Updated 1 July 2021
Yes, LGIAsuper and Energy Super completed their merger on 1 July 2021.
The merger has created a strong Queensland-based superannuation fund of around $24 billion, managed on behalf of approximately 123,000 members (combined figures from both funds, as at 1 July 2021).
The merger has created a single fund, which is now managed by the LGIAsuper Trustee.
The two entities will continue to operate under their existing brands for the time being, with contact centres, workplace visits, access to advice and great personal service remaining the same.
Yes. Many of the leaders from both funds have been re-appointed to lead the newly merged fund.
A new LGIAsuper LGIAsuper Board and Executive team have been created to run the newly merged fund. These teams are now in place. These teams consist of a mix of both LGIAsuper and Energy Super personnel.
Kate Farrar, LGIAsuper's Chief Executive Officer, was appointed by the Boards of both funds to continue as CEO and lead the newly merged fund from 1 July 2021.
There will be some processing delays between 1 and 12 July 2021 while LGIAsuper and Energy Super transition to a merged fund. There will also be a delay to our daily publishing of earning rates, and we expect to revert to our regular schedule on Tuesday 13 July 2021.
Full details and the most up-to-date information are available on our merger updates page.
By August 2021, we will be 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.
The $75 payment will count towards your concessional contributions cap for the financial year (which will be $27,500 for 2021/22).
During the financial year, we recommend you check that you are staying under your contributions cap. This will help you avoid paying extra tax and charges. You can check your contributions cap by logging in to Member Online or calling us on 1800 444 396.
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.
For now, things will remain the same and you are not required to take any action.
We expect there will be minimal impact on our members in the foreseeable future. We will keep you informed of any material decisions that may be important to you as a result of the merger.
No, members did not need to vote. The decision on whether to proceed with a merger was made by the Boards of each fund in the best interest of members.
Both LGIAsuper and Energy Super 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:
By combining the two funds, we will further strengthen our internal teams and service delivery model to provide increased support, education and advice.
Both Energy Super and LGIAsuper have teams of very experienced and knowledgeable staff who are dedicated to providing the best possible support to members.
Overall, we expect the process we are undertaking to have minimal impacts on our people in the short-term, so they can continue to provide the high level of service and support you currently enjoy.
Profit-for-members funds are designed for the benefit of their members. They do not have shareholders. Any profit is put back into the fund for the benefit if its members.
Both Energy Super and LGIAsuper are profit-for-member funds.
In contrast, retail funds are run to deliver any profits directly to shareholders.
Energy Super is a strong profit-for-member superannuation fund with almost 50,000 members and $8 billion in funds under management.
As a proud industry super fund with a 40-year heritage, Energy Super has always been a fund of choice for the energy industry. Like us, they are now an open fund and pride themselves on individualised service.
Energy Super has been rated as a value-for-money fund with independent ratings agency SuperRatings for more than a decade.
Energy Super considers environmental, social and governance (ESG) risks, impacts and opportunities in its investment decision-making to protect and manage members’ investments for the long term. All of Energy Super’s investment managers are signatories to the internationally recognised Principles for Responsible Investment, which demonstrates the fund’s commitment to socially responsible investment.
Energy Super adopts a practical and balanced approach to ESG management and, like any super fund, Energy Super’s investments are never dominated by any particular industry.
It invests in share markets across the world and it has investments in a range of clean-energy technologies in addition to traditional coal mining, oil, and gas companies. Energy Super is also proud to be an investor in renewable energy generators and recognises the importance of being part of such an important social transition.
Energy Super is reluctant to exclude particular investments as this limits the investable universe and has the potential to create inefficient portfolios. Its investment process is transparent. In 2014, Energy Super was the first fund to give members a clear view of where their money was being invested and its investments can be viewed on its website.
Energy Super has a specific socially responsible investment option – the SRI Balanced option – which is an externally managed, multi-manager, balanced fund. This fund explicitly considers the impacts of ESG issues, identifying leaders within industries in their responsible approach to ESG issues. This fund excludes investments in areas that have a high negative social impact.
Many of Energy Super's members work in the energy sector, in both traditional and renewable energy production. With the renewable sector expanding, we can expect more members will be involved in clean energy production in the future.
Some of Energy Super’s largest employers are already heavily involved in renewable energy, such as CleanCo, Energy Queensland and Powerlink.
As a public fund, Energy Super’s members and employers also come from a wide range of other sectors, industries and communities.
Both LGIAsuper and Energy Super have a long and successful history as profit-for-members funds with a strong member-focus.
We both started servicing members from a specific sector. We have both become open funds in recent years to serve members from many different industries and sectors.
Both funds also have a strong track-record of and commitment to delivering strong and sustainable returns to members.
We are both Queensland based funds with a focus on understanding our members and share a common vision to remain personal and boutique.
The merger has brought two very similar and like-minded funds together to provide more benefits for members.
No, the merger does not impact the progress of LGIAsuper’s acquisition of Suncorp Portfolio Services Limited (SPSL).
We expect the acquisition of SPSL to be completed in the second half of the 2021/22 financial year.
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.