HESTA CEO Resigns Amid Super Fund Outage Chaos
HESTA, one of Australia’s largest superannuation funds, is facing a leadership shake-up after a disruption that left members scrambling for access to their own money. Debby Blakey, the CEO who has steered the fund for over a decade, announced she will step down later this year, following a highly publicized outage in the fund’s administration system.
The outage began as a planned transition from MUFG to Grow Inc., intended to last seven weeks. But what was meant to be a smooth switch turned into a prolonged crisis, with delays stretching into months. Many HESTA members found themselves unable to access funds needed for critical expenses like surgeries, home deposits, or nursing home care. Call lines were jammed for hours, compounding frustration and anxiety across the fund’s more than one million members.
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Regulators have weighed in, with the Australian Prudential Regulation Authority describing the disruption as “severe” and noting that it caused direct harm to members. APRA also questioned the fund’s risk management and governance during this transition, emphasizing that while some disruption is unavoidable, members’ access to their accounts should never be compromised.
Blakey, who has spent 17 years at HESTA, framed her departure as a move toward board-level roles, but the timing underscores the intense pressure and scrutiny facing superannuation leadership in Australia. Her tenure has seen significant transformation, including strong advocacy for equity, diversity and responsible investment practices. The superannuation sector now watches closely as the fund searches for a successor, with a new CEO expected by mid-year.
This episode highlights the fragility of large-scale financial systems when operational transitions go awry. For HESTA members, the outage is more than an inconvenience—it’s a reminder that access to retirement savings is not always guaranteed and that oversight and governance play a critical role in protecting those assets. For the broader industry, it raises questions about how funds manage risk, plan transitions and communicate with members when issues arise.
As HESTA moves through this turbulent period, the stakes remain high. Members and observers alike will be looking for lessons in transparency, accountability and effective management. Stay with us for continuing coverage on this unfolding story and updates on how HESTA and the superannuation sector respond to these challenges.
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