What does the merger mean for defined benefit members?
The trustee's decision to pursue a merger was made after a thorough and careful review to ensure that a merger would be in the best interests of all members, which includes Accumulate Plus, Retirement Access and Defined Benefit members.
Both the trustee and CBA are committed to maintaining and funding all of the Defined Benefit arrangements as part of the proposed successor fund transfer. CBA’s obligations to the fund and beneficiaries have not changed and will not change because of the proposed merger. The fund’s defined benefits and lifetime pension members will continue to enjoy the same defined benefit formula, with CBA’s continued support.
Importantly, Australian Retirement Trust is one of the largest defined benefit providers in the Australian marketplace, managing $32 billion in defined benefit assets on behalf of 74,000 members of some of Australia’s leading companies.
Australian Retirement Trust, in agreement with the CBA will implement a number of changes to the fund’s declared and crediting rates and the way accumulation-style accounts are credited with investment returns. Please refer to the booklet we sent you in September to understand these changes.
Why is the merger occurring in two phases?
The merger is currently planned to occur over two phases. Phase one of the merger is planned to involve the transfer of:
- Members and other beneficiaries with entitlements in Accumulate Plus or Retirement Access; and
- those with Defined Benefit entitlements, other than those covered by phase two (as outlined below) 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, into Australian Retirement Trust in the first half of 2024.
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 can be merged in a short timeframe. The defined benefit lifetime pensions are more complex and as a result will be merged in the first half of 2024.
Will the Commonwealth Guarantee continue to apply to the relevant divisions?
The Commonwealth Banks Act 1959 has been now amended, following the passing of Treasury Laws Amendment (2023 Measures No.2) Act 2023 and Royal Assent being given to that legislation. This means defined benefit members of Divisions B, C, D and E who were members of the fund immediately prior to 19 July 1996, will continue to be eligible for the Commonwealth Guarantee following the successor fund transfer to Australian Retirement Trust.
Which divisions does the Commonwealth Guarantee apply?
The Commonwealth Guarantee is applicable to members of Divisions B, C, D, E and F (Accumulate Plus) of the fund immediately prior to 19 July 1996.
Unless you were an employee of CBA or a pensioner of the fund prior to 19 July 1996, you would not be covered by the Commonwealth Guarantee. For instance, members of the CGSSS were transferred into the fund on 3 October 2003. They were not members of the fund on 19 July 1996, therefore are not covered by the guarantee. Please note the Commonwealth Guarantee is a not a guarantee of investment returns, it is a guarantee of a payment of superannuation and employer contributions.
What will happen to my Group Super account if the fund merges? (excludes Lifetime Pensions)
Your Defined Benefit entitlements with Group Super will be transferred to Australian Retirement Trust on 4 November 2023 and your account with Group Super will be closed. This is subject to finalising an agreement with Australian Retirement Trust and to the agreement becoming unconditional.We will advise you if there are any changes to the current plan to carry out the merger on 4 November 2023.All Defined Benefit members, including in-service and deferred/post-employment – will have an account in the new Corporate CBA Group Super Plan within Australian Retirement Trust.
Will there be a period when I can’t access my account?
Yes. From 3:00pm AEST on 25 October until mid-November 2023 there will be a limited services period as we transfer your data to your new account in the merged fund.
For Lifetime pensioners, the limited services period will commence at the earlier time of 3:00pm 18 October 2023. This is the final day to make any changes to pension payments and bank account details. The Lifetime Pension limited services period will end on 6 November 2023.
During this time you will not be able to make any changes to your account, including updating your address or contact details, making or changing a beneficiary nomination or transacting via Group Super Online or the mobile app.
Please refer to the “Key dates” page of the notice we sent you in late September (or visit www.oursuperfund.com.au/merger to download a
copy) to understand the cut-off times.
I am a Lifetime Pension member, will my pension payments be impacted by the limited services period?
No. The limited services period will not impact your pension payments.
Will the merger and the limited services period impact my family law related request?
Yes. The limited services period will impact the timing and completion of any existing and new requests.
If you have an existing flag on a Defined Benefit account, the merger with Australian Retirement Trust is considered to be a splittable event. This means any flagged amount of benefit is eligible for payment at the transfer date. We will contact you before the transfer to seek your payment instructions.
Where your request is not finalised before the trnasfer or is received after the cut-off time of 3:00pm 25 October 2023 it will be transferred to Australian Retirement Trust who will manage your family law matter following the completion of the limited service period.
Please read the Family Law factsheet for more information.
Will the merger and the limited services period impact my claim?
The limited services period will impact the timing and completion of any existing and new requests. Where your request is not finalised before the merger or is received after the cut-off time of 3:00pm 25 October 2023 it will be transferred to Australian Retirement Trust who will manage your claim following the completion of the limited service period.
Please read the claims factsheet for more information.
Will I receive part of the Defined Benefit unallocated surplus?
No, Defined Benefit members are not eligible to receive this and individual allocation of the Defined Benefit surplus. The purpose of the Defined Benefit unallocated surplus is to ensure that Defined Benefit’s ratio of assets to vested benefits can withstand market volatility, a well as to ensure that there is adequate long-term funding for Defined Benefit members’ retirement benefits and lifetime pensions. The Defined Benefit unallocated surplus will be transferred to the CBA Group Super Plan with Australian Retirement Trust and continue to be maintained by Australian Retirement Trust for this purpose.
Defined Benefit Divisions CB, CC, CD, CE, CF, CN or CO accumulation-style accounts eligible for investment choice:
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.
The trustees currently propose 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 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.
