LGIAsuper has selected a global business called Tech Mahindra to take over and operate our back-office administration platform on our behalf. This will capitalise on the significant investment we have made to deliver this administration platform and ensure the system is operated efficiently and delivers financial and service benefits for our members. Tech Mahindra has strong experience and scale with operating this administration platform, and will be able to deliver our back-office services very cost effectively.
Benefits for our members will be substantial, including significant cost reductions and a better member experience.
There will be no changes to our:
No, our local Contact Centre in Brisbane will remain the first point of contact for members.
A critical part of how we operate as a fund is the security of members’ information. Our members’ information stored within our registry system will remain in secure, Brisbane based data centres. No ownership of data will be transferred to Tech Mahindra, and the use of members’ information will not change.
LGIAsuper is a profit-for-member fund and, as such, everything we do needs to be focused on achieving the best possible outcomes for our members.
This means providing services to our members in the most efficient way possible. We have committed to reducing our administration costs significantly by 2021. This is the best decision for our members and aligns with the post-Royal Commission environment which reinforces that we must always put our members’ interests at the forefront of what we do.
Tech Mahindra is a global business process specialist with an outstanding record of achievement in Australia and in Queensland. Tech Mahindra has established partnerships providing technology and business process services to leading companies in the region.
LGIAsuper ran a lengthy process and considered a range of local and global options. Tech Mahindra’s skills, experience, and pricing has proven to be the best partnership for LGIAsuper and our members. Tech Mahindra also has a large presence in Queensland, including more than 180 staff.
Your account will continue to operate as it always has. There will be no changes to our investments, our investment philosophy, governance or investment operations as a result of the partnership.
In the short term, LGIAsuper’s new fee structure will bring fees in line with the current costs of operating your fund and enable us to continue to provide a high standard of service to members. Partnering with Tech Mahindra is part of a longer-term strategy that is expected to significantly reduce our administration costs in the coming years, once the savings from the change have been realised.
Once LGIAsuper’s partnership with Tech Mahindra is implemented, our business processing activities will be undertaken by Tech Mahindra both in Australia and offshore. Despite this, our commitment to supporting local government and communities has not changed. As the default super fund for Queensland local government, we will continue to share our special partnership with those dedicated to building strong, resilient communities across the state. Our head office will remain in Queensland, our Contact Centre will remain in Queensland, and our member services and costs will only improve.
The new arrangement will take effect from 1 November 2019. We expect that there will be no impact on members during this transition.