The Superannuation Complaints Tribunal of Australia handed down
a decision on 2 February 2014 (Determination Number D13-14\\109
[2014] SCTA 6) which reinforces the rights of trustees to change
the terms of a superannuation fund to the detriment of some of its
members, and the ability to remove a minimum return rate offered by
a fund at the request of an employer contributing to the same
fund.
The issues
In this case the superannuation fund had been set up by an
employer which guaranteed former employees who remained as members
of the fund a minimum of 4% return on their superannuation
investment. This minimum return was only applicable to a small
percentage of members of the fund. The employer funded the
shortfalls arising from the performance of the fund in order to
meet the minimum return rate.
