The future of the superannuation administrator Pillar has been up in the air for some time now, but a statement by NSW Treasurer Gladys Berejiklian yesterday confirmed the state government would be proceeding with the sale.
Expressions of interest will be called for in 2016 in what Ms Berejiklian said will be a "competitive trade sale".
"Ongoing public ownership of Pillar is not in the interests of NSW taxpayers or Pillar’s clients in this competitive market," Ms Berejiklian said.
"Private owners will put Pillar in a stronger position to pursue growth opportunities and improve the long-term financial viability of the business.
"In recognition of Pillar’s operations in the Illawarra, the NSW government will seek commitments from bidders for a continued presence in the region," she said.
Pillar currently administers 1.1 million superannuation member and retiree accounts totalling $100 billion.
Clients of the firm include First State Super Trustee Corporation, State Super trustee SAS Trustee Corporation, Commonwealth Superannuation Corporation and Aon Hewitt.
Pillar chief executive Peter Brook welcomed the news, saying he fully supported the NSW government's decision to sell the business.
"Financial services and superannuation in particular, are undergoing massive technological change," Mr Brook said.
"Whilst the NSW government has been attentive to our requirements, private owners would be better placed to help Pillar deliver the products and services it needs to ensure its long-term viability."
One likely bidder for Pillar is recently listed superannuation fund administrator Link Group.
