CareSuper and Spirit Super announced on Thursday that they have entered into a binding agreement to merge the two superannuation funds.
The merger, which is expected to be completed in late 2024, will create a combined fund with more than 500,000 members and almost $50 billion in funds under management.
“This announcement is an exciting moment for both funds, who share a bold vision to create a national, mid-sized fund that provides a distinct point of difference for our members,” CareSuper chair Linda Scott and Spirit Super chair Maria Wilton said in a joint statement.
“CareSuper and Spirit Super are both high-performing funds. This merge will offer members a fund that leverages the strengths of each to deliver great outcomes for members and all stakeholders.”
The combined entity will be chaired by Ms Scott. Meanwhile, Jason Murray, the current chief executive officer of Spirit Super, will become the CEO of the combined fund.
"Bringing together a leader from each of the funds reflects the close collaboration to date and the shared vision of the funds’ leadership,” Ms Scott and Ms Wilton said.
“As member-focused industry super funds, this binding agreement is a critical and positive step forward in serving our members’ best financial interests.
“This growth is essential to continue to drive outstanding value and service for our members, cementing the vision both funds have of being a sustainable, mid-sized fund and leaders in member experience and driving strong retirement outcomes.”
With the merger set to take place in late 2024, the two super funds also confirmed that nothing will change for members of both funds in the meantime. They will remain members of either CareSuper or Spirit Super with administration, investments, and customer service managed by their respective fund.
CareSuper was established in 1986 and has approximately 220,000 members and $20 billion in funds under management.
Spirit Super was established in 2021 through the merger of Tasplan and the Motor Trades Association of Australia Superannuation Fund. The fund has over 325,000 members and $25 billion in funds under management.
