The boards of Sunsuper and AustSafe Super have signed a successor fund transfer deed authorising the merger of the two funds, set to complete in early 2019.
AustSafe Super is the industry super fund for rural and regional Australia. It has 100,000 members and $2.5 billion in funds under management.
The merger will see Sunsuper, which subsumed Kinetic Super in July 2017, grow to $58 billion with 130,000 employers and 1.4 million members.
Commenting on the merger, Sunsuper chairman Andrew Fraser said the successful merger with AustSafe Super would drive greater efficiencies for both funds.
"Like AustSafe Super, Sunsuper has a long heritage of supporting rural and regional areas with around 380,000 of the fund’s members and 40,000 employers currently living and working within these communities," Mr Fraser said.
"The fund also directly invests, on behalf of members, in assets such as infrastructure and utilities in regional areas and this merger will facilitate further investment in these communities through potential office expansions and support in local and community-based programs.
"Additionally, with Sunsuper’s recent successful merger with Melbourne-based Kinetic Super, this partnership represents a further opportunity to set the gold standard for the industry in terms of best practice for super fund mergers."
AustSafe Super independent chair Henry Smerdon said, "This is a particularly well-suited match and good cultural fit for both organisations. Both funds started in Queensland within a year of each other, are based on a profit-for-member model, provide industry-leading services and have a passion for rural and regional Australia.
"The decision to merge was not one that has been taken lightly, but we think it will result in a tremendous outcome for both AustSafe Super and Sunsuper employers and members.
"The coming together of these two organisations will provide members with a fund that has a strong competitive position in the market and one that values them. It will help to deliver both the best possible member experience and provide financial security in their retirement."