Collie Mail reported that the Collie based Coal Industry Superannuation Fund and the much larger AUSCOAL Super are looking to merge by the end of the financial year.

CISF chairman Mr Frank Sciarrone and AUSCOAL Super chairman Mr Arthur Weston announced last week that a MoU has been signed to assess the feasibility of a merger between the two funds,

The move follows an update and information meeting of local CISF members on June 26.

A due diligence process is underway and the funds are aiming for a June 30, 2013, merger date.

Rising costs have forced the local fund to look at joining the larger fund. Costs associated with administering the fund and meeting future legal obligations would continue to increase and could negatively impact member benefits over the medium to long term.

The Coal Mine Workers’ Pension Fund has just over 1200 members and AUD 161 million under management. It was established in 1943 and evolved into the CISF in 1990 as the superannuation fund for WA coal mine workers.

AUSCOAL Super has more than AUD 6.5 billion under management, more than 73,000 members and more than 4500 employers.

Source - colliemail.com.au

(www.coalguru.com)