Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-09-14 Daily Xml

Contents

SUPER SA PENSIONS

The Hon. R.L. BROKENSHIRE (15:48): I raise a matter today concerning a constituent's widow's Super SA entitlement, a matter which has some complexity. I give the following chronology of allegations, which I will pass on to the Treasurer for further investigation. My constituent has asked that these matters be raised in parliament.

My constituent is an 80-year-old lady who was entitled to a widow's pension of two-thirds of her husband's Super SA policy if she outlived him. Her husband had worked for the state railways until retirement. After 50 years of marriage, the widow's family doctor and her husband's psychiatrist both advised that they considered it dangerous for her to continue living with her husband due to his mental illness.

Just before he retired in 1985, Super SA ran a conference during which my constituent was told that she would be paid her two-thirds entitlement regardless of separation or divorce. My constituent alleges that Super SA has admitted that advice was given to her at that conference. Family Court proceedings were initiated to formalise the separation in the early 2000s. Changes to superannuation considerations in family law occurred during this process taking place.

My constituent did outlive her husband, but Super SA did not pay the entitlement she thought she deserved, an entitlement that equates to a commuted six-figure sum, to provide for her retirement. Super SA claimed that, had the critical court hearing for finalisation of the moneys occurred by 28 December 2002, my constituent would have received the pension she was entitled to. However, due to the hearing occurring just 27 days later, on 24 January 2003, Super SA said that it would not give her that entitlement.

My constituent alleges that her agreement for the entitlement to be paid was made before the deadline but the documentation was sealed only after the deadline, which resulted in her losing her entitlement. Law Claims insurance subsequently agreed to pay $30,000 for bad advice by her original solicitor, from which my constituent had to pay her legal advisers, which ended up involving Queen's Counsel. The late husband left the widow nothing in his will, but the estate agreed to pay her $10,000. The widow received no further money from Super SA and my constituent alleges the state government still has over $100,000 of money that my constituent argues ought to be paid to her and which, it would appear, falls just beyond her reach by 27 days due to a change in the law. Super SA at one stage offered the superannuation pension to my constituent, but then, in a subsequent letter, it withdrew that offer.

I conclude these allegations to say they are as have been related to my office by my constituent with the assistance of her son, but I understand all of this to be correct and accurate. I acknowledge the circumstances are somewhat unique and I sincerely hope are a one-off occurrence. Nonetheless my constituent's lack of progress with Super SA has brought me to raise the matter in the parliament with the agreement of my constituent. Obviously I will not name my constituent here in the parliament; however, with her approval I will be prepared to speak personally to the Treasurer with respect to her name for follow up.

I place on record the following questions, and I do so knowing a question in this place would be taken on notice in any event. I will be asking these questions and others of the government by forwarding Hansard of my matter of interest speech today to the Treasurer, with an accompanying letter seeking a detailed answer. The two key questions that I would ask the Treasurer to look into on compassionate grounds as outlined in this matter of interest today are:

1. Why has Super SA been so lacking in compassion for this widow, who has been through a lot and is now over 80 years of age, just because of a procedural issue?

2. Will the Treasurer negotiate with Super SA to reverse its decision and pay the widow her pension entitlement as it originally agreed to do before it then withdrew that offer?