Trustees of superannuation funds must at all times act in their members’ best interests. Sometimes the best interests of members can only be met by super funds merging.
As Hostplus and Club Super are both industry funds with a common ‘all profit to member’ heritage, as well as a focus on serving the hospitality, tourism, recreation and sporting sectors; the trustees of Hostplus and Club Super wish to explore whether a merger between both funds could deliver greater benefits and outcomes for a combined membership.
Both trustees will commence a due diligence process for the purpose of evaluating the potential benefits to members should a merger proceed between Hostplus and Club Super. If the trustees both conclude that a merger will be in the best interests of their respective members; a merger will be agreed and documented in a Successor Fund Transfer Deed.
If at the end of the due diligence process both trustees conclude that it is in the best interests of their members, it is anticipated a merger will take place by the end of the year. Both Hostplus and Club Super are committed to ensuring their members and employers are kept up to date with all key developments.
Central to any decision about merging or not, is the need for both trustees to ensure their members have equivalent (but not necessarily identical) rights in the merged entity.
If the trustees of both Hostplus and Club Super agree to merge, under the equivalency of rights test, Club Super members must receive, as a minimum, equivalent (but not necessarily identical) rights in the new fund. Its possible Club Super members may have access to superior products, benefits and services because of Hostplus’ size.
During the due diligence phase, Club Super will keep its’ members informed about all key developments.
Your business will not be affected during the due diligence process. If at the end of the due diligence process a decision is made to merge, your Club Super Employer arrangements will be transferred to Hostplus.
While the idea of a merger can seem like a significant change for your business, both funds will work together to ensure you are fully informed of all developments and that the transition process from Club Super to Hostplus will cause minimal disruption to your business and employees. Hostplus wants to ensure your business continues to enjoy the same level of service excellence that you’ve come to expect from Club Super.
A decision to merge with Club Super will only occur if the trustee of Hostplus is satisfied there will be no detriment to Hostplus members.
Your business will not be affected by the proposed merger. Nothing will change for you or your employees.
To satisfy the equivalent rights test, you should not be financially disadvantaged from the merger of both funds. As both Hostplus and Club Super share a common profit-to-member heritage, our goal is to keep fees as low as possible.
If the proposed merger proceeds, Club Super members will have a choice of investment options that will, at a minimum, be equivalent to your existing investment choice.
If the proposed merger proceeds, Club Super members will have the opportunity to take up equivalent or superior insurance cover. In the meantime, Club Super members will continue to be covered by their existing insurance policies.
Of course! We’ll provide updates to both members and employers on all key developments. We’re here to help. You can contact either Club Super or Hostplus at any time for further information about the proposed merger.