SMC calls for mandatory service standards to be fast tracked
The Super Members Council (SMC) has called for the Australian Government’s planned mandatory service standards in super to be fast-tracked, setting a clear north star for super funds as they continue to invest in and strengthen service delivery for their members.
In a submission to Treasury to support the development of standards, SMC has outlined guiding
principles, as well as key legislative reforms to slash red tape and speed up complaints handling.
Over the past year, profit-to-member super funds have made major investments to improve services and reduce complaints.
That work is now starting to be seen in falling complaints data, with AFCA’s preliminary complaints data for 2024/25 indicating a 38% drop in complaints related to delays in processing claims for insured benefits. But there is more to do.
Implementing mandatory service standards as quickly as possible will build on this momentum and drive further uplift. To assist government to progress this critical work, SMC has proposed the following principles underpin the service standards. They should:
— Put members at the centre.
— Be measurable, publicly reported and comparable.
— Be clear, simple and actionable.
— Have appropriate timeframes for funds to deliver member services.
— Be communicated clearly, with regular updates on claims processing.
— Be compassionate and respectful, especially in death benefit claims and support for vulnerable members.
— Make trustees accountable for upholding service standards.
— Allowing for individual fund innovation and responsiveness to lift the bar even higher.
— Complement not duplicate existing member-focused frameworks.
On top of mandatory service standards there are four key legislative reforms SMC urges Government to consider to further speed up claims processing for super insurance and death benefit payments:
— Digitising binding death nominations.
— Recognising kinship relationships to facilitate super payouts in First Nations communities.
— Integrating state-based ID cards into national digital verification systems.
— Standardising cause of death information across jurisdictions.
SMC’s Deputy CEO Georgia Brumby says fast-tracking mandatory service standards, combined with red tape busting reforms, will build on the strong focus on member service over the past year.
“Millions of everyday Australians interact with their super funds each year, and they rightly expect the highest standards of service, communication and care when they do.”
“Profit-to-member super funds have made major investments to improve services and reduce
complaints with a laser-like focus. Mandatory service standards and common-sense regulatory reforms, can build on this work and ensure Australians’ service from their super fund is faster and clearer.”
“Getting rid of outdated requirements like hard copy forms and wet signatures and ensuring consistent state and national approaches for ID and death certificates would materially reduce time consuming processes for members and funds alike.”