On Tuesday (28 February), the government introduced reforms which it said will strengthen the superannuation system by improving member outcomes.
The new standards will initially target critical areas where complaints data shows the greatest need for improvement, such as timely and compassionate handling of death benefits, fair and efficient processing of insurance claims, and clear, respectful and accessible communications with members.
The government added that the reform also aligns with the newly legislated objective of superannuation: “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way” and complements its retirement phase of super reforms and the Delivering Better Financial Outcomes package.
The Association of Super Funds of Australia said it welcomed the government’s focus on strengthening member outcomes and stands ready to lead the sector’s response to the consultation in collaboration with other stakeholders on the development of these essential service standards.
“ASFA has already spent a significant amount of time working closely with members to identify what can be done, from both practice and policy perspectives, to lift the consumer experience of death benefit claims,” ASFA CEO Mary Delahunty said.
“The work to meet these standards is ongoing, and one the sector is committed to in achieving its goal of continuous uplift in member outcomes.”
ASFA is also rolling out training for the superannuation sector on how to implement the service standards and improve customer experiences of handling death benefits claims.
Super Consumers Australia CEO, Xavier O’Halloran, said the announcement is a massive win for Australian consumers.
“Super funds have been taking far too long to do basics like pick up the phone and pay people the money they are owed. Huge delays on payments at some super funds were forcing people to struggle with their day-to-day living costs and debts,” O’Halloran said.
“We look forward to representing consumer needs in the forthcoming service standard consultation. If done right, these standards will strengthen the super system and give people confidence that their super is there for them when they need it most.”
Christine Cupitt, CEO of the Council of Australian Life Insurers (CALI), said Australia’s life insurers are committed to delivering a high level of service to all of their customers every day, including the 10 million Australians who hold insurance through their superannuation.
“Life insurance works hand in hand with super to protect people’s nest eggs and allow them to have a dignified and financially secure retirement if they can’t live a full working life,” she said.
“For many people, the life insurance they have in their superannuation is the only type of cover they have or will ever have. People rightly expect their life insurance claims to be dealt with quickly and efficiently.”
