Ask Paul: My employer wants $4500 of my super back

A 68-year-old worker was shocked when her employer demanded she repay $4500 in super contributions made while she was on workers compensation leave. Is she really required to hand the money back?

Dear Paul,

I am a 68-year-old woman still working part-time.

I had intended to work until the age of 70.

I work as a phlebotomist for a private pathology company. I retrained at 52, having started working at the age of 16.

Unfortunately, I have been on workers compensation for the past 12 months and cannot perform my daily duties.

My company has demanded I refund $4500 of the superannuation guarantee (SG) paid by them to my super account since I went on workers compensation leave.

The Workplace Injury Rehabilitation and Compensation Act 2013 states that anyone receiving weekly compensation payments who is over retirement age is not entitled to the SG.

This discrepancy needs to be addressed.

In my case I have very little superannuation. I funded four eye operations, have multiple chronic illnesses now, and became a single mum at 40.

This and not being able to work full-time have all contributed to a low superannuation balance - $4500 is a lot of money to me.

The overpayment is their accounting system's fault.

Do you think I should pay this amount? What can be done to change this Act? It is discrimination against older workers. Why?

I hope you can highlight this problem for older workers. - Sheryl

Paul Clitheroe's response

I am very sorry to hear about your situation, Sheryl, and particularly upset by your company demanding the repayment of the $4500 paid by them into your super fund, seemingly in error.

As an investment person, the complexities of workers compensation and super contributions are way out of my area of expertise.

But I fully get your point about the treatment of workers above the age of 67 and discrimination towards older workers.

In terms of repayment, I would have thought your employer would have at least taken your health and situation into account.

I'd suggest you take a look at seeking advice from Legal Aid. I think it would also be worth getting in touch with the Fair Work Ombudsman.

I'd provide contact details, but this is an issue governed by each State and Territory. A list of contact information can be found online at the Fair Work Ombudsman.

In terms of changing this bias against older workers, at Money we are pleased to be able to highlight this to our readers.

You may have done this already, but I would also encourage you to email your local and Federal member.

What to read next

• Can you access one-off financial advice through your super fund?
• More than half of super funds fail service test
• How to check if your employer is paying your super correctly
• Where to complain about superannuation
• Ask Paul: My boss hasn't paid my super for 10 months

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