Next steps for the State Sector Super Scheme

State Services Minister Trevor Mallard announced the establishment of two working parties to consider the future development of the State Sector Retirement Savings Scheme.

The first working party, chaired by Peter Harris, will consider the most appropriate employer subsidy level beyond the move to the three percent in July 2005, and how that can be funded. Its recommendations are due in June 2005.

The second working party, chaired by Angela Foulkes, will consider the possible extension of government subsidy to other entities in the wider state sector. Its recommendations are due in June 2006.

Trevor Mallard said the success of the State Sector Retirement Savings Scheme had exceeded expectations, with almost half of eligible employees signing on.

"As with all new initiatives, we can’t afford to be complacent. We need to make sure that the scheme is firmly embedded and that subsidy increases and extensions are implemented in a planned and proper way," Trevor Mallard said.

"With the support of the PSA, the CTU, and other state sector unions, several initiatives are underway to build awareness amongst eligible employees about the scheme. The planned increase in the employer subsidy (of up to 3 per cent) from 1 July next year provides a great opportunity to increase the participation.

"It is important that the state sector sets a good example in encouraging retirement savings and this scheme has generated interest in the wider state sector. So far eight wider state sector entities have agreed to join the Scheme as participating employers, on the basis that these employers will be funding the employer subsidy contributions themselves, and will not receive additional funding for this cost.

"The creation of the two working parties is the next logical step in the development of the scheme and supports the government’s desire to get more New Zealanders saving for their retirement to ensure better living standards in the years ahead.

"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," Trevor Mallard said. Details on the State Sector Retirement Savings Scheme are attached. More information on the scheme is available on http://www.superscheme.govt.nz

State Sector Retirement Savings Scheme

Current eligibility

In order to join the State Sector Retirement Savings Scheme, employees must be receiving a salary and must be employed either permanently or on a fixed term agreement (full or part time) by: One of the 35 public service ministries or departments; or One of five non-public service departments; or the state school sector (including support staff); A free kindergarten association, but only as a registered teacher; or One of the eight crown entities which have recently joined the scheme. (however, these employers will be funding the employer subsidy contributions themselves, and will not receive additional funding for this cost). The eight crown entities which have joined the scheme so far are: Career Services Earthquake Commission Electricity Commission Families Commission Pharmac Retirement Commission Broadcasting Standards Authority NZSO

If you are employed on a fixed term contract, it must have four months or more to run when you join the scheme.

Current employer subsidy

Provided an employee is eligible to receive an employer subsidy, their employer will match their own regular fortnightly contributions dollar for dollar up to: 1.5 per cent of gross salary until June 2005, then 3.0 per cent of gross salary from July 2005

© Scoop Media