(Bloomberg) -- Two Australian pension funds, CareSuper and Spirit Super, have entered a binding agreement to merge in 2024 and create a new fund with almost A$50 billion ($32.6 billion) under management.

Spirit Super Chief Executive Officer Jason Murray has been appointed CEO of the new fund, which will have more than 500,000 members, according to a joint statement Thursday. CareSuper Chair Linda Scott will sit atop the board of the new fund. The two funds said “this growth is essential” to give members value, and create a sustainable, mid-sized fund.

The merger is the latest sign of consolidation in Australia’s fast-growing A$3.4 trillion pension industry, which has been under pressure from the Australian Prudential Regulation Authority to improve performance and rein in high fees.  

Read More: Australia Pension Watchdog Tells Christian Super to Merge With Rival Fund

Spirit Super was established in 2021 after the merger of Tasplan and the Motor Trades Association of Australia Superannuation Fund. CareSuper began in 1986.

©2023 Bloomberg L.P.