Another corporate fund bites the dustBY JAMIE WILLIAMSON | MONDAY, 20 MAY 2024 12:55PMThe Nissan Superannuation Plan will be wound up on July 31, almost 50 years on from its creation. The Nissan Superannuation Plan was created in 1977 to house the retirement savings of the car manufacturer's employees. It's existed in its current form since 2000, the result of several mergers including the combination of the Nissan Executive Superannuation Trust and the Nissan Retirement Fund. However, in that same year it was closed to new employees. Now, following a review, Nissan Motor Co. has decided to cease its contributions to the plan. As such, its trustee Willis Towers Watson will terminate the fund, effective July 31. "The decision was not an easy one for Nissan and was made after careful consideration of the ongoing viability of the plan. It has been necessary due to the increasing challenges of running a corporate superannuation fund," Willis Tower Watson said. "Over the years, the regulatory environment has become more complex, which has increased the demands, risks and costs associated with running a small, stand-alone corporate superannuation fund. "Further regulatory changes are scheduled for the future, and it has become clear that greater scale is needed for such funds to serve the needs of their members." At the time of its 2023 annual report, the Nissan plan had just shy of $27 million in assets on behalf of 28 members. The Nissan plan was the last remaining corporate fund on the books of the Towers Watson RSE. It's also one of the last remaining corporate funds broadly. Last year saw several of the funds that use the Towers Watson RSE close or transfer elsewhere, including the Oracle Superannuation Plan, Linfox Staff Superannuation Fund, and Heidelberg Australia Superannuation Fund. It also terminated its own Towers Watson Superannuation Fund, which was overseen by its other RSE, Wycomp. When asked what the future held for the Nissan plan in October last year, Willis Towers Watson head of retirement Louise Campbell told Financial Standard she was "not able to comment on what Nissan's approach may be." Related News |
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