Super fund amends constitution

An $11 billion superannuation fund amended its constitution to increase the influence of independent voices on its board following an APRA probe.

Late last week Local Government Super revealed it had been in "ongoing engagement" with the prudential regulator over how effectively it met APRA's requirements around superannuation governance.

As a result, the fund will appoint two new independent directors and an independent chair in August, after the board agreed to amend the fund's constitution to enable the reform.

The board will grow from eight seats to nine to accommodate the change, signaling the end for two current directors.

LGS chair Bruce Miller said the board had come to realise independence was critical to the fund's chances of future success.

"As a board, we recognise that having a strong, diverse board with the appropriate level of skill and independence is critical to ensure we deliver the best possible retirement outcomes for our members," Miller said.

He said the integration of 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".

LGS will continue to work with APRA to further enhance governance, performance and sustainability, he added.

The fund is still yet to appoint a permanent replacement for former chief executive David Smith, who resigned in January after less than two years at the helm.

Read more: APRALGSBruce MillerDavid SmithLocal Government Super
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