STA fund top marks, says report

Date: 20 March 2002

An independent report analysing the two rival superannuation proposals to manage more than $600 million of BHP workers' superannuation savings has found the AWU-endorsed Superannuation Trust of Australia offered comparable services at a cheaper price.

The report by world-renown accounting firm Deloitte Touche Tohmatsu found the STA proposal offered "a similar range of services" as the company-preferred fund but with the advantage of lower fees.

The Deloitte report said the STA proposal gave workers better representation and input over the way the fund was managed than the company-backed option. It also found the STA cost structure was resilient regardless of the number of members, unlike other funds.

AWU National Secretary Bill Shorten said it was now up to the BHP trustees - which is meeting on Wednesday to discuss the future of employees' superannuation - to read the report and do the right thing by its workforce by allowing workers to transfer to the STA from the soon-to-be-defunct industry fund.

"Superannuation is the second most important investment anyone makes after the family home. The STA fund is not only a better option because it is cheaper, it gives employees a greater say in what happens to their money,'' he said.

BHP Billiton moved to outsource its employees $600 million superannuation fund last year. After initial protest from the AWU, whose members had not been consulted, BHP Billiton Superannuation Fund board deferred its decision to transfer the funds to the more expensive company proposal until a study had been done comparing the two proposals. A decision is expected to be made on Wednesday.

Mr Shorten said the company-commissioned study of the two proposals was not sufficiently independent because it was done by BHP's regular auditors.

"We now have a truly independent report that tells the story in black and white - the STA industry fund offers a very good deal for workers,'' Mr Shorten said.

For further information

Contact:	Andrea Carson
Union:	Australian Workers Union (National Office)
Phone:	039 3298733
Contact Mobile:	0407 041933
Fax:	03 9329 2871
Email:	awu@iprimus.com.au
WWW:	www.awu.net.au

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