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Super sector backs reform to enhance member outcomes
The superannuation industry has welcomed the government’s intent to develop service standards for all APRA-regulated superannuation funds in the areas of death benefit claims, insurance claims and member communications.
Financial Services Minister, Stephen Jones, announced on Tuesday the government intends to lift the bar for member service in superannuation by introducing mandatory and enforceable service standards for all large APRA‑regulated superannuation funds.
“The new standards will improve how funds engage with their members and put member interests at the heart of service delivery,” Jones said.
The standards will initially target three critical areas where complaints data shows the greatest need for improvement, including the area of death benefit claims, insurance claims, and member communication.
“Treasury will work closely with consumer advocates, regulators and industry stakeholders to develop the standards. Draft standards will be released for public consultation,” the minister said.
He said that while the reform aligns with the newly legislative objective of super, it also complements the government’s retirement phase of super reforms and the Delivering Better Financial Outcomes package.
“With this reform, the Albanese government is making sure the superannuation system not only delivers financial security for retirement but does so with fairness and dignity for members along the way,” he said.
Responding to the announcement, Aware Super’s CEO said the fund “welcomes the development of strong, consistent and industry-wide service standards”.
“It is pleasing to see the government acknowledge the need for a clear and comparable set of standards, and we look forward to working with the government, industry and consumer groups to ensure the standards are robust and meaningful for members,” said Deanne Stewart.
Stewart said choice was important in superannuation and it should be easier for consumers to compare funds and see clearly how well they served their members.
“The ability of a superannuation fund to provide service and support can make a profound difference to key moments in people’s lives,” she said.
Similarly, the CEO of the Australian Retirement Trust (ART) said the announcement is “a step forward for the sector to ensure Australians’ retirement investment is managed with the standard of service and care Australians expect and deserve”.
“We look forward to working with the government, consumer advocates, regulators and the broader superannuation industry to develop the standards and ensure all Australians receive financial security for retirement with fairness and dignity,” David Anderson said.
Also commenting on the announcement, ASFA CEO Mary Delahunty said that consumer expectations of service standards have not always been met and highlighted steps ASFA and the broader sector have taken to improve service standards and member outcomes.
“We welcome the government’s focus on strengthening member outcomes and stand ready to lead the sector’s response to the consultation in collaboration with other stakeholders on the development of these essential service standards,” Delahunty said.
Similarly, the CEO of the Super Members Council (SMC) said mandatory service standards will ensure millions of Australians get the service they deserve.
“Super funds have tens of millions of interactions with their members every year, and members expect those interactions to be timely, responsive and clear,” Misha Schubert said.
“We look forward to working with the government to ensure the new mandatory standards improve the experience when members are dealing with their fund – often on complex and challenging issues.”
AUTHOR
Maja Garaca Djurdjevic
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