ASIC is suing the trustee of Australia's largest superannuation fund, AustralianSuper, over delayed processing of nearly 7,000 death benefit claims, according to proceedings filed in the Federal Court.
ASIC alleges that between 1 July 2019 and 18 October 2024, AustralianSuper failed to process death benefit claims efficiently, honestly and fairly when it took between four months and four years from the date the claim form was returned to assess at least 6,897 death benefit claims.
ASIC also alleges AustralianSuper failed to pay members’ benefits as soon as practicable after the the death of at least 752 members. In one case, despite having all the information required to pay the benefit, it took AustralianSuper 1,140 days to make the payment. Others took 438, 412 and 366 days.
In 254 cases, AustralianSuper took between 15 and 213 days to provide the claim form, according to ASIC’s allegations.
“At its heart, this matter is about protecting vulnerable Australians and their families,” salid ASIC deputy chair Sarah Court.
“It is vital that death benefit claims are processed in a timely manner. Delays are likely to cause further pain and anxiety to people who are already suffering from grief, making what is already a difficult time even harder.”
ASIC alleges AustralianSuper contravened laws and regulations by failing) to do all things necessary to ensure that the financial services covered by its licence are provided efficiently, honestly and fairly.
ASIC is seeking penalties, declarations, an adverse publicity order and orders for compliance matters to be implemented.