The industry super fund for education and community-focused organisations, NGS super, has announced that mergers and consolidation of super funds can actually improve the member experience.
"I often hear trustees and executives in the superannuation industry express concern about the short- and long-term effects of fund consolidation. However, with the right strategy and execution, a merger can actually lead to an improved experience for all members," said NGS Super CEO Anthony Rodwell-Ball.
Rodwell-Ball says funds can use mergers to increase engagement with new and existing members. NGS Super has undergone two mergers in the past three years, combining forces with CueSuper in 2011 and UC Super in 2012.
"Over the merger period, NGS Super focused on clear, transparent communication and high visibility with stakeholders and in workplaces. We believe this has been a key driver of member satisfaction".
Survey results since that time show overall member satisfaction is at a high of 84%, up from 79% in 2011. Satisfaction is defined as members who rated NGS Super's service and products between seven and 10 out of 10.
NGS member satisfaction increased from 81% to 84% over the last year. Satisfaction of Cuesuper members increased from 64% (after being with the Fund for one year) to 81% (after two years). UCSuper members had a satisfaction of 79%, after being with NGS Super for less than 12 months.
"It's clear that members expect their fund to get the fundamentals right," said Rodwell-Ball. "From a member perspective, what the fund stands for is as important to them as investment performance, ease of doing business and products that meet their needs. So for funds considering a merger, getting the operational aspects right is the bare minimum, while delivering on the member experience is where significant value is added,".