A duty of safeguarding the trust property is fundamental to the notion of trusteeship and the administration of trusts.
In the case of superannuation fund there are regular additions to the trust property in the form of:
- Contributions from the Employer-Sponsor
- Contributions from Members in the case of a “Contributing Fund“
- Transfers in from other Funds when Members join the Funds
The Trustee must be able to properly account for all of these additions to the Trust Property.
In final salary Defined Benefit funds that been in operation for many decades, large surpluses can accumulate which them become tempting targets for the senior executives of the Employer-Sponsor or potential corporate raiders.
One way to gain access to the fund surplus is simply to unlawfully replace the incumbent trustees with a “friendly Trustee” and/or to illegally amend the terms of the trust.