Employers please note – when making contributions via your clearing house or payroll provider, from 1 July 2021 the new Fund name is LGIAsuper, Product Name is Energy Super, USI is 23 053 121 564 004 and ABN is 23 053 121 564.Click here for more information.
The merger of Energy Super and LGIAsuper took place on 1 July 2021 as planned.
The merger sees the two funds continue to operate under their existing brands for a period of time and the new combined fund is managing approximately $24 billion in retirement savings on behalf of around 122,000 members (combined figures from both Funds, as at 30 June 2021).
By August 2021, LGIAsuper making a payment of $75 to the primary accounts of all members who were with LGIAsuper on 30 June 2021. This payment comes from LGIAsuper’s General Reserve. This is surplus money that has been set aside over time as contingency, some of which can now be returned to LGIAsuper members.
This payment comes from LGIAsuper’s General Reserve, accumulated before the merger with Energy Super. This is surplus money that has been set aside over time as a contingency, some of which can now be returned to ongoing LGIAsuper members.
The reserves for Energy Super are not surplus as we merge, therefore there is no payment being made to Energy Super members.
Energy Super and LGIAsuper merged on 1 July and we will continue as a joint fund to monitor the reserves and action any reimbursement if required in the future.
Across the superannuation industry, we are continuing to see ongoing merger activity driven by the need to drive costs lower for members whilst still maintaining levels of service.
The key reasons why Energy Super and LGIAsuper chose to merge our two funds, are that we are both committed to offering the same exceptional ‘boutique’ face-to-face service to our members around Queensland. Both of our funds have seen the great benefits that a boutique fund with more size and scale can deliver to our members, whilst still maintaining the personalised service we both offer.
We expect that this merger will deliver benefits to both of our sets of members including increased investment opportunities, lower investment and administration fees, and greater scope to enhance products and services.
Both Energy Super and LGIAsuper have a long and successful history as profit-for-members funds, with no shareholders and a strong member-focus. We have identified the following potential benefits for members:
Increased range of investment opportunities
Strong and sustainable long-term returns
Lower investment and administration fees
Access to enhanced products and services
Even greater presence in regional areas
By combining the two funds, we will further strengthen our internal teams and service delivery model to provide increased support, education and advice.
LGIAsuper look after $13 billion in retirement savings for around 73,000 members (as at 31 December 2020).
LGIAsuper's performance and member service is recognised in top-ranking awards by industry research and ratings companies. For both our Accumulation and Pension products, our latest awards (as of June 2021) include Platinum rating from SuperRatings (for 13 years running), 5 Apples from Chant West, and AAA Quality Rating from Rainmaker Information (for 8 years running).
No. This transaction will be funded from money in LGIAsuper’s General Reserve, which was built up prior to the merger. This money is expected to be recouped by members who had LGIAsuper accounts as at 30 June 2021 within five years.
LGIAsuper maintains a General Reserve to ensure there are sufficient funds to meet current and future liabilities for administration costs, strategic initiatives and operational risks. Any excess retained in the account is ultimately applied for the benefit of all membership as a whole.