With the full privatisation of Telstra viewed as likely to compromise the ability of the company’s employees to remain members of the Commonwealth Super Scheme (CSS), their unions will ask the Government to support altering the fund’s trust deed to allow their continued contributions.
The issue has emerged as part of negotiations between the Community and Public Sector Union (CPSU) and Telstra for a new enterprise agreement, with the union pointing to the fact that many members had opted to remain in the CSS at the time Telstra’s predecessor company, Telecom Australia was separated from the Australian Public Service.
The union said the CSS scheme had rewarded those who had opted to remain with the fund through its defined benefit arrangements.
“With full privatisation, under current rules, employees of Telstra would no longer be eligible to contribute to the CSS,” the CPSU said.
It said that, with this in mind, the union had proposed a two step plan involving:
* A joint approach with Telstra to the Government and CSS trustees to vary the deed to allow existing CSS Telstra members to continue to contribute.
* If that approach is unsuccessful, the Agreement should provide for full compensation based on the reduced level of benefit that would be available.
Negotiations on the issue are continuing.
