ART completes CBA Group Super merger

20 November 2023
| By Laura Dew |
image
image
expand image

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.”

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

3 months 3 weeks ago
Kevin Gorman

Super director remuneration ...

4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

4 months ago

The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April....

1 hour ago

Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter....

2 hours ago

The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 mi...

3 days 1 hour ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND