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(October-2003) Pilots take off with entitlements
Pilots belonging to the Ansett Australia Pilots Accumulation Plan have had their benefits released, with the trustees moving to wind-up the fund.
However, the progress of the Pilots Accumulation Plan represents the only bright spot for members of Ansett superannuation funds, with the three remaining plans still being affected by ongoing litigation between the administrators of the failed airline and the fund trustees.
The litigation is set to continue in circumstances where the Federal Government recently rejected calls by the Australian Council of Trade Unions to use any surpluses resulting from the Ansett Ticket Levy to meet any shortfall in funding for superannuation entitlements.
The ACTU argues that the Government’s refusal to pay any surplus from the ticket levy will leave a shortfall in funds available to pay outstanding entitlements of around $350 million.
At the heart of the litigation affecting the Ansett Ground Staff Superannuation Plan is the inclusion of a retrenchment benefit which was higher than the resignation benefit. When the airline collapsed, the plan was not funded sufficiently to cover the retrenchment of all members.
The other defined benefit plans are not affected by the litigation except to the extent that it affects the release of employer contributions by the administrator to make up the shortfall in funds.
However, the Ansett Flight Attendants’ Benefits Scheme has told members it has become “technically insolvent” in terms of the SIS regulations and that as a result of this, it is in discussions with the Australian Prudential Regulation Authority to bring appropriate closure to the plan.
Because they were members of an accumulation plan, the members of the Pilots Accumulation Plan found themselves in a different position with the airline administrators, KordaMentha, providing formal notice of termination of contributions to the plan in March, allowing the trustees to wind-up the plan and release full benefits.
The trustees informed members they had selected the aviation division of the Australian Public Superannuation Fund as the successor fund for the pilots’ plan.
AUTHOR
Zilla Efrat
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