AustralianSuper faces a wave of official complaints and significant member losses as technical problems affecting its error-plagued new digital portals spill into a fifth week.
The country’s largest super fund’s troubled online platforms were taken offline on Saturday as IT teams tried to fix a raft of software issues that have prevented members from logging into their accounts and executing transactions since 14 November.
The fund last night refused to comment on the success or otherwise of its remediation effort over the weekend, electing instead to re-hash a vague statement about “some members” continuing to be affected.
“Most members have been able to access and use the new portal and upgraded app but we are aware some members continue to have and are experiencing issues,” an AusSuper spokesperson said.
“We’re working to resolve issues as quickly as possible and have redirected additional staff to assist members.
“We understand this is frustrating for impacted members and would like to reassure all members that their information and account is secure.”
While the fund continues to downplay the scale of its technology problems, affected members have been left to vent their dissatisfaction over the company’s lack of communication on social media.
“A complete debacle Australian Super,” one member told the fund on its Facebook page on Monday.
“After nearly five weeks, still have no access online to view my balances and have spent hours and hours on chat and phoning and either being put on hold or eventually speaking to someone who has no idea how to fix the problem.”
The last time the fund gave members a comprehensive update on the work it has undertaken to remediate its flawed systems was on 25 November.
Banking Day understands that financial regulators are concerned about the operational failure.
It is believed that the Australian Securities and Investments Commission raised members’ concerns with AusSuper’s management at a meeting last Friday.
The fund claims to have 2.7 million members, which means that even if a majority of account holders now have unfettered access to the new digital services, many thousands (and potentially hundreds of thousands) do not.
Since this debacle began unfolding in the middle of November, AusSuper has only been willing to say that “some” or “a few” members can’t access their accounts.
Whatever the number might be, the operational breakdown is now a serious problem for the fund on so many fronts.
It’s clear from the protracted wait times at the call centre and the negative social media reaction that a large number of people have been affected.
A key issue for the fund will be how responsive it has been in meeting the requests of those agitated members wanting to transfer their retirement savings to another provider.
With its systems on the blink for many weeks and thousands of members having limited access to their accounts, it is highly likely that AusSuper would have found it difficult to meet its obligations to make rollover requests within the statutory requirement of 72 hours.
Here’s the guidance the Australian Prudential Regulatory Authority offers registrable superannuation entities like AusSuper that suspect they might be unable to execute rollover requests within three days.
“APRA expects that RSE licensees will comply with the RSE licensee law,” the regulator says on its website.
“Should an RSE licensee expect that it will not be able to comply, APRA suggests that it obtain legal advice on the options available to it.”
In other words, there’s not much leeway for regulatory relief.
The fund’s exposure to regulatory breaches might also extend to those members who eventually leave the fund when its transaction services are stabilised but who had limited capacity to execute such a request while the systems were degraded.
On Monday members continued to report on social media that the fund was still unable to provide them access to their accounts and a range of transaction services.
On AusSuper’s Facebook page the tone of members’ posts turned hostile after weeks of futile engagement with the fund’s tightly scripted call centre staff and robot assistants.
“AustralianSuper needs to pay attention to what is being said here – instead of giving glib standard answers from a playbook,” a member told the fund on Facebook.
Other members on the Whirlpool discussion forum said they had already found ways to roll their money into other super funds.
“After four weeks of delay and inaction, I have just opened another super fund membership and in the process of moving my money there,” said a forum participant.
“In my case UniSuper made this easy to set up, app works, online account works and they will move the funds for me from my Australian Super Choice pension account.
“I won’t have to speak to Aus Super at all.
“Such a joy to talk to them, get answers and get action.”