15 March 2016
In July 2015, the Tasmanian Government announced that it supports the creation of a single Tasmanian super fund. The Treasurer gave in principle backing for a merger between:
The first step towards creating a single Tasmanian super fund was completed on 30 November 2015 with the transfer of Quadrant accounts and members to Tasplan.
We are now working with the Tasmanian Government and RBF to plan the next steps.
For the merger between Tasplan and the RBF Tasmanian Accumulation Scheme to go ahead, the Tasmanian Parliament must first pass some new laws. The proposed changes (called the Public Sector Superannuation Reform Bill 2016) were tabled in parliament on 8 March.
If the changes are passed we can transfer the RBF Tasmanian Accumulation Scheme to Tasplan.
The government will stay responsible for the RBF defined benefit schemes until it completes a tender process for a new provider. Tasplan will be able to participate in the tender process for RBF’s defined benefits services.
But before we do anything, the funds will continue the process of thinking about what the merged fund might look like and checking that a merger is a good idea. This is where we make sure that members are not disadvantaged by the merger (that they have equivalent rights), make sure each fund is up to scratch (do our due diligence) and draw up the legal documents. The funds won’t merge if a merger isn’t in the best interests of the members of both the funds.
Subject to approvals, agreements, contracts and law changes, we expect that the earliest the merged fund would be up and running is March 2017.
Yes. If we merge, the fund will be larger and stronger, with around 165,000 members, managing around $6.5 billion and delivering significant economies of scale and value for money for its members; and be more competitive in the Australian super industry, long term.
Until we progress the merger further, we won’t know exactly what the merged fund will look like – for example, what fees, insurance and investment options the merged fund will offer. However, the law says we can’t merge unless we can show that the merger is in the best interests of our members.
Until we complete the planning, we can’t say exactly how we’ll deal with duplicate accounts in the merged entity. However, we expect to combine duplicate accounts to reduce your administration fees.
We’ll regularly keep you up-to-date as the merger plans progress. In the meantime, if you need more information, call us on 1800 005 166 or email us at email@example.com.