The hobbled Accord on Superannuation was dealt a fatal blow with the Government's decision to cut the relative value of Superannuation.
Prime Minister Jenny Shipley says the floor for New Zealand Superannation will fall from 65 per cent to 60 per cent of the average take-home wage.
Under the Accord, which was signed by National, Labour, the Alliance and United, superannuation was to be kept between 65 per cent and 72.5 per cent of the average take-home wage.
Before yesterday's announcement it had slipped to just below the 65 per cent mark.
The change, which has the support of the Independent MPs, will come into effect on April 1, after being pushed into law under urgency.
It is expected to save the Government $22 million this year and $500 million every year from 2008.
Further cuts in superannuation have been signalled too.
Also, the Government is to establish a Superannuation 2000 taskforce to consider the recommendation of the Jeff Todd-chaired Periodic Review Group.
"The Superannuation 2000 Taskforce will involve a range of people from all major political parties and community leaders, focused on finding affordable super policies for elderly New Zealanders, their children and grandchildren," the minister of Social Services, Work and Income, Roger Sowry says.
He says it will have an independent chairman, and a "significant" research budget.
The group will be established by November and expected to offer an alternative to the accord by November 2000.
Labour has roundly attacked the announcement and said it will have no part in the taskforce.
Leader Helen Clark says it is "entirely spurious".
"In doing so she (Shipley) has driven the final nail into the coffin of the Superannuation Accord to which her own part was a signatory," Clark says.
The hobbled Accord on Superannuation was dealt a fatal blow with the Government's decision to cut the relative value of Superannuation.