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

NZEI: Primary Teachers And Principals Vote To Reject Offers

Primary teachers and principals have resoundingly rejected the Government’s latest collective agreement offers...

NZEI Te Riu Roa President Lynda Stuart said members had sent a clear message that the offers did not address concerns about the growing teacher shortage, time to teach and support for children with additional learning needs. More>>


No Confidence In GWRC: Bus Drivers Vote For Strike Next Month

The Wellington Tramways Union today voted overwhelmingly for bus drivers to strike because of the breakdown in negotiations with the Wellington bus operators. More>>


Unanimous: MP Pay Freeze Bill Passes

“The Remuneration Authority (Members of Parliament Remuneration) Amendment legislation, to freeze the pay of MPs for one year, has been passed unanimously by the House today." More>>

Gordon Campbell: On The Party Of No Ideas

The striking thing about the issues that have had political coverage over the past few months is the almost total lack of policy content to any of them. To date, Her Majesty’s Opposition have been entirely focussed on failings in Beehive management.. More>>


America's Cup: Environment Court Grants Consents

Auckland Mayor Phil Goff says, “I welcome today’s decision by the Environment Court to grant consent for the bases and associated infrastructure to host the 36th America’s Cup." More>>


Gordon Campbell: On Bridges’ ‘Meth Crooks’ Leadership Failure

Back in June, Bridges publicly accepted that Housing NZ had got it wrong, and that the National government had acted upon bad advice. Now, you’d think this admission would create a broad bi-partisan basis for compensation to those families who had been unfairly evicted... More>>


Medical: New Surgical Mesh Safeguards

The Government has introduced strict new safeguards on the use of surgical mesh that are expected to limit its use in urogynaecological surgery. More>>


Handley Handling: Fired Chief Technology Officer Releases Communications

In the interests of drawing a line on this issue, today I am releasing a detailed timeline of events and all of the emails and texts between myself and Clare Curran, and myself and the Prime Minister about the role and my move back to New Zealand. More>>





InfoPages News Channels