STA introduces Defined Benefit Funds

In a bid to become more competitive the Superannuation Trust of Australia (STA) yesterday announced it now has the capacity to accommodate defined benefit superannuation plans.

The move, in conjunction with the group's fund administrator Superpartners, is designed to move the fund more in line with the majority of private sector corporate funds.

"With the pace of employers considering the outsourcing of their superannuation arrangements continuing to increase we have been strongly of the view that it was essential that STA has the ability to provide superannuation services to those employers who wished to continue with their defined benefits plans," STA chief executive, Paul Costello, said.

Superpartners chief executive officer, Frank Gullone (pictured), anticipated that other industry fund clients, outside of STA, would also be interested in offering the defined benefit fund service to their clients.

"It places Superpartners in a much stronger position to attract new industry fund, multi-employer and public sector clients in the future," he said.

Newly launched superannuation consultancy, The Heron Partnership, has been engaged by STA as actuary and consultant to their fund. STA currently has $3.4 billion in total assets under management.