16 July 2002 Media Statement

Super pledge honoured - Labour

“Frank Moloney has his facts tangled when he suggests that Labour did not honour its pledge to reverse National’s pension cuts,” Finance Minister Michael Cullen said today.

“In 1999 as part of its policy to cut the cost of New Zealand Superannuation, National cut the wage relativity from 65 percent to 60 percent.

“In April 2000, the Labour-led government restored the wage relativity back up to at least 65 percent of the net average ordinary time weekly wage, making single superannuitants more than $12 a week better off and married couples $21 a week.

“Honouring this commitment cost $684 million over the term of this government, compared with what would have happened under National,” Dr Cullen said.

Note:

Superannuation is indexed against the consumer price index on 1 April each year (unless the wage floor comes into play).

Following indexation at 1 April 2001 and 1 April 2002 the married couple rate is currently sitting at 67.24% of the net average ordinary time weekly wage.

There has quite simply been no cut to Super (since National’s cut).

Average wage and Super rates table.

Year Net Average Ordinary Time Weekly Wage CPI Married Couple rate of NZS (net, pw) NZS as % of average wage
1999 $519.56 0.37 $325.58 62.66
2000 $512.34 0.51 $347 67.73
2001 $526.84 3.98 $360.82 68.49
2002 $546.34 1.82 $367.38 67.24

ENDS

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