Escalating Scrutiny of Major Superannuation Funds

Major superannuation funds in Australia, after years of guaranteed inflows and minimal oversight, are facing increasing scrutiny due to rising customer complaints and significant governance issues. A landmark legal case against CBUS highlights concerns about the timely processing of insurance claims, with allegations of over $20 million owed to bereaved or disabled members. Reports indicate that CBUS, which manages about $94 billion and has nearly a million members, has struggled with the administration of claims due to inadequacies in its third-party administrator. This has drawn attention to broader issues in the superannuation industry, revealing systemic failings in customer service that extend beyond just one fund.