Superannuation fund HESTA has announced a freeze on its services in a planned outage, impacting over a million members who will be unable to access their funds until June. The move is part of the fund’s transition to a new administration provider, a process that began in February. While HESTA has provided information about the outage, consumer advocates fear that many members may still be caught off guard by the restrictions.
Super Consumers Australia, an advocacy group, expressed concerns about the lack of services during a time of market volatility. With more than 1.05 million members and $88 billion in funds under management, HESTA is one of Australia’s largest superannuation funds. The freeze means members cannot process super contributions, investment changes, insurance claims, or withdrawals until the outage concludes in June.
Director Xavier O’Halloran highlighted the challenge of keeping members informed due to outdated contact information. Several HESTA members shared their worries about accessing their funds, with some experiencing delays and difficulties contacting the fund before the outage. The situation has left many members anxious about the security of their money during the seven-week period of restricted access.
HESTA’s freeze on services includes a halt on processing super contributions, investment switches, and insurance claims, such as those related to death, illness, disability, and income protection. The fund is working on transferring its member account services to a new provider, GROW Inc., in what is described as a significant technological project in HESTA’s history.
The recent cyber attacks on superannuation funds have added to concerns about the safety and security of members’ accounts during the transition period. Market experts caution against hasty decisions amid the market volatility triggered by tariff announcements, emphasizing the need for a strategic approach to managing super savings.
While HESTA aims to enhance services for its members through the change in administration providers, critics like Xavier O’Halloran argue that the superannuation sector has historically underinvested in customer service. The Australian Securities and Investment Commission (ASIC) has previously highlighted issues with delays and poor customer service in the sector, calling for improvements in claims handling.
As the superannuation industry faces challenges related to security breaches and service disruptions, there are calls for greater emphasis on customer protection and efficient service delivery. The need for enhanced security measures, such as multi-factor authentication, has become increasingly apparent in safeguarding members’ retirement savings from cyber threats.
HESTA’s outage serves as a reminder of the importance of robust cybersecurity protocols and efficient customer service in the superannuation sector. The fund’s efforts to transition to a new administration provider underscore the ongoing evolution and technological advancements in managing superannuation accounts for millions of Australians.
As the superannuation landscape continues to evolve, ensuring the security and accessibility of members’ funds remains a priority for both funds and regulators. The challenges faced by HESTA and other funds highlight the need for proactive measures to safeguard members’ interests and provide seamless service delivery in an increasingly digital and interconnected financial environment.
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