Trustees have a duty to distribute the trust property correctly.
In the case of a superannuation fund this requires:
- releasing a benefit (a lump sum benefit, pension or both) once a valid Condition of Release event occurs, and
- paying the correct quantum of the benefit.
Due to the lack of visibility to members of benefit payments it is extremely easy for senior executives of an Employer-Sponsored Fund to make arrangements with the Trustee to be paid much more than their lawful entitlements, whilst most Members get paid substantially less than their lawful entitlements.
Many funds were originally established as “deferred benefit” pension funds, where an “active member” would become a “deferred member” he the member resigned or was retrenched before attaining the Normal Retirement Age.
However many Trustees just terminate the Membership of Members who have been retrenched in Breach of Trust ,because Members never bother to obtain a copy of the Trust Deed and copies of the Deeds of Amendment.