THE much-anticipated merger between super funds MTAA Super and Tasplan will take effect from April 1st this year with the new entity to be known as Spirit Super.

Spirit Super will be Australia’s newest industry super fund. It will have about $23 billion funds under management with about 326,000 members across Australia.

MTAA Super brings $13b in funds and 200,000 members to the merger and Tasplan brings $10b and 126,000 members.

Tasplan is primarily Tasmania-based but has members in mainland Australia as well.

MTAA Super was launched in 1989 by the Motor Trades Association of Australia to handle the superannuation needs of people working in the motor trades and other allied industries in the wake of the 1985 National Wage Case that required a 3 per cent employer superannuation contribution to be paid into an industry fund.

The state-based motor trades bodies got together through the MTAA to establish the fund because until that point very few people working in the motor trade had superannuation.

While the MTAA Super membership is mostly motor industry focussed with a motor industry DNA, membership has been available to anyone.

Coinciding with the merger, the long-standing chairman of MTAA Super, former Victorian state premier John Brumby will retire. Naomi Edwards, who has been chair of Tasplan since 2011, will chair the new combined board.

On completion of the merger, current MTAA Super CEO Leeanne Turner will assume the CEO role of Spirit Super.

Ms Turner said in a statement that the new name “perfectly represents the fund’s drive to be a national super fund that offers superior service, value, and member focus”.

“Spirit Super captures the energy of what we’re about. It’s fresh and optimistic and innovative — everything we want to be.

“The new name also speaks to the past achievements of our funds,” Ms Turner said. “MTAA Super and Tasplan are both outstanding funds and take great pride in providing historically strong long-term returns, excellent value and service to our members.

“As Spirit Super, we will have greater capacity to continue improving our products and service and to really embrace a member-first approach to everything we do.”

The merger follows a successful year for MTAA Super and Tasplan, with both funds receiving Platinum ratings by SuperRatings and being named ‘Best Value for Money’ funds for 2020.

“That’s what makes this merger so exciting,” Turner said. “This isn’t about a big fund absorbing a smaller fund. It’s about two successful funds coming together to get even better. It’s a true partnership that will provide a better super experience and outcomes to members across the nation.

“With MTAA Super’s strong long-term performance history and Tasplan’s superior customer satisfaction rating and award-winning digital services, we are bringing the best of both worlds to Spirit Super.”

The new fund also announced a reduction in administration fees for all Spirit Super members.

“The details are being worked through, but there will be a drop in administration fees when Spirit Super kicks off. So right off the bat, members will start seeing the benefits of the merger.”

Tasplan chair Naomi Edwards said the new fund name was an important milestone to mark in the merger process.

“Our name is our future, so it was important we embraced something our members could be proud of and inspired by. I think Spirit Super nails it. Importantly, our name will also set us apart in the market. This will help us grow, compete, and continue pursuing opportunities in the best interests of our members.”

By John Mellor