Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

GSF Changes Will Save Taxpayer Money

"The changes the Government is making to the Government Superannuation Fund will save the taxpayer money without compromising the rights or entitlements of Fund pensioners," Finance Minister Michael Cullen said today.

"The Government Actuary has estimated that the decision to allow the Fund to diversify its portfolio into a wider range of equities and bonds has the potential to boost the Crown's fiscal position by $12 million to $42 million a year.

"The savings reflect the anticipated improvement in the Fund's returns as it diversifies away from its current 70 percent investment in Government bonds.

"Members of the Fund will be unaffected by the change. Their retiring allowances, annuities, child allowances, employee contribution rates and options at retirement will be unchanged.

"They will also retain their right of appeal to the independent Appeals Board," Dr Cullen said.

The Government will establish a new governance regime for the Fund, through a new Crown entity called the Government Superannuation Fund of New Zealand.

A GSFNZ Establishment Board will be appointed to manage the transition.

"These decisions are quite separate to the Government's proposed New Zealand Superannuation Fund which is designed to smooth the costs of the aging population through a system of partial pre-funding.

"However the legislation setting up the new GSF structure could easily canvass issues of relevance to the New Zealand Super' debate, including whether some broad ethical norms should be established to govern the investment policies of either or both Funds as investors of public monies.

"I would also point out that the expected increased returns as the GSF is able to spread its investments more into equities are an implicit response to those who suggest that the Government should prepare for the baby boomer cost bubble by simply repaying debt rather than accumulating assets.

"When the Crown repays debt, it is basically only 'earning' the interest payable on Government bonds. The expected savings to the Crown from the GSF diversifying more into equity instruments reflects the higher returns those instruments are expected to yield compared to bonds," Dr Cullen said.

Contact: Patricia Herbert 471-9412 or 025-270-9013

The Government Superannuation Amendment Bill was tabled last week and is expected to go through its first reading either today or tomorrow.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Zimbabwe: New Democracy, Or A False Dawn?

Gordon Campbell: Robert Mugabe = Hosni Mubarak. The current jubilation on the streets of Harare at the fall of Zimbabwe’s dictator Robert Mugabe is genuine, and one hates to be negative about the country’s future. Yet the situation is eerily similar to the scenes in Cairo in early 2011, when a popular uprising swept Hosni Mubarak from power in Egypt. More>>

 

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election