The companies intend to explore a merger and set out the framework that will be used to “assess, consider, and prepare for the implementation of a merger.”

The merger would create a combined profit-to-member fund with around A$60 billion in funds under management with more than 225,000 members.

It would achieve scale benefits and improved retirement outcomes while maintaining personalised services that the two funds currently provide.

They propose that the merger is in the “best financial interests of members of each fund.”

The agreement between the two follows a review of potential merger partners sought by TelstraSuper board members.

The board chose Super as the strength of the two companies complement one another.

Last May, as reported by Super Review, TelstraSuper announced its intention to explore merger options as part of its long-term strategy.

It said in its statement last 2 May that it is “currently in a strong and healthy position” with positive net member growth, high member advocacy, and a growing retirement segment.

TelstraSuper said there will be no changes in operations as it seeks a merger.

“Both funds have a proud history in serving the superannuation needs of a wide range of members including the employees of large companies. Over time we have both grown to support a broad and diverse membership,” said TelstraSuper chair Anne-Marie O’Loghlin.

“With similar heritages in corporate superannuation arrangements, shared values, and a common focus on retirement solutions and advice, we are excited by the opportunities this merger presents for Equip Super’s members and employers,” said Equip Super chair Michael Cameron.