First payment made into super fund

The Government last week made the first payment into its still-to-be-established multi-billion dollar superannuation fund.

Although Parliament has yet to pass legislation to create the massive fund the first payment, of about $23 million has been made.

The fund is designed to meet some of the future costs of New Zealand Superannuation.

This financial year, which started on July 1, the Government will put $600 million into the fund.

Payments will be made each fortnight at the same time the Government pays NZ Super to pensioners.

Until the fund is established and a board is appointed, the money will be looked after by Treasury's Debt Management Office.

A Treasury spokesman says the funds will earn interest at the daily cash rate.

The bill setting up the fund has been reported back from the Finance and Expenditure Select Committee and it is likely to come before Parliament in a couple of weeks time when the house resumes sitting.

Although the Greens plan to vote against the part of the bill that establishes the fund, the Government is expected to have the numbers to get it through the house. Labour, the Alliance, New Zealand First and United Future have all said they will vote for the bill.

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