New deal creates Australia's biggest superannuation scheme
Plans for what will be the biggest merger of superannuation schemes in Australian history have finally been unveiled.
Following weeks of anticipation, AustralianSuper has confirmed that it is to merge with Westscheme to manage a fund worth in excess of $40 billion.
Announcing the news, the head of AustralianSuper, Ian Silk, explained that individual members will be the biggest winners as the new deal enables fund managers to spread their costs more-widely and thereby reduce the amount being paid by their customers and clients and potentially allow them to free up some money for deposits.
The combined scheme will work for around 1.7 million members, with Westscheme contributing around 210,000 of these.
"AustralianSuper is a fund that has shown the potential to deliver our members strong, long-term investment performance and low costs," its chief executive Howard Rosario said of its new partner.
This comes as the Australian Workers' Union (AWU) has stepped up its efforts to push employer superannuation contributions up to 15 per cent.
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