The Australian Securities and Investments Commission (ASIC) has launched legal action against the Construction and Building Unions Superannuation Fund (Cbus) for failing to pay a majority of its death and total and permanent disability (TPD) benefits within 90 days.
ASIC has commenced civil penalty proceedings in the Federal Court against United Super, the trustee of Cbus, alleging the fund “failed to act efficiently, honestly and fairly in the handling of claims for death benefits and TPD insurance”.
ASIC says that between September 2022 and November 2024 more than 10,000 death and TPD claims were delayed 90 days or more, and around 6000 were delayed more than 12 months.
Sarah Court, ASIC deputy chair, says delays such as these have a devastating effect on claimants, who are often in desperate need of money after the death of a loved one or a catastrophic injury.
“We allege Cbus failed its members and claimants at their most vulnerable time, and we are taking this case to protect all those vulnerable Australians trying to access the financial support to which they are entitled,” she says.
“The systemic failure by superannuation trustees to deliver essential member services in a timely manner is a key priority for ASIC and we will continue to take action to hold trustees to account.”
ASIC is seeking a compliance order from the court to force Cbus to improve its claims process, as well as an adverse publicity order requiring they take out advertisements explaining what’s happened and how they will rectify the situation.
Is your super with Cbus? Do you think the penalties ASIC is seeking are fair? Let us know in the comments section below.
