SYDNEY, 25 May 2021: Local Government Super (LGS) today announced it has rebranded as Active Super, while also reducing member administration fees and removing the switching fee, effective 1 July 2021.
Local Government Super rebrands as Active Super
Active Super Chief Executive Officer, Phil Stockwell, said the name change was part of a broader strategy to place the award-winning industry super fund in a stronger position to engage existing members and attract new members to drive future growth.
“This decision will increase our appeal to a broader range of members looking to have their superannuation invested in a responsible way, as well as delivering great returns so members can maximise their retirement outcome,” Mr. Stockwell said.
“Our ambition is to grow our membership by delivering great value to our members and this rebrand is key to that growth. We have a loyal membership base within local government and beyond, and we will continue to deliver great service for them.
“Active Super was chosen as the name as it captures our long-standing active pursuit of investments that deliver solid long-term returns for members that have a positive impact on the world, as well as our active involvement with our members and their local communities.
“This decision is part of the natural progression that we’ve been following since March 2009 when the Fund opened to members outside the local government sector.
“Member benefits and entitlements will not change nor will our commitment to provide quality service to local government employees and industry across NSW,” he said.
The Fund will continue to invest, service members and operate efficiently in order to deliver positive long-term results for its members.
Mr. Stockwell said the Fund cut administration fees for the second consecutive year as it was actively seeking efficiencies and ways to reduce operating costs.
Effective 1 July 2021, the administration fees on the Accumulation Scheme, the Account-Based Pension Plan and the Retirement Scheme will be reduced, and the switching fee removed.
“We will continue to provide investment expertise and personalised services that our members have come to know and trust. The strength of our portfolio and our continued pursuit of efficiencies has allowed us to reduce costs and pass these savings directly to our members through a reduction of the administration fees,” Mr. Stockwell said.
Accumulation Scheme members will receive a total administration fee reduction of at least 4 per cent per annum depending on the size of their balance. For example, Accumulation Scheme members with a $50,000 balance will save 5.2 per cent per year on annual administration fees.
Account-Based Pension Scheme and Retirement Scheme members will receive a reduction in the weekly administration fee.
Mr. Stockwell said the Fund’s position as a leader in responsible investing would remain a cornerstone of its investment philosophy.
“We have been investing responsibly for over a decade and first became a signatory to the UN Principles for Responsible Investment in 2007. We have been a pioneer in responsible investing for many years and began this journey 20 years ago when we became Australia’s first super fund to stop investing in tobacco.
“Responsible investment is in our DNA and we examine the environmental, social and governance (ESG) impact of our investments across our entire portfolio while also incorporating active ownership strategies.”
The new brand identity will allow Active Super to capitalise on the changes and reforms occurring in Australia’s $3 trillion superannuation sector.
“Our aim is to help members maximise their retirement income by earning long-term sustainable investment returns. While we are an industry leader in responsible investment, our number one priority is delivering the best member outcomes possible,” Mr Stockwell said.
“We want to use size to our advantage as we are nimble enough to actively manage our investments to deliver great long-term returns and high levels of service for our members.”
The strategy will also offer members a new digital experience as Active Super has redesigned its website, is upgrading its app with increased functionality, and improving the overall engagement experience.
Chair Kyle Loades said Active Super’s investments, service and operations would not be affected by the rebrand and that it would remain a profit-for-member fund.
“This is a tremendous opportunity for employees and members alike to embrace an exciting time in our history and future growth strategy. LGS was established in 1997 and has traditionally been the industry super fund for current and former NSW local government employees,” Mr Loades said.
“It is important that we stay true to our heritage and that we focus on our members, delivering a solid performance and doing so in a responsible way. We acknowledge and embrace our proud history and want to take all members along with us as we embark on this new chapter in our evolution as a great Australian super fund.
“We will remain a focused player where size and scale are used to our advantage, and we will maintain our regional presence servicing local government across NSW.”
Mr. Loades said the rebrand would benefit both current and future members as it would help position the Fund to attract new members and increase its scale.
“We would like to encourage our members to be more active with their super while we focus on continuing to deliver a great performance for them.”
The Trustee will remain as LGSS Pty Ltd and the Fund, Local Government Super, will begin trading as Active Super from 25 May 2021.