Progressing claim for retired ministers

Posted Jun  8, 2016 in News

In January this year, New Times reported that many retired members in the UCA Beneficiary Fund would see their retirement incomes slashed by Federal Government changes to superannuation.

If action is not taken, more than 1,200 retired Uniting Church ministers (or their surviving spouses) will face continued losses in income of as much as $10,000 a year. This will severely impact the lives of the many retirees who are already living on modest incomes.

Members of the Uniting Church in Australia Assembly have been working hard to address this issue, seeking a review of the legislation and an exemption for retired ministers. Unfortunately, the Federal Government’s progress in addressing the claim has been slower than desired and many retired members are already facing financial difficulties.

“Since our last update, the coordinator of the Uniting Church response Mr Bruce Binnie has been working with our superannuation provider Mercer and the Fund Actuary to advance our claim on behalf of Fund members,” says Assembly General Secretary Colleen Geyer.

“In particular we are seeking to have the tax treatment for Fund members changed so that more than the legislated limit of 10% is allowed as a deduction in the assessment process for aged pensions. This was the understanding when members were contributing, and was a key factor in their retirement planning.”

On Thursday 3 March Bruce Binnie met with Social Services Minister Christian Porter, who agreed to arrange for the Department of Social Services (DSS) to review the Trust Deed and Rules of the Beneficiary Fund. Information about the Beneficiary Fund has since been handed to the DSS to assist with the claim.

While conversations with DSS staff are progressing, it is unlikely that a resolution will be reached before the July Federal Election.

“The Assembly will continue to advance this issue with Departmental officers and will actively raise it in the course of the 2016 Federal Election campaign,” Colleen assures.

“It is fundamentally unjust for our retired members, after a lifetime of service, to be retrospectively punished for their choice of scheme.”

To read Colleen Geyer’s full statement, please visit the Assembly website.

For more information on the Federal Government’s changes, the UCA Beneficiary Fund, and Assembly responses, please read the January 2016 New Times article.

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