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AusSuper issues $70m member refund after processing failure
AustralianSuper has taken steps to remediate members after a review discovered the fund had failed to identify every instance of multiple member accounts.
In a statement, Australia’s largest super fund said it had undertaken a comprehensive review of its processes for managing multiple accounts held by members and identified some important areas for improvement where its process was found to not cover all instances of multiple member accounts.
The total amount to be refunded to impacted members was expected to be around $70 million and the average payment to remediate was $650 per impacted member.
The fund said it would not have to increase administration fees to pay for this, with the cost of the remediation to be paid from the Fund’s Operational Risk Financial Reserve.
“This should not have happened, and we apologise unreservedly to members. The fund is taking appropriate remediation actions and has self-reported the issue to the regulators.
“Around 100,000 impacted members and former members will be contacted in the coming months to inform them of this issue and confirm the actions we are taking in response.”
The fund said it aimed to return these members to the financial position they would be in now if this hadn’t occurred, including refunding administration fees and any insurance costs deducted from impacted members’ secondary account, along with lost earnings on these amounts.
It had also strengthened processes around managing multiple accounts for all members to ensure instances where a member has more than one account were identified, and appropriate actions was taken in a timely way.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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