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


Variation won’t affect pensions - Mallard

Short-term variation won’t affect pensions - Mallard

Acting Finance Minister Trevor Mallard said today the value of public servants’ pensions, paid out of the Government Superannuation Fund, would not be affected by fluctuations in the value of investments in overseas shares.

“The annual results for the GSF (Government Superannuation Fund) have not been published but I understand that during the last financial year, a small pre-tax profit will be made across the whole portfolio – which includes overseas and New Zealand shares, and fixed interest investments.”

“The point of a diversified fund is that it balances risk and return. There will be good years and there will be bad years. In some years shares will do well, in other years bonds do well,’’ Trevor Mallard said.

Trevor Mallard said it was important to look at the portfolio over time and not at the performance of elements of it over short time spans.

The portfolio had been assessed by experts as giving the best chance of positive returns, with acceptable levels of risk, over the next 30 to 50 years.

“Short, and even long term, variations in returns will have absolutely no effect on the pensions of contributors. Those pensions are defined benefit pensions and are government guaranteed. Variations in returns merely alter how much the government contributes to the final pension,” Trevor Mallard said.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news