Super funds merge to ‘control our destiny’

TWO more superannuation funds have announced they are merging as consolidation in the sector continues at a rapid pace.

MTAA Super, an industry super fund that has traditionally focused on workers in the motor trades and allied industries, is joining forces with Hobart-based Tasplan.

It will create a fund with $23 billion in funds under management and about 335,000 members.

As a result of the merger,

MTAA chair John Brumby, the former Victorian premier, will step down.

MTAA Super oversees about $13 billion in retirement savings while Tasplan is a multi-industry fund with $10 billion in assets.

The combined fund’s corporate and trustee functions will be based in Canberra, with satellite offices in Tasmania and other locations.

In a statement, the funds said that recognised a “best of breed” approach.

MTAA Super’s administration services will be moved infoot house to Tasplan’s Hobart centre.

Mr Brumby and Tasplan chairman Naomi Edwards said in a statement the decision to merge was driven by shared values and a desire to secure better member outcomes.

“Scale will help drive efficiencies and provide greater buying power,” Mr Brumby said.

Ms Edwards and Mr Brumby said more mergers were likely in the sector in coming years, and “by merging now, MTAA Super and Tasplan have chosen to be on the front and stay in control of our destiny, and member outcomes”.

MTAA Super chief Leanne Turner will run the merged fund. Tasplan chief Wayne Davy will continue in that role until the merger takes effect next October 1.

Earlier this month, Hostplus and Club Super completed a merger, while Sunsuper and QSuper announced they were in merger talks.

VicSuper and First State Super are also working towards a merger.

The Australian