“Cbus spent almost $400,000 on a party earlier this year, after the industry superannuation fund had allegedly mishandled $20m in insurance money and in some cases took more than a year to pay out death benefits or disability payments.
This party fell just days before damning allegations of criminal links were levelled at the Construction Forestry and Maritime Employees Union, which controlled three seats on the Cbus board.”
And
“Cbus chairman Wayne Swan has apologised “unreservedly” for the excessive delay in paying millions in payments to grieving families and disabled people in an extraordinary address to the $94bn superannuation giant’s annual meeting.
As he faces questioning in parliament on Friday over the 10,000 Cbus members and claimants whose death and disability insurance claims were delayed for 12 months or more, Mr Swan apologised for the fund’s latest scandal but stood by a raft of new board members sourced from the controversial CFMEU.
Mr Swan – who is also Labor’s national president – told the annual general meeting that the fund was “uplifting” its customer service efforts and said it had worked through 80 per cent of outstanding claims.”
••••••••••••••••••••••••••••••••••
It’s not hard to see why Tim Ayres wants to avoid questions around the governance of Superannuation.
Labor use it as a junket. Even $4,000 is excessive for a party but $400,000?
And while the blowhards are partying, aggrieved family members haven’t been able to get access to their loved one’s superannuation at all.
People First is the only party that plans to make Superannuation Boards be elected by members and not selected by industry insiders.
Superannuation is a racket that has to stop.
Quotes from:
https://www.theaustralian.com.au/nation/cbus-40th-birthday-kneesup-cost-members-387k-fund-admits/news-story/1f9a90efa79ebef98f88036b677869c0
https://www.theaustralian.com.au/business/financial-services/wayne-swan-apologises-for-payout-delay-scandal-at-cbus-agm/news-story/bc5a5a2e15e32333ca0025b971b70109
Economics Legislation Committee
21/11/2024
Estimates
TREASURY PORTFOLIO
Australian Prudential Regulation Authority
Senator RENNICK: I’m going to keep talking about governance, but it may be a question of policy, so I’m happy for Minister Ayres to answer. I am happy to get both points of view here. Shouldn’t super funds allow members to elect their board? Wouldn’t that be a much more democratic process?
Senator Ayres: That sounds like a matter of policy. It is not something that the government is contemplating.
Senator RENNICK: Don’t you think they should contemplate it? Let me put it another way. Shouldn’t the members have a say in who manages their money?
Senator Ayres: These funds, and I assume you are referring to the industry funds.
Senator RENNICK: No; I am actually referring to both funds. I am not taking sides here.
Senator Ayres: The other funds are private funds and they don’t have those sorts of arrangements. They are for-profit funds.
Senator RENNICK: But they are still appointed as well, aren’t they?
Senator Ayres: The industry funds have been very successful. It is a very successful model. The government is obviously—
Senator RENNICK: That is not the question.
Senator Ayres: The government is obviously alive to future reforms to support the growth of superannuation. But you would have to say that, all these decades down the track, from when unions and employers in these industries founded industry superannuation, many of them, after very difficult industrial struggles to form these funds and to establish them in the award system and through the enterprise bargaining system over that period, it has been a very, very successful model in the national interest—
Senator RENNICK: That is a matter of opinion.
Senator Ayres: and in the interests of workers who now have retirement income that they otherwise would not have had.
Senator RENNICK: A lot of people don’t, actually. The median balance for women aged 60 to 64 is $158,000. So I wouldn’t consider that a figure to retire on.
Senator Ayres: If you have questions about superannuation policy, APRA is probably not the place to ask them.
Senator RENNICK: They oversee superannuation funds. Don’t avoid the question.
Senator Ayres: On the prudential regulation of superannuation funds, I’m sure Mr Lonsdale will be delighted to answer your questions.
Senator RENNICK: And that involves governance.
Senator Ayres: Policy questions.
Senator RENNICK: Part of the problem is the poor governance—which we have seen in just the last two weeks. It has been disclosed that Cbus Super and other super funds have not been paying out people in a timely manner.
Senator Ayres: That is why we have regulation. As these problems emerge—
Senator RENNICK: Clearly, we haven’t had good enough regulation. I’ve spoken to people who are dealing with the grief of losing a loved one, and the super funds are making it very difficult for these people to access money to help pay for the bills.
Senator Ayres: As I’ve indicated, that is why we have prudential regulation arrangements and the other regulation arrangements that engage with superannuation. When the regulator discovers an issue that they need to engage with, that is what they do.
Senator RENNICK: Okay. I’ll leave it as a comment that I think members should be able to have a vote. We vote in a democracy, and we should be voting in the way our capital is allocated. Should super funds also seek direct proxies before they get to vote in AGMs? Companies actually have AGMs where they get to appoint the board; yet super boards, who are not elected, then go and vote in company AGMs without seeking the intentions of their members. Do you think that is democratic?
Senator Ayres: Again, Senator, I think you have probably arrived at the wrong place for that.
Senator RENNICK: No; I think I’m in the right place, actually.
Senator Ayres: In terms of the agenda, you are very welcome here, but, in terms of these questions about the regulation environment, if you ask me what I think about that, I think superannuation boards have to make decisions about all sorts of questions, including making judgements about their ownership of businesses or parts of businesses and they have to make those decisions wisely.
CHAIR: Last question.
Senator RENNICK: I will leave this comment, though I have one other question. People weren’t actually given a choice to ask if they want to hand over 12 per cent of their wages. I will leave that comment.
CHAIR: Last group of words.
Senator RENNICK: Mr Lonsdale, do you know why banks don’t offer 25-year loans here in Australia? I know other countries do it.
Mr Lonsdale : I think the short answer is that we are not regulating the product that they sell. That is a commercial decision for the banks. We are regulating around the risk.
Senator RENNICK: Sure. I just thought I’d ask. Thank you.
