CSC looks to avoid HESTA’s punishment

Mike Taylor

Managing Editor/Publisher, Financial Newswire

29 January 2026

The Commonwealth Superannuation Corporation (CSC) has flagged 13 days of limited online service to members as it undertakes an upgrade of its IT systems.

The forecast 13-day disruption will likely see the Government-focused fund avoid the regulatory scrutiny and additional license conditions imposed on HESTA as a result of last year’s prolonged disruption to member services as it changed administrative services.

CSC has informed members and their advisers that it is “upgrading its IT systems as part of a long-term investment in its technology meaning that between 13 and 26 February “transactions on affected accumulation accounts (PSSap, ADF Super, CSCri) will pause and access to CSC Navigator will be unavailable”.

Its message said that its defined benefit schemes PSS, CSS, MSBS, DFRDB would not be affected.

The CSC notification said it would be communicating with customers via a Significant Event Notice (SEN) detailing limitation during the specific period.

“This states that any transactions or requests for changes to member accounts received during this period will be put on hold by CSC and processed as soon as possible following this limited-services period,” it said.

The Australian Prudential Regulation Authority (APRA) announced in early December that it had imposed additional license conditions on HESTA “to address concerns regarding HESTA’s risk management and board governance during its recent transition of outsourced administration providers.

“The conditions follow the transition of HESTA’s administrative services to a new provider, finalised in June 2025, which resulted in a severe, prolonged disruption to member services and caused direct harm to members,” the regulator said.

“APRA has identified deficiencies in HESTA’s board governance and management of risks which rendered HESTA inadequately prepared to effectively oversee and manage the transition.”

CSC has suggested to advisers a range of “proactive ways” they can less the impact for their clients:

• Please consider progressing any client requests to CSC well before the planned limited-service period.  You should send any requests for a new third party authority and/or an Account Rundown for a member by 4 February 2026 to guarantee a response from CSC before the limited-service period.
• If you have any client meetings scheduled between 13 and 26 February 2026, please contact our team in advance so we can provide you with Annual Statements, Benefit Estimates and Account Rundowns. These documents won’t be available during the limited-service period.
• We will still accept new DC member applications in this window, but they won’t be added to our system until after Thursday 26 February 2026. Welcome letters will be delayed, but members will still have 30 days to opt in/out of insurance cover (if applicable).
• If you have clients due to retire or need to make a time-sensitive change to their super in February 2026, please remind them of the communications provided to them through the SEN and ensure they understand CSC may be delayed in processing applications during this period.