Direct investments delay super early access payment

Some Hostplus members’ early access to superannuation payment have been held up because members have funds in direct investment options, the fund said. 

The super fund said these required shares to be sold before monies could be transferred to their bank accounts. 

Hostplus chief executive, David Elia, said: “To this end a small percentage of claims will require more rigorous examination and follow-up with the claimants and will therefore not be able to be processed within the five-day period. 

“We genuinely regret the delays which have occurred however these are necessary to process payments safely and securely so that members' money ends up where it should – in members’ hands and not with scammers or fraudsters. 

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“We will continue to work towards meeting the five-day benchmark however a substantial number of applications are having to be checked more closely because of the risk of fraud.” 

Elia noted that by 6 May, 2020, the fund had paid a total of $980 million to 142,376 members who had been financially suffering due to the COVID-19 pandemic.  

Australian Prudential Regulation Authority (APRA) data released showed that Hostplus had paid funds into the bank accounts of 99.8% of members within five business days.