Qantas Super - defined benefit
 

I am slightly concerned about the fiscal health that Qantas mainline is in and the continuing downturn in world markets. These two can add some security risk to our Super benefits in the situation where Qantas the parent company has to periodically 'top-up' Qantas Super due to the defined benefit accounts of the fund. It is possible Qantas mainline does not have funds to accomplish this as they have been transferred to Asian agencies or insular subsidiaries

It would not surprise me if senior management arranged the chess pieces so as to avert any economic risk they may inherent from the responsibility of meeting the defined benefit payouts in the next 5-10years. We all know the pilots, cabin crew and engineers have a majority of baby boomers in Div 1 & 2 which transfer risk to the company. While world markets flounder these annual commitments are the responsibility of the company.

I don't suggest we 'get panic' but I might ask a few questions of the trustee should we hit another GFC in 2012. We also have the option of transferring funds to a SMSF or personal super accounts. If you do consider such I encourage you to seek professional advice.

I read this article today and pondered if we are all as safe as we think we are. Just like the professors thought. Some of them, Professors of Business?

Key fund's woes puts super at risk for thousands - ABC News (Australian Broadcasting Corporation)

Financial Armageddon
 

2012 will indeed be another year to remember. Forget their being a second GFC, this one coming is much much bigger. The little Irishman won't be able to shield your super from the impact of Greece when it fully collapses, as well as Italy, Spain, Portugal, France, the EU in general then the USA. Super will be smashed.
Best bet is to self manage your own super fund, buy precious metals and wait for the death of anything paper and electronic as it is coming like a freight train at full pace and you can't stop it.
Read the signs, they are everywhere. Good luck.

2 things I see.

GFC #2 is possible.

Really though is how QF (super trustees) are going to feel about parting with large sums of $ if QF really goes pear shaped.

If you are taking the view that Aust law protects you, good luck, as we know, the reality sometimes can be different to the legal fantasy land.

Carefully watch this, the greedy beancounters would love nothing else than to carve up the pilots (and others) super now that they've successfully killed the career...

Ask the American Airlines staff. Their super is underfunded by a mere $3 bill, do a little research into how US law protects them.

It is sh!tful.

I wonder what those changes to the Personal Property Security Act that were mentioned at the Qantas Shareholder's briefing recently, will be, and how those changes might affect the sanctity of Super??

A Strategy
 

Leave the defined benefit portion of your super where it is.
Take the rest and put it in a SMSF.
Its do able
BTW defined benefit ceases once you hit 55 for those in Division 2

Defined Benefit ceases at age 65 for those in Div 3 QF Super.