Wayne Swan has faced senators, apologies ready, over Cbus's prolonged claims debacle.

The former Australian federal treasurer and current chair of the Cbus superannuation fund has issued a renewed apology for protracted delays in processing death and disability claims.

Addressing the Senate Economics Committee, Mr Swan described the situation as “sickening” and pledged to finalise outstanding claims promptly.

The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Cbus over the delays, citing failures in meeting obligations to members. While declining to discuss specific aspects of the case, Mr Swan noted that the fund had resolved 80 per cent of delayed claims and was working to address the remaining cases as soon as possible.

Cbus’s handling of claims drew criticism from senators, who questioned the timeline for resolving the backlog. 

Mr Swan said some of the cases are considered highly complex, involving factors such as probate disputes and family disagreements, but maintained that the fund is committed to improving service delivery.

“We accept complete accountability for the outcomes,” Mr Swan told the committee.

Cbus has hired a new chief risk officer and increased resources in its insurance contact centre and claims team to accelerate response times.

ASIC’s lawsuit is a sign of broader concerns about governance within superannuation funds. 

Mr Swan acknowledged that operational changes are needed across the sector to address the needs of an ageing population drawing on their superannuation.

“The system must be fit for purpose for the growing number of members entering retirement,” he said. 

Senators also scrutinised Cbus’s financial relationships, particularly its commercial partnerships with unions like the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). 

Liberal Senator Andrew Bragg challenged Mr Swan on a $2.7 million transaction to the CFMEU in 2022, suggesting improper financial dealings.

Mr Swan rejected the claims, clarifying that the payment was for partnership agreements aimed at member benefits, such as an initiative that reunited $100 million in lost super with its rightful owners. 

“We haven’t given money to anyone. These are partnerships for service delivery,” he said, noting that agreements with the CFMEU were suspended while the union remains under administration.

Cbus has committed to continuing reforms to address member concerns and avoid future legal challenges. 

With the regulator’s case pending, the fund will continue to face significant scrutiny over its governance and operational effectiveness. 

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