UNISONActive is an unofficial blog produced by UNISON activists for UNISON activists. Bringing news, briefings and events from a progressive left perspective.

Sunday, 4 September 2011

Size matters: Australian superannuation mergers

While the LGPS negotiations struggle under Con Dem pressure to find a solution to improve the financial position of the local government pension funds, the Australian unions and government press ahead with the most sensible solution for scheme members and employers - fund mergers.
The most recent merger talks are highlighted below and contain a fund with predominantely public sector employees and members of our sister union the Australian Services Union. http://www.theaustralian.com.au/business/mergers-acquisitions/care-and-asset-seek-savings-of-scale-with-superannuation-merger/story-fn91vdzj-1226128447011

'Two mid-size industry superannuation funds, the $4.6 billion Care Super and the $1.6bn Asset Super, have revealed they are in merger talks.

A joint statement said "the process will take some months" and appropriate due diligence would need to happen before it was confirmed. Care Super, a particularly high-performing fund with a heavy representation of office worker members of the Australian Services Union, is based in Melbourne.

Asset Super, which is more of a multi-industry fund, is based in Sydney, although it has a widespread membership with offices in Sydney, Melbourne and Brisbane.

Michael O'Sullivan of Care and David Michaelis of Asset said the discussions were aimed at achieving the benefits of scale. John Paul, chief executive of the smaller fund, said his board had been considering a number of merger proposals in recent years.'