The Australian Securities and Investments Commission (ASIC) is investigating AustralianSuper for taking too long to process death benefit claims, causing distress for beneficiaries of deceased members.
The Australian Securities and Investments Commission ( ASIC ) is investigating Australia's largest superannuation fund, AustralianSuper, for its handling of death benefit claims. The probe stems from concerns that the $355 billion fund has been taking too long to process these claims, causing distress for beneficiaries of deceased members.
ASIC initiated the investigation following a revelation last year that AustralianSuper had been compensating millions of dollars to beneficiaries who faced significant delays in receiving their death benefits. This internal review was conducted under pressure from ASIC, which urged superannuation funds to enhance their member services and address operational shortcomings.AustralianSuper's chief member officer, Rose Kerlin, acknowledged the delays and apologized to members for the inconvenience. She stated that the fund had identified instances where it took longer than its internal target of four months to process certain death benefit claims. Kerlin emphasized that AustralianSuper has been actively reimbursing impacted beneficiaries and taking steps to improve its services. This includes opening a new bereavement center in April 2024, staffed with 75 employees dedicated to handling death benefit claims with dedicated case managers. Kerlin attributed the delays to an increase in the fund's membership and the surge in deaths during the COVID-19 pandemic, which put pressure on AustralianSuper's systems. She highlighted the fund's commitment to improving its processes and ensuring a timely resolution of death benefit claims. This investigation comes amidst a wider scrutiny of the superannuation sector by ASIC, which has expressed concerns about the handling of death benefit claims across the industry. ASIC commissioner Simone Constant sent a letter to chief executives of superannuation funds last year, urging them to address deficiencies in their claims handling procedures. Constant pointed out that some funds lacked transparency in their communication about death insurance policies and made it difficult for members to understand their coverage. ASIC placed 10 funds on notice and demanded detailed data on their claims handling practices. Constant highlighted operational failures by trustees in gathering and analyzing data that could provide insights into the experiences of claimants. This lack of data, according to Constant, prevented trustee boards from effectively overseeing the performance of their funds in handling death benefit claims. The investigation into AustralianSuper is part of ASIC's ongoing efforts to ensure that superannuation funds are operating effectively and meeting the needs of their members. The regulator is committed to holding funds accountable for their actions and improving the overall experience for Australians seeking to access their superannuation benefits
SUPERNUATIION ASIC AUSTRALIANSUPER DEATH BENEFITS INVESTIGATIO CLAIMS HANDLING
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.
Australia Probes Death of Citizen Held as POW in RussiaThe Australian government is investigating reports that Oscar Jenkins, an Australian citizen captured by Russian forces while fighting in Ukraine, has died. While the reports remain unverified, the government has expressed serious concerns for Jenkins' welfare and called on Russia to uphold international humanitarian law regarding prisoners of war.
Read more »
Tennis Australia Probes Suspected Match-Fixing Involving Bernard TomicAustralian punter Anthony Waller alerted Tennis Australia and police to suspicious betting patterns surrounding Bernard Tomic's Australian Open qualifying match loss. High-stakes gamblers placed unusual bets on Tomic's defeat, triggering investigations into potential match-fixing.
Read more »
ASIC Investigation into ANZ Nears Conclusion, Concerns RemainThe Australian Securities and Investments Commission (ASIC) is nearing the end of its investigation into alleged corporate governance failures at ANZ, with a final announcement expected by mid-year. The probe, one of ASIC's most complex, focuses on allegations of bond rate manipulation by ANZ traders. ASIC Chair Joe Longo remained concerned about 'serious issues' uncovered during the investigation. ASIC is also investigating claims of incorrect interest calculations on savings accounts and inadequate handling of hardship provisions at ANZ.
Read more »
China overtakes Australia as country with second-largest known lithium reservesThe China Geological Survey says new discoveries mean the country's share of the world's known lithium reserves have increased from 6 per cent to 16.5 per cent.
Read more »
BlueScope Steel Invests $1.15 Billion in Relining Australia's Largest Blast FurnaceBlueScope Steel is undertaking Australia's largest steelmaking project, relining a dormant blast furnace at its Port Kembla steelworks. The $1.15 billion investment aims to extend the life of the facility for another two decades.
Read more »
Drug Cartel Uses Submarines to Smuggle Cocaine into Australia's Largest Coal PortA recent investigation revealed that drug cartels are utilizing an oceanic superhighway, targeting the Port of Newcastle, Australia's largest coal port, to smuggle cocaine into the country. The operation involved Norwegian divers using high-tech submersibles to retrieve kilograms of cocaine hidden on the hull of a ship. The story details how police intercepted the operation thanks to an anonymous tip and the vigilance of a ferry master, resulting in the arrest of two divers.
Read more »