Since superannuation is compulsory both the Coalition Government and the Opposition have policies to provide compensation to the members and beneficiaries of Government Regulated Superannuation Funds who suffer a loss due to theft or fraudulent conduct.
Compensation was paid to members of four regulated “Trio Capital Superannuation Funds” by the Hon Bill Shorten MP when he was the Minister responsible for superannuation.
In April 2011 the Minister Responsible for Superannuation announced that the Government would be providing financial assistance to over 5000 victims of fraud in the Trio Capital Superannuation Funds by providing a grant of approximately $55 million to the new Trustee of these Superannuation Funds.
The assistance to the new Trustee was granted under Part 23 of the Superannuation Industry (Supervision) Act 1993.
A special compensation mechanism was established after Robert Maxwell and his sons stole £454 million from the employees’ pension funds of the Mirror Newspaper Group in the United Kingdom in the early 1990s.
Compensation is not paid from consolidated revenue but from a special funding mechanism pursuant to the Superannuation (Financial Assistance Funding) Levy Act 1993.