256 day death benefit time-frame = $50.75 compensation offer
A claimed 256 day delay in the payment of a death benefit by AustralianSuper has prompted a Federal politician to query why there is no mandated minimum time for funds to pay death beneficiaries.
Victorian Liberal member, Mary Aldred told the Parliament she was concerned it had taken 256 days for a constituent to receive a death benefit after the death of her husband.
What is more, she told the Parliament that in the face of numerous queries and requests on the part of the bereaved wife, AustralianSuper offered $50.75 in compensation.
“That’s $50.75 for holding over $200,000 for over eight months. Imagine the returns Helen could have received, the interest if she’d stuck that money in the bank,” Aldred told the House of Reprsentatives.
“Worse still, Helen’s husband Alan wanted to access the terminal illness early payout on that super before he died to gift to his children in person. The emotional toll inflicted on Alan in his final weeks fighting to access his own money is an absolute disgrace by AustralianSuper.” She said.
“Helen has since appealed the $50.75 compensation and been sent another letter from AustralianSuper avoiding any clarification or acknowledgement or the disastrous and distressing handling of her late husband’s superannuation,” Aldred said.
Aldred told the house that she had queried the status of mandated minimum time-frames with respect to death benefits with the Australian Securities and Investments Commission (ASIC) and had been told there is not one.
She said she had been told by the regulator that death benefits were required to be paid as soon as it practicable.
Aldred referenced the Minister for Financial Services, Daniel Mulino, in stating she believed the death benefit payments time-frames should be reviewed by the minister.
This is nothing new. They refused two death benefits payments despite admitting it was not a breach of SIS nor ITAA36, it was ‘just our policy’.
All I was after was two payments not one. They then proceeded to take over 100 days to process the one payment.
This ‘policy’ will cost my client well north of $100k over coming years.
Our policy is now we won’t consider allowing a client onto our books unless they agree to not have industry funds.
It’s cost us two clients this year, one well over a million. I remain very happy about this as I never want to have my experience again. I feel for the poor lady in this article.