Superannuation trustees have taken an average of 1.6 days to make early superannuation access payments to members financially suffering due to the COVID-19 pandemic, according to data.
Data from the Australian Prudential and Regulation Authority (APRA), said for applications paid in the first week of the scheme, payments took 1.6 days was after receipt of members’ applications from the Australian Taxation Office (ATO).
However, APRA noted that given this was the first week of the early release initiative, trustees had no applications that were more than five business days old.
The data said for the week ending on 26 April, 167 trustees:
- Received 665,310 applications for early release;
- Processed 162,879 applications; and
- Paid members $1.3 billion. The average benefit paid was $8,002.
APRA deputy chair, Helen Rowell said: “Although this publication only covers the first week of a scheme that will run for several months, the initial data indicates trustees are moving quickly to make payments after receiving determinations from the ATO.
“Under the Superannuation Industry (Supervision) Act 1993, trustees are legally required to make early release payments to eligible members ‘as soon as practicable’. We expect trustees should generally be able to achieve this within five business days, however we recognise this may not be practicable in all cases, as trustees conduct fraud checks, and fulfil their legal obligation to look out for the best interests of all fund members.
“APRA is closely monitoring trustee performance in this area and will consider taking appropriate action if evidence emerges of funds not releasing benefits to eligible members as soon as practicable.”
Comments
I thought APRA was going to give a fund-by-fund breakdown?
Is 1.6 a relevant number in this situation? The check will clear in one day, or two, or three or four etc but 1.6? Not sure? So how do they get 1.6?
I was approved on 21st April by ato still nothing from Hostplus. Do the math but more than 1.6 days.
Nope. It's been 14 days since I first applied and 12 days since I recieved confirmation texts from hesta and ato. Some super funds are conducting these security checks but not doing so until members contact them to ask what the hold up is. The 5-7business day timeline is completely inaccurate. And not sure where this 1.6 days come from. You only have to read Facebook to see many people that are still not receiving their early release when they applied the day it opened!
It sounds like the union funds are using the same tricks they use to block advisers from accessing info about client accounts...
- Do nothing until someone rings to complain
- Tell them no paperwork received
- When they resend the paperwork tell them they need a certain form or ID or signature type that wasn't included (just pick one they don't have from our "delay tricks" list)
- Keep repeating above process
Yes pretty much! My payment went through today finally. But I believe had I not have followed up with them when I did, I'd be still waiting... 16 days total from application to receiving.
I have helped 3 clients so far, they are all with a big retail fund. The fund did as they were told with no extra paperwork needed by the fund from the clients. They have all been paid within 3 days. Submit the app on the ATO, get confirmation via text the next day, day after the moneys in the bank. Not sure about these industry funds dragging the feet, thats ok they will be named and shamed. However its not ok for the poor clients wanting their money, all in this together they say, until you want your money that is..
I wanna pay many bills
The first report is misleading as it only reflects what has been processed, not what hasn't been processed and its aging profile. APRA did report that funds received 665k applications and only 163k were processed so don't be surprised next week when it shows most funds took longer than 5 days.
APRA have said it will release fund level data from next monday.
We are on business day 13 since the ATO approved my husband’s early release. We have phoned CBUS 8 times and three of those calls was someone saying ‘we will escalate this application and process for you straight away.’ All lies! The funds are still sitting in his account. How do we make a formal complaint?
Ali, you have the right to complain to AFCA, https://www.afca.org.au/
Thank you for your guidance. I lodged a complaint this morning.
I submitted my application on the 22-4-2020, I was approved on the 24-4-2020. It is now 13-5-2020 and CBUS still hasn't paid me. Like the previous poster I have had numerous promises of escalations and for some unknown reason their financial team is in some mystical bubble where no one can contact them unless they want to be contacted. Afca stepped in late last week but CBUS are continuing to drag the chain. Too bad for anyone who's maybe suffering a life or death situation.
I am still awaiting the rest of my super early release from one more funds , it's now 7 working days since waiting and haven't heard anything from them, I received half from the other two funds after 5 working days therefore I am still uncertain of what's the hold up or if it's normal to take this long to wait when the average waiting period if 5 working days , please I want to know if I have to contact the fund of keep waiting
Thanks .
So you applied for early release with 3 different super funds? Good grief! Yes, you may need to pick up the phone and follow this one up, or post on their facebook page, this gets their attention pretty quickly
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