Culled by a Computer

The fraud is very difficult to prove even though it involves a contravention of the Age Discrimination Act 2004. 

Many long serving Employees believe that they have secure jobs? They have received positive “Performance Appraisals” but suddenly there is a “restructuring” initiated by senior executives and these long serving Employees in their early to mid fifties find that their “secure” jobs have been declared “redundant” and since their Employer will then claim that there are no other suitable positions available and so these Employees then given a Notice of Retrenchment by their Employer.

What these Employees do not realise is that they have been “Culled by a Computer” following a recent visit by an International Actuarial Firm to their Employer’s Human Resources Department.

These International Actuarial Firms specialise in advising Human Resources Departments as to how they can minimise their superannuation liability exposure.

The International Actuarial Firm will prepare a graph similar to that below showing the Employer’s workforce “demographics“.

Then drawing on the extensive database of statistics collected by the International Actuarial Firm, the Actuaries will produce an “Employee Demographic Profile” for a “typical” competitor as shown below.

Notice how in this case the “typical” competitor has a much younger workforce with fewer Employees aged 50 or more.

The Actuary will then demonstrate the reduction in superannuation liabilities its client could achieve by “re-balancing” its workforce towards “industry norms“.

The Actuary then collects a big fee for his “insightful” report and a round of retrenchments in then enacted by this Employer which targets Employees over the age of 50 in a blatant contravention of the Age Discrimination Act 2004.

But don’t bother contacting the Australian Human Rights Commission which is supposed to enforce the Age Discrimination Act 2004, the Commissioner does not want to hear about Employers culling their older Employees.

The senior executives then award themselves a large annual bonus for the substantial “cost saving” they have been able to achieve through their dedication and hard work! {Recommended reading: Retirement Heist – How Companies Plunder and Profit from the Nest Eggs of American Workers by Ellen E. Schultz}

Many of the retrenched Employees will find it difficult to secure a similar well paying job and many will be force to access their superannuation when they attain the age of 55.

For these former Employees superannuation instead of providing for a comfortable retirement was instrumental in them losing their jobs well before the Normal Retirement Age of 65 (now being increased by the Government to 67).

In many cases these same former Employees will have been a victim of one of the other Superannuation Frauds. These Frauds are however much easier to prove.

If you were a Member of a final salary Defined Benefit Fund and were retrenched by your employer before attaining the Normal Retirement Age of 65, then you should consider becoming a Member of Australian Guardians today.

Email ausguardian@gmail.com or leave contact details below.

Australian Guardians – Protecting your wealth when no one else will®

 

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