Australia's pensions industry leaders are being heavily criticized by the country's regulator for allowing a culture of inadequate customer service, particularly regarding delays in handling death benefit claims. The Australian Securities & Investments Commission published a report outlining various shortcomings in industry practices. Lawsuits have been initiated by ASIC against AustralianSuper and Cbus due to prolonged delays in processing claims for bereaved families following a death.

Death benefits refer to the savings remaining in an account after a person passes away, often including insurance proceeds. In an instance mentioned by ASIC, a fund took over 500 days to release a death benefit of around A$100,000 to an Indigenous woman after her husband's death. ASIC Chair, Joe Longo, cited a lack of effective leadership that impacts data, systems, and processes within pension funds, leading to customer suffering. The issue is deemed unacceptable, especially within the superannuation sector, given its wide-reaching impact.

Australia's A$4.2 trillion pension system is under increased scrutiny due to growing concerns about customer service quality. ASIC reviewed operations of ten major pension funds, aside from those facing lawsuits, and found issues such as delays, poor service, and ineffective claims handling procedures. The report offers 34 recommendations for enhancements, emphasizing the need for quicker responses and better monitoring.

The Association of Superannuation Funds of Australia's CEO, Mary Delahunty, acknowledged the sector's failure to support some members and their families in times of need and expressed regret. Delahunty stated that many of ASIC's suggestions are being addressed through the implementation of industry standards.