Local Government Super has amended its constitution to make a series of board changes following an investigation by the prudential regulator.
In a release on Monday, the $11 billion fund said it will appoint an independent chair and two new independent directors to the LGS board in response to ongoing talks with APRA on superannuation governance.
The planned changes will see the board grow from eight to nine, meaning two current directors will be replaced.
LGS chair Bruce Miller said: “the board recognised that a strong, diverse board with the appropriate level of skill and independence is critical to ensure the best possible outcomes for members.
“Bringing in independent directors with new skills, capabilities and perspectives will strengthen the board’s ability to provide effective oversight to the execution of the Fund strategy including ensuring that the protection of the best interests of members and delivering strong member outcomes is the top priority in a challenging financial environment.”
Moreover, he added, the fund will continue to work the prudential regulator to further enhance governance performance and sustainability.
LGS expects to have the new chair and directors in place by the end of August.
An APRA spokesman said the prudential regulator welcomed LGS’s board restructure and believes the addition of independent voices on the board will strengthen governance and help LGS deliver better outcomes for its members.
The LGS board is still in in the process of hiring a new chief executive.