Australian Super is one of two major super funds being sued by ASIC over the handling of death benefit claims. A First Nations family from remote Western Australia says a deceased family member was mistreated by Australian Super. Australian Super says it has measures in place to better serve Aboriginal and Torres Strait Islander members including cultural training.
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00:00Annette Riley's youngest son was a keen fisherman who knew this Western Australian coastline
00:08well. She's still grappling with his death by suicide almost four years ago.
00:14He turned 40 this year. He was only 36 at the time.
00:20During the COVID pandemic, her son Warwick Deegan applied for early access to his superannuation.
00:26When he didn't receive it, he called his fund Australian Super.
00:31You don't have any other bank accounts?
00:33No, I don't. I might have to rush into the bank or something.
00:38On a second call, he was told if the money went to the wrong account, it would be returned.
00:43It is upsetting because he was going to the bank just about every day checking his account.
00:48And it's really frustrating.
00:50Financial counsellor Alan Gray asked what happened.
00:53An Australian Super told him the money had gone to Mr Deegan's account.
00:58But that was later contradicted by his bank, ANZ.
01:02The fund says the account details were provided by the tax office.
01:06But Alan Gray believes Australian Super should have done more.
01:10Australian Super have no idea who they're paying that COVID Super money to
01:16because they don't match the account name with the BSB and account number.
01:22The family is also fighting to have $180,000 in death benefits reinstated.
01:29Australian Super cancelled the cover about four months before Mr Deegan died
01:34because his account had been inactive.
01:37Two warning letters were sent to an old address and returned.
01:41And the fund didn't tell Mr Deegan when he called them.
01:44I really believe that the CEO of Australian Super needs to bang some heads together
01:49and exercise some compassion, realise that they've done the wrong thing by this family
01:55and pay the $180,000 death benefit.
01:59But the financial ombudsman disagreed, finding Australian Super had acted fair and reasonably.
02:05In a statement, Australian Super maintained it followed all laws and processes correctly
02:11but recognised the outcome wasn't what Mr Deegan's family wanted
02:15and shows the need for systemic changes.
02:19They should pay the death insurance for my granddaughter.
02:22They should pay for it.