TelstraSuper merger to proceed following binding Heads of Agreement
Earlier we wrote to you to following the non-binding MOU entered into between TelstraSuper and Equip Super.
Further to this, the Boards of both funds have now signed a binding Heads of Agreement to proceed with a ‘merger of equals’ between the two funds. This milestone follows a thorough due diligence process, during which the Boards concluded that the merger is expected to be in the best financial interests of members of both funds. What This Means for You:
- The combined fund will manage over $60 billion in assets and serve more than 225,000 members, creating a stronger, profit-to-member fund dedicated to delivering exceptional retirement outcomes.
- While the merger will deliver significant benefits through improved scale, tailored corporate arrangements, and enhanced services, both funds will retain their connection to their heritage industries and communities.
- Until the successor fund transfer is finalized—expected in late 2025—TelstraSuper and Equip Super will continue to operate independently, with no immediate changes to your superannuation arrangements.
Key Benefits of the Merger:
- Enhanced member and employer servicing, retirement planning, and investment opportunities.
- Continued personalised service that members value and rely upon.
- A governance model ensuring equal representation from both funds, including independent, employer, and member-representative directors.
James Perkins, the CWU National Assistant Secretary (Telecommunications), who is also a TelstraSuper Trustee Director, said the new Fund’s Board will comprise an equal number of legacy TelstraSuper and Equip Super directors.
“The equal representation model will be maintained, with 2 independent directors, 4 employer-representative directors, and 4 member-representative directors,” said James.
He said the merger will also achieve significant scale benefits, which would allow members to realise a fee reduction.
“Members will benefit from a reduction in the asset-based administration fee to 0.15%, and a reduction in the administration fee cap to $750, per annum, which will apply from the effective date of the merger of the two funds.” said James.
What You Need to Do Now:
At this stage, no action is required from members. TelstraSuper will continue to operate as usual, and the Boards are committed to keeping its members informed as the process progresses.
Where to Find More Information:
For further details, including FAQs, visit a dedicated webpage for members to access has been setup at telstrasuper.com.au/merger.
In the meantime, if you require any further information, please contact National Assistant Secretary James Perkins or National legal officer Dahlia Khatab on (03) 9349 2100.
