Employer update

Equip Super has an enviable growth history – from being selected as the home for the Rio Tinto Staff Super Fund in 2016, to the Joint Venture with Catholic Super and the more recent mergers with BOC Super and Toyota Super. With each merger, we have been able to deliver improved outcomes for members through lower fees and enhanced products and services.

A merger with TelstraSuper will create a combined profit-to-member fund with around $60 billion in funds under management and more than 225,000 members. The merged entity would leverage our combined strengths across member and employer servicing, retirement planning, investments and managing tailored corporate arrangements, including defined benefits. It is expected that the merger would provide significant scale benefits and deliver improved retirement outcomes to members, whilst maintaining the personalised service that the two funds currently provide.

In May 2024, TelstraSuper announced its intention to explore merger options, having determined that members’ long-term interests were best served by seeking a suitable merger partner.

Since then, TelstraSuper has reviewed potential funds and shortlisted, before selecting Equip Super as its preferred merger partner and signing a Memorandum of Understanding. In selecting a suitable merger partner, TelstraSuper has been focussed on alignment with its objectives, values, beliefs and commitment to delivering strong retirement outcomes for members, with members’ best financial interests the driving force. TelstraSuper believes Equip Super’s strengths complement those of TelstraSuper.

There is no immediate change for you as an employer. The funds will continue to operate independently, with no change for members or employers at this time.

As the merger progresses, we will inform you well in advance of any changes impacting you and your people, and support you through the process.

It is expected that the merger would be executed by late 2025.

We will communicate with you throughout the process to keep you informed of progress.

Equip Super will continue to operate independently. There will be no impact on day-to-day operations at this time, with no changes to members’ accounts or the services we offer. Fees and investments will remain the same.

The merger will achieve significant scale benefits, and, as a result, members will receive a reduction in the asset-based administration fee to 0.15% and a reduction in the administration fee cap to $750 p.a., from the effective date of the merger of the two funds.

Over time, Equip Super members will also benefit from:

• TelstraSuper’s operational capability and digital experience to service and support members
• Combining the investment menus of the two funds taking a ‘best of breed approach’ to create a broader range of options to manage your superannuation and retirement savings
• A comprehensive range of advice services through joining the financial planning functions of both funds

Importantly, key aspects of products and services will be maintained including current insurance providers remaining in place for both funds.

Equip Super will be the name of the merged entity.

The TelstraSuper Board and Telstra Group have come to the view that the time has come for TelstraSuper to move forward with a new separate identify from the Telstra Group.

On 3 December 2024, we made a public announcement advising that we had signed a binding Heads of Agreement, agreeing to proceed with a ‘merger of equals’ with TelstraSuper. This announcement included emailing members, employers and other key stakeholders.

Previously, on 18 September 2024, we made a public announcement regarding our intention to explore a merger of equals with TelstraSuper. This announcement included emailing all members, employers and other key stakeholders.

We will update members, employers and other key stakeholders again regarding progress when there is more information to share.

We will update members, employers and other key stakeholders again regarding progress when there is more information to share.

If you have any questions about this announcement, or any other aspect of your Equip Super membership, please contact us or your Employer Relationship Manager directly.