BT Super and Mercer Super merger guide

About the merger

• Why is BT Super merging with Mercer Super?
  
  The BT Super Trustee engaged broadly across the industry and after a robust and competitive process believes this merger will create a larger superannuation fund with the potential to deliver stronger performance, lower fees and broader member services. 
  
  This is in line with the Westpac Group’s strategic refocus on banking in Australia and New Zealand.

• Why did the Trustee choose Mercer Super?
  
  The Trustee undertook a robust and competitive process, to find the right future partner who shares our passion to help members have the best possible retirement.
  
  Mercer Super Trust has been operating for over 25 years and has more than 280,000 members. The merger will increase the scale of Mercer Super Trust to become one of the 15 largest super funds in Australia – creating more opportunities that’ll benefit members.
  
  We’re pleased that like BT Super, Mercer is focused on its members and people. Mercer’s core business is superannuation, and they are keen to invest and provide better outcomes for members and our people.
  
  Your Trustee is confident that the terms agreed on will enable both parties to execute the merger, our members to retain their benefits and performance objectives for their investments, and suitable outcomes will be made available for our people.  

• Which products does this merger include?
  
  This announcement only affects you if you have a BT Super, BT Super for Life or BT Super for Life – Westpac Group Plan account.
  
  All other BT accounts are not affected by the intention to merge with Mercer Super.
  
  
• When is the merger happening? 
  
  BT Super has entered into an agreement with the intention to merge into Mercer Super in the first half of 2023.
  
  
• Will the new fund pass the annual performance assessment (APA)?
  
  Mercer Super Trust super fund’s default investment option passed the last APA in 2021.
  
  Mercer’s default investment strategy has also achieved top quartile results over three, five and seven years for the majority of members as at March 2022*.
  
  The merger is planned for 2023, creating a $65 billion superannuation fund with the scale and potential to deliver stronger performance, lower fees, more investment choice, and broader member services.
  
  So, the first APA for the merged fund will be in 2023.
  
  If you want to compare our MySuper product to other similar MySuper products, you can use the government’s YourSuper comparison tool at ato.gov.au/yoursuper.

About your super account

• Will my fees change?
  
  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 removal of the dollar-based administration fee and reduced percentage-based administration and investment fees, including no buy-sell spreads.

• Will my investments change?
  
  Mercer Super has a range of investment options available to members. This includes four new investment options being developed for transferring BT Super members. More information about the Mercer Super options will be provided in early 2023.
  
  For most investment options in the BT Super menu, there is a similar option in Mercer Super. This means that the investment option you currently use will have a similar option in Mercer Super. 

• Will my insurance arrangements change?
  
  AIA Australia Limited (AIA) continues to be the group insurer for insurance cover provided through BT Super, BT Super for Life (including Westpac Group Plan) accounts.
  
  Following the merger, your insurance will still be covered by AIA and your insurance arrangements (such as insurance cover and costs) will remain the same and continue in Mercer Super Trust until the end of the current rate guarantee period (which is 30 June 2023).
  
  Until the merger, please continue to call us if you wish to apply for or change your insurance cover or should you need to claim on the insurance cover in your super account.

• Are there any costs when transferring my super to Mercer Super?
  
  No – Mercer Super Trust has offered to meet one-off costs associated with the Successor Funds Transfer for BT Super members.

• How will I access my super account online?
  
  With Mercer, you can continue to have 24/7 digital access to your super account supported by online calculators and education tools through Mercer’s online technology.

• When will I have all the details about how this affects my super account?
  
  We will send you a formal Significant Event Notice outlining all the changes for your super account before your super is transferred to the Mercer Super Trust in the first half of 2023.

• What will happen to my Sims Group Defined Benefit account?
  
  Your BT Super Sims Group Defined Benefit account will be transferred to Mercer Super Trust in the first half of 2023.
  
  Please be assured that your defined benefit arrangements will not be changed.
  
  Retaining your defined benefits is a requirement of the transfer to Mercer. After the transfer into Mercer Super, your defined benefits will be provided from the Mercer Super Trust which is overseen by their Trustee, Mercer Superannuation (Australia) Limited (MSAL)
  
  BT Super’s Board of Trustees and the consulting actuary, reviews the funding of assets on a quarterly basis. As at the end of December 2021, those funds were available and continue to be available regardless of the merger and sale. After the transfer in the first half of 2023, the Trustee of the Mercer Super Trust will manage this responsibility.

About getting advice

• Can I get advice about my super?
  
  You might also consider seeking financial advice from a professional financial adviser if you think this would be appropriate. If you don’t have a financial adviser, you can refer to the government’s website at moneysmart.gov.au (then click on >Tools and resources > Choosing a financial adviser) to find out more about choosing a financial adviser.

Other

• Is Westpac selling another business?
  
  Westpac entered into an agreement to sell its Advance Asset Management business (Advance) to Mercer Australia.
  
  The sale is of Advance, a multi-manager investment business which provides specialist funds management services and products, including for certain investment options available through BT Super’s personal and corporate superannuation funds.
  
  The sale of Advance will add additional asset management capability for Mercer that will leverage Mercers’ global manager research reach, and the scale and expertise as one of the largest multi manager businesses in the world.