More Super Problems Exposed in the Senate

Today’s Senate hearings into Retirement Outcomes revealed three critical facts about the ongoing Cbus saga.

First, Cbus has an incentive to avoid paying insurance claims under its contract with TAL. TAL confirmed that their agreement with Cbus contains provisions that establishes an incentive for Cbus to approve fewer claims.

Second, the administrator, Link Financial, has refused to answer questions about whether Wayne Swan is right to shift blame and rejected Mr Swan’s central claim of a “paucity of competent administrators.”

The Cbus administrator, Link, asserts that the industry has performed well overall and suggests that these issues can be addressed through improved industry standards.

Link’s CEO evaded questions about Mr Swan blaming Link for delays in claims processing. However, when pressed, Link’s CEO confirmed that Cbus trustees are the final decision-makers for these claims.

The Committee must now consider its next steps under Senate Privilege Resolution 1(10).

Third, Labor reviewed the Best Financial Interest Duty at the behest of their allies in the superannuation industry but has done nothing to reform customer service standards, including the payment of insurance claims.

Treasury also confirmed they have done no work to examine consumer experiences in the superannuation system in this Parliament.

Unsurprisingly, key questions were taken on notice, leaving Australians with more uncertainty about the state of their retirement savings.

[Ends]