Australian Retirement Trust (ART) has completed its merger with the $12.3 billion Commonwealth Bank Group Super.
This will see 63,700 members move over to ART and is the fund’s largest corporate transition so far.
This has involved the transfer of the Retirement Access, Accumulate Plus and Defined Benefit (other than lifetime pension) entitlement from CBA to ART.
The second stage of the successor fund transfer (SFT) with the transfer of the defined benefit lifetime pensions, which represent $2 billion and 3,700 members, is expected to occur in the second half of this financial year.
ART chief commercial officer Dave Woodall said: “This is our second major corporate transition so far this financial year, following on from the Woolworths SFT in August and we have a few more currently in progress, including AvSuper and Alcoa.
“Our vision is to be Australia’s most chosen and trusted retirement partner, and our recent mergers signal the confidence from corporate Australia in what we offer.
“We have a very experienced in-house transition team with specialist skills and experience in managing complex defined benefit plans as one of the largest defined benefit providers in the Australian superannuation industry.”
The initial decision to merge was taken when the fund failed to pass the Your Future, Your Super performance test in 2021. Although it subsequently passed in 2022, the trustees of the fund felt it was in the best interests of members to move to a larger fund.
“CBA is of the view that a potential merger with Australian Retirement Trust is an appropriate next step for employees and members, and supports the trustee’s decision to pursue a merger,” CBA said.
“The trustee worked closely with CBA to understand the future strategy of the fund, and remains closely engaged with CBA. Similarly to the trustee, CBA as sponsor of Group Super, considered the evolution of superannuation, the increased expectations and need for scale. CBA and the trustee both concluded, given the increasing need for scale over time and the long-term fee challenges required to ensure the fund remains competitive, that alternatives to continuing a corporate superannuation fund be considered.”