On Tuesday, $700 million not-for-profit super fund Lutheran Super announced it will merge into the Mercer Super Trust via a successor fund transfer later this year.
In a statement, Lutheran Super chair John Grocke said that the merger was in the best interest of the fund’s 5,700 members which include more than 300 pensioners.
“From the outset, we have sought a merger partner that could deliver the best retirement outcomes possible for our members,” said Mr Grocke.
“Following a rigorous process, we’re pleased to have chosen the Mercer Super Trust, where our members will access a wider range of services, options and personalised support to get the most out of their super or pension. Importantly, members will continue to benefit from our tailored balanced investment option as well as other characteristics of the existing plan.
“We’re proud of what we have achieved on behalf of our members over the years. We trust that our members’ best interests will continue to be well served as they join Mercer Super.”
The merger comes after Westpac and BT Funds Management entered into a heads of agreement in May to merge BT’s personal and corporate superannuation funds with Mercer Super to create a $65 billion superannuation fund with over 850,000 members.
“Mercer is proud of its long-term partnership with Lutheran Super having provided administration, investment management and consulting services for the fund over many years,” commented Mercer Super CEO Tim Barber.
“We know well the commitment they have to helping their members enjoy a healthy retirement, and we look forward to welcoming them to Mercer Super.”
Mercer and Lutheran Super said that the successor fund transfer is expected to take place in the fourth quarter of this year, ahead of the BT Super merger which is to expected to be completed in the first half of 2023.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.