LGS Super has plans to offload its stake in the financial services firm FuturePlus following the decision not to merge with the Energy Industries Superannuation Scheme (EISS).
FuturePlus is co-owned by LGS Super and EISS.
EISS has agreed in principle to buy LGS Super's share in the business.
"In May we underwent a strategic review of our business. We felt it was time that our fund could be better focused on delivering services to members if it had control of the resources that were central to that delivery," LGS Super chief executive Peter Lambert said.
"As part of this strategy, we decided to sell our share in FuturePlus to EISS."
FuturePlus had previously provided both back office functions and member services to LGS Super.
Lambert said the fund was still hoping to retain FuturePlus's services in administration, however, member services will be brought in house.
"LGS staff have a thorough understanding of the local government industry. This single-focus model will improve service levels for our member base," Lambert said.
"One of the planned improvements includes directly employing our financial planners."
LGS Super has advertised jobs internally and FuturePlus staff will be able to apply for them, Lambert said.
"I aim to have a management team in place within the next few weeks," he said.
Lambert said he plans to hire 30 to 40 people over that timeframe.
This is the second business to be sold by LGS Super.
In February, LGS Super advised of its intention to sell its share in Chifley Financial Services. The sale was finally completed in June.
"We are at the final stages of a journey to be able to independently manage our business. This began with the hiring of an internal CIO [chief investment officer] in 2008. We believe we are now well placed to strategically manage our fund," Lambert said.
