Why is the merger occurring in two phases?
The merger is currently planned to occur over two phases.
Phase one of the merger involved the transfer of members and other beneficiaries with entitlements in Accumulate Plus or Retirement Access; and those members with Defined Benefit entitlements, other than those covered by phase two, into Australian Retirement Trust on 4 November 2023 (the transfer date).
Phase two of the merger is planned to involve the transfer of members and beneficiaries who were in receipt of a lifetime pension before 3pm on 18 October 2023, or whose instruction to the Group Super trustee to commence a lifetime pension was received before that time.
The Group Super trustee decided to split the merger due to the complexity of the different divisions of fund. The majority of the fund’s divisions are reasonably straightforward and were able to be merged in a short timeframe. The defined benefit lifetime pensions are more complex and as a result will be merged by the end of 2024.
What will happen to my Group Super account when the fund merges?
Phase one of the merger occurred on 4 November 2023 and depending upon your account type and employment with CBA Group, your account was closed, and your entitlements were transferred to Australian Retirement Trust as follows:
- Defined Benefit members (excluding pensioners) – accounts were set up in the Corporate CBA Group Super Plan.
- Accumulate Plus members who are in-service with the CBA Group – accounts were set up in the Corporate CBA Group Super Plan.
- Accumulate Plus Retained Benefit and Spouse members – accounts were set up in the Corporate Former CBA Group Super Plan.
- Retirement Access members – accounts were set up in the Super Savings Transition to Retirement Income account or Retirement Income account.
Phase two of the merger is planned to occur by the end of 2024 and is subject to the agreement with Australian Retirement Trust to carry out phase two becoming unconditional.
- Defined Benefit Lifetime pensioners – your entitlements would be transferred to the Corporate CBA Group Super Plan.
How will the merger occur?
Phase one of the merger occurred via a successor fund transfer (SFT), where members of Accumulate Plus, Retirement Access, or the Defined Benefit divisions who were not receiving a lifetime pension before 3:00 pm on 18 October 2023, were automatically transferred to Australian Retirement Trust. Phase two of the merger would also occur via a successor fund transfer.
Does CBA support the merger?
Yes, CBA supports the Group Super trustee’s decision to pursue a merger with Australian Retirement Trust. The trustee worked closely with CBA to understand the future strategy of the fund and remains closely engaged with CBA. Similarly to the trustee, CBA as sponsor of Group Super, considered the evolution of superannuation, the increased expectations and need for scale. CBA and the trustee both concluded, given the increasing need for scale over time and the long-term fee challenges required to ensure the fund remains competitive, that alternatives to continuing a corporate superannuation fund be considered. Australian Retirement Trust has become CBA’s default super fund for new employees from the time of the merger.
Will I receive part of the investment choice unallocated surplus?
Members who have an investment choice account and meet the necessary criteria will be eligible to receive a portion of the unallocated surplus after the transfer to Australian Retirement Trust. Australian Retirement Trust currently proposes that the assets (if any) will be allocated to eligible members in two stages.
What’s the eligibility criteria to receive an allocation?
- You must have held an account in Accumulate Plus or Retirement Access at the merger date of 4 November 2023, or
- You must be an in-service (employee) member of Division CB, CC, CD, CE, CF, CN or CO and held accumulation-style accounts that are eligible for investment choice at the merger date of 4 November 2023, and
- these accounts were transferred to Australian Retirement Trust on 4 November 2023, and
- you must have an account with Australian Retirement Trust at the time the allocation is made.
Australian Retirement Trust will contact you if you’re eligible to receive an allocation (if any). If you are eligible, any allocation you receive will be added to your account in the CBA Group Super Plan or Former CBA Group Super Plan in Australian Retirement Trust.
How much will I receive?
If you are eligible for an allocation, the amount you receive will be aligned to your account balance at the time of the allocation. Given the allocation must be shared across the fund’s membership, it is not anticipated this will be a large amount.
Can I have my allocation paid to my bank account, rather than my super account?
No, any allocation you receive will be added to your account in the CBA Group Super Plan in Australian Retirement Trust.