IEU welcomes super funds merger

THE Independent Education Union of Australia NSW/ACT Branch (IEUA NSW/ACT) has welcomed the announcement that NGS Super and Australian Catholic Super intend to merge.

The planned merger will create a large fund with more than $21 billion under management. It will have over 200,000 members servicing independent and Catholic schools and the community services sector across Australia.

"This merged fund, which is still to be named, will create an inclusive fund with nationwide reach, which understands the non-government education sectors and the needs of our members who work in them," an IEU spokesperson said.

"After decades of coexistence and competition, the joining of these two significant funds will enable them to channel their energies more fully into providing the best possible service, to the benefit of members and employers."

As reported in today’s Financial Review, the chairman of NGS Super and former IEUA NSW/ACT Branch secretary, Dick Shearman, said the merger would deliver economies of scale and the ability to improve member services.

The board of the new fund will still have an equal number of member and employer representatives, and the IEU will retain the right to appoint directors.

The union said it looked forward to continuing its close relationship with the fund through sponsorship of union events and hosting super and financial education sessions for our members in union venues.

"This is an historic announcement,” IEUA NSW/ACT secretary Mark Northam said.

"The union expects meaningful engagement during the merger process so we can ensure our members’ best interests are served.”

Following due diligence, the merger is expected to take place in late 2021.

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