Tasmania's biggest superannuation fund is about to get much bigger.
Tasplan, which has more than 130,000 members and more than $10 billion in funds under management, has agreed to merge with industry fund MTAA Super on October 1 next year.
MTAA is even bigger than Tasplan, with more than 203,000 members and $12.8 billion in funds under management as at June 30.
The merged fund will have at least $23 billion in funds under management and 335,000 members.
Tasplan chair Naomi Edwards said the merger would create more jobs in Tasmania, and the fund would be administered in the state.
She said that would lead to a "considerable increase" of Tasplan's existing 150 staff in Tasmania.
"We are committed to retaining all the personal customer service benefits of a smaller fund, while delivering the financial assurance of a larger one," Ms Edwards said.
"Together, our increased scale will deliver stronger investment returns and decreased fees for members as well as delivering improvements and efficiencies in product and service delivery.
"The merger will also enable Tasplan to expand its member servicing footprint Australia wide.
"The full insourcing of the administration of the merged fund will grow financial services skills in Tasmania and see a much-needed increase in employment opportunities in the state."
She said the funds had much in common.
"We're both award winning with a strong focus on excellence and, by combining our strengths, we are creating a multi-industry fund providing quality and customised service to members and employers across the country," she said.
Ms Edwards said Australian super funds faced increased pressure to ensure they were big enough to provide competitive products and services into the future.
"The current political and legislative landscape will mean an increase in super fund mergers over the next few years," she said.
"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.
"Our combined fund will be Australia's most dynamic superannuation fund, bringing customised super solutions to all Australians, across all locations and life stages."
MTAA, chaired by former Victorian Labor premier John Brumby, has primarily served the motor trades and related industries, although anyone can join.
The bulk of its membership is in New South Wales (39 per cent) and Victoria (26) per cent.
It has a solid presence in all mainland states, although just 1 per cent of the membership is Tasmanian.
Tasplan has been growing quickly.
It announced in October funds under management had topped $10 billion.
They had grown by $1.5 billion in two years.
Superannuation research firm Chant West in July named it one of Australia's top five performing funds.
MTAA was ranked Australia's 10th best performing super fund for 2018-19 in SuperRatings data released in July.
Industry Super Australia data ranked it seventh over a five-year period.
Tasplan said completion of the merger coincided with the end of Mr Brumby's final term as MTAA chair.
Ms Edwards would chair the combined board.
MTAA chief executive Leeanne Turner would take that role for the new fund.
Tasplan chief executive Wayne Davy would stay on until the merger.