Super trustees’ management of death benefit claims is still not meeting fund members’ expectations, despite a 53% drop in internal complaints about delays, the Australian Securities and Investments Commission says.

While some trustees have addressed weaknesses identified by ASIC in a report in March last year, others have failed to implement basic process recommendations.

“Australia’s ageing population means the rate of death benefit claims is only going to rise,” ASIC said in a follow-up review.

“Trustees need to ensure their governance, processes and communication can handle increasing volumes in a fair and efficient manner that meets the expectations of their members and beneficiaries.”

The follow-up review finds most trustees have reported taking steps to improve death benefit claims handling practices and are committed to further action.

“However, some trustees have demonstrated lower levels of maturity and urgency in effectively considering and responding to our findings.

“This has affected overall progress in several areas where we would have expected to see additional improvement … there is still considerable work to be done by trustees to meet the expectations of members, beneficiaries and the broader community.”

ASIC commissioner Simone Constant said: “There is no excuse for delays in delivering better outcomes for death benefit claimants. Super trustees have now had over two years to respond to concerns that we began raising back in 2024 … For trustees that have failed to take effective action, our progress review should serve as a wake-up call ahead of the Commonwealth government’s proposed introduction of mandatory member services standards.”

The regulator says the next phase of its multiyear member services review is under way.

It is testing how well super trustees use member complaints data to identify and address systemic issues and to improve service delivery.