First State Super and VicSuper, two of Australia's largest pension funds have entered into a definitive agreement of merger to create Australia's second-largest pension fund worth A$120bn ($84.49bn) in assets under management. In the aftermath of the inquiry, the regulator has promised to step up scrutiny and push serious underperformers out of the industry. First Super and VicSuper said the signed heads of the agreement would follow a period of due diligence, and expected to complete the merger with one single board of directors by June 30, 2020.