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ESSSuper faces class action over alleged unpaid entitlements
The Rail Tram and Bus Union (RTBU), represented by Gordon Legal, has announced a class action against $36 billion fund ESSSuper over alleged unpaid super entitlements.
The class action argued ESSSuper breached its obligation by failing to include shift penalty allowances when determining the super to be paid to some transport superannuation fund members.
It alleged these unpaid entitlements could exceed $40 million.
“Time is of the essence; we are seeing workers who are delaying their retirement after fighting for years to ensure they receive the fair superannuation entitlements that they deserve,” said James Naughton, partner at Gordon Legal.
He stated that ESSSuper, which is responsible for managing the superannuation of more than 127,000 members, “failed to act” and “left these workers with no other option.”
“This is the last straw,” Naughton said.
The super fund has been miscalculating superannuation payments by as much as $300,000 in some cases, the class action alleged.
“These variances can have a drastic impact on the ability of the transport workers to retire and have the quality of retirement they deserve,” Naughton observed.
The class action covered people who are still working as well as those who are retired and eligible to join.
Two of the three lead plaintiffs in the proceeding, Elwyn Gonsalvez and Sebastiano Ferraro, are retired and former members of the Transport Fund, while plaintiff Basil Seventis is a current member.
According to Gonsalvez, his experience with ESSSuper has resulted in the exclusion of more than $90,000 from his super fund after they failed to include his allowances under the defined benefit scheme.
“I worked for over 45 years and to now be forced into legal action so I can retire is devastating,” Gonsalvez said.
RTBU branch secretary Vikrant Sharma added the union will continue to strive to ensure members receive their hard-earned entitlements.
“Superannuation is the most important aspect of financial planning for retirement in Australia and it is a basic expectation of workers that superannuation is paid correctly,” he said.
In a statement to InvestorDaily, ESSSuper chief executive, Robbie Campo, confirmed the fund had made contact with the RTBU's representatives to discuss their claim.
"We are hopeful this matter can be resolved through discussions with the union and engagement with Metro Trains- the employer of most of these members," she said.
Last year, SuperRatings analysis indicated ESSSuper beat out mega funds like Australian Retirement Trust and Aware Super to deliver the top Balanced option performance for the year ended June 2023.
The fund delivered a 13.3 per cent return in the 12 months to June 2023, followed by Vision Super (11 per cent) and Brighter Super (10.6 per cent).
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
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