Four managers selected for new Govt fund

Monday 16th February 2004

Four fund master trust providers have been selected to provide services to the government's new state sector savings scheme.

AMP Financial Services, ASB Group Investments, AXA New Zealand and the Global Retirement Trust (GRT) have been selected as the providers for a new retirement savings scheme for employees in the state sector, State Services Minister Trevor Mallard announced today.
An independent selection panel selected the four companies following a competitive tendering process.

Trevor Mallard says up to 100,000 state sector workers will be able to save for their retirement through the new scheme, which will be running from July 2004.

Employees joining the scheme can choose their own level of contribution, and the government will match that up to a maximum of 1.5% of salary in the first year and 3% from the second year.

"It is important that the state sector sets a good example in encouraging retirement savings. This scheme will help many people to better prepare for their retirement.

"This government is also committed to building strong public services which fully meet the needs of all New Zealanders, regardless of their background. To do this, it's important we recruit and retain good people, and this scheme is a great incentive.

"The public service, as a collection of departments and organisations, is one of the country's largest employers. The new superannuation scheme will be portable between departments as people progress their career.

"The scheme has been designed to offer its members lots of choice. This includes choice of brand, organisation type, administration manager, investment fund, investment style, risk profile, and fee structures, together with a range of additional products such as life and other insurances," Mallard said.

The scheme will be available to state sector employees in government departments, employees in the education sector (including support staff) whose conditions are negotiated by the Ministry of Education on behalf of the State Services Commissioner, if they are not part of an existing employer-subsidised scheme.

The scheme has been established in accordance with the 'Partnership for Quality' agreement between the government and the Public Service Association (PSA). It arose out of the Tripartite Forum (involving the Minister of State Services, the PSA, the State Services Commissioner and public service chief executives) and the primary teachers' scheme negotiated with NZEI, and involved negotiations between officials, the government and the Council of Trade Unions. The State Services Commission will now manage the implementation of the scheme in the state sector, in partnership with the four providers, the Treasury, the PSA and other state sector unions.

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