ASFA, the voice of super, welcomes the release of ASIC’s Member Services Death Benefit Report as an important step in delivering better outcomes for members and their families.
“The superannuation sector knows we have let down some of our members and their families at a time when they needed us, and we are sorry,” said ASFA CEO Mary Delahunty.
“While the majority of our members and their families have a seamless experience with death benefits claims, we know we need to do better to make sure this is the experience of as many people as possible.
“As a sector, we are committed to keep working until we get it right.”
The reports details some sobering examples of where service simply wasn’t good enough in the period ASIC examined until 31 March 2024.
“Trustees need to take utmost care in paying death benefits, but excessive waiting, lack of communication and inconsistent processes are not acceptable,” said Ms Delahunty.
Superannuation sector improvements are underway
The ASIC report also called out areas of good practice, and reported seeing a marked improvement in many areas relating to death benefits claims handling in the six months to January 31 this year.
“As ASIC Chair Joe Longo has acknowledged in media interviews this morning, the super sector is taking this issue seriously and has already made significant changes in the 12 months since the period ASIC examined,” Ms Delahunty said.
Many of the 34 recommendations for improvement made by ASIC are already underway, through the implementation of higher industry standards laid out in ASFA’s Death Benefits Payments Service Standard.
These include assisting members to make valid death benefit nominations, providing claimants with regular updates about the status of their claim, and ensuring communication is appropriately compassionate and thoughtful.
Additional recommendations will be examined as a matter of priority.
Complaint numbers are falling significantly
Improvements are borne out by the most recent AFCA complaints data into death benefits claims handing delays, which have seen a significant drop.
In its most recent Member Forum, AFCA acknowledged the effort superannuation funds were putting into improving members services, and reported complaints about death benefits claims handling delays had fallen from 379 in 2023 to 179 in 2024. Significantly, in the last two quarters AFCA has reported just 33 complaints about death benefits claims handling delays. 1
Importantly, the ASIC report also has a particular focus on experiences of First Nations fund members and their families. Getting services right for First Nations members and their families is a priority, which is why there is specific guidance for culturally appropriate communication, and streamlined identification processes in the ASFA Death Benefits Payments Service Standard.
Funds are also proactively reaching out into communities to help bridge the access gap and make sure services are delivered in a way that meets the needs of First Nations Australians.
ASFA commissioned an independent report (available on request) into improvements funds have made to service processes since 2020. It found:
- over 80% of entities have improved their payment processing and technology
- over 70% of entities have uplifted their personnel and structures to improve claims handling for members
The government’s announced policy of introducing mandatory service standards has the capacity to further improve consumer outcomes. ASFA will continue to work constructively with Treasury to deliver tangible improvements for members and their families.
“Death benefit claims are more than a transaction; they come at a time of grief and vulnerability and the system must respond with care, clarity and compassion,” said Ms Delahunty.
“The superannuation community understands this, and while we have already made significant improvements we know we have further to go. We commit to keep working until we get it right for all our members and their families.”
- Member Forum March 2025 – Superannuation on Vimeo, AFCA Member Forum, 20 March 2025: 11’25’’ – 12’35’’.
For further information, please contact:
ASFA Media Manager Richard Garfield, 0451 949 300.
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.
