Key members of Australia’s $4.1 trillion retirement savings industry have backed revised standards for treating their millions of members.
The Australian Government is introducing mandatory and enforceable service standards for all large superannuation funds regulated by the Australian Prudential Regulation Authority (APRA).
The reform was welcomed by peak bodies the Association of Superannuation Funds of Australia (ASFA) and Super Members Council (SMC) and CPA Australia.
Assistant Treasurer and Minister for Financial Services Stephen Jones said the updated standards would initially target critical areas needing the most improvement such as:
- The timely and compassionate handling of death benefits
- Fair and efficient insurance claims processing, and
- Clear, respectful and accessible communication with members.
“These reforms are all about strengthening the superannuation system by improving member outcomes,” Jones said in a media release.
The announcement comes in the wake of legal action by the Australian Securities and Investments Commission against building industry fund Cbus Super for mishandling insurance claims processing which cost vulnerable members $20 million.
ASFA CEO Mary Delahunty said members recognised consumer expectations of service standards had not always been met.
“Scrutiny and high standards drive our world-class sector forward,” Delahunty said in a media release.
SMC CEO Misha Schubert said fund members rightly expect the highest standards of service, communication, and care.
“Super funds have tens of millions of interactions with their members every year, and members expect those interactions to be timely, responsive and clear,” Schubert said in a media release.
CPA Australia’s Superannuation Lead Richard Webb said reform was long overdue.
