LGsuper has received Australian Prudential Regulation Authority (APRA) approval to offer a default superannuation product when MySuper is implemented next year.
MySuper products will roll out mid-year; however, the fund will launch its new default option on 1 January 2014.
LGsuper said strong governance and cost-effectiveness were hallmarks of its approval.
"We're committed to delivering strong investment returns and a simple fee structure so you enjoy excellent value and more money in retirement," it said.
The fund said MySuper was simply an extension of its strategy.
"LGsuper's successful application for a MySuper licence highlights APRA's confidence in our fund's ability to offer a value-for-money default product for members," it said.
"It also means our employers are assured they can meet the Government's requirements to make contributions into a MySuper product."
The merger, first announced in December 2022, was due to be completed in mid-2024.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
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