Cbus completes death benefits, beneficiary nomination revamp

Cbus Super has revised its death benefits process in the effort to eliminate any complexity associated with beneficiary nominations, as the fund looks to streamline the process for members and their families.

As part of a suite of changes, Cbus Super will introduce digital non-lapsing binding beneficiary nominations and remove the option to make a non-binding beneficiary nomination as well as the three-year renewal process currently in place for binding nominations.

With claims where members have not nominated a beneficiary, benefit payments will be made to the surviving spouse, to the surviving children in equal shares or directly to the member’s estate depending on the member’s circumstances.

The enhancements seek to phase out dated physical forms and witness requirements, as well as speed up the death claim process by removing the need to complete “lengthy and complicated ‘claim staking'” to identify eligible beneficiaries. Cbus estimates that this will cut down the process by four to six weeks.

“We’re making things simpler for grieving families by stripping away much of the complexity,” Cbus Super CEO, Kristian Fok, said.

“Claims with a binding beneficiary nomination are paid out fastest, but only a small proportion of Cbus members have one. A binding beneficiary nomination is a clear, legally binding way for members to make their final wishes known—and we’re removing outdated barriers like paper-only forms and witness requirements to make them easier and faster to complete.

“When there is no binding beneficiary nomination, death claim payments will be made in a way that aligns with what people naturally expect ─ payment to a spouse, to children, or to an estate.”

The changes to processing death benefits follows several other improvements implemented by the fund over the last 12 months to further accelerate claims processing. Fok confirmed the latest changes will come into effect in two stages over the next 18 months from December.

“We are determined to improve claims processing. That’s why we’ve doubled the size of our claims team and created specialist teams trained to handle death claims efficiently and compassionately,” he said.

“This has driven a significant increase in death claims finalised and paid within four months. Now we are taking the next step by simplifying our existing death claims processes and we anticipate this will cut a further four-to-six weeks off the time it takes to pay benefits to members’ families and loved ones.

“Implementing simpler processes will provide our members better peace of mind about where their benefits will go.”