ASB Bank popular with civil servants

OK, the ASB has not quite been running that line in its advertising over recent months. But since the State Sector Retirement Savings Scheme (SSRSS) was launched in the middle the year the ASB has been much more successful than the other two approved providers for the scheme – AMP and AXA.

That the ASB has received the lion’s share of the public servants who signed up to the scheme has been confirmed by the State Services Commission.

The commission is remaining tight lipped about the market split amongst the three providers to the scheme. However it has confirmed – in response to an Official Information Act request – that ASB Bank picked up 51% of the employees who signed up for the scheme.

Although the commission is not at this stage giving any more information, it is understood the market share of the other two providers is about 30% for AXA and about 20% for AMP.

The commission is carrying out a survey in November on what influenced the choice of state sector employees.

Meanwhile the chairman of the commission’s superannuation advisory board, Derek Gill, says the scheme may be extended to cover not only superannuation but also insurance products.

Gill also told the Association of Superannuation funds (ASFONZ) conference last month that the scheme had been something of an eye opener in terms of amount, and complexity of information which had to be supplied to applicants under the existing securities legislation.

Much of it was very difficult even for the scheme’s organisers to understand, he said, let alone the employees making the choice.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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