One of the largest corporate superannuation funds in Australia, Commonwealth Bank Group Super, has appointed Mercer to provide defined benefit (DB) administration and member services, in what is a significant partnership for both parties.
Defined benefit funds are limited, but they remain extremely important for many trustees, employers and members, and will do so for some time.
“Our DB scheme continues to serve existing and former employees. We were looking for a specialist DB administration provider that has both demonstrable DB capabilities today and will invest in developing future capabilities to enable the fund to evolve and grow,” said Commonwealth Bank Group Super CEO, Doug Carmichael.
“Mercer has a strong and sustainable business model and were able to articulate the best plan and ongoing commitment to our DB business. Their recent experience with large scale complex transitions gave us confidence in Mercer’s ability to manage a change of this magnitude,” said Mr Carmichael.
Mercer has completed five significant administration transition projects in the last three years, representing almost 500,000 members. These included transitioning Equipsuper, NGS Super, Media Super and the ANZ Staff Superannuation Scheme from their former administrators, in addition to the first-time outsourcing of the Retirement Benefits Fund of Tasmania from an in-house operation.
“Today in Australia, over 50% of Mercer’s administration clients have a DB component covering hundreds of benefit categories. We have arguably some of the best DB talent in the industry and we look forward to partnering with Commonwealth Bank Group Super to meet their DB needs,” said Mr David Anderson, Mercer’s Managing Director & Market Leader for the Pacific.
“While the industry’s current focus is on complying with the myriad of superannuation reforms presently underway, as it should be, the complexity of DB funds and the needs of their members and employers must be remembered and well represented” said Mr Anderson.
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