A seven-week service outage at HESTA, a major Australian superannuation fund, has caused serious financial issues for members like Jan Massey, who nearly missed out on purchasing a home due to being unable to access her super.
The retiree from Perth had to borrow money from friends to cover her house deposit after discovering in mid-April that her account was inaccessible. Although HESTA had announced the planned outage in February, Massey was unaware until it was too late to withdraw funds, as the fund had advised members to make any necessary changes by the end of March.
HESTA’s system upgrade, which has affected over one million Australians, has left many members frustrated and in the dark. Xavier O’Halloran, Director of Super Consumers Australia, said it’s likely many members were caught off guard due to outdated contact details and insufficient communication from the fund.
Because HESTA’s online services were already down when Massey found out, she sought help from friends instead of trying to contact the fund. Though she retired last October, the delay in accessing her super forced her to briefly return to work, adding to her stress and anxiety.
Following media inquiries from ABC News, HESTA reached out to Massey to help process a withdrawal before the June system restart. A HESTA spokesperson acknowledged the disruption but emphasized the long-term benefits of the technology upgrade, promising improved service for members.
The extended outage stemmed from a switch in administration providers — a transition announced in February. However, some members, like one woman in Perth, received notification too late, prompting complaints to the Australian Prudential Regulation Authority (APRA) for inadequate notice and a perceived failure in member care.
O’Halloran criticized the risks of outsourcing and the unusually long outage period, noting that such transitions usually take less than a month. He emphasized that the length of the disruption was bound to inconvenience members who needed access to their funds for urgent expenses like home purchases.
HESTA characterized the disruption as a “planned limited services period,” necessary for the safe transfer of more than a million member accounts, and said the change would eventually allow for more personalized service.
In another case, Melbourne resident Martina Neville attempted to prepare for the outage by requesting two withdrawals in March totaling $19,000 to cover upcoming bills. Though she received part of the funds, a $9,000 payment was delayed, and HESTA told her the issue could only be addressed after the outage. HESTA processed the remaining amount.
HESTA stated its support teams are actively assisting members throughout the transition.
