The merger between Lifeplan and StateGuard Friendly Society has been approved by all members and will go ahead on April 1.
The move will create Australia’s fourth-biggest friendly society with group assets of about $850 million and more than 165,000 members spread across Victoria and South Australia.
Under the terms of the merger, Lifeplan will pay StateGuard members $6 million from its $15 million management fund. The StateGuard members will also share its $2.8 million management fund.
The Lifeplan board is to be expanded to incorporate three former StateGuard directors.
Also part of the merger deal is that the Commonwealth Bank will remain as fund manager of StateGuard’s funds until the end of June next year, despite Lifeplan having its own fund management team.
The bank will continue to promote selected products to members, says Lifeplan managing director Chris Wright.
