APRA-accredited super funds will be more accountable in how they deal with their members. Photo: Josie Elias.
Australian superannuation funds that are regulated through the Australian Prudential Regulation Authority (APRA) will have mandatory and enforceable service standards imposed on them by the Federal Government.
The new standards are designed to strengthen the superannuation system by improving how funds interact with their members and ensuring they consider their interests.
This reform aligns with the newly legislated objective of superannuation “to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.
It also complements the government’s retirement phase of super reforms and the Delivering Better Financial Outcomes package, which are designed to ensure Australians receive better advice and information, improved products and greater transparency.
The government says the new standards will target areas where complaints data shows the greatest need for improvement. These include the timely and compassionate handling of death benefits, fair and efficient processing of insurance claims, and clear, respectful and accessible communications with members.
It says better service is especially important during sensitive and vulnerable moments in members’ lives and that funds have a responsibility to support members or their beneficiaries during these times, not add to their stress.
Treasury will develop the standards in close collaboration with consumer advocates, regulators and industry stakeholders. Draft standards will then be released for public consultation.
Council on the Ageing (COTA) Australia – the country’s leading advocacy organisation for older people – welcomed the move, saying the “long overdue” reforms will improve the quality of service people are getting from the moment they open a super account right through to their retirement phase.
“There’s no question that the standard of service older Australians, and indeed Australians of all ages, are receiving can be significantly improved,” COTA Australia CEO Patricia Sparrow said.
“People deserve high-quality customer service from the moment they first engage with superannuation right through to their retirement phase, but we hear reports all too regularly about that simply not happening.
“As our population ages, we need to be looking at measures that ensure that people can live the dignified life in retirement that they deserve to,” she added.
“Super funds need to ensure they are communicating clearly and in a timely way with their members all the time to assist in planning and preparing for retirement.”
Ms Sparrow said improved outcomes during vulnerable and difficult moments in people’s lives are especially important.
“Compassionate, clear, high-quality service is really the least we should expect from our superannuation funds every day, but especially during our most vulnerable moments, such as when we’re waiting for the timely payment of death benefits,” she added.
“While some funds have made improvements, it’s no secret that the customer experience has been left wanting for a long time. It’s good to see action finally being taken to address the problem and improve the service people receive.
“COTA Australia looks forward to contributing to the consultation and ensuring the voices of older Australians are heard throughout the process.”
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