Trustees take 1.6 days to pay early super release

APRA superannuation early release of super early release of superannuation trustees covid-19 coronavirus

4 May 2020
| By Jassmyn |
image
image
expand image

Superannuation trustees have taken an average of 1.6 days to make early superannuation access payments to members financially suffering due to the COVID-19 pandemic, according to data.

Data from the Australian Prudential and Regulation Authority (APRA), said for applications paid in the first week of the scheme, payments took 1.6 days was after receipt of members’ applications from the Australian Taxation Office (ATO).

However, APRA noted that given this was the first week of the early release initiative, trustees had no applications that were more than five business days old.

The data said for the week ending on 26 April, 167 trustees:

  • Received 665,310 applications for early release;
  • Processed 162,879 applications; and
  • Paid members $1.3 billion. The average benefit paid was $8,002.

APRA deputy chair, Helen Rowell said: “Although this publication only covers the first week of a scheme that will run for several months, the initial data indicates trustees are moving quickly to make payments after receiving determinations from the ATO.

“Under the Superannuation Industry (Supervision) Act 1993, trustees are legally required to make early release payments to eligible members ‘as soon as practicable’. We expect trustees should generally be able to achieve this within five business days, however we recognise this may not be practicable in all cases, as trustees conduct fraud checks, and fulfil their legal obligation to look out for the best interests of all fund members.

“APRA is closely monitoring trustee performance in this area and will consider taking appropriate action if evidence emerges of funds not releasing benefits to eligible members as soon as practicable.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 16 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 14 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 17 hours ago