AvSuper and Commonwealth Superannuation Corporation consider merger
04 May 2022
AvSuper and the Commonwealth Superannuation Corporation (CSC) are considering merging, announcing today they have entered into a Memorandum of Understanding (MoU) to conduct due diligence to determine whether a merger of the two organisations would be in the best interests of both AvSuper and CSC members.
The merger, which requires Government approval, along with the passage of appropriate legislation through Parliament, is seen as an opportunity to bring together two super funds who share a common heritage and provide superannuation to those who serve our country. Prior to the election being called, the Government agreed to CSC entering into this non-binding MoU with AvSuper to explore this merger.
CSC has a 100-year history of providing superannuation services to current and former Australian Government employees and Australian Defence Force employees and veterans. AvSuper, a public offer fund, was formed in 1990 and is dedicated to the aviation and aviation safety industries.
AvSuper CEO, Michael Sykes said "After a comprehensive and highly competitive Expression of Interest process, we see CSC as the right partner to manage our members’ superannuation into the future."
Both funds said that the best interests of members would be the deciding factor in the MoU talks, with CSC CEO Damian Hill saying "AvSuper and CSC are a great fit and it is expected that a merger would benefit members of both organisations. We are both committed to 'serving those who serve'."
For members, this merger will mean that the best features of both organisations are consolidated. AvSuper’s members will benefit from CSC’s $60 billion scale in investments and CSC members will see a larger, more diversified customer base.
Both organisations currently partner with Mercer Administration Services for provision of customer service and administration services, and with AIA Australia for customer insurance.
For employees of both organisations it’s business as usual for now as they undertake due diligence and preparation of documentation for government approval.
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