ASFONZ applauds Government's workplace savings initiative

At the Public Service Association's 90th anniversary dinner yesterday, the Prime Minister announced that 96,000 state sector employees would become eligible next year for a new employer-subsidised state sector superannuation scheme.

"We congratulate all who were involved in this initiative" said ASFONZ Chairman Mike Woodbury. "ASFONZ also welcomes the Government's announcement that it is intent on promoting retirement savings among employees generally. Alongside current moves towards tax neutrality for employer contributions, and the proposed abolition of prospectus requirements for workplace-based schemes, the Government's initiative will send a powerful positive signal to the wider labour market."

Woodbury added that the percentage of employees with access to workplace-based superannuation schemes had been in steep decline for the past decade. In its submission to the Periodic Reporting Group earlier this year, ASFONZ urged the Government (which had repeatedly expressed support for workplace-based savings) to "lead other employers by example in this area, by actively promoting employment-related superannuation in the wider public sector." The Government was now "walking the talk", said Woodbury.

The Government announcement is seen as a clear indication that it endorses the need for personal accumulation of retirement savings. "The Government is also confirming that deductions from salary are the most efficient method of accumulating retirement savings."

"We are delighted that the Government acknowledges the link between providing employment-related superannuation and attracting and retaining employees. We hope this initiative serves as a good model for the private sector and leads to a re-invigoration of employment-related retirement savings" said Woodbury.

This is a press release from ASFONZ

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