Mine Super and Twusuper Begin Merger Negotiations, Australian Scheme Mergers Still Ongoing

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Two medium-sized Australian superannuation funds, Mine Super and TWUSUPER, have begun conversations about joining together.

The two schemes announced signing an exploratory, non-binding memorandum of understanding (MOU) to look into the prospect of the two funds coming together.

TWUSUPER has assets worth about A$6.3 billion (£3.46 billion), whereas Mine Super has assets worth about A$12 billion (£6.59 billion). The combined scheme, which would have more than 150,000 members if the merger goes through, would be among the top 30 superannuation funds in size.

Christina Langby, chair of Mine Super, and Nick Sherry, chair of TWUSUPER, said in a joint statement that the two funds have a long history of putting members first and providing historically significant profits to member industry superannuation funds.

They stated in a statement:

“Mine Super and TWUSUPER share the vision of creating a sustainable fund which protects and promotes the interests of workers in the mining and transport industries. In accordance with the MOU, both Mine Super and TWUSUPER are currently undertaking extensive due diligence to determine the best outcome for all members and mining and transport operators arising from a prospective merger. It is anticipated that this process may take several months.

“During this period, both funds remain committed to delivering the best outcomes for their members and will keep members informed of important milestones. There is no change to any aspect of any member’s funds, investments, or insurance as a result of entering into this preliminary non-binding MOU.”

One piece of legislation, the government’s so-called Your Future, Your Super amendments, which became effective last year, led to the latest scheme merger in Australia.

On April 1 last year, MTAA Super and Tasplan merged to form Spirit Super. The merging of QSuper and Sunsuper into the Australian Retirement Trust was completed on February 28 of this year. Additionally, on April 30, Australian Retirement Trust joined the Australia Post Superannuation Scheme. In September 2023, Maritime Super and Hostplus will additionally merge.

These changes mandate that the Australian superannuation sector increase its effectiveness, transparency, and accountability. All providers must now complete an annual performance test, and those who don’t will be held accountable.

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