MTAA Super and Tasplan have extended the timeline of their planned merger due to the COVID-19 global crisis.
The merger date was originally set for 1 October 2020 but has now been extended to no earlier than 31 March 2021.
The decision came after a joint recommendation from MTAA Super CEO Leeanne Turner and Tasplan CEO Wayne Davy to the Chairs of both Boards, with sustained market volatility and concerns about supplies of specialist services being key factors behind the extension.
Despite the new timeline, Turner said today that the decision behind the merger and the benefits to members of both funds remain unchanged.
"We still believe the merger is in the best interest of members of both funds. A combined fund will provide greater efficiencies, improved products and services, increased capability, and better value to members. So, we remain fully committed to the merger — just with an extended time."
She also acknowledged that recent restrictions as a result of COVID-19 have put extra strain on people.
"Clearly things have changed rapidly for all Australians in the last few weeks. We recognise the pressure that this is putting on our members and our staff, both at work and at home. We think extending the merger timeline will ease stress and help our staff better manage workloads and their personal arrangements."
Member support is a key priority for both funds, with members expressing concern about market volatility and financial hardship.
"Understandably, members are concerned about their retirement savings. And we'll likely see an increase in the number of people facing financial difficulties in the coming weeks and months," Davy said. "By extending our merger timeline we can focus on getting members the service, advice, and support they need right now. That's always been a priority for us, but now it's more important than ever."
