AN Superannuation Shortfall
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AN Superannuation Shortfall
Notification has been received that there has not been any contributions paid to the AN super fund by AN/NZ since the end of July.
As a result of this and the fall in the value of the funds assets due to the world economy there are insufficient assets to comply with the trust deed.
Accordingly the fund is frozen until further notice and no benefits will be paid.
The trustees are in a dilemma due to their responsibilities and will have to 'seek the guidance' of a court.
AN staff who have been making voluntary contributions and all staff with insured benefits should seek professional assistance.
As a result of this and the fall in the value of the funds assets due to the world economy there are insufficient assets to comply with the trust deed.
Accordingly the fund is frozen until further notice and no benefits will be paid.
The trustees are in a dilemma due to their responsibilities and will have to 'seek the guidance' of a court.
AN staff who have been making voluntary contributions and all staff with insured benefits should seek professional assistance.
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Skyhawk XP,
Which Super Fund are you referring to? I understood the Pilot's Super Fund was separate from the other company fund. Or are both super funds short?
If your story is correct it is just another example of AirNZ dodginess. If true criminal charges should ensue.
Which Super Fund are you referring to? I understood the Pilot's Super Fund was separate from the other company fund. Or are both super funds short?
If your story is correct it is just another example of AirNZ dodginess. If true criminal charges should ensue.
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Skyhawk XP:- As a member of the AN Ground Staff SuperFund, I have been advised that problems may arise IF all beneficiaries of the fund were to be terminated at the same time. It appears that, if my reading of the situation is correct, the actuaries who advise the fund managers were of the opinion that a mass redundancy program would never happen, therefore the possibility was never funded. I believe that normal fund benefits, i.e. resignation or retirement, would be funded. If anyone out there has any better, and accurate, info, please advise ASAP.
Kind regards,
TheNightOwl.
Kind regards,
TheNightOwl.
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According to Mark Mentha, one of the Administrators, today, the AN Ground Staff Fund could have difficulties if the airline were to cease operation. His aim is to keep the airline operating and eventually employ about 50% of the staff, which would minimise the drain on the Fund's assets.
As for the Pilots' Accumulation Fund, my understanding is that the benefit paid is dependent on the value of the fund's investments.
As for the Pilots' Accumulation Fund, my understanding is that the benefit paid is dependent on the value of the fund's investments.
Evertonian
I might be oversimplifying this, but if the majority of staff "rolled over" their super into the same fund, there shouldn't be a problem. Most people wouldn't want their super now anyway, they still want it for the future, so keep the fund going & it could be recapitalised using the same forecasts. Or, have I missed something?? 
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The pilots fund has been an accumulation fund, since the war in 89. Mass withdrawls are not an issue (except if you are the commissioned based fund manager!)
The other staff have 'defined benefit' funds which are entirely different and mass redundancies are a more serious matter.
The other staff have 'defined benefit' funds which are entirely different and mass redundancies are a more serious matter.
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Almost $10 Million is owed to the four AN Employee Superannuation Funds by NZ/AN.
This figure also includes the employee deductions that have been retained at this stage by NZ/AN.
The Administrator is now attempting 'to retrieve' the $10M from NZ/AN and pay this into the members respective funds.
This figure also includes the employee deductions that have been retained at this stage by NZ/AN.
The Administrator is now attempting 'to retrieve' the $10M from NZ/AN and pay this into the members respective funds.
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Skyhawk XP My understanding is that there is no requirement in law for an employer to pay employee superannuation contributions other than once per year. Contibutions deducted must be paid into the superannuation fund within 21 days of the close of the financial year in which the deductions took place.
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Yes rpt2, it is an appalling situation. Employers can use the employer and employee contribution as interest free working capital for up to 12 months.
Guess who sanctioned this: The Labour Government under Paul Keating.
Guess who sanctioned this: The Labour Government under Paul Keating.
