MESSAGE RE CHANGES TO SUPERANNUATION

Dear Member,

This week you will receive information about a change to your Superannuation Scheme from both Australia Post and the Australia Post Superannuation Scheme.

The important message is that there is no change affecting you or other current employees of Australia Post.

In our opinion, the information provided to you is accurate and you should not have any concern with your present or ongoing benefits.

If you are an APSS member, your superannuation benefit is "defined" - that is - your lump sum is calculated by a formula. Your lump sum remains, and is still equal to:

Final Annual Salary x years of service x 14.3%
(or 9% if you are a non-permanent Australia Post employee)

Your lump sum is guaranteed and does not follow market trends eg the global financial crisis did not reduce your benefit.

The change is the proposal to stop new staff from joining the APSS after 1 July 2012. They will have access to an "accumulation" fund.

The monies (at a rate or % of salary to be determined) paid by Australia Post will be invested and the lump sum will vary depending on market movements eg real estate, shares, cash etc. This is similar to the standard superannuation arrangements operating outside of Australia Post.

The CWU is treating this superannuation change with the utmost of importance. We are already preparing for negotiations with Post to ensure that new members are not "second class employees" and that they receive a similar lump sum upon retirement compared to existing members. We are also investigating if other options exist.

While this essentially affects new employees (after 1 July, 2012), we will keep you informed of the progress of the negotiations.

Yours fraternally

D L Dwyer
CWU National Secretary
28 Feb 2012