Growing your super is our top priority.
Growing our services to you is another.
Keeping fees low is also important.
However, the costs of running super funds are also growing.
And because we’re a small super fund with a small number of members, it’s getting harder for us to sustain these costs.
So we’re about to ask a select group of super funds to express an interest in partnering with us into the future.
This formal Expression Of Interest (EOI) requires those Funds to meet our specific requirements for such a partnership. This includes demonstrating their ability to maintain the defined benefit scheme and insurance coverage for our specific member occupations.
The requests for expressions of interest are being sent this week and we’ve asked for responses early in the new year. If a change of fund is found to be in members’ best interests, this is likely to happen in Oct/Nov 2022 or March/April 2023.
What is the Expression of Interest?
The EOI is a lengthy questionnaire that will help AvSuper uncover if there is a potential new home for AvSuper members’ retirement savings.
There are numerous requirements, and four key themes:
- To be “Equal to or greater net benefit to members” noting this is also a regulatory requirement.
- Ensure maintenance of defined benefit scheme and insurance coverage for specific member occupations
- Be a tailored service model
- And offers alignment with key stakeholders incl. principal employer and other nominating bodies.
We’ve created a short video to explain what is happening and why.
What happens next?
We have requested responses to the EOI by early 2022.
In a highly regulated industry like superannuation, mergers are a multi-step process and can take anywhere from 1-3 years.
The first step is to consider if there is an appropriate partner fund for AvSuper members. This is the ‘Expression of Interest’ process that is now underway.
At the end of the EOI process, AvSuper may choose to sign a ‘memorandum of understanding’ with one fund, and then commence a due diligence process.
We will continue to provide members with regular updates on what is happening at AvSuper.
Strategic decisions, such as a merger, are made by the AvSuper Trustee, who is charged with delivering the best it can for members. Of course, we will continue to engage with employers including Airservices, employee bodies and other stakeholders in respect of any merger activity.
If a merger did become the best option for AvSuper members, we would let you know as soon as any decision was made. At the end of the day, our first and last priority is our members, and we will do whatever is required to deliver the best outcome to them.
Where can I learn more?
We have created a set of FAQ’s that we believe will be relevant for AvSuper members and stakeholders.
If your question isn’t answered here or you need additional information and assistance, please contact our Member Advice Team via phone (1300 138 751), AvChat, or email.
A Webinar regarding the EOI process was also held 9th December 2021. You can view the Webinar here if you were unable to attend.
Plus, we’ll keep you informed during the whole process, through:
· updates on the web page
Frequently asked questions