The Australian government plans to introduce mandatory standards for the superannuation industry to ensure grieving families receive death benefits more quickly. This follows criticism of lengthy delays in processing death and disability payments by funds, including Cbus, which admitted to processing over 10,000 claims late, costing members millions of dollars.
Grieving family members would get faster access to the superannuation of deceased loved ones under mandatory standards the Albanese government plans to introduce if re-elected.
“I’ve given a period of time to lift their service speed and whilst there have been improvements, we’re nowhere near where we need to go,” Jones said at a press conference. mistreatment of vulnerable customers was a systemic failure of the sector, highlighting widespread customer service failings on death and disability claims.Following a multi-year project examining industry practices and compliance with laws, ASIC wrote to the chief executives of several funds, urging them to assess their death benefit claims-handling practices.ASIC will this year issue a public report with more detailed insights from its review of super fund websites.
“The mandatory standards don’t address the lack of experience and expertise on boards or the conflicts of interest,” he said.Treasury will work with consumer advocates, regulators and industry stakeholders to develop the government’s proposed mandatory standards, with a draft to be released for public consultation.
SUPERANNUATION DEATH BENEFITS FINANCIAL REGULATION CONSUMER PROTECTION INDUSTRY STANDARDS
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Superannuation Death Benefits: Tax Traps and Strategies for Your HeirsThis article explores the tax implications of superannuation death benefits and provides strategies to minimize tax liabilities for your heirs. Learn about concessional and non-concessional contributions, the re-contribution strategy, and the importance of a binding death benefit nomination.
Read more »
Perth Woman Reclaims $50,000 in Lost SuperannuationA Perth woman discovered $45,000 in a forgotten superannuation account, highlighting the potential for many Australians to have unclaimed funds.
Read more »
Don't Ignore Your Superannuation: Why Starting Early is CrucialThis article highlights the importance of superannuation and emphasizes the benefits of starting early. It shares a personal anecdote about a missed opportunity and explains how even small contributions can grow significantly over time due to compound interest. The author encourages readers to take action to maximize their superannuation benefits.
Read more »
Don't Ignore Superannuation: It's One of the Most Impactful Financial Moves You Can MakeThis article emphasizes the importance of starting superannuation contributions early in life, highlighting the significant long-term growth potential and the consequences of neglecting this crucial aspect of retirement planning. It stresses that superannuation is not just a retirement product but a system of 'forced' investing for a financially secure future.
Read more »
The Cost of Ignoring Your SuperannuationThis article highlights the importance of superannuation, a retirement savings system in Australia. It warns readers about the financial consequences of neglecting their superannuation, emphasizing that early contributions yield significant long-term growth. The author shares a personal anecdote about missing a valuable opportunity due to a lack of understanding, urging readers to prioritize their superannuation from the start of their working lives.
Read more »
Retirees forced into a superannuation system with no support; time for a change, says reportA new report by the Grattan Institute has proposed significant changes to Australia's superannuation system
Read more »