DFRDB e-Petition to the Government – Commutation Anomaly

This petition goes directly to the Parliament.  All servicemen,servicewomen, their spouses widows/widowers, who contributed to the DFRDB scheme are affected by this anomaly, Even our partners will be paying this impost until they die if we predecease them.

 This  is an opportunity for you and your partner to have your say and help correct this anomaly. And if it doesn’t affect you then please help those who are affected by signing the petition

PLEASE SIGN & VERIFY THE PETITION NOW  

THE PETITION
Defence Veterans of Australia, as Commutation recipients of the DFRDB Scheme administered by Commonwealth Superannuation Corporation, petition the House of Representatives to  instate the National Life Expectancy data  point of each affected veteran as the point where full reinstatement of their Commutation obligation is fulfilled: and, to reimburse to each DFRDB veteran, all over-subscribed payments forfeited by direct debit by them, once their original lump sum was repaid in full.

The DFRDB Authority failed to disclose to veterans the whole-of-life impost of a Lump Sum Commutation   on superannuation payments reduced by a factor, based on redundant Notional Life Expectancy  data and an individual’s Service data. Limited disclosure of the whole-of-life deductions was made by DFRDB,  37 years after the Scheme was launched, but never to members so affected.
Direct debit by DFRDB has been incremented and escalated over time, to a level where the original lump sum has been reimbursed multiple times. This effectively means that veterans are subsidising their own benefits.
There was no definition of the term ‘commutation’ within the legislation or in any document provided by DFRDB to superannuants, until its disclosure advised above. The direct debits were shown in the legislation and the DFRDB’s Administrative Manual to be a finite amount, not an escalating continuum .
On advice from DFRDB Administration all superannuants understood Commutation as an advance of Benefits to be reimbursed to DFRDB by fortnightly debits over a finite period and at a finite rate. How deluded Veterans were through DFRDB’s failure to disclose their interpretation of the Legislation, before the fact, thereby committing Veterans to an ever increasing, spiraling, life-term DEBT-SENTENCE.

 

Banking Royal Commission: Superannuation hearings go from the dispiriting to the galling

Read the Analysis by ABC News business reporter Daniel Ziffer and his interview with Bradley Campbell – ‘No-one wants to investigate themselves’

The cliche of “barely scratching the surface” doesn’t even fit with summarising the super hearings at #BankingRC. One of Australia’s largest funds was specifically excluded.

Army veteran Bradley Campbell is one of 700,000 members who belong to the Commonwealth Superannuation Corporation. After his experience, having to take them to Federal Court to get a ruling on his entitlements, he is astonished it has been given a free pass from examination.
“So 10 per cent of the population no longer have that right as every other Australian, to know that their superannuation is being managed in accordance with the law and in a manner that exceeds or is at a level that the public expects?” he asked.

Mr Campbell met Prime Minister Malcolm Turnbull and asked him, in person, why the royal commission’s terms of reference specifically exclude the corporation.

Treasurer Scott Morrison responded for Mr Turnbull. In a letter, he told Mr Campbell “it is a statutory government agency operating under higher standards”.

The veteran, and other public servants unhappy with the fund, continue to agitate for it to be examined at the royal commission.

“I’ll be bold enough to say it’s a government entity — it’s like the fox investigating the henhouse massacre!” he said. “No-one wants to investigate themselves.”

Related Articles

DFWA/ADSO  Continues to Call on the Government to include CSC into the Royal Commission.

DFWA/ADSO Continues to call on the Government to include CSC into the Royal Commission INTO THE ROYAL COMMISSION INTO BANKING AND SUPERANNUATION

In a Media Statement released today (16th August 2018)  DFWA’s National President  Kel Ryan continues DFWA’s and ADSO’s call on the Turnbull Government to include CSC into the Royal Commission.

 

 

 

 

 

“The Government cannot hide for much longer.

The Senate has agreed a Motion that the Hayne Royal Commission be extended to include the Commonwealth Superannuation Corporation.

In a wide-ranging Motion Senator Anning (Queensland) identified that 6,800 submissions had been received but that the resources made available to the Commissioner does not allow them justice let alone a hearing. Commissioner Haynes simply does not have the resources or the personnel to ensure fairness and a hearing to those thousands of individuals who have been confronted by the tragedy being identified.

The Royal Commission into Child Sexual Abuse was extended to five years, had seven commissioners and heard from thousands of aggrieved individuals.

Prime Minister Turnbull needs to answer a simple question but is unable to or afraid to.

Why is the Government unwilling to extend the Royal Commission to include the Commonwealth Superannuation Corporation and give justice to those veterans who tragic stories need to be told?

Why?”

Banking royal commission: super rip-offs, gouging revealed

Australians are being ripped off by super fund trustees “surrounded by temptation” to do the wrong thing with the $2.6 trillion retirement savings pile, while regulators are failing to search out and punish bad behaviour, the banks royal commission has heard.

 

 

 

 

READ MORE

Our Comment

Although the Government has refused to include our military superannuation funds, managed by the Commonwealth Superannuation Corporation in the Royal Commission’s Terms of Reference, we will post on this site revelations from the Superannuation Hearings for your information. 

Royal commission spotlight about to shift to super

Australia’s banks may have suffered severe scrutiny during the first part of the royal commission, but with the focus now shifting to superannuation, their situation could become much worse.

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But it’s not just the retail and bank-owned super funds that will go under the microscope. Round five of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry will also focus on industry super funds, which may have cause to be nervous about what’s in store.

It is believed that the Government included super in the royal commission to embarrass industry funds for their connection to unions.

But it may be other factors that bring them undone, including their share of the tens of billions a year in fees extracted from people’s retirement savings.

“We estimate that the excess fees and charges and underperformance in super is about $12 billion a year,” RMIT University Associate Professor Michael Rafferty told the ABC.

“In other words, the rip-off in wealth management is about three to four times the rip-off in banking.”

While industry funds can hardly be accused of underperformance, Prof. Rafferty says that offering services such as financial planning, charging for insurance and prominently advertising their products make them look a lot like retail funds and “the net result of all of this is the whole superannuation industry is charging people too much”, he said.

Industry funds may also come under scrutiny for their lack of transparency, says independent financial adviser Louise Lakomy.

“I think retail funds are better at the transparency piece, because you can usually have some kind of research paper or some kind of product detail that goes into who the fund manager is, what the exposure is to a commercial property, retail property,” said Ms Lakomy.

“It goes into a lot more detail than what a typical industry fund would do.’’

Australia’s biggest superannuation provider, AMP, may have already borne the brunt of the brutal royal commission investigation, with billions wiped off the company’s value, half a billion in costs, recommendations for criminal charges and barely a body left sitting in the top offices but, if its banking practices are anything to go by, once the focus shifts to super, it can expect a lot worse.

The Productivity Commission has already indicated that it won’t be pretty for super. Earlier this year, it released a report damning providers for exorbitant fees and what it believes is a sector imbued with corruption, inefficiency and unnecessary costs.

One such cost is insurance, which can wipe out huge portions of retirement incomes. According to the Productivity Commission’s draft report on super, one in four people don’t realise they’re paying for life insurance as part of super. If these people have multiple accounts, they could be losing hundreds of thousands over the life of their funds.

“Income protection policies have terms which say you can only collect under one policy,” said Grattan Institute chief John Daley.

“So, by definition, if you have a number of those policies, people are paying premiums and they could never collect on them.”

Industry regulators, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) are also up for a roasting, with many finance experts saying the both talk the talk when it comes to regulation, but do not walk the walk.

According to the same draft report, APRA has been missing in action when it comes to regulating Australia’s $2.6 trillion super industry.

The report revealed that one in four funds – retail, industry, corporate and government funds – consistently underperform, a fact which is hidden by the lack of quality performance data.

The Productivity Commission has accused the regulators of not holding funds accountable for bad behaviour, to the detriment of millions of Australian fund holders.

“The problem here is the regulators needing more spine,” said Mr Daley.

“Regulators in Australia, financial regulators, by and large have plenty of powers, the issue is whether or not those powers are exercised.”

One thing is certain: the next few weeks will be an eye-opener for fund holders, but will any such action taken as a result of the commission actually benefit retirees who may have been victims of super rorts over the past 25 years? Or will the result be the Government putting the onus back onto the customer, for not having chosen the right fund in the first place?

We’ll see.

What would you expect as a fair result of the royal commission into super? Should you expect compensation for poor practice? Or do you trust that your fund has performed and behaved admirably?

ADSO Comment

Very good questions to be asked except for the 700,000 Australian military and Australian Public servant clients of the Commonwealth Superannuation Corporation  (CSC) that has been expressly excluded from the Royal Commission

Royal Commission

They have no choice of Funds.

The Prime Minister’s refusal to have the CSC included is in his words the government agencies have a higher standard of scrutiny through legislation and legislators, the National Audit office and parliamentary senate estimates hearings. Doesn’t some of this sound familiar as reasons why the Government opposed the Royal Commission into banking?

Related articles:

A Shock to the Super System

Super Funds Exploiting Members

Can you trust your Super Funds

Help Us in Supporting the Case for CSC inclusion

 

Help us in the Case Supporting the CSC Campaign

We believe the The Commonwealth Superannuation Corporation’s (CSC) exclusion from the Royal Commission is wrong and want the Government to reverse its decision.

The CSC  is the Trustee for both our ADF Military Superannuation Schemes (230,000 clients) and the Australian Public Service Schemes (470,000)

 

 

We believe this is wrong and have lobbied the Government for the CSC’s inclusion HERE   The ALP supports our request

It is important to note that members of the ADF cannot elect to have their
superannuation contributions made to a fund of their choice, nor can they transfer
their employer contributions to another superannuation fund. This means that current and former ADF personnel do not have the freedom to move their superannuation to another fund should they be dissatisfied with the Trustee’s conduct.

In recent years, several issues have arisen with respect to the way the  CSC administers the ADF Schemes. Specifically, these issues relate to members who are in receipt of invalidity payments (Veteran Beneficiaries):
    1. the CSC’s inability to administer the ADF Schemes in accordance with  their respective Trust Deeds and governing legislation;
    2. the lack of regulatory review of the CSC’s conduct to ensure that it is meeting its obligations under its Trust Deeds;
    3. the CSC’s persistent failure to conduct itself honestly, fairly and transparently in its dealings with its members/beneficiaries and in accordance with Modal Litigant Rules; and
    4. the CSC’s inability to resolve issues and complaints made by its members in accordance with natural justice principles.

READ THE CASE FOR  CSC INCLUSION

In this document, are specific examples of the CSC’s conduct which has
fallen short of the professional standards and benchmarks of conduct expected not only by a financial services provider, but more importantly, as a Commonwealth Government entity.

We believe that the CSC should receive the same level of scrutiny as any other
financial services entity included in the Royal Commission and by excluding it the
Royal Commission would fail in upholding the fundamental right of all Australians
“to be treated honestly and fairly in their dealings with banking superannuation and financial services providers. The highest standards of conduct are critical to the good governance and corporate culture of those providers.”

You can help us in two immediate ways:

Ring your local MP and register your concern, and

If you have had any adverse experiences in dealings with the CSC then please contact Brad Campbell or email ADSO at [email protected] with details

 

CSC and the Royal Commission – Protest Rally

Our planned protest rally yesterday 28th June in Brisbane was successful in achieving our goals: to publicly promote the matters by our presence outside the entrance to the Royal Commission Hearings, to gain media attention and to deliver a letter to the Royal Commissioner The Hon K. M. Hayne AM.

We had a good turnout of supporters both younger and older veterans and some with their wives. Present were Brad Campbell and members of Australian Veterans Alliance who run the Veteran Clawback group, John Lowis from DFWA, Ted Chitham from ADSO, Robert Cross, Rod Slater and Gary McMahon from the RAR Association and others with an assistance dog to hold the placards, handout fllyers and information sheets and answer questions from the public

 

(some of the “Protest Team” – Rod Slater was the photographer.)

It was good to see the effect of collaboration between the different ESO’s.

We were pleased to be allowed by the Royal Commissioner to hand deliver a personal request letter addressed to him through a Royal Commission staff person. The letter endorsed by ADSO, the RSL, and the Australian Public Sevice superannuation association/organisations – The Superannuated Commissioned Officers Association (SCOA) and the Australian Council of Public Sector Retiree Organisations (ACPSRO), urged the Commissioner to remedy the exclusion of the Commonwealth Superannuation Corporation from the Royal Commissions Terms of Reference by a recommendation to the Federal Government. Ted Chitham, Brad Campbell and John Lowis were able to brief the staffer on the reasons for our request.  We are hopeful that the Commissioner will support our request.

Brad and Ted were interviewed by both TV Channels 7 and 10 and the ABC said they would do a phone interview with Brad next week from the Royal Commission when they cover Superannuation in Darwin. There is No guarantee of being aired, but we can only hope.

A big thank you to John Lowis for organising the event and a huge thank you to those that turned up. Awesome effort by all.

Stand ready for further action

 

CSC Campaign / Royal Commission – Facts Sheets

 

FACT SHEET ONE – OVERVIEW
COMMONWEALTH SUPERANNUATION CORPORATION ESCAPES ROYAL COMMISSION SCRUTINY

The Commonwealth Superannuation Corporation (CSC) is the fund manager for the Defence Force Retirement and Death Benefits (DFRDB) scheme, the Military Superannuation and Benefits Scheme (MSBS) and ADF Super.

The Terms of Reference of the Royal Commission into Financial Services specifically exclude only ONE financial organisation from scrutiny – CSC.

It is reasonable to ask why the Government doesn’t want CSC Executives to be held accountable before the Royal Commission in the same way as other financial organisation executives. What is the Government trying to keep hidden from the Australian people?

This Fact Sheet helps to answer that question.

 

FACT SHEET TWO – REBUTTAL
COMMONWEALTH SUPERANNUATION CORPORATION ESCAPES ROYAL COMMISSION SCRUTINY

REBUTTAL OF GOVERNMENT EXCUSES

The Terms of Reference for the Royal Commission into the Banking, Superannuation and Financial Services Industry specifically protected ONLY ONE financial organisation, the Commonwealth Superannuation Corporation (CSC), from the scrutiny of Royal Commission investigators.

The CSC manages the superannuation funds of military veterans, among others, and ADSO and RSL have called on the Government to include CSC in Terms of Reference for the Inquiry. The Government refused and offered reasons for its refusal that border on the disingenuous.

This Fact Sheet rebuts the Government arguments for CSC exclusion from Royal Commission scrutiny.

VIDEO – #Vetrans Clawback – CSC & The Banking Royal Commission

 

The only significant Superannuation Organisation NOT included in the Australian Banking Royal Commission is the Commonwealth Superannuation Corporation. The CSC. It manages our Military Super.

The Defence Community has been pleading for the Turnbull Govt to give them a Fair Go – just like all other Australians – and have their super fund scrutinised like the all others.

The Labor Opposition supports the call for a Fair Go.

The Govt has dug in and says the CSC is “well regulated and scrutinised.” That’s what they said about the banks!

With elections looming the Defence Community wishes to see who is going to fight for us.
Please call your local Federal MP and ask for their support and participate in our ADSO actions.

CSC and the Royal Commission – Summary & Actions

Summary Update

 “Why is the Commonwealth Superannuation Corporation excluded from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry?

The Commonwealth Superannuation Corporation (CSC) administers military and other superannuation public service funds for over 700,000 people of which 230,000 are serving and former servicemen and women.

The Royal Commission’s Terms of Reference say: “All Australians have the right to be treated honestly and fairly in their dealings with…. superannuation…. providers.”

Why is our superannuation provider excluded from Royal Commission scrutiny?

Why deny us an equal voice in making submissions to the Royal Commission?

The following representations have been made to PM and the Government  since the announcement of the Royal Commission:

13 December 2017: Media Release – Calls to clarify the Terms of Reference of the Royal Commission into Banking and Superannuation.

18 January 2018joint Media Release with RSL re Royal Commission into the Banking, Superannuation and Financial Services Industry.

7 June 2018 at the Longman Electorate Forum a younger veteran asked the PM the Why question. The PM answered “I don’t know but I;ll find out and get back to you”

15 June 2018 An Open Letter sent to the PM and all Federal Parliamentarians, the Defence Family network and national media outlets and social media.

More recently representations to the PM by both the  Australian Public Services – Superannuated Commissioned Officers Association (SCOA) and the Australian Council  of Public Sector Retiree Organisations  (ACPSRO) have made the same requests for CSC’s inclusion in the Royal Commission

The ALP supports the inclusion of the CSC into  the Royal Commission’s Terms of Reference

To date the Government and PM have not formally responded to our representations

Actions

Veteran Clawback – CSC & The Banking Royal Commission

CSC Campaign: Veteran Protest Rally – 28 June 2018

As part of our campaign to seek inclusion of the Commonwealth Superannuation Corporation (CSC) in the Royal Commission into the Banking, Superannuation and Finance Services Industry, a Dignified Veteran Protest Rally will be staged when the Royal Commission convenes in Brisbane on 28 June.

Our aim is to draw media and public attention to our cause and have the Veteran Voice be heard at the Royal Commission.

READ THE DETAILS HERE

 CSC Flyer