July merger update

Issued 24 July, 2024

As communicated in May this year, the TelstraSuper Board has determined that it is in our member’s long term best interests to seek a suitable merger partner.

This follows careful consideration of the Fund’s long-term strategy against the backdrop of industry trends and developments, where size and scale are increasingly important.  The Fund is in a strong and healthy position with positive net member growth, high member advocacy and a growing retirement segment.

The merger process will contain three key phases:

• Phase 1: Reviewing potential Funds and shortlisting.

• Phase 2: Selecting a preferred merger partner, signing a Memorandum of Understanding and conducting further due diligence between the two parties.

• Phase 3: Once the due diligence phase has been successfully completed, the two parties will formally agree to merge resulting in the legal merging of entities.

The Board has now commenced phase 1 of the merger process and there has been a high level of interest from funds seeking to partner with us. The Board are currently considering information provided from a range of potential partners to enable us to find the right fit.

From here, the Board will choose a preferred candidate and commence further due diligence. This includes delving deeper into any potential merger partner’s products, services (including advice services), culture, insurances and investment strategy. Our members’ best financial interests are front and centre to any merger consideration. 

Finally, once a partner is confirmed, there will be a legal merging of entities. We anticipate that this will occur before the end of 2025.

Once the TelstraSuper Board has determined who our preferred partner will be, we will be able to share more information with you. While the Fund explores merger options, it’s important to note that there will be no change in the operations of the Fund or our commitment to helping members achieve the best retirement outcome possible. In the meantime, if you have any questions, please feel free to review our frequently asked questions at the bottom of this page or call us on 1300 033 166.

TelstraSuper to explore merger options

Issued 02 May, 2024

Today, the Board of Telstra Super Pty Ltd announces its intention to explore merger options for the Telstra Superannuation Scheme (TelstraSuper).  

For more than 30 years TelstraSuper has had the privilege of providing members with award-winning retirement solutions, strong long-term returns, competitive fees and a leading member experience. The Fund is currently in a strong and healthy position with positive net member growth, high member advocacy (NPS of +23*) and a growing retirement segment. 

After careful consideration of the Fund’s long-term strategy where size and scale are increasingly important, the TelstraSuper Board has determined that our members’ interests will be best served in the long term by seeking a suitable merger partner aligned to the Fund’s objectives and values.

Originally established exclusively for Telstra employees but now serving a much broader membership, less than one quarter of TelstraSuper members currently work for the Telstra group of companies. As well, today many new members come directly to the Fund or through other unrelated employers and not through Telstra's employment. 

The TelstraSuper Board and Telstra Group came to the view that the time has come for TelstraSuper to move forward with a new separate identity from the Telstra Group. Telstra has confirmed its ongoing commitment to our Fund as their default superannuation fund. A merger will facilitate the rebranding of the Fund.

The Fund also needs to move to a new custodial arrangement due to the expiry of the current contract in 2025. Changing custodian is a significant task for the Fund, and, again, a merger will facilitate the timely replacement of our current custodial arrangements.

With members' best financial interests central to any future merger consideration, the TelstraSuper Board see this as an exciting opportunity for members as we seek to transition to become a larger entity with an industry leading range of benefits and services offered to members.

While the Fund explores merger options, there will be no change in the operations of the Fund or our commitment to helping members achieve the best retirement outcome possible.

If you have any questions about this announcement, we have created a frequently asked questions section for members. If you have any other questions or need help with any other aspect of your TelstraSuper account, please call us on 1300 033 166.

*NPS – Net Promoter Score as measured by Investment Trends Super Member Engagement Report 2023

Read our Frequently Asked Questions below. These may be updated throughout the merger process. FAQs with a * indicate a new or updated question