Tabcorp outsources three superannuation funds to AMP

Tabcorp Holdings Limited has appointed AMP's SignatureSuper master trust to manage its future superannuation arrangements for employees included in the Tabcorp Superannuation Fund, the Jupiters Limited Superannuation Fund and the Tab Limited Staff Superannuation Fund.

These funds have a combined 4,500 members and close to $200 million in assets. The three existing funds will be combined into the one new fund, called the Tabcorp Superannuation Plan.

Tabcorp is being advised by The Heron Partnership, an independent superannuation consultancy which specialises in providing outsourcing advice to medium to large companies, as part of the outsourcing of the superannuation funds.

The three Tabcorp superannuation funds have both defined benefit and accumulation divisions and will be merged into one plan under the SignatureSuper master trust.

Robert Preston, Tabcorp's Executive General Manager Human Resources, said: "We decided that with the ongoing complexity of superannuation, the forthcoming requirement for Trustee boards to be licenced and the choice of fund regime just around the corner, it made sense to outsource our super arrangements.

"We chose AMP due to the overall competitiveness of their product, in particular the structure and operation of their investment arrangements and the improved services they will provide to both members and the employer. In addition, they offered a very competitive cost structure," he said.

The benefits to Tabcorp employees with AMP's SignatureSuper managing the corporate superannuation funds include 24/7 access to fund information through a Tabcorp superannuation web-site, more extensive investment and insurance options, improved education facilities and access to regular financial planning services and a substantial reduction in costs, Mr Preston said. Existing contributions and benefit entitlements will not be affected. In the long term, the changes will provide employees with greater flexibility and improved services. All employees' existing superannuation benefit entitlements will be replicated in the new fund.

Mr Chris Butler, Managing Director of Heron, said: "There was very strong interest in the market to participate in the Tabcorp tender. On this occasion AMP represented the best fit for Tabcorp and indeed the best overall value for money, notwithstanding they were not the lowest priced participant." The tender process ran for about three months.

Greg Healy, AMP's Director, Corporate Superannuation, said: "We are delighted to have been selected by Tabcorp to manage its corporate superannuation.

"AMP Corporate Superannuation launched SignatureSuper just over a year ago and the product has since attracted a lot of attention. SignatureSuper gives us the ability to offer a full service, flexible master trust platform for accumulation, defined benefit and hybrid plans.

"Being selected by Tabcorp further demonstrates the market's confidence in this offer. We are looking forward to working with Tabcorp to provide their employees with a unique superannuation solution and a high level of service and benefits," he said.

AMP's SignatureSuper will manage Tabcorp's corporate superannuation from 1 April 2005.