FuturePlus, a service provider to the separate Local Government and Energy Industries super funds in NSW, is seeking 50 voluntary redundancies as it prepares for reduced fee income.
Of the 280 people employed by FuturePlus throughout NSW, roughly 40 will be moving to Local Government Super (LGS), which this month sold its stake in the company to its other owner, Energy Industries Super (EIS).
The bulk of those transferring to LGS are in member services and financial planning roles, according to LGS chief executive, Peter Lambert. Indeed, it’s understood from a separate source familiar with the negotiations that a bulk of the planners in the group elected to work for LGS rather than EIS.
The Energy scheme therefore needs to make hires to cover that shortfall, at the same time as its now wholly-owned subsidiary, FuturePlus, faces a big reduction in the fee income it receives from LGS.
It’s understood that from December 1, the asset-based fee that LGS had paid FuturePlus will change to a significantly lower service fee, covering the main activities LGS will outsource to it – member administration, accounting, paraplanning and investment operations.
FuturePlus confirmed that as a result, it had called earlier this month for 50 voluntary redundancies in addition to the 40 who’ll be departing for LGS. It also confirmed that it was looking for net savings of $5 million per year.
The company said that the redundancies were being offered company-wide, although its understood there may be more than 50 applications for the generous packages and that cutbacks may need to be targeted. It is known that the head of IT, Ivan Jones, recently departed and that the general manager of client services, Jim Thomas, will be leaving.