PSA welcomes new super scheme

PSA Press Release

November 5, 2003

PSA welcomes new super scheme

The new public service retirement savings scheme announced by the Prime Minister and the Minister of State Services today is great news and is a prime example of a partnership approach between unions, government, and employers at work, PSA national secretary Lynn Middleton said today.

“The new scheme is the result of a collaborative effort between PSA, the CTU and other state sector unions, government officials and employers. PSA is delighted to have been instrumental in getting the scheme to this point as it means our members working in the public service now have a real chance at saving for their retirement.”

Lynn Middleton said the features of the scheme which PSA were particularly pleased about were:

- It is based in the workplace – there is plenty of evidence that the workplace is the most effective place to base retirement savings schemes
- There is an employer contribution – this is essential in ensuring a good take-up in a voluntary scheme; 1.5% less withholding tax in 2004 and another 1.5% less withholding tax in 2005
- The government is making available new money to kick-start the savings programme
- The scheme will be transferable and portable in recognition of the more flexible labour market that exists in the public service these days.

“PSA would like to acknowledge the positive approach taken by the Labour Government in progressing this issue. Retirement savings are essential for people to live comfortably once they retire. If they don’t have a bit extra apart from their pensions, it can be a struggle.”

Lynn Middleton said PSA’s long term aim was for public service employers to match up to 6 percent of their employees’ salaries so that a total of 12 percent of their gross salary is going into their retirement schemes.

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