Superannuation funds under scrutiny over handling of death benefit claims, First Nations members

ABC NEWS (Australia)

Australian Super is one of two major super funds being sued by ASIC over the handling of death benefit claims. A First Nations family from remote Western Australia says a deceased family member was mistreated by Australian Super. Australian Super says it has measures in place to better serve Aboriginal and Torres Strait Islander members including cultural training.

Transcript

00:00Annette Riley's youngest son was a keen fisherman who knew this Western Australian coastline

00:08well. She's still grappling with his death by suicide almost four years ago.

00:14He turned 40 this year. He was only 36 at the time.

00:20During the COVID pandemic, her son Warwick Deegan applied for early access to his superannuation.

00:26When he didn't receive it, he called his fund Australian Super.

00:31You don't have any other bank accounts?

00:33No, I don't. I might have to rush into the bank or something.

00:38On a second call, he was told if the money went to the wrong account, it would be returned.

00:43It is upsetting because he was going to the bank just about every day checking his account.

00:48And it's really frustrating.

00:50Financial counsellor Alan Gray asked what happened.

00:53An Australian Super told him the money had gone to Mr Deegan's account.

00:58But that was later contradicted by his bank, ANZ.

01:02The fund says the account details were provided by the tax office.

01:06But Alan Gray believes Australian Super should have done more.

01:10Australian Super have no idea who they're paying that COVID Super money to

01:16because they don't match the account name with the BSB and account number.

01:22The family is also fighting to have $180,000 in death benefits reinstated.

01:29Australian Super cancelled the cover about four months before Mr Deegan died

01:34because his account had been inactive.

01:37Two warning letters were sent to an old address and returned.

01:41And the fund didn't tell Mr Deegan when he called them.

01:44I really believe that the CEO of Australian Super needs to bang some heads together

01:49and exercise some compassion, realise that they've done the wrong thing by this family

01:55and pay the $180,000 death benefit.

01:59But the financial ombudsman disagreed, finding Australian Super had acted fair and reasonably.

02:05In a statement, Australian Super maintained it followed all laws and processes correctly

02:11but recognised the outcome wasn't what Mr Deegan's family wanted

02:15and shows the need for systemic changes.

02:19They should pay the death insurance for my granddaughter.

02:22They should pay for it.

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