Today ASFA – the voice of super – appeared at the Senate Economics Committee Inquiry into improving consumer experiences, choice and outcomes in Australia’s retirement system, represented by CEO Mary Delahunty, where she highlighted the steps the superannuation industry is taking towards improving death benefit payouts for members.
“Much progress has been made on improving outcomes by our broad base of members,” Ms Delahunty told the inquiry.
She also acknowledged the superannuation community knows there is much more that needs to be done, and that ASFA members are putting in the effort where it is needed.
ASFA, in conjunction with our members, has produced a Guidance Note on Death Benefit Payments and complementary Policy Proposals to support improved consumer outcomes.
The Guidance sets out good practice for the sector to follow and also provides trustees with a way to understand how their fund is servicing members and to govern over improvements.
“In a given year… funds and service providers will process around 10,000 death insurance claims, and around 36,000 claims related to disability,” she said.
“ASFA has spent a significant amount of time working closely with our members to identify what can be done, from a practice and policy perspective, to lift the consumer experience, particularly in the area of death benefit claims.
“We are confident this will lead to a significant improvement for Australians.”
Key highlights of the Guidance include:
- Clear Communication: The Guidance Note sets out good practice to ensure that potential beneficiaries are informed and supported through the death benefit payment process. It provides for clear and regular communication and additional support where required, to ensure peace of mind when it’s needed most.
- Compassionate Support: These initiatives include specific practices for handling claims involving vulnerable beneficiaries, ensuring that care and empathy guide the process.
- Empowering Members: The Policy Proposals recommend several key reforms, such as electronic submission and renewal of binding death benefit nominations (BDBNs). This will make it easier for members to manage their super preferences and ensure their wishes are carried out.
The Policy Proposals recommend several reforms aimed at streamlining the death benefit claims process and empowering members with greater choice and control over how their benefits are distributed.
Superannuation and housing
Another key focus of the Committee was on housing, particularly the Opposition’s proposal to allow certain groups to access superannuation for the purchase of a property, otherwise known as the ‘super for housing’ proposal.
ASFA, alongside many other sector attendees, reiterated its opposition to the proposal because it does not solve the underlying issue relating to Australia’s housing supply shortage – that there is a shortage of houses.
“The evidence is overwhelming that this will not help with building houses which is actually the heart of the problem,” Ms Delahunty told the Committee.
Ms Delahunty highlighted ASFA’s research which showed such a policy would only benefit high income earners, and would likely push up house prices further.
While these policies and untested ideas would only put pressure on demand, superannuation funds are already playing a positive role in delivering new homes as an investor, delivering appropriate risk-adjusted returns for members and delivering supply side solutions.
Superannuation has contributed $30 billion in residential housing investment between 2018 and 2024, with many more projects on the table.
“That is the real boost superannuation can make to helping solve the housing affordability and supply crisis,” Ms Delahunty said.*
*NB: this is not a quote that was given to the committee. The quote is attributable to Mary Delahunty but was not made to the committee
For further information, please contact ASFA Media team: 0451 949 300
About ASFA
ASFA, the voice of super, is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.
