Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

PSA welcomes state retirement savings scheme

Moves to widen state sector retirement savings scheme welcomed

The Public Service Association (PSA) is welcoming the government’s confirmation today that is looking to widen the State Sector Retirement Savings Scheme.

The PSA championed the establishment of the scheme, which began operating on 1 July this year, as a key measure to strengthen the public service and to provide a lead to private sector employers and workers about the importance of saving for retirement. The PSA has also consistently advocated widening the group of public sector employees covered by the scheme and increasing the employer contribution over time.

PSA National Secretary Richard Wagstaff said it is good to see the government laying the foundations for an expansion of the retirement savings scheme, but the union believes faster progress is needed.

“Public servants have embraced the State Sector Retirement Savings Scheme, with the number signing up in the first year considerably exceeding expectations. The scheme is also seen as a leading product by the retirement savings industry.

“We know from our contact with members that there is real disappointment that workers employed outside of the core public service were not included in the original scheme. The general public does not draw an arbitrary line between district health board workers or Housing New Zealand staff with other public servants working for the ministries of health and housing, neither should their superannuation scheme.

“We say all public servants should have access to the scheme. It is therefore disappointing that the working party being established to investigate extending the scheme will not report to government until June 2006. The PSA is also exploring options for providing employer subsidised schemes for our members in local government.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“We are pleased that a second working party has been set up to look at how to increase the employer subsidy beyond the 3 per cent of salary it will reach next July. The PSA supports the Superannuation Working Party recommendation of a 6 per cent employer subsidy, enabling workers to set aside 12 per cent of their gross salaries annually.

“The government’s moves to improve the superannuation scheme it provides for its workers comes at the same time as it is considering recommendations on how to encourage private savings in the private sector. Superannuation has been a political football for far too long and, while we applaud the government’s commitment to lead by example, we believe it needs to move much more quickly to ensure all its employees can begin saving for their retirement,” Richard Wagstaff said.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.