The 120,000-member Media Super is putting its member administrator to the test via a full market tender, for the first time in over six years.
The incumbent provider is Pillar Administration, the legacy administrator for Print Super which was selected to take over the accounts of JUST Super, which had used Superpartners, when the two funds merged to form Media Super on July 1, 2008.
The general manager of operations for Media Super, Michael Rooney, said the last agreeement with Print Super had stipulated a market review after six years, which was in fact due last year but delayed due to “bedding down” of the merger.
Geoff McRae and Col Weston of Rice Warner Actuaries are running the tender, which will soon present a shortlist to Media Super’s secretariat, which aims to decide upon a new member administration contract by July.
Rooney said Media Super was broadly happy with the performance of Pillar, which last year went through a restructure dividing the organisation by client and function. He said the question of whether the NSW State Government would again try and sell Pillar, after trying unsuccessfully two years ago, was not an issue in this tender.
“Any organisation can get sold at any time, and we’re obviously well aware of the situation with Pillar. It’s the concrete factors like service levels that we pay attention to.”
Media Super’s has not been the only big member administration tender of late, with Catholic Super recently deciding to part with Australian Administration Services (AAS) in favour of Catholic Church Insurances (CCI), the incumbent administrator of the National Catholic Superannuation Fund, which it was coincidentally merging with at the time.
The CEO of the Catholic Super Fund, Frank Pegan, said stability of ownership had been a factor in the move to CCI, pointing out that AAS had had four owners over the past decade while CCI had been around for 114 years and made a profit in every one of them.
Following the April merger of the two funds, with Catholic Super as the successor fund, Pegan said the next three months would be spent rationalising investment managers, of which there were “too many” in most of the major asset classes.