Cbus Super chair Wayne Swan has announced that the industry super fund has successfully completed its merger with EISS Super.
According to Cbus, the merger followed on from extensive due diligence and planning to deliver benefits for both Cbus and former EISS Super members, including developing defined benefit products for former EISS Super members.
“Today, we welcome 17,000 new members into Cbus who are largely working in the energy and electrical sector across metro and regional NSW,” said Mr Swan.
Cbus now manages over $80 billion in retirement savings on behalf of 900,000 members, including over 50,000 members in the electrical sector.
“The completion of the merger consolidates our commitment to workers in this sector and to their industry, a commitment we are incredibly proud of,” said Mr Swan.
“There will be scale-related benefits for our new members from being in a top-tier performing fund and from the greater efficiencies that result from the merger. This consolidation will help all members achieve better retirement outcomes.”
Cbus and EISS originally signed a memorandum of understanding in December 2021 with the intention to complete a merger in 2022. This came after TWUSUPER walked away from a planned merger with EISS in October 2021.
In August last year, the Australian Prudential Regulation Authority (APRA) confirmed that EISS Super’s MySuper (Balanced) had failed its performance test for a second time.
With the completion of the merger, Mr Swan noted that EISS members would enjoy a lower percentage-based administration fee, and most would pay lower overall fees post-merger.
“EISS Super members have also joined a fund that can provide tailored insurance for members in hazardous work and a greater number of investment options,” he continued.
“We thank everyone at EISS Super including former chair Peter Tighe and former CEO Lance Foster for their work to achieve this great outcome for their members.
The Cbus chair added that thanks to the efforts of both funds, a successful transition had been achieved which was in the best financial interests of all members.
“It has been a pleasure being part of the retirement journeys of our members and we’re confident that the merger with Cbus Super is in our members’ best financial interests,” said former EISS Super chief executive officer Lance Foster.
“I also want to thank the teams from both funds for their professionalism and commitment to getting the right outcomes for members.”
This is the second merger Cbus has completed in the past 13 months, following its merger with Media Super in April last year. The two mergers have seen a combined inflow into Cbus of over $10 billion in funds under management and growth in membership of 90,000 Australians.
Hopefully former EISS members will now receive a better deal when it comes to fees and more importantly their investment returns. It’s unfortunate that a lot of the internal scandals that brought EISS to it’s knees, did not get addressed and those responsible were able to simply walk away.