An unnamed superannuation fund took more than 500 days to approve a death benefit payment to an Indigenous woman grieving the loss of her husband. She had concerns about financial hardship and a confusing claims process, but the fund ignored her. This case highlights poor industry practices that have had devastating impacts on individuals experiencing deep grief, vulnerability, frustration, and genuine suffering.

A report by the Australian Securities and Investments Commission (ASIC) has made 34 recommendations to overhaul the superannuation sector. The report looked into the conduct of 10 trustees responsible for a significant portion of member benefits in Australia. ASIC’s chair, Joe Longo, stated that there were excessive delays, poor customer service, and ineffective claims handling procedures. He called on the industry to take ownership of these problems and fix them.

Longo emphasized that the lack of leadership and control over data, systems, and processes is at the heart of this issue, and ultimately, it is the customers who suffer.

The report found that communication with First Nations claimants was often not culturally sensitive, resulting in longer wait times for death benefits. In one case, a First Nations woman had to wait more than 500 days for her husband’s death benefit payment. The trustee did not address her concerns about financial hardship and alternative identification options. Despite the trustee finally deciding to pay the wife, she still had not received the payment as of the report’s data collection.

ASIC commissioner Simone Constant stated that grieving Australians should not have to suffer further stress due to the failure of superannuation trustees. The money from a death benefit can make a significant difference, and each day of delay causes real harm to families. Trustees need to improve their handling of claims.

The 10 superannuation funds examined by ASIC are yet to respond to the regulator’s findings. However, some of them have outlined measures to improve their performance. In November, several funds mentioned in the ASIC report stated that they had overhauled their internal processes to improve customer outcomes.

Source: https://www.theguardian.com/australia-news/2025/mar/31/super-fund-took-more-than-500-days-to-approve-death-benefit-for-grieving-widow-asic-says