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

 


Greens support public option for KiwiSaver

21 October 2013

Greens support public option for KiwiSaver

The Green Party sees New Zealand First’s proposal for a public option for KiwiSaver as a move in the right direction, providing that it is about providing competition to the existing private KiwiSaver funds and not proposing to nationalise them.

Speaking at the party conference in Christchurch yesterday, New Zealand First leader Winston Peters announced policy to create a state-run KiwiSaver fund.

“There is considerable common ground with our KiwiSaver policy launched in the run-up to the 2011 election,” Green Party Co-leader Russel Norman said today.

“A public fund can achieve significant fee and cost reductions through greater economies of scale. Our fund would be an optional default KiwiSaver fund.

“Under our proposal, the investment function – the back-end – would be managed by the $23 billion New Zealand Superannuation Fund while Kiwibank or the Inland Revenue Department can provide the front-end management of individual KiwiSaver accounts.

“We are going to do for superannuation, what Kiwibank has done for banking.”

The recommendation for a single default KiwiSaver provider was made by the Government appointed Savings Working Group in January 2011. The Australian Government announced similar but more sweeping changes to their superannuation industry in September 2011. The Savings Working Group estimates that a single large provider can reduce the costs of KiwiSaver by a factor of two-to-three. A 40 percent saving in costs and fees over the lifetime of a typical KiwiSaver will result in a bigger nest egg on retirement of anywhere from $23,000 to $142,000.

“A significant part of KiwiSavers’ savings gets eaten away by costs and fees, and cost of these fees in multiplied by the missed compound interest. By offering a public KiwiSaver option, we can lower costs sizably saving tens of thousands of dollars,” Dr Norman said.

“If these fee savings are reinvested, KiwiSavers’ nest eggs will be significantly higher, up to $142,000 higher in some cases ($64,000 in today’s dollars).

“This is the next, most obvious reform of KiwiSaver that is needed. A public KiwiSaver option will intensify competition in the superannuation industry driving down costs and making saving for retirement a more attractive option.

“Like Kiwibank, the public fund will be New Zealand owned, managed at arms-length, in a commercial way, responsibly invested, and run in the interests of the New Zealand economy.”

Link to Green KiwiSaver background paper:
https://www.greens.org.nz/kiwisaver                

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza?

As usual, Prime Minister John Key has busily tried to distance himself from the political fallout, even though he happens to be the main beneficiary of the Remuneration Authority’s generosity. Finance Minister Bill English says with a straight face that it would actually be very hard to give the money back...

Even if it were true, it would actually be very easy for English and any other guilty colleagues, to give the extra money away. There are any number of food banks or homeless shelters who would be able to put the money to good use. More>>

 

PARLIAMENT TODAY:

No Designers Or Visual Artists: Flag Panel Members Announced

The Government has appointed 12 New Zealanders as members of the Flag Consideration Panel which will engage with the public about a possible new New Zealand flag, Deputy Prime Minister Bill English says. More>>

ALSO:

Labour MP Stands Down From Portfolio: Comment From Carmel Sepuloni

The first I knew of my mother’s charges was when I was called by a reporter yesterday. I spoke to Andrew and we agreed there is a conflict of interest at the present time which means I will temporarily stand aside from the Social Development portfolio. It’s the right thing to do… . More>>

ALSO:

Gordon Campbell: On Whether NZ Troops Are The Least Of Islamic State’s Problems

Given that it has been politically packaged and sold as a training mission, the Iraq deployment announced yesterday by Prime Minister John Key seemed to be mysteriously short of actual trainers... The other wing of the argument is whether a troop deployment is (a) the only effective way and (b) the appropriate time to combat Islamic State. More>>

ALSO:

143 Troops, Possible SAS Deployment, Legalities Unsorted: PM’s Statement On ISIL

Mr Speaker, today I am announcing to the House the Government’s decisions about our contribution to the fight against the Islamic State of Iraq and the Levant, or ISIL... More>>

ALSO:

Liu Saga: PM's Dinner With Controversial Donor

John Key must front up to New Zealand and say what he discussed with Donghua Liu when the disgraced businessman paid $25,000 for the Prime Minister to come to dinner at his Remuera home, the Green Party said today. More>>

ALSO:

Roads: National MP 'Concerned' At Overseas Driver Crashes

Waitaki MP and Parliamentary Private Secretary for Tourism Jacqui Dean said she was concerned at the number of fatal crashes involving overseas licence holders and she really felt that the time had come for more to be done. More>>

ALSO:

Parliament Today: Parole Bill Passes

A bill reducing parole hearings deemed to be unnecessary has passed. The third reading of the Parole Amendment Bill was completed by 104 to 16 with the Greens and Maori Party opposed. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news