Cbus Chair Apologizes for Delayed Claims, Addresses Concerns

Cbus chair Wayne Swan has apologized to members for delays in processing thousands of death and disability claims, stating that the situation made him "sick in the guts." Appearing before the Senate Economics Committee, Swan declined to provide specific details about the delayed claims due to ongoing legal action. However, he reiterated previous apologies and emphasized that the delays were not representative of the fund's overall commitment to its members.

Swan reported that Cbus has been taking action for over a year to address the issues identified in the corporate regulator ASIC's lawsuit against the fund. He stated that approximately 80% of the outstanding claims have been finalized. In response to a question about the remaining 20% of claims, Swan assured the committee that Cbus is working to resolve them as soon as possible.

Senator Matt Canavan inquired about Cbus's commercial arrangements with the construction union, the CFMEU. Swan clarified that the fund has entered into partnership agreements with the CFMEU and other organizations, providing services in exchange for value. He emphasized that Cbus has not provided financial donations to any organization.

The committee hearing also addressed the broader issue of superannuation in the context of an increasing number of members entering retirement. Swan stressed the need for the entire industry, including regulators and governments, to re-evaluate operations to ensure the system remains fit for purpose. He cautioned against changes that could threaten the preservation of superannuation funds, such as allowing withdrawals for house deposits.