COVID-19 has hit the brakes on the merger of MTAA Super and Tasplan with the two funds opting to extend the timeline for the process.
The two funds said that the merger date originally set for 1 October, this year, had been extended to no earlier than 31 March, next year.
The extension decision followed a joint recommendation from MTAA Super chief executive, Leeanne Turner and Tasplan chief executive, Wayne Davy to the chairs of both boards.
Sustained market volatility and concerns about supplies of specialist services were explained as being key factors behind the extension.
Turner said that despite the new timeline the decision behind the merger
Despite the new timeline, Turner said today that the decision behind the merger and the benefits to members of both funds remained unchanged.
“We still believe the merger is in the best interest of members of both funds. A combined fund will provide greater efficiencies, improved products and services, increased capability, and better value to members. So, we remain fully committed to the merger — just with an extended time,” Turner said.