SCT no place for distress or damages

6 July 2017
| By Mike |
image
image
expand image

The Superannuation Complaints Tribunal (SCT) has reaffirmed that it does not have the power to award damages or compensation for distress.

The SCT made the determination (D16-17\142) after a superannuation fund was ordered by the tribunal to pay $200,000 to a deceased member’s wife who then returned to the tribunal seeking nearly $79,000 in damages for ongoing distress.

In rejecting the claim, the tribunal noted that the superannuation fund had complied with the SCT’s earlier determination and had paid the complainant $200,000 and noted that “the trustee was required to do no more than comply with the determination made by the tribunal”.

The determination then went on to note: “The tribunal is not a court and it derives its power from the Complaints Act. There are no express provisions under the Complaints Act that empower the tribunal to award compensation for distress or personal damages, nor does the tribunal have power to direct a trustee or other decision-maker who has been joined as a party to a complaint, to pay a complainant’s costs, out of pocket expenses or interest”.

The SCT determination reinforced that, under the Complaints Act, it could only exercise its power to place the complainant as nearly as practicable to the position they would have been in but for the unfairness or unreasonableness they suffered.

It said that if the complainant had been unhappy with its determination directing the superannuation fund to pay her $200,000 she should have exercised her right of appeal to the Federal Court.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Westpac has delayed its rate cut forecast, aligning with its peer NAB’s outlook on the likely trajectory for the Reserve Bank of Australia’s cash rate....

4 hours ago

The government’s adjustment to the Future Fund’s mandate could set a dangerous precedent, warns an economist, raising concerns that it may pave the way for problematic fu...

3 hours ago

The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remain...

5 hours 39 minutes ago