The first stage in the potential merger of all three prominent Tasmanian based superannuation funds drew a step closer after Quadrant and Tasplan agreed merger talks.

The two funds are to enter into a Heads of Agreement to investigate whether a merger would create an improved provision of superannuation services to the members and employers of both funds.

Tasplan’s Chair Naomi Edwards said both Tasmanian superannuation funds would bring complimentary aspects to a merger.

“An improved product range and quality and expansion of services to all regional areas of Tasmania are key considerations,” she said.

For both Quadrant and Tasplan, retaining a base within Tasmania was key in their considerations.

Brent Armstrong chair of Quadrant said: “A larger, stronger Tasmanian superannuation fund ensures that we retain employment and expertise within the state and maintain important local connections with our communities.”

A merged entity would have approximately 115,000 members and over $3 billion in funds under management.

The largest Tasmanian fund, the $4 billion Retirements Benefit Fund is the subject of a government review of its future sustainability. A recent report by PwC has suggested its defined contribution scheme could be spun off to Tasplan, HESTA or the Mercer Superannuation Trust and Naomi Edwards has expressed an interest in such a merger for Tasplan.