TelstraSuper

FAQs

• 1. Why is TelstraSuper planning to merge with Equip Super?

  After careful consideration of the Fund's long-term strategy where size and scale are increasingly important but where more personalised service is valued, the TelstraSuper Board determined that our members’ interests will be best served in the long term by seeking a suitable merger partner aligned to the Fund's objectives and values.  

  After considering a range of options, Equip Super was chosen as an ideal merger partner as their strengths complement those of TelstraSuper's.  
  It is expected that the merger will achieve significant scale benefits and deliver improved retirement outcomes to the members of each fund, whilst maintaining the personalised service that each fund currently delivers.

  The merger will create a fund with combined strengths in member and employer servicing, retirement planning, investments and tailored corporate arrangements, including management of defined benefit plans. The merged fund will manage more than $60 billion in retirement savings for around 225,000 members.

• 2. Who is Equip Super?

  Equip Super was established in 1931 and has been helping Australians build their retirement savings for more than 90 years. Today, they provide super, financial advice and retirement income accounts to more than 140,000 members Australia-wide. As a profit-to-member super fund, they have a history of strong, long-term investment returns and competitive fees.   

  With around $35 billion in funds under management, Equip Super manage the super arrangements for some of Australia’s large employers including Rio Tinto, Toyota, Origin Energy and the Archdiocese of Melbourne. 

• 3. What does this mean for members?

  It is expected that the merger will achieve significant scale benefits and deliver improved retirement outcomes to the members of each fund, whilst maintaining the personalised service that each fund currently delivers.  

  The merger will create a fund with combined strengths in member and employer servicing, retirement planning, investments and tailored corporate arrangements, including management of defined benefit plans. 

  At this point you do not need to take any action. Your super remains with TelstraSuper and your employer contributions will continue as normal. 

• 4. What will be the new name of the merged entity?

  The new merged superannuation fund will operate under the Equip Super brand name. This is consistent with the preferred option of both the Telstra Group and the TelstraSuper Board to move forward with a separate identity from the Telstra Group. 

  However this will be a merger of equals, where we bring the strengths of both funds together in one entity to form a new fund, for the benefit of all members.

  The TelstraSuper brand will be retired over time and references to TelstraSuper will change to Equip Super. While the name will change, our member-first culture, objectives, values, beliefs and commitment to delivering strong retirement outcomes for members will not change.

• 5. Who will run the merged Fund?

  Michael Cameron (current Equip Super Chair) will be Independent Chair of the new fund’s Board and Anne-Marie O’Loghlin (current TelstraSuper Chair) will be Independent Deputy Chair.

  There will also be four member representative directors and four employer representatives on the new fund’s Board. The new fund’s Board will comprise an equal number of legacy TelstraSuper and Equip Super directors.   

  The Board will have the expertise and experience required to take the merged fund forward.  

  Chris Davies – our current TelstraSuper CEO – will be the inaugural CEO of the new merged fund. Chris will ensure that we continue to provide performance and service outcomes for our members while maintaining a focus on the ongoing integration of the fund’s operations post-merger. 

  Scott Cameron – current Equip Super CEO – will be Deputy CEO focusing on realising the benefits of the merger and building out the strategy and operating model for the merged entity. 

• 6. Will the service I receive be affected by the merger?

  Strong member service will remain an integral part of the merged fund's super offering. The merged fund will maintain the personalised service that each fund currently delivers.

  The funds will continue to operate independently until a successor fund transfer occurs, which is expected in late 2025. The merged entity will then leverage TelstraSuper's operational capability and digital experience to service and support members.

• 7. What will my fees be? Will my fees be lower?
  The merger will achieve significant scale benefits, and as a result members will receive a reduction in the asset-based administration fee to 0.15% and a reduction in the administration fee cap to $750 p.a., from the effective date of the merger of the two funds. 
• 8. Will the merged Fund still be a profit-to-member fund?
  Yes. Both Equip Super and TelstraSuper have successful histories as profit-to-member funds that work for members, not shareholders. The merged fund will continue with this model. 
• 9. What happens next?

  The funds will continue to operate independently until the merger is executed via a Successor Fund Transfer, which is expected to occur in late 2025.  

  The two funds will keep members, employers and other stakeholders informed as the merger progresses. TelstraSuper is committed to providing members with updates when there is significant new information to share. 

• 10. How will the merger take place?
  The merger will occur via a Successor Fund Transfer (SFT) in late 2025. This process automatically transfers members of one fund to another fund. Before a successor fund transfer can take place, the outgoing and incoming trustee boards must agree that the receiving (successor) fund will provide members with 'equivalent rights' to those the members had in their fund prior to the transfer.
• 11. What do I need to do?
  There is nothing you need to do now. We are committed to providing members with updates when there is significant new information to share.  
• 12. Is one fund taking over the other?

  This is a merger of equals, where we bring the strengths of both funds together in one entity to form a new fund, for the benefit of all members. The merger will create a fund with combined strengths in member and employer servicing, retirement planning, investments and tailored corporate arrangements, including management of defined benefit plans. 

  Both TelstraSuper and Equip Super will retain strong connection to their heritage industries and connected communities.  

• 13. What happens to my TelstraSuper account when the funds merge?

  The merger will achieve significant scale benefits, and as a result members will receive a reduction in the asset-based administration fee to 0.15% and a reduction in the administration fee cap to $750 p.a., from the effective date of the merger of the two funds. 

  The current insurance providers will remain in place for both funds as at the effective date of the merger, as will the current insurance arrangements for TelstraSuper members. These arrangements are reviewed from time to time to ensure members can access an effective benefit design and insurance coverage.  

  In time, Equip Super and TelstraSuper members will benefit from a single MySuper investment option which will be developed, taking account of the specific characteristics of the merged entity’s membership. 

  The two funds' investment menus will be combined taking a 'best of breed approach', creating a broader range of options for members to manage their superannuation and retirement savings.  

  TelstraSuper's retirement products and services will remain in place and, in time, be adopted by Equip Super members.  

  Equip Super will be the go forward brand, with the TelstraSuper brand to be retired in due course, and the merged entity will leverage TelstraSuper's operational capability and digital experience to service and support members. 

   
• 14. What will happen to my TelstraSuper defined benefit account?

  There will be no impact or change to members' defined benefit accounts because of the merger. Members will not have any change to their entitlements. Telstra will continue to fund the Defined Benefit plan as usual. How long will the merger process take?  

  The funds will continue to operate independently at this time, with no disruption for members or employers. The merger will be executed via a Successor Fund Transfer in late 2025. 

• 15. What will happen with my insurance?
  The current insurance arrangements will remain in place for TelstraSuper members as at the effective date of the merger. Looking to the future, it is customary for superannuation funds to review their insurance arrangements from time to time to ensure that members can access an effective benefit design and insurance coverage.
• 16. Will I still be able to access SuperOnline and the TelstraSuper app?

  The merged entity will leverage TelstraSuper’s operational capability and digital experience to service and support members.  

  You will still be able to access SuperOnline and the TelstraSuper app. The fund will continue to operate independently at this time, with no disruption for members or employers. 

• 17. What investment options will be available?

  The two funds' investment menus will be combined taking a ‘best of breed approach’ creating a broader range of options for members to manage their superannuation and retirement savings.  

  Many of our current options have a corresponding version in Equip in relation to the asset allocation but we expect there will be a couple of additional options added to our current choices. 

  TelstraSuper’s new RetireAccess Lifetime pension product which was launched in late 2023 will continue to be offered and be available to all members of the new fund once the merger has been completed. Direct Access will also still be available for members.

• 19. Will there be any changes to the financial planning services offered by the Fund?

  Both TelstraSuper and Equip Super provide a range of advice services to members. The financial planning functions of both funds will be combined to provide members with a comprehensive range of advice services

  At this stage there will be no immediate changes to the current range of financial advice services offered to TelstraSuper members. We are committed to providing updates when there is significant new information to share. Our financial advice services will continue to be available to all members throughout the merger process. TelstraSuper provides members with a comprehensive range of financial advice services; some of which are provided at no additional cost as they are included as part of your membership, and some are provided through an additional fee. More information on the Fund’s financial advice services can be found here.

   

• 20. Will members be required to vote on the merger with Equip Super?
  No. Members will not be required to vote on the merger. This decision has been made by the Boards of TelstraSuper and Equip Super. The Boards have determined that the merger is likely to be in the best financial interest of members and this was central to the decision.
• 21. Will there be any changes to the administration and servicing of the Fund for TelstraSuper members and employers?

  Looking to the future, it is expected that the current administration and servicing arrangements will continue for TelstraSuper members and employers. 

  The merger will create a fund with combined strengths in member and employer servicing, retirement planning, investments and tailored corporate arrangements, including management of defined benefit plans. Both TelstraSuper and Equip Super will retain strong connection to their heritage industries and connected communities. 

  The merged entity will leverage TelstraSuper’s operational capability and digital experience to service and support members.

• 22. Do I need to tell my employer about the merger?
  No. Your super will continue to be with TelstraSuper until the Successor Fund Transfer in late 2025. Your employer can continue to pay your superannuation contributions as usual. 
• 23. Are retirement accounts included in the merger?
  Yes all accounts are included in the merger. TelstraSuper's retirement products and services will remain in place and, in time, be adopted by Equip Super members.  
• 24. Will Direct Access still be available to members?
  Yes, members will still be able to access Direct Access in the new merged fund. 
• 25. How do I get more information?

  If you have further questions, please feel free to call us on 1300 033 166.