The super funds announced on Tuesday they had signed a Memorandum of Understanding (MOU), which is a document outlining an agreement to merge, and the first of many steps in the merger process.
It is expected the merger could be completed in the first half of 2022, pending due diligence checks.
Canstar understands the two industry funds intend to undertake a successor funds transfer, which would involve the transfer of all LUCRF members and their benefits to AustralianSuper, and the end of the LUCRF Super brand. The merger would see AustralianSuper extend its lead as the nation’s biggest super fund.
AustralianSuper is already the largest super fund in the country, holding more than $225 billion in retirement savings on behalf of more than 2.4 million members at the time of writing, while LUCRF Super has approximately $7.4 billion in funds under management on behalf of around 132,000 members.
LUCRF currently represents workers in the warehousing, logistics, pharmaceutical, manufacturing and food production industries and describes itself as Australia’s first industry super fund.
LUCRF Super Chief Executive Officer Charlie Donnelly said the merger would ensure the fund was meeting members’ best interests, a legal requirement which was highlighted in a recent Productivity Commission report that recommended smaller funds merge when necessary.
“LUCRF Super has specialised in taking care of the retirement savings of a large proportion of the lowest-paid workers in Australia for more than four decades and we are certain that a merger with AustralianSuper will continue to provide the best value and benefits to members,” Mr Donnelly said.
AustralianSuper is also currently in talks to merge with hospitality and community clubs industry fund, Club Plus Super, having signed a separate MOU with it in May.