POWERED BY MOMENTUM MEDIA
Cbus Super simplifies death benefit process for members
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
Cbus Super has announced major reforms to the way it handles death benefits, promising faster, simpler processes for members’ families.
The $85 billion industry fund will amend its trust deed to allow digital non-lapsing binding beneficiary nominations, removing paper-only forms, witness requirements, and the current three-year renewal process.
At the same time, the option to make non-binding beneficiary nominations will be scrapped.
In a significant change for cases where no beneficiary has been nominated, payments will automatically be directed to a surviving spouse. In the event of no surviving spouse present, children will receive benefits in equal shares, Cbus Super confirmed.
If neither is present, the estate will become the beneficiary.
According to the fund, this approach aims to eliminate most “claim staking” procedures, which can delay outcomes by four to six weeks.
The reforms are set to be introduced in two stages, beginning in December, and rolling out over 18 months.
CEO Kristian Fok said the changes reflect the fund’s determination to provide greater clarity and security.
“We’re making things simpler for grieving families by stripping away much of the complexity,” Fok said. “Claims with a binding beneficiary nomination are paid out fastest, but only a small proportion of Cbus members have one.
“A binding beneficiary nomination is a clear, legally binding way for members to make their final wishes known – and we’re removing outdated barriers like paper-only forms and witness requirements to make them easier and faster to complete.”
Fok added that in the absence of a nomination, the new approach aligns with “what people naturally expect – payment to a spouse, children or estate”.
The reforms follow a series of improvements made over the past year to speed up claim processing, including doubling the size of the claims team and creating specialist teams trained to handle death claims.
According to the fund, these measures have already led to more claims being finalised within four months.
“Now we are taking the next step by simplifying our existing death claims processes and we anticipate this will cut a further four-to-six weeks off the time it takes to pay benefits to members’ families and loved ones,” Fok said.
“Implementing simpler processes will provide our members better peace of mind about where their benefits will go.”
AUTHOR
Adrian Suljanovic
Recommended for you
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
Australia’s second-largest super fund is prioritising impact investing with a $2 billion commitment, targeting assets that deliver a combination of financial, social, and environmental outcomes.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
