After failed merger discussions with Equipsuper, Vision Super has now entered into merger talks with VicSuper.
A merger would create a $15-billion fund with more than 350,000 members.
VicSuper chief executive Michael Dundon said he was unconcerned about the earlier unsuccessful discussions between Vision Super and Equipsuper.
"No, in our case we are both funds with a strong profile in the public sector," Dundon said.
"There is quite a common alignment in members and employer backgrounds.
"We also know their management and staff reasonably well and we think that is a cultural fit."
Vision Super was recently in the news due to problems in its defined benefit (DB) division, where the Local Authorities Superannuation Fund Defined Benefit Plan - a Vision Super-operated DB fund for employees of Victorian councils - was faced with a shortfall of $450 million.
But Dundon said that would not stand in the way of a merger.
"I was the chief executive of ESS Super for three years and in that role I managed the state's largest DB schemes, so I'm very familiar with the DB scheme," he said.
"My understanding is that the DB funds are quite separate from the defined accumulation funds in Vision Super."
Besides, under the DB arrangements the shortfall would be largely the responsibility of the employers and not greatly impact on the fund itself.
Dundon said the merger discussions were still at a very early stage and no decision had yet been made on who was going to lead a merged entity.
"We haven't had any of those discussion yet," he said.
