Statewide Super won’t fight the corporate regulator over insurance allegations
Statewide Super says it won’t contest allegations brought by the corporate regulator over insurance premiums which should not have been charged.
Statewide Super will not contest allegations brought by the corporate regulator that it incorrectly deducted $1.5 million in insurance premiums from about 14,000 members’ accounts.
The largest SA-based superannuation fund has sent a letter to its members indicating it would not be fighting the matter in court.
“In the circumstances, Statewide Super considers that your interests, as a member, are best advanced by not contesting the allegations,’’ the letter says, according to a Statewide Super spokesperson.
In March, the Australian Securities and Investments Commission (ASIC) instigated Federal Court proceedings against Statewide, claiming that it told some of its members who had account balances of less than $4000 that they had insurance cover and that Statewide was entitled to deduct premiums to pay for that insurance cover, when on both counts that was not correct.
Statewide self-reported the issue to ASIC, which later brought the action, claiming Statewide had been “misleading and deceptive’’.
The court documents indicated that changes to insurance data were not picked up when clients were migrated from one technology platform to another.
Statewide reiterated on Friday that no member would be left worse off by the error.
“In 2016, Statewide Super introduced a change to protect the retirement benefits of inactive members with balances of less than $4000 from being eroded by insurance premiums,’’ a spokesperson said.
“The insurance administration error related primarily to the implementation of this change in the administration system. As a result, some members were given incorrect information regarding insurance and may have been wrongly charged insurance premiums.
“Statewide Super self-reported the insurance administration error to ASIC, conducted a forensic examination and developed a remediation plan.’’
News Corp Australia calculated that the effect on each member would have been in the range of $110.
Statewide said member could contact it if they wanted more information.
“We will continue to progress our program of remediation, supported by independent, external experts,’’ the spokesperson said.
“If you have been affected, we will communicate with you directly as soon as possible.
“All insurance entitlements will be honoured and any overpaid premiums will be refunded, along with investment earnings.’’
Members can contact Statewide on 1300 651 865 or via email at info@statewide.com.au.
ASIC has been contacted for comment.
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