The chief executive of the Australian superannuation (pension) fund accused of costing vulnerable members A$20 million because of delays with its life insurance and other payments is due to front an Australian parliamentary committee today.
Construction and Building Unions Superannuation Fund (Cbus) CEO Officer Kristian Fok was scheduled to appear before the Senate Economics References Committee.
The public hearing into improving consumer experiences, choice, and outcomes in Australia’s retirement system was scheduled to begin at 10am (AEDT) and be livestreamed at: https://www.youtube.com/watch?v=NJXiEdy2w7E
Fok was expected to be questioned by senators about allegations by legal corporate regulator the Australian Securities and Investments Commission (ASIC) that it mishandled the processing of insurance claims.
ASIC has launched legal action in the Federal Court claiming more than 10,000 members and claimants of Cbus were affected by death benefits and total and permanent disability (TPD) insurance claims taking more than 90 days to be processed.
Cbus has apologised for the delays, established a compensation program affected members committed to improving management of insurance claims.
Cbus is part of what has been called Big Super, the giant industry funds in Australia’s $3.9 trillion superannuation (pension) industry that receive mandatory payments from employers to invest for employees under the universal retirement savings system.
The industry funds have been criticised for their close links to trade unions with union officials making up half of their boards as “employee” representatives and employer representatives occupying the remaining seats.
The spotlight has been shone in particular on payments by these funds to unions in the form of director fees, advertising and sponsorship.
Cbus is one of Australia’s largest super funds, managing $94 billion of retirement savings for more than 900,000 members, many of whom work in the building industry.
On 27 November 2023, the Senate referred the inquiry to the Senate Economics References Committee with a final report scheduled to be presented by 30 June 2025.