Active Super transfers members to Challenger

Challenger will take over Active Super's Guaranteed Income offering after it was determined transferring these member accounts to Vision Super would not be in their best interests.

Active Super has informed members with a Guaranteed Income account that their accounts will move to the Challenger Retirement Fund under a successor fund transfer. Any other Active Super products they're invested in will still transition to Vision Super on 1 March 2025.

The Guaranteed Income product, launched in July 2016, was developed in partnership with Challenger and is already invested in a life policy issued to Active Super by Challenger Life.

According to APRA data, about 190 members currently hold the product, with a total just over $15 million in funds under management.

Active Super explained that the Guaranteed Income products are not being included in the Vision Super merger as doing so would have required Vision Super to "make significant and expensive changes to its administration platform, a cost which would be borne by members."

Vision Super is administered internally using the Acurity Registration platform, which it adopted in 2015.

Instead, Challenger Retirement Fund can provide administration and trusteeship services for the products at no additional cost, Active Super said.

The transfer is effective December 14, after which date regular income payments will be received by members from Challenger.

The Vision Super merger is on track to complete by March, creating a combined fund with about $29 billion in funds under management and 170,000 members.

The two funds signed a successor fund transfer deed in May this year, around the time the merger was originally expected to have finalised.