Wollongong's shared services sector welcomes national superannuation giant.
Wollongong’s shared services sector welcomes superannuation giant Mercer after acquiring Pillar, the NSW government-owned superannuation administrative firm for $35 million. Mercer will now become the second largest outsourced super fund administrator in Australia.
Pillar is one of Australia’s leading superannuation administration providers with more than $100 billion in funds under administration across 1.1 million member accounts. The combined group will have about $200 billion of funds under administration across 2.3 million accounts, with a 2000-strong workforce, and will continue to operate in Wollongong. Mercer's acquisition of Pillar adds to the already significant sector in Wollongong that currently employs 5,200 people across 75 locations.
‘It’s an area we are investing in because we are committed to continuing to deliver excellent service and innovation, at scale, to our clients right across the superannuation service chain. We also want to provide our people with new opportunities and a great place to work’ said Martine Ferland, Mercer’s EuroPac President.
The NSW Government understands that Mercer intends to create a Centre of Excellence Hub in the region, to provide specialist superannuation and related services to clients. ‘Mercer’s investment in the Illawarra is a vote of confidence in this great region and I welcome the news that they intend to grow the operations and support further employment opportunities’ said the then NSW Treasurer Gladys Berejiklian.
As well as being a super fund administrator, Mercer is one of Australia’s largest actuarial and investment consulting companies and operates the $20 billion Mercer Super Trust, offering Pillar’s people opportunities for professional growth and development and its customers Mercer’s world-leading financial wellness tools.
Wollongong continues to grow its reputation as a shared services hub. A study by Deloittes found that compared to Sydney, Wollongong’s shared services businesses can take advantage of an average 15% lower salary costs; 50% lower rents and a 95% staff retention rate, versus the 75% typically seen in Sydney. Coupled with its proximity to Sydney; modern business infrastructure including early roll-out of NBN; and highly skilled workforce, Wollongong’s location provides a compelling case in the shared services sector.