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FuturePlus sale prompts LGS administration tender
Local Government Super (LGS) administration is up for tender following the sale of FuturePlus to Australian Administration Services (AAS) last month.
LGS chief executive Peter Lambert said he was not sure how the provision of the fund's administration would work under the new structure as FuturePlus had been "more than an administrator" and provided back-office support, payroll, human resources, investment operations and paraplanning.
He said the fund was in discussions because AAS had flagged that FuturePlus operations would relocate to its current offices in Rhodes. LGS also owns the Sydney city offices where FuturePlus is currently the largest tenant.
"A lot of the exercise is working through some of these ancillary services to see whether they can continue to be provided by AAS or whether we need to look at something different," he said.
Lambert said the fund hoped to finalise the tender process by the first half of 2013.
The sale of FuturePlus by Energy Industries Superannuation Scheme (EISS) to Link Group, AAS parent company, was announced in December.
EISS had become sole owner of FuturePlus in 2010 after LGS sold its share and a merger between the pair was called off.
EISS announced its intention to sell the administration business in July 2012 after the Australian Prudential Regulation Authority (APRA) questioned whether EISS would need to provide future funding to ensure the administrator complied with Stronger Super regulations.
FuturePlus has four clients on its books including LGS, Chifley Financial Services, Super Money Eligible Rollover Fund (SMERF) and EISS, over 200,000 members and funds under administration of $10 billion.
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