Rest completes $700m early release payments

7 May 2020
| By Chris Dastoor |
image
image
expand image

Retail employees industry superannuation fund Rest has paid 100,385 members a total of $693.4 million in early release payments to members suffering financial hardship due to COVID-19, with 95% either completed already or will be in the next five business days.

There were a further 15,184 applications worth another $104 million currently being processed, with the money reaching members depending on how quickly it was processed by their bank or credit union.

Rest had made an average of 12,500 payments or $90 million per business day, as of Wednesday 6 May, 2020.

The total applications Rest received from the Australian Tax Office (ATO) was 122,294 with a combined value of $874 million, with the first payments starting on 25 April.

Vicki Doyle, Rest chief executive, said 3% of applications have been flagged for extra verification as part of its fraud protection process.

“These applications will likely extend beyond the five-day period and we know that this will be frustrating for these members,” Doyle said.

“Many of these members are in a desperate situation, and we are determined to make sure these applications are finalised as quickly as possible.”

Under existing financial hardship grounds Rest would typically receive 100 applications per week, but in the first week of the early release scheme it received 65,000.

“We have a dedicated team reviewing these applications every day and we are always looking for ways we can speed up our processes,” Doyle said.

“However, Rest has a clear obligation to our members to ensure all these payments are legitimate.”

The fund noted that the number of applications it received was significantly below its forecasts before the early access scheme began. It said the average number of applications received per day was trending down.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago