About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, March 31st, 1:42PM
rss
Latest Headlines

NZ not only country to embrace prefunding

New Zealand is not alone in wanting to prefund future portions of its state pension, New Zealand Superannuation.

Wednesday, February 28th 2001, 1:39AM

by Philip Macalister

New Zealand is not alone in wanting to prefund future portions of its state pension, New Zealand Superannuation.

Other countries such as economic wonderland Ireland and France are also progressing down this route. What's more, moving from a pay-as-you go basis for state super to a partially funded model has won the approval of the World Bank.

However, it does also point out that there have been problems with prefunding, such as:

  • Funds have been used to achieve objectives other than providing pensions
  • These funds have been difficult to insulate from political influence
  • The rates of returns earned on these funds to date were poor relative to relevant indices and also relative to local bank deposit rates.

A recent article in The Actuary journal looking at the proposed Irish Stability Fund says that one of the biggest issues is having an independent board, and clear investment guidelines free from Government intervention.

"The key to success, it seems, is to appoint independent commissioners with a clear and concise mandate to produce excess performance while being cogniscent of the risks taken," Tom Murphy and Jennifer Richards say in their article.

The option currently before the Finance and Expenditure Select Committee sets out to make the guardians at double arms length from the Government.

One of the big issues yet to be decided are the funds investment guidelines.

On this issue there is likely to be major dissention. The Greens want the fund to be invested ethically, while the Alliance has earlier said it sees the fund as providing necessary investment capital for New Zealand companies.

On the other hand actuaries, such as Michael Chamberlain, says the whole fund should be invested in offshore shares.

Earlier stories:

Have your say!

How should the fund be invested? Who should be on the Board of Guardians?

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« What is the super fund?AMP & Good Returns launch superannuation website »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • What is the value of CPD?
    “What all this discussion says to me is that there seems to be a lot of emphasis on doing CPD to meet the requirements of...”
    10 hours ago by Brent Sheather
  • What is the value of CPD?
    “David - so in your words " Where does a Risk Specialist AFA go for relevant CPD material? Company product launches don't...”
    1 day ago by gavin austin adviser business compliance
  • Clients complain about adviser fees
    “It is interesting to note that in the article, FSCL state they receive 2 or 3 similar complaints a month. Nothing wrong with...”
    1 day ago by Another AFA
  • What is the value of CPD?
    “I must say I like Gavin's idea of the " FMA to have some intestinal fortitude to go and audit him and publish the results",...”
    1 day ago by R1
  • What is the value of CPD?
    “With respect Pragmatic and JM, in this instance, G.Lindsay's point is fair. Where does a Risk Specialist AFA go for relevant...”
    3 days ago by dcwhyte
Subscribe Now

News and information about KiwiSaver

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.74 5.89 5.99 6.29
ANZ Special - 5.39 5.39 5.79
ASB Bank 6.75 5.99 5.99 6.39
ASB Bank Special - 5.59 5.39 5.59
BankDirect 6.75 5.99 6.09 6.39
BankDirect Special - 5.59 5.39 5.59
BNZ - Classic - 5.69 5.39 5.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.95 5.99 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.39 5.69
HBS Special - 5.59 5.19 5.49
Heartland 6.70 7.00 7.25 7.85
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.70 5.70 5.40 -
Housing NZ Corp 6.74 5.70 ▼5.99 6.29
HSBC Premier 6.84 5.65 5.65 5.65
HSBC Premier LVR > 80% - - - -
HSBC Special - 5.29 5.29 5.29
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank Special - - ▼5.39 5.55
Liberty - - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 5.92 5.95 6.04
SBS Bank 6.65 5.69 5.39 5.69
SBS Bank Special - 5.59 5.19 5.49
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.09 6.39
Sovereign Special - 5.59 5.39 5.59
The Co-operative Bank 6.70 5.59 5.39 5.59
Lender Flt 1yr 2yr 3yr
TSB Bank 6.74 5.70 5.70 6.00
TSB Special - - 5.35 5.60
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 5.99 ▼5.99 ▼5.99
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.39 5.89
Median 6.70 5.89 5.97 5.99

Last updated: 31 March 2015 11:13am

News Quiz

Who's ceo has just received the 2015 Women’s Empowerment Principles (WEP) CEO Leadership Award in a ceremony at the UN headquarters in New York, being only the second NZ ceo chosen for the honour?

Sovereign

Fisher Funds

Partners Life

Fidelity Life

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com