In a momentous two days for member admin, Citistreet’s sale to Sunsuper finalised on Friday and the administrator’s chief departed, while yesterday the NSW Government announced Pillar Administration would be sold.
Stuart Korchinski said that in the weeks since SunSuper announced it would purchase its own administrator from interim owners ING Group, it had become "progressively clear" he would be departing upon the transaction’s completion.
"I left on very good terms, wish SunSuper well with the transaction and will explore new opportunities where I can add value, most likely somewhere in the financial services industry," Korchinski said.
It is understood other Citistreet executives have been retrenched, however SunSuper CEO Tony Lally could not be reached before presstime for clarification.
Meanwhile, the NSW Government’s announcement it would sell its super admin business, Pillar, came "out of the blue" according to industry expert Michael Rice, of Rice Warner.
He said he had heard industry pundits opine that Link Market Services, owner of AAS, was the only likely buyer, but he warned against ruling out Superpartners entirely.
"It’s true they are undergoing a major systems replacement project, but there’s no reason they couldn’t keep the Pillar clients within the existing Pillar infrastructure while that is sorted out," he said.
"Superpartners lacks a defined benefit administration capability – the AustralianSuper corporate business was outsourced to Mercer – but Pillar obviously has great strength in DB and this would be an attraction for Superpartners."