPU to thank the union which had assisted him over the years.