The sale of FuturePlus Financial Services has now been finalised, with Energy Industries Superannuation Scheme (EISS) becoming the sole owner of the superannuation fund.
Following a decision by Local Government Super (LGS) in June not to merge with EISS, both parties have come to an agreement on the future of their superannuation funds with the board of EISS acquiring LGS's shares in FuturePlus.
The purchase is considered an investment to take advantage of FuturePlus' unique business model and the commercial opportunity its features would present in the market place.
Under the new arrangement, FuturePlus will be reshaped and positioned in the market as a true third party administrator, FuturePlus chief executive Richard Powis said.
"It's a great opportunity for like-minded superannuation funds to work with us," he said.
LGS is in-sourcing most of the member-focused services including financial planning and has negotiated terms on a four-year contract with FuturePlus for the remaining administration-related services, LGS chief executive Peter Lambert said.
"This decision has been made after rigorous benchmarking on cost and service and we are now able to operate as our own business with a greater focus on our members, leaving FuturePlus to focus on providing quality back office support for our activities," he said.
All parties intend to work together to transition existing member services staff to fill the LGS member service roles and ensure all members remain unaffected by the change.
