EISS Super and Cbus Super merger discussions
On 17 December 2021, EISS Super and Cbus Super signed a Memorandum of Understanding (MOU) to work towards completing a merger of the two funds.
We have been working with Cbus to finalise the due diligence process and prepare the merger agreements and legal documents needed to support the merger.
Based on the ongoing discussions, and the due diligence we have undertaken, we believe partnering with Cbus will provide EISS Super members with access to greater economies of scale and investment opportunities that will ensure members’ interests continue to be protected in the long term.
Cbus has a proven track record of strong investment performance and a commitment to member service that will help enhance the retirement outcomes of EISS Super members. It also has an existing connection to the energy industry, with over 36,000 members working in electrical trades. This means Cbus has insurance arrangements that address the risks of working in the energy industry, which will benefit EISS Super members by ensuring they continue to receive cover based on the type of work they do.
We are currently developing the merger implementation plan with Cbus to transfer all members to Cbus in the first half of 2023. We will share the final transfer date with members once confirmed with key service providers.
The merger process
Frequently asked questions
Why are EISS Super thinking about merging?
The superannuation industry has undergone immense regulatory change over the past few years and further changes are expected to occur that will make scale (the number of members in a fund and the value of assets managed by a fund) a critical factor in being able to operate in the long term in a manner that is in the best financial interests of members.
We have an obligation to our members to consider the benefits of a potential merger and to proceed with that merger if it is in the best financial interests of our members.
The ongoing discussions with Cbus Super and outcomes of the due diligence work completed so far has been very positive. It indicates that building on our shared values and strengths is expected to provide benefits to the members of both funds.
As always, the best interests of our members will be the determining factor in any decision that is made.
What’s happening with the merger?
We are working with Cbus to finalise and sign the merger agreements, and other legal documents, that will enable the transfer of members to Cbus.
When will the merger be complete?
The merger is expected to be completed in the first half of 2023. We will share the final transfer date with members once it is confirmed with key service providers.
Please note: Transfer dates are subject to merger approval and may change but we will keep you updated.
Can I move to Cbus sooner?
Yes - If you wish to move to Cbus before the transfer occurs you can do so.
However, if you have insurance through your super, we strongly encourage you to speak to one of our Customer Relationship Managers or a Financial Planner to ensure the insurance cover you would receive when joining Cbus remains suitable for your needs.
To make an appointment to talk to an EISS Super CRM click here or call 02 9046 1920.
What kind of benefits could a merger provide to members?
A merger between EISS Super and Cbus will create a larger fund, which is expected to deliver access to greater scale that can deliver cost savings to members, while also providing solid long-term investment returns and improved financial outcomes at retirement.
When will we know if the merger is going to proceed?
We are working with Cbus to finalise and sign the merger agreements, and other legal documents, that will enable the transfer of members to Cbus. We will update you when this work is completed.
Is there anything I need to do now?
Not at the moment. For now, it is business as usual.
You can contact us in all the usual ways, and we will also inform you of any important decisions that are made as part of this process via regular updates to our website and these FAQs.
At least 30 days prior to the merger we will send a Significant Event Notice to all members. This is a comprehensive document that will set out in detail any changes to your account as a result of being transferred to Cbus.
What does signing an MOU mean for members?
Signing an MOU does not change anything for you as a member. It simply means that EISS Super and Cbus have started a formal due diligence process to explore whether a merger of the two funds is in the best financial interests of you, our members.
Signing an MOU is an important step in the merger process, but we are still in the early stages. We will inform you of any important decisions that are made.
Will my investment option change?
When the transfer occurs, EISS Super and EISS Pension members’ account balances will be transferred into the Cbus investment option or options that best match the existing investment preference of the individual member.
After that, if you wish to change your investments you will be able to do so by making an investment choice, just like you can today.
Cbus has a broader range of investment options than EISS Super, so members will have greater choice after being transferred.
For Retirement Scheme members, it will work the same for the part of your account that you have investment choice on.
Will my insurance premiums and level of cover change?
The merger agreement we are finalising with Cbus will ensure members’ interests are protected and will outline the insurance arrangements that will be in place following the merger.
We will provide members with an update once the merger agreement has been signed, which will communicate specific details about insurance as the merger progresses.
What happens to my beneficiary nomination?
We are working through this with Cbus. We are aiming to transfer existing beneficiary nominations to Cbus to minimise inconvenience to members.
We will provide further updates once agreements are finalised.
What do EISS Super and Cbus Super have in common?
EISS Super and Cbus Super are both profit-to-member funds and share a member first ethos.
We both have an existing connection to the energy industry and are committed to helping our members secure their financial future through great personal service, solid investment returns, and low fees.
We are also firm believers in the importance of protecting your and your family’s livelihood through quality insurance that covers members for the work they do, including when they work in risky occupations.
Who is Cbus Super?
Cbus was formed in 1984 as the industry super fund for people working in construction. Today Cbus has more than $68 billion in funds under management on behalf of some 785,000 members across Australia – including more than 36,000 members in the energy and electrical sectors (as at 31 December 2021).
Cbus members also work in engineering and design, mining and building maintenance, as well as on construction sites.
Cbus has a long history of strong investment returns, a focus on insurance tailored for risky occupations, as well as personalised service and low fees.
As an industry fund, Cbus is driven to maximise returns to members, not profits for shareholders. It prides itself on being a major investor in the Australian economy, including more than $790 million in direct energy investments plus indirect investments in electricity infrastructure (as at 30 June 2021).
Cbus recently completed a successful merger with Media Super.
Will my Retirement Scheme or Defined Benefit Scheme entitlements be affected?
No, your entitlements through the Retirement Scheme or Defined Benefit Scheme will not be affected.
The EISS Super Board must ensure the merger proposal passes the Best Financial Interests and Equivalency of Rights tests. This means we must ensure that members’ defined benefit liabilities are protected and maintained in the merger arrangement.
We are currently speaking with both New South Wales Treasury and Cbus to ensure that the guarantee of benefits provided by the New South Wales Government is maintained in the event of a merger.
What happens to my defined benefit lifetime pension if the merger proceeds?
Your defined benefit lifetime pension will not be affected.
If we proceed with the merger, Cbus will continue to administer EISS Super’s defined benefit lifetime pensions and provide services to members.
Will you keep me up to date?
Yes - We will advise you of any decisions that are made and will be updating these FAQs as well.