Assistant Treasurer, Stephen Jones, has called on super funds to ramp up engagement with members amid evidence of waning satisfaction.
In an opinion piece published in The Australian, the assistant treasurer pointed to a recent review from the Australian Securities and Investments Commission (ASIC), which found almost 20% of trustees failed to respond to approximately 20% of complaints from members within the mandatory 45-day timeline.
Notably, 48% of trustees did not issue delay notifications to their members, with 46% failing to provide explanations for the delay.
“This needs to be a wake-up call for the industry,” Jones said.
“Doing right by your customer should be a no-brainer for any business, and that goes double for super funds.
“Survey after survey shows Australians’ engagement with their super fund is low, especially among younger Australians.”
He went on to urge super funds to make “more strenuous efforts” to address shortfalls in the complaints process.
“Responding to complaints in a timely and reasonable manner is a key part of growing engagement and building member satisfaction,” he added.
“Clearly super funds are not meeting that mark.
“Ultimately, this is not just about giving those who have taken the time to engage with their fund the proper level of attention. It is about funds knowing and understanding all their members, even those who may not engage regularly or at all.”
Jones, who was also minister for financial services, warned that “laggard” trustees would face heightened scrutiny from government and regulators, and would risk losing ground to new competitors.
“New competitors are emerging in the industry and the fight for members is intensifying,” he said.
“…We are doing our bit by overhauling transparency and reporting requirements on super funds so important financial data is clearly and consistently laid out for members.
“But we want to see the funds do their bit too and that begins with a greater focus on members’ satisfaction.”
