The Australian Securities & Investments Commission (ASIC) published Report 806 on superannuation death benefit claims handling and set out 34 recommendations for trustees, urging immediate action after identifying excessive delays, poor customer service and weak claims handling controls that can harm grieving claimants. ASIC’s review covered 10 trustees over a two-year period ending 31 March 2024, representing 38% of member benefits in Australian Prudential Regulation Authority (APRA) regulated superannuation funds and spanning retail, industry and public sector trustees with both insourced and outsourced administration models. None of the reviewed trustees monitored or reported end-to-end claims handling times, and 78% of reviewed claim files had delays driven by processing issues within the trustee’s control. Claims performance varied significantly, with the fastest trustee closing about 48% of claims within 90 days compared with around 8% for the slowest, while poor customer service was observed in 27% of files and ASIC also highlighted inadequate support for First Nations and vulnerable claimants. The recommendations focus on faster responses, improved monitoring and reporting, streamlined processes, staff guidance and training, removal of barriers for First Nations claimants, and clearer communications and support. ASIC said it will review progress across trustees in improving death benefit claims handling, and referenced recent civil penalty proceedings against AustralianSuper over alleged delayed processing of nearly 7,000 death benefit claims and against United Super Pty Ltd as trustee of Cbus alleging more than 10,000 members and claimants were impacted by death benefits and total and permanent disability insurance claims taking more than 90 days to be processed.
Australian Securities & Investments Commission 2025-03-31
Australian Securities & Investments Commission issues 34 recommendations to superannuation trustees on death benefit claims handling
The Australian Securities & Investments Commission (ASIC) released Report 806 on superannuation death benefit claims handling, identifying excessive delays and poor service. Covering 10 trustees over two years, the review found 78% of claims had delays due to trustee-controlled processing issues. ASIC issued 34 recommendations for trustees, including faster responses, improved monitoring, streamlined processes, and better support for First Nations and vulnerable claimants. ASIC will monitor progress and noted recent civil penalty actions against AustralianSuper and United Super Pty Ltd for delayed claims processing.