The industry superannuation sector will see the arrival of a $23 billion giant with the merger of MTAA Super and Tasplan Super from October 1 2020.
MTAA Super oversees over $13 billion in retirement savings for workers in the motor trades and allied industries. Tasplan is a multi-industry not-for-profit fund managing $10 billion in assets for a range of mainly Tasmanian employees.
The combined entity will have than $23 billion funds under management and approximately 335,000 members.
The move will see the retirement of MTAA Super chair John Brumby. Mr Brumby, a former Victorian Labor Premier, stand down after nine years in the role.
Mr Brumby and Tasplan chair Naomi Edwards said the merger would deliver better member outcomes.
“Our organisations have a lot in common. We were both recently awarded Platinum status by SuperRatings as ‘best value for money’ funds, and we both have a strong focus on excellence. By combining our strengths, we are creating a multi-industry fund providing quality, customised service to members and employers across the country,” said Ms Edwards.
The muscled up merged entity will deliver efficiencies to members in terms of better products and services, lower fees and strong returns.
“Scale will help drive efficiencies and provide greater buying power,” said Mr Brumby.
“This merger will enable us to negotiate top quartile investment management fees and take advantage of fee scale discounts. This means better value for money for our members.”
The merger comes as super funds face increased pressure to ensure they have sufficient scale to provide competitive products and services into the future.
It follows plans to merge VicSuper and First Super as well as Sunsuper and QSuper which will create $120 billion and $180 billion behemoths respectively.
The current political and legislative landscape will likely mean an increase in super fund mergers over the next few years. By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes, Mr Brumby and Ms Edwards said in a statement
Brumby a proud man
“I’m very proud of what MTAA Super has achieved in my 9 years as chair. We’ve built a robust, resilient and strongly performing fund through strong governance and risk management, improved investment performance and a proactive compliance regime,” Mr Brumby said.
“We’ve improved our services to members and employers, while also keeping downward pressure on fees and costs This merger is an important continuation of a journey we’ve been on for a while now. I have no doubt it will lead to positive retirement outcomes for members now and well into the future.”
Ms Edwards, who has been Chair of Tasplan since 2011, will stay on as Chair of the new combined board. She has led Tasplan through several mergers which have seen the fund grow from $2.4 billion to just over $10 billion.
“I would like to acknowledge the extraordinary contribution of John to the success of MTAA Super over the last 9 years,” said Ms Edwards.
“Under John’s chairmanship, MTAA Super has become a top quartile performer, year after year, as well as a highly regarded corporate player and contributor to the motor trades sector. John will leave a very strong legacy when he retires next year and it will be a privilege to follow in his footsteps.”
On completion of the merger, Leeanne Turner, current CEO of MTAA Super, will assume the CEO role of the new fund to ensure continuity of leadership.
Wayne Davy, current CEO of Tasplan Super, will continue in that role until merger completion date, working closely with Ms Turner to ensure a smooth transition.
Ms Turner and Mr Davy said their focus will now be on making sure the transition is as smooth as possible for members and employers.
“We’ve got a bit of work to do to consolidate our systems and processes. We’re confident this can be done with minimal impact to members. At the end of the day members and employers can still expect to receive quality support and services face-to-face, over the phone and online. That will never change,” they said.
The New Daily is owned by Industry Super Holdings