26 May, 2022

The BT Super Board and Mercer today announced they had signed a Heads of Agreement to merge BT’s Personal and Corporate superannuation funds into the Mercer Super Trust to create a $65 billion superannuation fund helping more than 850,000 Australians to invest for and support their retirement.

BT Super Chair, Gai McGrath, and Mercer President Pacific Region and CEO Australia, David Bryant, today welcomed the agreement which will result in significant benefits to the superannuation members of both organisations.

Ms McGrath said: “The Trustee engaged broadly across the industry and after a robust and competitive process this merger will create a larger superannuation fund with the potential to deliver improved performance, lower fees, and broader member services. It also maintains continuity of knowledge and service for BT Super members”. 

“Mercer, whose multi-manager funds manage more than A$500bn in assets globally, has been a retirement and investment specialist in Australia for more than 40 years. They are well placed to support our BT Super members and participating employers into the future.”

By being part of a much larger fund BT members will have the potential to benefit from:

• Stronger performance. Mercer’s default investment strategy has achieved top quartile results over three, five and seven years for the majority of members at 31 March 2022^[i].
• Lower fees. Most members will enjoy a fee reduction of around 25% off standard fees, making it one of the most competitive super offers in Australia. This includes the elimination of the dollar-based administration fee and reduced percentage-based administration and investment fees.
• More investment choice. Members will have access to an expanded choice menu for those who want to take control, backed by Mercer’s access to a diverse range of investments.
• Broader member services. With Mercer, members will continue to have 24/7 digital access to their super account supported by online calculators and education tools. Australian-based teams will be available to answer their calls and provide limited advice over the phone if they do not have a financial adviser. 

In addition, members’ existing insurance arrangements will be retained, providing peace of mind that there is no disruption to their cover or costs.

Fees for most Mercer Super members will also be reduced to match the new lower fees being offered to the transferring BT Super members.

“I look forward to working closely with Mercer to ensure a successful merger and improve the retirement outcomes for our members for many years to come,” Ms McGrath said.

The Heads of Agreement covers BT’s Personal and Corporate superannuation funds including BT Super and BT Super for Life. The merger does not include superannuation held on Westpac’s BT Panorama and Asgard platforms.

Future investment and opportunity

Mr Bryant said: “Our purpose is to make a difference in people’s lives. Bringing the combined expertise and strength of our two firms together enables us to do exactly that, and redefines the competitive landscape of superannuation in Australia.

“Our new proposition will be offered to all members from day one. And, our ongoing commitment to improving our capability and capacity will continue to set a new bar for retirement outcomes for all Australians now and into the future.

“I am very much looking forward to welcoming the BT Super members and BT Super’s people to Mercer Australia.”

Keeping members and customers informed

Members will receive all the relevant information about the merger in the coming months well ahead of its expected completion in the first half of the 2023 calendar year.

More information is available now at bt.com.au/supermerger.

The merger remains subject to certain conditions (including regulatory approvals).