Cbus Super media statement on the Federal Court decision on delayed insurance claims
25 November 2025
MEDIA RELEASE
The Federal Court of Australia has finalised the case commenced by ASIC against Cbus in relation to historical delays in the processing of members’ insurance claims.
Earlier this month, following mediation, ASIC and Cbus jointly submitted to the Court that a civil penalty of $23.5 million would be appropriate in respect of the agreed contraventions. Today, the Court formally made the orders the parties jointly proposed.
Cbus has established reserves to pay the penalty imposed by the Court and a provision for an expected penalty was made in our financial accounts. Member administration fees have not been increased to cover the penalty.
We want to again apologise to our members, families and claimants without reservation and promise to do better.
Cbus has now paid compensation to almost all affected members, their families and claimants.
Additionally, the Fund has settled a dispute with MUFG Retirement Solutions, its customer service administrator, over issues associated with delays in processing death benefit and insurance claims. This resulted in an apology from MUFG Retirement Solutions to Cbus members, their families and claimants, and a financial settlement with the Fund.
Over the past year, Cbus and MUFG Retirement Solutions have implemented reforms to streamline claims handling and payment services.
Cbus has doubled the size of its claims team and formed specialist units to manage claims more efficiently and empathetically.
The Fund has announced further significant reforms to its insurance claims process, which are expected to remove 4–6 weeks from processing times for the average death claim and deliver a simpler, more compassionate experience for families.
A new simplified insurance payment process for death benefit payments will also commence from next Monday (1 December 2025).
Cbus has cooperated with ASIC throughout the legal process and taken proactive steps to resolve the case quickly as protracted litigation would not be in members’ best financial interest. The conclusion of the proceeding this year reflects this.
Media enquiries: media@cbussuper.com.au or +61 3 9100 4930
This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au.
Cbus Super is the leading Industry Super Fund representing those that help build, maintain and shape Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 900,000 members and we manage more than $105 billion of our members’ money (as at 30 June 2025). As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, welcoming 17,000 new members and establishing itself as the leading fund for energy and electrical workers in Australia.
Issued 25 November 2025, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as trustee for Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super) ABN 75 493 363 262.