The chief executive of $10 billion Tasplan Super is set to exit the fund, as Tasplan and MTAA Super commit to merge on October 2020.
Current Tasplan chief executive Wayne Davy will stay on until the merger date.
However, starting next October, MTAA Super chief executive Leeanne Turner will take over as the chief executive of the new merged fund.
In another leadership change, MTAA Super chair John Brumby will retire after nine years in the role and cede the chairmanship of the merged fund to current Tasplan Chair Naomi Edwards.
In June, the two funds said they had entered into a binding Memorandum of Understanding to investigate a possible merger that would see the creation of a $22 billion fund.
This morning, it was confirmed an unconditional agreement has been signed, with a view to merge by October 2020 after comprehensive due diligence to establish the move would benefit members of both funds.
The new fund's trustee and corporate functions will be based in Canberra.
It will have satellite offices in Tasmania and other locations. MTAA Super's administration services will be moved in-house to Tasplan's Hobart facilities.
"By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes," the two chairs said in a joint statement.
The two funds said the combined scale will provide efficiencies that can be passed on to members through improvements to products and services, low fees and strong returns.
"Scale will help drive efficiencies and provide greater buying power."
"This merger will enable us to negotiate top quartile investment management fees and take advantage of fee scale discounts. This means better value for money for our members," outgoing MTAA chair Brumby said.
"We've got a bit of work to do to consolidate our systems and processes. We're confident this can be done with minimal impact to members," the funds said.
Tasplan's many mergers
Wayne Davy, who will cede the chief executive title after this merger, was in the role for over four years.
Davy's 2015 appointment to the job came after Tasplan's merger with Quadrant Super where he was the chief.
He held on to the role after Tasplan decided to merge with RBF, shortly after his appointment.
Earlier this year, Tasplan, Statewide Super and WA Super announced they were considering a merger. The plan was abandoned and Statewide later said a tripartite merger was too complex operationally, and the industry is unlikely to see many even as funds continue to sound each other out for mergers.