Hostplus has recorded a pleasing response to the Federal Government’s benchmark for making prompt payments to members applying for funds under the Early Release of Super (ERS) scheme.
The release of statistics for the ERS scheme by the Australian Prudential Regulation Authority (APRA) reveals Hostplus paid funds into the bank accounts of 99.8 per cent of members within the Federal Government’s five-day timeframe.
“We have been committed to meeting the needs of our members at this difficult time ever since the Government announced the ERS scheme and it is pleasing that APRA has now recognised the work that has gone towards making sure funds reached members as quickly as possible,” said Hostplus CEO David Elia.
Mr Elia said at the close of business on 6 May 2020, Hostplus had paid a total of $980 million to 142,376 members who applied for access to their superannuation under the ERS scheme.
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.”
In other cases, applications have been held up because members have funds in direct investment options that require shares to be sold before monies can be transferred to their bank accounts.”
“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.”