Kate Farrar

Breaking down the barriers that women face on the road to retirement begins in the boardroom of financial service companies, says LGIAsuper and Energy Super CEO Kate Farrar.

The latest available data from the Australian Government’s Workplace Gender Equality Agency (WGEA) shows less than one third (28.9%) of key management personnel in the financial sector are female, which is 1.6% lower than the average across all industries.

Ms Farrar said that outperforming industry averages for gender inclusion in senior leadership roles, enabled the newly merged profit-for-member fund LGIAsuper and Energy Super to better understand the unique challenges women face when saving for retirement.

“More than one third of our executive team and our board are women, which is an achievement we are incredibly proud of,” she said.

“We want to help all of our members build a better future, and we know that in the case of women’s superannuation this requires a different way of thinking.”

“It’s no secret women are at a distinct disadvantage when it comes to their superannuation – the costs of unpaid labour as a parent, together with the impact of pay inequality, amount to women taking home less than their male counterparts.”

“By ensuring we have women in leadership positions, we can champion a diversity of voices to better understand our member’s varied life experiences,” Ms Farrar said.

Ms Farrar said it was especially important to consider women’s financial futures post-COVID-19.

“Since April 2020, data shows* Australian women have withdrawn a total of $13 billion from their retirement savings, with over 300,000 of these women having completely emptied their accounts,” she said.

“What we don’t want to see happen is these women reaching retirement age and having to work or rely on the age pension to avoid experiencing poverty.”

“We offer a range of resources, such our Super Essentials for Women webinar on the 8th March and our Women and Superannuation online tutorial in addition to no cost Super Health Checks with our super specialists that help our members understand how they can make the most out of their superannuation,” Ms Farrar said.

Our Super Essentials for Women webinar on the 8^th March is available for all members and non-members.  If you would like to attend register here

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Kate Farrar

Queensland’s latest member-owned super fund has officially formed on July 1 with the finalisation of the merger between superannuation providers LGIAsuper and Energy Super.

With around $22 billion in member savings under management, the 120,000-member strong fund, set to be the third largest based in Queensland, will serve as a leader in the boutique profit-for-member superannuation space, offering increased size, scale and ultimately, reduced costs for members.

The merged entity will be led by LGIAsuper CEO Kate Farrar, who will also oversee the fund’s planned acquisition of Suncorp’s superannuation business, Suncorp Portfolio Services Ltd (SPSL), in the first half of 2022.

Once completed, the two transactions will see a combined fund size of around $28 billion under management with an approximate membership of 250,000.

Ms Farrar, an award-winning business leader who has led LGIAsuper for more than three years, said the successful merger of the two funds followed months of negotiations, regulatory consultation and extensive due diligence.

“In a rapidly changing superannuation sector, we need to remain agile and responsive to ensure the best outcomes for members. I believe we have done that today,” Ms Farrar said.

“The successful transition of our two organisations into one fund today, with a single MySuper product, is a credit to our staff and partners within both organisations.

“Both organisations brought similar strengths and a strong commitment to members to this partnership.

“There is now an exceptional opportunity for a merged fund with such a unique offering to deliver a personalised service that provides members with the best possible outcomes.

The two entities will continue to operate under their existing brands for the time being, with call centers, workplace visits, access to advice and great personal service remaining the same.

Members of the merged fund will be able to discuss the immediate opportunities available at upcoming seminars.

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Clive van Horen

LGIAsuper members will benefit from increased size, scale and, ultimately, reduced costs with the acquisition of Suncorp’s superannuation business (Suncorp Portfolio Services Limited) in 2022.

The transaction, announced yesterday, will see LGIAsuper add Suncorp’s 137,000 superannuation members and $6.4 billion in funds under management (as of 31 December 2020) to its portfolio, cementing its focus on Queensland and its position as a sustainable, mid-sized fund.

The total consideration for the acquisition is estimated at $45 million. This includes a fixed amount of $26.6 million, plus regulatory reserves.

The expected completion date for the transaction is the second half of the 2021/22 financial year, nearly 12 months after LGIAsuper’s planned merger with Energy Super on July 1, 2021.

The two transactions will see a combined fund size of around $28 billion and a membership of approximately 250,000 at completion.

LGIAsuper CEO Kate Farrar said an extensive due diligence process, regulatory consultation, and analysis of member benefits had concluded that the Suncorp acquisition would ultimately provide significant advantages to current and future members of LGIAsuper, Energy Super and Suncorp’s superannuation business.

“This acquisition, combined with the Energy Super merger, will achieve an ideal, sustainable fund size, while maintaining our status as a boutique and personal superannuation provider,” Ms Farrar said.

“With the superannuation industry consolidating rapidly, we want to see our Queensland-based funds thrive in an increasingly complex and competitive national market, and the best way to do that is together.”

Suncorp Bank CEO Clive van Horen said: “After extensive engagement with potential buyers, we believe that LGIAsuper is best placed to deliver sustainable member outcomes.

“The values and purpose of LGIAsuper align closely with those of Suncorp and this transaction will enable the combined organisation to take advantage of scale benefits in the future.”

Ms Farrar said as part of an entity with greater scale, all members could expect to see reduced fees as integration benefits were realised, with enhanced products, services and personalised workplace support programs being some of the planned acquisition outcomes.

“As a circa $28 billion fund, we will have increased access to high-performing mid-market investments, with a focus on assets that build communities and support our members where they live and work.”

LGIAsuper’s current investment portfolio includes Queensland assets, including the Gold Coast Light Rail, North Queensland Gas Pipeline, the Central Queensland Livestock Exchange, and the Sunshine Coast Airport.

Ms Farrar said LGIAsuper planned to keep the Suncorp fund operating as a standalone entity under the Suncorp brand initially, with its own trustee board, management and team.

“Suncorp’s superannuation members will not see any short-term changes to their fund or the team members who support them,” she said.

“In the medium term, we plan to mutualise and put the ownership of the fund in the hands of all members.”

Ms Farrar said the investment from LGIAsuper’s general reserves was expected to be recouped by members within five years and, in addition, would deliver medium-term fee benefits.

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