The Fraudulent Benefit

A purported Deed of Variation dated 26 August 1986 purported to replace the life pension plus survivorship pension with a “Lump Sum Benefit“.

The purported lump sum benefit was based on the formula:

[15%] times [Years of Fund Membership] times [Final Average Salary]

where [Final Average Salary] was the average of the last three years of service.

Since a probationary period of service was required to be served before becoming eligible to be appointed and object of the superannuation trust (ie to formally become a member of the fund}, the [Years of Fund Membership] was less than [Years of Service].

Furthermore a Penalty Factor was applied for members who left the fund before the age of 60 irrespective of whether they were retrenched or left voluntarily.

To determine the typical loss members of the fund incurred due to the fraudulent document dated 26 August 1986 as survey of members was undertaken and the results are to be found here.

 
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