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Gareth Morgan: GMI sale 'to benefit charity'

Fri, 20 Jan 2012 00:00:00 +1300

New Zealand economist and philanthropist Gareth Morgan will pump the proceeds from the sale of his $1.5billion funds management company to Kiwibank back into charity.

Kiwibank buys GMI

Wed, 18 Jan 2012 00:00:00 +1300

State-owned lender Kiwibank has struck a deal to purchase Gareth Morgan Investments (GMI), including its KiwiSaver Scheme.

$300m KiwiSaver plan 'adds little to savings'

Mon, 16 Jan 2012 00:00:00 +1300

A Treasury report to Finance Minister Bill English reveals officials doubted whether a $300 million one-off auto-enrolment in KiwiSaver would deliver a worthwhile boost to national savings. Treasury initially advised against the Government's plan because of the small impact it would have on savings.

Jargonbusters bring financial world to heel

Tue, 10 Jan 2012 00:00:00 +1300

As anyone who has ever battled with an impenetrable wall of financial gobbledygook knows, deciphering such twaddle can often cause rising blood pressure and much tearing of hair.

AMP NZ and Gareth Morgan Investments share the stage for superior communications

Tue, 13 Dec 2011 00:00:00 +1300

AMP NZ and Gareth Morgan Investments took top honours at the Workplace Savings NZ Communication Awards.

KiwiSaver fund rankings released

Tue, 13 Dec 2011 00:00:00 +1300

The first independent research to look past headline returns and try to predict the future prospects of KiwiSaver nest eggs concluded the big funds offered ''pretty good'' value for money.

AMP Services (N.Z) Ltd takes top savings award

Fri, 09 Dec 2011 00:00:00 +1300

AMP Services (N.Z) Limited and Gareth Morgan Investments were the big winners at last night's 2011 Workplace Savings NZ Communication Awards held in Wellington. Read more here.

Prospectus extension certificates

Tue, 06 Dec 2011 00:00:00 +1300

FMA has decided to grant an extension to liquid collective investment schemes so that they can register a prospectus extension certificate to extend the life of a scheme prospectus notwithstanding certain material adverse changes in the financial position of that scheme. For more information click here.

NZ Investment Governance Survey 2011 - Report

Mon, 28 Nov 2011 00:00:00 +1300

Russell Investments, with the support of Workplace Savings NZ, has surveyed the investment governance structures of a representative sample of 29 superannuation schemes. The results of the inaugural survey are now available - click here to download a copy of this report.

Saving us from super suffering

Sat, 19 Nov 2011 00:00:00 +1300

Workplace Savings New Zealand head Bruce Kerr calls the day all workers join KiwiSaver "miracle day".

Make Kiwisaver compulsory: CEOs

Thu, 17 Nov 2011 00:00:00 +1300

A big majority of chief executives want KiwiSaver made compulsory. Seventy-seven per cent of respondents to the Herald's CEO survey are in favour of compulsion, which is a key Labour Party election plank.

Political tinkering a hurdle for savers

Mon, 14 Nov 2011 00:00:00 +1300

This election will be the second held since KiwiSaver's inception in 2007, and once again the scheme has become a political football. As voters prepare to head to the polling stations on November 26, three major parties have some very different ideas about where the government savings programme should be heading.

Greens say they can lower KiwiSaver fees 40%

Mon, 07 Nov 2011 00:00:00 +1300

The Green Party’s plan to encouraging savings by reducing the high costs of saving.

Lifting the age of super pragmatic

Thu, 27 Oct 2011 00:00:00 +1300

Increasing the age of eligibility for New Zealand superannuation to 67 will put it on a more sustainable footing for the long term, according to Workplace Savings NZ. The Labour Party has today announced plans, if it wins power, to gradually lift the age of eligibility from 65 to 67 over the next 22 years, with no changes to start until 2020.

Making KiwiSaver work for you

Tue, 25 Oct 2011 00:00:00 +1300

Kiwis, you've been outed. All this time you've been playing it cool, you've been keeping a sneaky eye on your retirement prospects.

Warning over cost of KiwiSaver plan

Wed, 19 Oct 2011 00:00:00 +1300

KiwiSaver auto-enrolment could be costly and time-consuming for default providers of the savings scheme and frustrating for workers, says the chairman of superannuation industry body Workplace Savings NZ.

KiwiSaver auto-enrolment go-ahead

Tue, 18 Oct 2011 00:00:00 +1300

Finance Minister Bill English this afternoon said his Government had considered KiwiSaver auto-enrolment and decided to go ahead with the plan in 2014/15 if its books have returned to surplus by then.

Slow start for financial services dispute scheme

Tue, 18 Oct 2011 00:00:00 +1300

A new financial services dispute resolution scheme expected a mountain more complaints in its first year of operation.

KiwiSaver four years on

Mon, 17 Oct 2011 00:00:00 +1300

KiwiSaver - the national retirement savings scheme - is now four years old. BusinessDay takes a look at the books.

Spotlight on clear KiwiSaver and workplace savings comms

Tue, 04 Oct 2011 00:00:00 +1300

Improving financial literacy and giving the public clearly understandable financial information are hot topics right now. The providers of workplace savings and KiwiSaver schemes have the opportunity to show they care about clear, honest communication through the Workplace Savings NZ Communication Awards.

Goff hints at compulsory KiwiSaver

Tue, 27 Sep 2011 00:00:00 +1300

Labour leader Phil Goff has sent his strongest signal yet that the opposition will campaign on a beefed up KiwiSaver scheme that could include compulsion.

KiwiSaver sign-ups recover in August

Wed, 14 Sep 2011 00:00:00 +1200

About 20,000 new members joined the scheme in August - 2,000 more than in July - boosting the total number of members to about 1,794,000.

Griffin's dunks KiwiSaver

Wed, 14 Sep 2011 00:00:00 +1200

Like a growing list of corporates who launched their own ‘bolt-on' KiwiSaver schemes in 2007, Griffin's has shut down the option.

MED throws out FMA funding fee proposal

Tue, 13 Sep 2011 00:00:00 +1200

The Ministry of Economic Development (MED) has rejected all four of its original funding proposals for the Financial Markets Authority (FMA), opting instead for a tiered system with "no charging based on individual advisers."

Submission on the Financial Markets Conduct Bill

Tue, 06 Sep 2011 00:00:00 +1200

Click here to see a copy of the Workplace Savings NZ submission to the MED on the Financial Markets Conduct Bill Exposure Draft.

ID Verification Code of Practice released

Thu, 01 Sep 2011 00:00:00 +1200

The Identity Verification Code of Practice was approved by notice in the NZ Gazette today (1 Sep 2011) under the AML/CFT Act 2009. This code of practice comes into force on 30 June 2013.

Trustees now under supervision

Wed, 31 Aug 2011 00:00:00 +1200

New regulations around trustee licensing will address issues around finance company failures and help protect investors, claimed Commerce Minister Simon Power.

The future of KiwiSaver

Tue, 30 Aug 2011 00:00:00 +1200

Act party leader Don Brash says KiwiSaver hasn't helped New Zealand's savings rate and was nothing more than a bribe from the previous Labour government. He told the Workplace Savings conference last week that governments don't know how to increase national savings.

Forced savings debate heats up

Sat, 20 Aug 2011 00:00:00 +1200

Australia's two-decade long scheme, now worth A$1.23 trillion, has been a resounding success. In contrast, New Zealand's efforts have been stop-start and characterised by bouts of political intervention, and its capital markets have lacked depth.

Kiwis want compulsory super - survey

Thu, 18 Aug 2011 00:00:00 +1200

More than half of New Zealanders surveyed think KiwiSaver should be compulsory, a new survey has found - despite many being unsure about the finer points of their own investments.

Mum and Dad investors miss fine print

Wed, 17 Aug 2011 00:00:00 +1200

In the wake of the collapse of finance companies and collateralised debt obligations, kiwi mums and dads haven't lost their appetite for corporate bonds despite complexities they may not fully understand.

KiwiSaver's popularity takes hit

Tue, 16 Aug 2011 00:00:00 +1200

The popularity of KiwiSaver took a hit in the second quarter in the aftermath of changes to the state-sponsored pension savings scheme announced in the May 20 Budget, the latest ASB Bank investor confidence survey shows.

KiwiSavers spared worst of share dive

Wed, 10 Aug 2011 00:00:00 +1200

KiwiSavers should be protected from the worst of the bloodbath wiping billions of dollars from the value of New Zealand shares, a leading funds manager says.

Automatic KiwiSaver enrolment pondered

Thu, 04 Aug 2011 00:00:00 +1200

Enrolling everyone who is in work into KiwiSaver remains on the table as both Labour and National consider their election savings plans. Prime Minister John Key was keen to get more people enrolled in the superannuation scheme but stopped short of supporting automatic enrolment.

KiwiSaver tweaks on the cards

Thu, 04 Aug 2011 00:00:00 +1200

Coverage from today's TVNZ Breakfast programme - featuring David Ireland, Chairman of Workplace Savings NZ

KiwiSaver auto-enrol may net a million

Wed, 03 Aug 2011 00:00:00 +1200

Up to a million people who are in work but have not yet joined KiwiSaver may be automatically enrolled in the savings scheme under a plan being considered by the Government.

KiwiSaver - Are we saving more?

Thu, 21 Jul 2011 00:00:00 +1200

Most of the money people put into KiwiSaver they would have saved anyway. Most of the people KiwiSaver was especially intended to benefit are not in the scheme. Most of the scheme's taxpayer subsidy leaks to those outside the target group.

Super rise certain says Whitehead

Thu, 14 Jul 2011 00:00:00 +1200

Maintaining a retirement age of 65 is "pretty hard to justify" and an increase is "inevitable", former Treasury Secretary John Whitehead says.

Retirement issues 'must be addressed'

Wed, 13 Jul 2011 00:00:00 +1200

Politicians need to address the future cost of New Zealand's aging population before it is too late, a retirement policy expert says.

KiwiSaver turns 4 with $8b treasure chest

Thu, 30 Jun 2011 00:00:00 +1200

KiwiSaver turns four tomorrow and despite the Government's tinkering in the last Budget, the voluntary scheme remains a popular vehicle for people to save for their retirement.

Poll shows support for retirement age increase

Mon, 30 May 2011 00:00:00 +1200

A majority of voters believe the Government should now be discussing raising the superannuation age, the latest Herald-DigiPoll survey shows.

KiwiSaver changes make saving tougher – Workplace Savings NZ

Thu, 19 May 2011 00:00:00 +1200

The KiwiSaver changes announced in the Budget do not alter the need for people to save for their retirement, but they will make the journey to your savings goal much tougher.

That's according to Workplace Savings NZ, the voice of workplace savings.

The Government today confirmed it will halve the member tax credit to a maximum of $521 a year from 1 July this year. In addition, the minimum employer and employee contribution will rise from 2% to 3% from 1 April 2013. And the tax free status of employer contributions to KiwiSaver will end from April next year.

Workplace Savings NZ Chairman David Ireland says while disappointed at the reduction in the level of the Government's contribution to private retirement savings, given the economic climate he accepts the need for the Government to look carefully at its spending priorities.

"The rationale behind getting into KiwiSaver and making savings through the scheme hasn't changed.

"But the decisions announced today do make it much harder for individuals to reach their savings targets.

"And the Government is effectively leaving the private sector to its own devices to reach that goal.

"Current contribution rates are low by international standards. Increasing them to the pre-National Government level of 4 plus 4 and beyond had an air of inevitability about it.

"However, we hope the approach to implementing private contribution increases will be business friendly. Merely signaling increases in advance won't necessarily make it easier for KiwiSaver members or their employers when the time comes" says Mr Ireland.

A concern of Workplace Savings NZ is that savers unable to adjust their affairs to cater for the increased minimum contribution rates will opt for a contribution holiday, and it may be hard to get them back on the savings track.

There are currently 1.7 million New Zealanders using KiwiSaver as a preferred retirement savings vehicle, with more than $8 billion locked away.

"These people, and others planning to join KiwiSaver, need to have confidence in the sustainability and stability of the scheme if that savings success story is to continue.

For further information:

David Ireland
Chairman - Workplace Savings NZ
(021) 343-615

National savings to get a lift, not a hit - English

Tue, 17 May 2011 00:00:00 +1200

Standard & Poor's today told Radio New Zealand cuts to KiwiSaver had the potential to pull New Zealand further into debt.

KiwiSaver subject to continuous tinkering

Thu, 12 May 2011 00:00:00 +1200

The Government's signal of changes to KiwiSaver in the Budget next week was yet another round of amendments to a scheme subject to almost continuous tinkering during its relatively short life, Chapman Tripp said.

KiwiSaver change shrugged off

Thu, 12 May 2011 00:00:00 +1200

Fund managers and business groups are not panicking about changes to KiwiSaver, despite news that both employers and employees will have to lift their contribution.

PM: Budget 2011 will be responsible, affordable

Wed, 11 May 2011 00:00:00 +1200

IN his speech in Wellington today, Prime Minister John Key says Budget 2011 will be responsible and measured, and ensure expensive programmes like KiwiSaver, Working for Families and interest-free student loans are affordable into the future.

KiwiSaver changes worry employers

Wed, 11 May 2011 00:00:00 +1200

As speculation mounts over the Government's intentions for KiwiSaver, a group representing employers who offer workplace retirement plans is concerned that tinkering with the scheme may deter people from joining.

Super rises 19% under National, PM tells Greypower

Mon, 09 May 2011 00:00:00 +1200

In a speech to Greypower, Prime Minister John Key told the audience at their AGM in Hamilton that the National Government has delivered to superannuitants and will continue to do so.

Building Trust in Financial Markets

Wed, 04 May 2011 00:00:00 +1200

The Government has a golden opportunity in this year's Budget on 19 May to continue to build trust in New Zealand's financial markets by not tinkering with KiwiSaver benefits. Workplace Savings NZ Chairman David Ireland says the industry considers it highly likely that KiwiSaver incentives are at the top of the list of the Government's savings targets in the upcoming Budget, and another casualty might be the first home deposit subsidy from Housing New Zealand.

New financial markets watchdog opens for business

Mon, 02 May 2011 00:00:00 +1200

The Financial Markets Authority officially opened for business today, almost a year to the day after Commerce Minister Simon Power announced its formation. The FMA takes over the functions of the Securities Commission and Government Actuary which are being disestablished, and consolidates other regulatory functions from the Ministry of Economic Development.

New board members for Workplace Savings NZ

Fri, 29 Apr 2011 00:00:00 +1200

Following a hotly contested election process, Workplace Savings NZ (the voice of workplace savings) has welcomed four people to its Council Board at the association's Annual General Meeting held in Wellington this week.

In a move which demonstrated strong support for the work being undertaken by Workplace Savings NZ, eight member representatives were nominated to fill four vacancies on the board.

The successful candidates were Ian Miller (Head of Wholesale Investments at Tower Investments) and Graham Evans (Director at Breaker Bay Consultants Limited) who have both been elected for a second three year term; Kerry Haycock (Manager, Strategy, Investment & Performance at Airways NZ and Chairman of Airways Superannuation Plan) who had been co-opted to the board in 2010 to fill a casual vacancy; and first time board member John Smith (General Manager Investments at ASB Bank Limited)

"Workplace Savings NZ is very pleased to have attracted such interest in working on our governance group" said Chairman David Ireland. "We are delighted to welcome our new board members, who collectively bring a wealth of experience to the table, and who I am sure will capably support our objective of advancing the sustainable, effective and efficient delivery of workplace savings outcomes for all involved".

Special mention was made of retiring board member Dianne Kidd, who was stepping down after serving 6 years on the board, chairing its professional development initiatives during that period.

OECD supports capital gains tax, lifting retirement age

Wed, 27 Apr 2011 00:00:00 +1200

A new report by the Organisation for Economic Cooperation and Development (OECD) argues New Zealand to favour a capital gains tax, and lift the retirement age.

KiwiSaver Newsletter Christchurch Earthquake

Tue, 26 Apr 2011 00:00:00 +1200

MED has released a newsletter intended to provide guidance on how to deal with applications for early withdrawal of KiwiSaver contributions on the grounds of financial hardships by Canterbury residents who are victims of the aftershock of 22 Feb 2011. Read more.

Cabinet approves funding for FMA

Wed, 20 Apr 2011 00:00:00 +1200

Commerce Minister Simon Power today announced Cabinet approval for the operating budget for the Financial Markets Authority, which begins operation on 1 May.

KiwiSaver relief for earthquake-affected Cantabrians

Tue, 19 Apr 2011 00:00:00 +1200

Commerce Minister Simon Power today announced relief for earthquake-affected Cantabrians who have KiwiSaver accounts by making it easier for them to withdraw their contribution.

Don Ezra Presentation - Available Online

Fri, 01 Apr 2011 00:00:00 +1300

Pension fund expert Don Ezra, of Russell Investments, was our special guest speaker at our recent industry breakfasts in Wellington and Auckland. His presentations were well attended by Workplace Savings NZ members and those from wider industry. His presentation is available to download here.

Submission on the Periodic Reporting Regulations for Retail KiwiSaver Schemes Discussion Paper

Fri, 11 Mar 2011 00:00:00 +1300

Workplace Savings NZ has today made its submission on the above to the Ministry of Economic Development. Our appreciations to all of our members who contributed their time and expertise to this work. Click here to read what we had to say.

'Super regulator' to get extra powers

Thu, 03 Mar 2011 00:00:00 +1300

The new market "super regulator" is set to be able to force anyone making unsolicited approaches to buy shares to reveal to investors how much shares are worth on the open market.

Commerce Committee release Report on Financial Markets Bill

Wed, 02 Mar 2011 00:00:00 +1300

The Commerce Select Committee has today released its report on Financial Markets (Regulators and KiwiSaver) Bill. The Select Committee has recommended that the Bill be passed, but with some notable amendments. It is expected to pass through its final stages of the Parliamentary process later this month. Click here to access this report.

Financial Markets Authority legislation on track

Wed, 02 Mar 2011 00:00:00 +1300

Commerce Minister Simon Power today welcomed the report-back by the Commerce Select Committee on legislation to establish the Financial Markets Authority (FMA) and to improve governance of KiwiSaver schemes.

KiwiSaver membership at 1.63m

Mon, 21 Feb 2011 00:00:00 +1300

Despite rising unemployment in December, an additional 20,000 people joined KiwiSaver in January and the scheme's total membership now stands at 1.63 million people.

The figures have been revealed in the latest Tower Investments KiwiSaver trends analysis, which also found there are now over 440,000 in default schemes - raising questions about the Savings Working Group's recommendation for a single, government-run, monopoly default scheme.

"There has been some dispute over the merits of KiwiSaver default schemes since the Savings Working Group recently called for a nationalised monopoly default fund to be provided directly by the Government," said Tower CEO Sam Stubbs.

"Yet the IRD reported that by the end of January 2011, 440,333 people were assigned by the government to default schemes run by the six private sector default providers, including Tower."

"The current default system clearly isn't broken, which raises the question as to why it supposedly needs fixing," he said.

(Source: GoodReturns - www.goodreturns.co.nz)

Simon Allen to chair Financial Markets Authority

Wed, 09 Feb 2011 00:00:00 +1300

Cabinet has approved the appointment of Simon Allen as chair of the soon-to-be established Financial Markets Authority, Commerce Minister Simon Power announced today.

KiwiSaver changes may be costly, warns industry

Thu, 03 Feb 2011 00:00:00 +1300

Industry players have welcomed a proposal to automatically enrol all employees aged over 18 into KiwiSaver but warn more changes to the scheme are likely to bring more costs - some of which will have to be passed on to savers.

Media Release - KiwiSaver recommendations “a starting point”

Wed, 02 Feb 2011 00:00:00 +1300

The Chairman of Workplace Savings NZ David Ireland says the recommendations are a starting point for discussions around KiwiSaver, but not the solution.
“Leaving KiwiSaver voluntary for the time being makes a lot of sense, for the reasons set out in the report, but you can be sure this will not be the end of the compulsion debate"

Savings Working Group releases final report

Tue, 01 Feb 2011 00:00:00 +1300

The Savings Working Group released its final report "Saving New Zealand: Reducing Vulnerabilities & Barriers to Growth & Prosperity" to the Minister of Finance today.

Retirement age should move with the times

Thu, 16 Dec 2010 00:00:00 +1300

Why wouldn't we expect to work longer as we live longer, asks Andrew Gawith, director of Gareth Morgan Investments.

'Urgent need' for savings boost

Thu, 16 Dec 2010 00:00:00 +1300

The Savings Working Group says in an interim report there is an urgent need for both the government and household sectors to lift productivity and national savings.

Dairy Industry Superannuation Scheme wins top savings award

Thu, 09 Dec 2010 00:00:00 +1300

For the second year in a row the Dairy Industry Superannuation Scheme took out the Annual Reporting of the Year Award and also won the Supreme Award for Excellence in Communication, at the annual Workplace Savings NZ Communication Awards in Wellington last night.

Raise superannuation age to 67 at least - Retirement Commissioner

Tue, 07 Dec 2010 00:00:00 +1300

The government needs to raise the age of entitlement for superannuation from 65 to 67 at least if it is to avoid a major fiscal crisis, says Retirement Commissioner Diana Crossan. In a move likely to trigger a major political row, Ms Crossan says the government should gradually lift the age of entitlement by two-month increments from 2020, so as to reach 67 by 2033.

Bollard suggests savings boosters

Wed, 24 Nov 2010 00:00:00 +1300

Reserve Bank governor Alan Bollard has suggested several measures that could improve national savings over the medium term in a submission to the Government's Savings Working Group.

Govt rules out further increase in GST

Thu, 18 Nov 2010 00:00:00 +1300

Finance Minister Bill English says he has no intention of increasing GST again. He was responding to a question in Parliament yesterday from Labour's finance spokesman, David Cunliffe, which referred to background papers from tax officials released last Friday by the savings working group, chaired by Kerry McDonald.

Savings-based recovery set to pick up in 2011

Thu, 18 Nov 2010 00:00:00 +1300

A sustainable economic recovery is underway and will pick up momentum next year as the Government continues to roll out its economic plan, Finance Minister Bill English says.

Update on 'People's Choice KiwiSaver Award' 2010

Mon, 15 Nov 2010 00:00:00 +1300

At the half-way mark, voting in this year’s “People’s Choice KiwiSaver Communication Award” is progressing well. Workplace Savings NZ Executive Director Bruce Kerr says more than 99% of voters have so far rated their providers’ communications as ‘good’ or ‘excellent’.

Submission on the Financial Markets (Regulators & KiwiSaver) Bill

Wed, 10 Nov 2010 00:00:00 +1300

We have today uploaded the Workplace Savings NZ submission to the Commercer Select Committee in relation to the above bill.

2010 People’s Choice KiwiSaver Communications Award

Fri, 29 Oct 2010 00:00:00 +1300

Excellence in communicating with KiwiSaver members during 2010 will be rewarded with the People's Choice Best KiwiSaver Communications Award. Now in its second year, this Award is the highlight of the annual Workplace Savings NZ industry Communications Awards.

KiwiSaver actually works

Tue, 19 Oct 2010 00:00:00 +1300

A KiwiSaver evaluation report released today shows strong continued growth and early signs that the scheme is working as intended. About 30,000 people joined the scheme each month over the last year - most, unsurprisingly, citing a desire to save towards retirement as their main motivation for joining the scheme.

NZ Funds joins ring

Mon, 18 Oct 2010 00:00:00 +1300

A new player enters the KiwiSaver market next week with the launch of a scheme by independent investment manager NZ Funds.

Compulsory savings no silver bullet

Thu, 07 Oct 2010 00:00:00 +1300

Making KiwiSaver a compulsory savings isn’t the silver bullet to address New Zealand’s dismal savings record, with the evidence across the Tasman unclear, according to the Savings Working Group.

David Mayhew - Cleaning up the markets

Mon, 04 Oct 2010 00:00:00 +1300

The fact that David Mayhew has only recently returned to New Zealand after nearly three decades in London may explain why he is utterly wrong about a crucial Kiwi trait.

Improvements to KiwiSaver regulation

Wed, 15 Sep 2010 00:00:00 +1200

Improvements to KiwiSaver regulation including periodic reporting, increased fund manager and trustee responsibility have been introduced in a bill to Parliament.

Significant power for new regulator

Tue, 14 Sep 2010 00:00:00 +1200

The proposed new market regulator will be able to enforce the duties of people involved in financial markets when it's in the public interest, a significant new power under a bill introduced to Parliament today. The board setting up the Financial Markets Authority (FMA) requested the new power because it believed there was a gap in the authority's ability to effectively enforce and supervise New Zealand's financial markets, Commerce Minister Simon Power said.

Compulsory KiwiSaver 'has its drawbacks'

Thu, 09 Sep 2010 00:00:00 +1200

Making KiwiSaver compulsory could boost national savings, the Treasury says, but it raises difficult wellbeing and fairness issues.

Legislation in the November 09 tax bill enacted

Wed, 08 Sep 2010 00:00:00 +1200

Legislation in the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill introduced in November 2009 received Royal assent on 7 September.

QFEs need regulatory assurance

Wed, 08 Sep 2010 00:00:00 +1200

Qualifying Financial Entity (QFE) status, like authorisation, will have a shelf life and renewal process come into play which implies a need for regulatory assurance says Commissioner for Financial Advisers David Mayhew. Speaking at the Workplace Savings conference he said QFE's must remain capable of delivering compliance with legislation.

Investor care paramount, Govt tells savings industry

Mon, 30 Aug 2010 00:00:00 +1200

The Government has delivered a thinly veiled warning to the savings industry to pick up its game when it comes to protecting investor interests.

Too early to rate savings success of KiwiSaver

Mon, 30 Aug 2010 00:00:00 +1200

It's too soon to tell if KiwiSaver has helped to boost retirement savings, industry experts speaking at the Workplace Savings NZ 2010 Conference say.

All Change for Workplace Savings

Mon, 30 Aug 2010 00:00:00 +1200

The next decade will see unprecedented change in New Zealand's savings landscape. That's the prediction from New Zealand's premier savings industry conference ‘Workplace Savings 20/20' that ended on Friday.

How hard should we be saving for Retirement?

Tue, 24 Aug 2010 00:00:00 +1200

New Zealand should look to overseas experience as this country debates the adequacy of our approach to retirement income.

Workplace Savings NZ this week holds its national conference in Christchurch, being attended by around 180 delegates. One of the hot topics is expected to be this country's retirement income adequacy, or lack thereof.

Wide brief for expert group on savings options

Tue, 24 Aug 2010 00:00:00 +1200

An independent Savings Working Group announced today by the Government has a wide brief to consider how New Zealand can improve its national savings, Finance Minister Bill English says.

Financial Service Providers register to open Monday

Fri, 13 Aug 2010 00:00:00 +1200

Commerce Minister Simon Power is urging people who provide financial services to register with the Financial Service Providers Register when it opens on Monday 16 August. "The opening of the register marks the start of the transition to full implementation of the Financial Advisers Act and the Financial Service Providers Act", Mr Power said.

Fund managers back simplification plans

Fri, 06 Aug 2010 00:00:00 +1200

Fund managers are backing a proposal to shorten investment disclosure for managed funds to make offer documents easier for investors to understand.

Grandfathering employer super schemes 'not credible'

Wed, 04 Aug 2010 00:00:00 +1200

A Government suggestion to force the closure of employer-based defined contribution superannuation plans is a "bombshell" and "not a credible option", according to a commercial lawyer specialising in superannuation.

Review of Securities Law

Tue, 13 Jul 2010 00:00:00 +1200

The long anticipated review of New Zealand's securities law is now underway with the launch of a 200-page discussion document seeking input on the scale, scope and direction of change. Submissions to the Ministry of Economic Development (MED) close on 20 August 2010. To inform our submission to the MED we invite members of Workplace Savings to share their views and/or concerns to the questions raised in the discussion document.

Is KiwiSaver a cannibal?

Mon, 05 Jul 2010 00:00:00 +1200

If there was ever any doubt that KiwiSaver has been the saviour of New Zealand's retail funds management industry the latest quarterly figures from the trans-Tasman alliance of actuarial firms, Plan for Life and Eriksen & Associates, put that to rest.

KiwiSaver funds double with 1000 joining daily

Thu, 01 Jul 2010 00:00:00 +1200

Investors have $5.5 billion in KiwiSaver funds, more than double the amount a year ago, with 1000 new members joining every day, according to an investment strategist. People put about $2.85b in contributions into KiwiSaver funds in the year to March, according to actuaries and investment strategists Eriksen and Plan For Life.

Parliament passes adviser law

Wed, 23 Jun 2010 00:00:00 +1200

The Financial Service Providers (Pre-Implementation Adjustments) Act - which was released less than two weeks ago containing substantial changes to the way in which advisers will be regulated - has this morning been passed into law.

NZ ready for compulsory savings - NZX Chairman

Fri, 18 Jun 2010 00:00:00 +1200

NZX chairman Andrew Harmos believes New Zealanders are "ready for some compulsion" in their savings.

Budget tax measures legislation enacted

Fri, 28 May 2010 00:00:00 +1200

The legislation passed its final stages in Parliament on 21 May and received Royal assent on 27 May. For more information see the resulting Act published here.

Botherway to head market regulator

Thu, 27 May 2010 00:00:00 +1200

Brook Asset Management founder Simon Botherway will chair the Establishment Board of the new integrated market regulator, the Financial Markets Authority (FMA).

Commerce Minister Simon Power announced the nine board members as: Simon Botherway (chairman), Shelley Cave, Andrew Harmos, Neville Harris, Frank McLaughlin, Paula Rebstock, Bruce Sheppard, Scott St John, and Mariëtte van Ryn.

Regulation not strangulation for KiwiSaver please

Fri, 14 May 2010 00:00:00 +1200

An industry body argues the biggest risk to KiwiSaver is over-zealous regulation, rather than fund manager behaviour.

No tax on KiwiSaver first home subsidy

Wed, 05 May 2010 00:00:00 +1200

Changes were made to the tax rules by Order in Council this week to allow the KiwiSaver first home deposit subsidy to be treated as a social assistance suspensory loan for tax purposes.

KiwiSaver engagement "vital"

Mon, 03 May 2010 00:00:00 +1200

MEDIA RELEASE: Effective engagement with all KiwiSaver stakeholders in the face of further regulatory change is vital to the ongoing success of the scheme, according to Workplace Savings NZ, the voice of workplace savings.

Guiding employees on workplace savings

Mon, 26 Apr 2010 00:00:00 +1200

New legislation affecting financial advisers will also have an impact in the workplace. David Ireland explains how new ground rules will affect employers, and outlines the risks involved in failing to comply with them. As published in May 2010 edition of Employment Today magazine.

Views sought on taxation of foreign funds in PIEs

Wed, 14 Apr 2010 00:00:00 +1200

A tax policy issues paper released today seeks feedback on suggested changes to remove an anomaly that results in overseas investors being over-taxed when investing in New Zealand portfolio entities. Submissions close on 4 June 2010.

Financial adviser legislation threatens NZ’s reputation: Chapman Tripp

Thu, 08 Apr 2010 00:00:00 +1200

Law firm Chapman Tripp is warning that legislation to regulate the financial services industry may inadvertently damage the country's international reputation by preventing corporate entities from providing financial advice here.

Important Information on Draft Code and Consultation

Wed, 31 Mar 2010 00:00:00 +1300

The Code Committee has today released the draft Code of Professional Conduct for Authorised Financial Advisers (AFAs), and has called for submissions on the draft Code.

Financial Service Providers (Pre-Implementation Adjustments) Bill

Fri, 26 Mar 2010 00:00:00 +1300

Workplace Savings NZ has prepared a submission to the Commerce Select Committee in response to the Financial Service Providers (Pre-Implementation Adjustments) Bill 2009. Click to read our submission in full.

Securities Commission - Guidance Note: KiwiSaver Distribution and Disclosure

Wed, 24 Mar 2010 00:00:00 +1300

The Securities Commission today released their KiwiSaver Distribution & Disclosure guidance note.

Changes to tax on interest and PIE investments

Wed, 24 Mar 2010 00:00:00 +1300

You may be affected by these changes. The rates of tax you pay on interest earned from money in the bank and portfolio investment entity (PIE) investments are changing to align with the personal and company tax rate changes introduced in April 2009. These tax changes apply from 1 April 2010.

Comparing funds is easier said than done

Tue, 23 Mar 2010 00:00:00 +1300

Savers like to know how their investment manager is performing, and when times are tough investors can get pretty excited about relative returns. The trouble is that comparing the performance of investment managers is easier said than done.

Power's wakeup call - the end to KiwiSaver dreams?

Thu, 18 Mar 2010 00:00:00 +1300

New Zealand's KiwiSaver industry is now at the point where the competitive spirit is blossoming - with about $5 billion at stake now and a, more or less, guaranteed growth path for the next 20 years, scheme providers are jockeying for position.

Media Release - KiwiSaver regulatory review “timely”

Wed, 10 Mar 2010 00:00:00 +1300

Workplace Savings NZ says it is concerned about the risk of overburdening KiwiSaver providers with regulatory red tape, but otherwise is entirely supportive of any changes to the rules for regulating KiwiSaver that will benefit KiwiSavers over the long term.

KiwiSaver move 'knee-jerk reaction'

Wed, 10 Mar 2010 00:00:00 +1300

The Minister of Commerce's decision to fast track KiwiSaver regulation is a "knee-jerk reaction", says the chairman of Workplace Savings NZ.

"In terms of the proposals we welcome the debate, raising issues and checking we have got the best system we can afford to have - but it is a question of affordability.

"The providers out there are at risk of drowning under a deluge of regulation. If it costs more to comply with the regulations it will impact on the amount people can save,"

Ireland unveils pensions overhaul

Thu, 04 Mar 2010 00:00:00 +1300

The Irish government unveiled a set of sweeping reforms to the country's pension system which include raising the state retirement age to 68 and the introduction of a mandatory scheme for all workers in the coming years. The new National Pensions Framework foresees state pension age will increase from 65 to 66 in 2014, then to 67 in 2021 and 68 in 2028. The government also committed to retain the level of state pension at 35% of average weekly earnings.

Govt plan 'step in right direction'

Fri, 19 Feb 2010 00:00:00 +1300

Commerce Minister Simon Power yesterday responded to all 60 of the recommendations made by the taskforce in December - 18 months after it was set up to try to breath new life into the market by making it more attractive to investment from individuals and companies.

KiwiSaver transfer process needs streamlining

Fri, 19 Feb 2010 00:00:00 +1300

Workplace Savings NZ - the voice of workplace savings - says streamlining the transfer process between different providers is necessary to improve the KiwiSaver experience. The comments follow a meeting of KiwiSaver providers in Auckland this week.

Changes to financial adviser law pass first reading

Wed, 17 Feb 2010 00:00:00 +1300

A bill that makes some small but important tweaks to new financial regulations passed its first reading in Parliament last night. The Financial Services Providers (Pre-Implementation Adjustments) Bill makes technical amendments to the Financial Service Providers (Registration and Dispute Resolution) Act and the Financial Advisers Act.

PM wants NZ to be super-fund 'hub'

Mon, 15 Feb 2010 00:00:00 +1300

Prime Minister John Key wants New Zealand to become an international financial hub specialising in the administration of overseas pension funds.

Workplace Savings NZ Submission on the Taxation (Annual Rates, TransTasman Savings Portability, KiwiSaver, and Remedial Matters) Bill

Wed, 10 Feb 2010 00:00:00 +1300

Workplace Savings NZ has today submitted the following response to the Finance & Expenditure Select Committee on the Taxation (Annual Rates, TransTasman Savings Portability, KiwiSaver, and Remedial Matters) Bill. Click to read more.

PM signals tax reform changes

Tue, 09 Feb 2010 00:00:00 +1300

In his Statement at the opening of Parliament today, Prime Minister John Key said measures to reform the tax system would be introduced as part of the Budget in May. Any changes would be based on "equity and fairness". Mr Key has signalled changes to the way property is taxed, changes to personal income tax rates and says further work will be done on whether the rate of GST should be increased. He also said the Government had ruled out developing any proposals for a land tax, a general capital gains tax or a risk-free return method for taxing residential investment properties.

Debt projections demand Super rethink

Thu, 04 Feb 2010 00:00:00 +1300

Winston Churchill said that he had sometimes had to eat his words and found it a wholesome diet. Prime Minister John Key needs to follow the great man's example with respect to his pledge to resign rather than tamper with the entitlement parameters of New Zealand Superannuation.

Overhaul of tax system possible - English

Wed, 03 Feb 2010 00:00:00 +1300

The budget will be delivered on May 20 but New Zealanders may get a better idea about the Government's plans for the tax system next week, Finance Minister Bill English said yesterday.

New Tyndall boss knows his numbers

Tue, 02 Feb 2010 00:00:00 +1300

It's not often the numbers man gets the top job where managing people is just as important as making money. But after 10 years at Tyndall Investment Management, Peter Lynn, a self-confessed maths-lover and actuary, says he is ready to take up the managing director's mantle.

The Pension Communications Project 2010

Mon, 01 Feb 2010 00:00:00 +1300

Defined Contribution (DC) pension plan members in the UK have low engagement with their retirement benefits. To help address this important issue, a syndicate of leading UK pensions industry firms have sponsored a project to learn from examples of pensions workplace communications excellence around the world.

Commission to clarify definition of financial planning service

Fri, 29 Jan 2010 00:00:00 +1300

The Securities Commission says it recognises that financial advisers are confused about the Financial Advisers Act definition of a "financial planning service" and it is working on giving the definition more clarity.

Super Fund outsources to Milford

Wed, 27 Jan 2010 00:00:00 +1300

The New Zealand Super Fund has outsourced the management of part of its New Zealand share investment a year after bringing some of its managed funds in house.

Inflation fall gives Reserve Bank breathing space

Thu, 21 Jan 2010 00:00:00 +1300

A 0.2 per cent fall in the December quarter Consumers Price Index (CPI) is seen giving the Reserve Bank breathing space as it decides when to start raising interest rates.

Tax reform set to be radical but 'fairer'

Wed, 20 Jan 2010 00:00:00 +1300

Property investors face higher taxes and company taxes could fall as the Government considers radical options for reform. A tax working group, led by Victoria University professor Bob Buckle, will today issue its 70-page report outlining options for change.

Embed with KiwiSaver

Fri, 15 Jan 2010 00:00:00 +1300

Thanks to New Zealand's best-loved finance writer, Mary Holm, I no longer have to scour the entire Capital Markets Taskforce (CMT) Report looking for the bits that interest me - professionally, that is.

Kiwis may not be such poor savers after all

Thu, 14 Jan 2010 00:00:00 +1300

Research by Treasury economists casts doubt on the conventional view that we are hopelessly improvident and feckless. The conventional view is founded on estimates of household saving rates which show households year after year spending more than they earn - $1.14 for every $1 of income in the year to March 2009. But saving rates are slippery things to grab hold of and measure.

Taskforce just the start for industry

Mon, 21 Dec 2009 00:00:00 +1300

The research house that slammed New Zealand's fund management industry with a D-rating says recommendations by the Capital Markets Development Taskforce are a good start but still won't bring New Zealand in line with the rest of the world.

BNZ parent trumps AMP's Axa Asia Pacific bid

Fri, 18 Dec 2009 00:00:00 +1300

BNZ will be back in the wealth management game in a big way if its parent company National Australia Bank's surprise deal to buy Axa Asia Pacific goes through. Earlier this week AMP and Paris-based Axa SA, which owns 53% of Axa Asia Pacific, boosted their offer for Axa Asia Pacific from A5.34 to A$6.22 per share, putting the company's value at A$12.85 billion.

Call for bolder default KiwiSaver

Thu, 17 Dec 2009 00:00:00 +1300

People who join KiwiSaver but don't choose which fund they want to be in could be put into a more aggressive fund under a recommendation made by the Capital Markets Development Taskforce. The taskforce yesterday released a 140-page report on its recommendations which included a raft of proposed changes for the managed fund industry, including the Government's KiwiSaver retirement scheme.

Financial Service Provider Act changes ‘provide relief for employers’

Fri, 11 Dec 2009 00:00:00 +1300

The recent introduction to parliament of the Financial Service Providers Bill will offer more certainty to employers who assist their employees with retirement savings arrangements.

Dairy Industry Superannuation Scheme wins top savings award

Fri, 04 Dec 2009 00:00:00 +1300

The Dairy Industry Superannuation Scheme and Forsyth Barr were the big winners at the Workplace Savings NZ Communication Awards 2009, held in Auckland on Thursday 3 December.

Call to clean up KiwiSaver sales

Wed, 02 Dec 2009 00:00:00 +1300

KiwiSaver providers have been warned about using standover tactics to stop people from changing schemes after complaints were made to the Government's superannuation watchdog.

Dunne: Tax bill brings super portability closer

Fri, 20 Nov 2009 00:00:00 +1300

A tax bill introduced to Parliament today by Revenue Minister Peter Dunne opens the way for New Zealanders returning home from Australia to bring their retirement savings with them.

The changes are part of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Bill.

New research quantifies "comfortable" retirement

Tue, 10 Nov 2009 00:00:00 +1300

New research across the Tasman has quantified the annual income needed by retirees to fund either a comfortable or modest standard of living in retirement.

New KiwiSaver award keeps tab on providers

Mon, 09 Nov 2009 00:00:00 +1300

David Ireland, Chairman of Workplace Savings NZ appeared on TV3's ASB Breakfast this morning to discuss our new "Peoples Choice KiwiSaver Award". Click on the link to view the interview with Michael Wilson.

NZ sitting on superannuation timebomb: Treasury

Fri, 30 Oct 2009 00:00:00 +1300

The Treasury has issued a "choose your poison" challenge to the Government, warning that if serious consideration is not given to pegging the costs of superannuation other public services will suffer.

Costs mount up for regulation

Wed, 28 Oct 2009 00:00:00 +1300

Authorised financial advisers (AFAs) will have to pay a minimum of almost $3,000 to comply in the first year of regulation, according to figures compiled by the Institute of Financial Advisers (IFA).

Inflation back under the spotlight

Fri, 16 Oct 2009 00:00:00 +1300

Surprisingly strong inflation in the September quarter has cast further doubt on the Reserve Bank's stated expectation that it will not start raising interest rates until the latter part of next year.

Treasury sets aside $816m for failures

Thu, 15 Oct 2009 00:00:00 +1300

The Treasury is bracing itself to pay out $816 million to investors under the Retail Deposit Guarantee within the next 12 months, having identified entities that are "more likely than not" to fail or otherwise trigger demands on the guarantee.

Minister changes QFE rules

Tue, 13 Oct 2009 00:00:00 +1300

Commerce Minister Simon Power has proposed a range of "technical tweaks" around the incoming Qualifying Financial Entity (QFE) regime, in a bid to meet industry concerns.

KiwiSaver: cheap at $26m in fees

Wed, 07 Oct 2009 00:00:00 +1300

Over the 12 months to March 31 this year, KiwiSaver providers collected a total of about $26 million in fees, according to my calculations.

Greenback tumbles on reports of its demise

Wed, 07 Oct 2009 00:00:00 +1300

The price of gold is surging on world markets amid fears that the old economic order, based on the supremacy of the US dollar, could be breaking down.

New Commissioner for Financial Advisers appointed

Tue, 22 Sep 2009 00:00:00 +1200

Annabel Cotton has finished her short reign as Commissioner of Financial Advisers and been replaced by a Kiwi who has been heavily involved in financial services regulation in the United Kingdom.

The 2008 Tax Bill

Fri, 18 Sep 2009 00:00:00 +1200

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has passed its final stages in Parliament.

Introduced in July 2008, the omnibus tax bill gives effect to a number of business tax reforms, including a change to the KiwiSaver law allowing families of members who die to have quick access to funds in the dead member's account. With effect from 1 July 2007, up to $15,000 from a dead member's account can be paid out directly to nominated persons, without their having to await probate if the member left a will, or letters of administration if the member died intestate.

Recession is ‘probably’ over: Bernanke

Wed, 16 Sep 2009 00:00:00 +1200

Federal Reserve Chairman Ben Bernanke said on that the worst US recession since the Great Depression was probably over, but the recovery would be slow and it would take time to create new jobs.

KiwiSaver selling practices investigated

Fri, 04 Sep 2009 00:00:00 +1200

The Securities Commission is investigating complaints of illegal house-to-house marketing of KiwiSaver schemes. Under the Securities Act, house-to-house selling of securities is illegal unless they are life insurance contracts, Building Society or Co-operative securities. The Securities Commission uses the term house-to-house as oppose to door-to-door, as the restriction only refers to residential houses - distributors can go from business to business.

More changes for KiwiSaver, says English

Fri, 07 Aug 2009 00:00:00 +1200

At an Association of Superannuation Funds of New Zealand forum in Wellington, English reiterated that the Government did not intend making drastic changes to the Labour-initiated KiwiSaver scheme.

Forum to “de-mystify workplace savings”

Thu, 06 Aug 2009 00:00:00 +1200

De-mystifying the workplace savings experience is essential if New Zealanders are to understand the information provided to them, and the financial implications of the decisions they make.

Super portability agreement signed

Thu, 16 Jul 2009 00:00:00 +1200

Australia and New Zealand today signed a memorandum of understanding that paves the way for a new scheme that will allow transfers of retirement saving between certain Australian superannuation funds and New Zealand KiwiSaver funds. The scheme is expected to be in place by mid-2010.

Trans-Tasman Retirement Savings Portability

Wed, 15 Jul 2009 00:00:00 +1200

Giving New Zealanders returning permanently from Australia the ability to bring their compulsory retirement savings back home if they so choose is a positive move, according to the Association of Superannuation Funds of New Zealand (ASFONZ) which promotes workplace savings.

Govt to align investment and income tax rates

Tue, 07 Jul 2009 00:00:00 +1200

The Government is proposing to introduce legislation to align resident withholding tax (RWT) rates on interest and portfolio investment entities (PIE) tax rates with recent changes to personal income tax rates and the 30% company tax rate, Revenue Minister Peter Dunne announced today.

Communication key to financial literacy

Mon, 06 Jul 2009 00:00:00 +1200

One of the best things the savings industry could do to improve the public's understanding financial products was to improve their communication.

KiwiSaver turns two

Wed, 01 Jul 2009 00:00:00 +1200

KiwiSaver - and workplace savings as a whole - are at a cross roads. A big challenge for industry and policy makers is how best to encourage employers to remain engaged in assisting their employees with their savings.

New Australia-NZ double tax agreement signed

Mon, 29 Jun 2009 00:00:00 +1200

The introduction of a new double tax agreement between Australia and New Zealand took a major step forward with the signing today of an agreement that, once in force, will replace the existing 1995 double tax agreement.

Trans-Tasman savings portability – will the tax changes go far enough?

Wed, 24 Jun 2009 00:00:00 +1200

An announcement on the detail of a trans-Tasman retirement savings portability scheme may be imminent, with effect possibly as early as the first quarter of next year. The package, which represents the culmination of more than two years' work by officials, addresses some of the tax issues involved in creating a single trans-Tasman market for superannuation.

IRD cuts through AMP, PIMCO currency hedge

Wed, 24 Jun 2009 00:00:00 +1200

IRD has issued determinations for two international bond funds that run counter to an earlier ruling that allowed investors in the PIMCO Cayman Global Bond Fund ($NZ hedged), marketed primarily by Tower, to use the fair dividend rate (FDR) when calculating tax liabilities.

Crisis makes Kiwis more financially savvy

Mon, 22 Jun 2009 00:00:00 +1200

First the good news: Since the Retirement Commission last assessed our financial intelligence back in 2006, we have got smarter.

The bad news? It is mostly those who already know a fair bit about money, and have some to spare, who improved the most. Those at the opposite end, who could arguably benefit most from a boost, are stagnating.

First KiwiSaver fund to close

Fri, 05 Jun 2009 00:00:00 +1200

Eosaver, the KiwiSaver scheme owned by Australian firm Eo Financial Services, has decided the market is too crowded and, rather than look for an alternative, has become the first provider to walk out the door.

Taxation (Budget Tax Measures) Act 2009 has been enacted

Tue, 02 Jun 2009 00:00:00 +1200

Budget announcements - superannuation

Fri, 29 May 2009 00:00:00 +1200

Automatic Government contributions to the New Zealand Superannuation Fund will be suspended for 11 years. And KiwiSaver mortgage diversion facilities will be closed to new applicants from 1 June.

Union KiwiSaver scheme confirms Gareth Morgan tie up

Fri, 22 May 2009 00:00:00 +1200

IRIS KiwiSaver, which was set up by four unions, is to be wound up and Gareth Morgan KiwiSaver (GMK) will market a product to union members instead.

First KiwiSaver fund merger to be announced

Wed, 20 May 2009 00:00:00 +1200

The first big consolidation among the KiwiSaver providers is due to be unveiled tomorrow, with the union-backed IRIS scheme poised to make an announcement.

Super windfall for NZ

Tue, 19 May 2009 00:00:00 +1200

Thousands of Kiwis who left behind money in Australian pension funds could be in for a multibillion-dollar windfall from "lost accounts". The Government could also boost its tax take by tens of millions of dollars if Kiwis bring home pension money earned in Australia.

Break-even point for saving-scheme providers pushed past five years

Mon, 11 May 2009 00:00:00 +1200

Talk to any major KiwiSaver provider and they will say setting up the Government superannuation saving scheme has been a hugely expensive exercise.

Professionals split over KiwiSaver

Thu, 16 Apr 2009 00:00:00 +1200

Finance and accounting professionals are split over KiwiSaver, with almost half of them not contributing to the scheme, according to results from a survey carried out by recruitment firm Robert Half.

A place for workplace savings?

Thu, 09 Apr 2009 00:00:00 +1200

Authored by David Ireland, ASFONZ Council Chair, this article is published in the latest edition of Human Resources, the magazine of the HRINZ.

Click here to download the full article (in PDF format).

KiwiSaver hits the magic million

Thu, 02 Apr 2009 00:00:00 +1300

More than one million New Zealanders are now saving for their retirement through KiwiSaver, just 21 months after it started, Revenue Minister Peter Dunne announced today.

Super reports stress long term

Thu, 02 Apr 2009 00:00:00 +1300

AUSTRALIA - Superannuation reports will make long-term returns much more prominent on statements in order to highlight the long term nature of the investments. From now on, all super report statements will be required to show five-year returns in member statements with ten year returns added as of next year.

Greater flexibility for KiwiSavers comes at a cost

Wed, 01 Apr 2009 00:00:00 +1300

Reducing the minimum KiwiSaver employee contribution from 4% to 2% provides some welcome flexibility for KiwiSavers and their employers, but comes at a cost that may ultimately detract from the end savings outcome.

That's according to the Association of Superannuation Funds of New Zealand (ASFONZ) which promotes workplace savings.

The changes take effect from 1 April.

ASFONZ Chair David Ireland says reducing the minimum member contribution rate to 2% is generally regarded as a positive step that makes KiwiSaver more affordable for workers to both join up and to continue saving; more...

Dunne: many investing in overseas companies better off under FDR rules

Wed, 01 Apr 2009 00:00:00 +1300

Recent media reports have revealed confusion about how individual investors in overseas companies are taxed under the new fair dividend rate (FDR) rules that came into force in 2007, Revenue Minister Peter Dunne said today.

KiwiSaver changes into lower gear

Mon, 30 Mar 2009 00:00:00 +1300

KiwiSaver Mark IV starts on Wednesday for nearly one million people who face a raft of changes expected to make it easier for more people to join while opening up options for existing members.

Regs wait for Commissioner

Fri, 27 Mar 2009 00:00:00 +1300

The progress of financial advisory regulations appears to have stalled with the Ministry of Economic Development (MED) yet to name the Commissioner of Financial Advisers.

Government review to include corporate trustees

Wed, 25 Mar 2009 00:00:00 +1300

Issues raised in a recent Companies Office report about the role of corporate trustees in failed finance companies are to be addressed as part of a significant review into the Securities Act, Commerce Minister Simon Power said today.

Markets picking big rate cut

Fri, 06 Mar 2009 00:00:00 +1300

Wholesale money markets are picking Reserve Bank governor Alan Bollard will drop the official cash rate by 75-100 basis points in his March 12 announcement.

That would take the OCR to 2.5-2.75% and put further downward pressure on mortgage rates.

Don't make us play it safe, says fund

Fri, 06 Mar 2009 00:00:00 +1300

Messing with the investment psyche of the New Zealand Superannuation Fund by throwing money at risk-free assets such as cash or bonds will doom the fund to failure, warns its chief executive Adrian Orr.

Big rate cut on cards after fall in confidence

Wed, 14 Jan 2009 00:00:00 +1300

Expectations are growing that the Reserve Bank will cut the official cash rate by another full percentage point on January 29 after business confidence plunged to a 39-year low.

Building a trusted financial sector

Thu, 18 Dec 2008 00:00:00 +1300

Retirement Commissioner Dianna Crossan has spelt out to her new minister a raft of issues which are hurting the financial sector.

KiwiSaver change should be no suprise - English

Wed, 10 Dec 2008 00:00:00 +1300

It should be no surprise that employees in KiwiSaver with bosses who pay above the current minimum will have to pay extra tax, Finance Minister Bill English said this morning.

KiwiSaver employment law changes welcomed

Tue, 09 Dec 2008 00:00:00 +1300

The industry association promoting workplace superannuation says it is pleased at the speed with which the Government is moving to repeal recent employment law amendments affecting KiwiSaver.

The amendments, introduced in September by the previous Government through the Employment Relations Act, were aimed at keeping KiwiSaver contributions out of any total remuneration package calculations.

The National Party has today introduced changes to reform KiwiSaver, expected to be passed tomorrow under urgency.

The chair of the Association of Superannuation Funds of New Zealand (ASFONZ), David Ireland, says the changes to employment laws are a positive step for workplace savings.

"Under the proposed changes there is now flexibility for employers and employees to agree how they would like compulsory employer contributions treated.

"This will benefit employers trying to manage their salary costs in these difficult times and encourage participation in workplace savings beyond the statutory minimum.

Mr Ireland says National has now pulled back from the 2% of salary cap on the member tax credit proposed in its pre-election policy announcement.

"This means all employee KiwiSavers will get the same opportunity to benefit from the credit regardless of their income level.

"This is a real positive for both the level of workplace savings and for avoiding the addition of a further complication in the administration of KiwiSaver schemes.

"However we are dismayed that outside the essential ERA changes, a further round of changes to KiwiSaver design has been rushed into Parliament with minimal consultation and virtually no opportunity for those involved to respond.

"Our primary concern is with the impact the removal of the fee subsidy will have, particularly for those with small account balances for whom the benefit of the subsidy was significant," says Mr Ireland.

KiwiSaver tax-take comment a case of the glass is half empty

Wed, 05 Nov 2008 00:00:00 +1300

The Association promoting workplace superannuation in New Zealand says it is generally comfortable with the framework for taxation of investment savings currently in place.

The Association of Superannuation Funds of New Zealand (ASFONZ) says KiwiSaver investments are taxed on exactly the same basis as any other form of collective investment vehicle.

That follows a warning on KiwiSaver tax from the investment consultancy firm, Mercer. It says KiwiSaver investors will pay more tax on their investment earnings than the incentives given to them by the Government unless the rates are lowered.

And Mercer says under the current model, the incentives to join KiwiSaver would be wiped out over the lifetime of a saver as they would pay more tax on investment earnings.

KPMG Tax partner and ASFONZ councilor Murray Sarelius says KiwiSavers – just like investors in any other form of collective investment vehicle - face tax on their investment earnings.

“However that doesn't undermine the benefit of the incentives provided by the Crown to contribute to KiwiSaver, or mean that KiwiSavers are disadvantaged.

“The incentives are significant and should not be compared with the amount of tax you pay on your KiwiSaver investment over the period you invest,” he says.

ASFONZ chair David Ireland of law firm Kensington Swan agrees: “They are two different things. A tax on KiwiSaver earnings doesn’t wipe out the incentives you receive. You get to keep those. If you are fortunate enough to make a positive investment return then there will be tax to pay on that return – that’s the way our tax system works.

“Lowering the tax rate on retirement savings might be on our wish list, but we have other targets that are more realistic in the short term that are higher on that list.”

Mr Ireland says whatever the outcome of the General Election this weekend, the main incentives to participate in KiwiSaver seem set to remain.

Fed-up boss goes back to the rules on KiwiSaver

Tue, 14 Oct 2008 00:00:00 +1300

One of New Zealand's biggest companies says it is so fed up with frequent changes to KiwiSaver that it will not make any further promises to its staff about the scheme until it settles down.

Fletcher Building, which employs 8000 people......

National Party “removes KiwiSaver uncertainty”

Thu, 09 Oct 2008 00:00:00 +1300

The Association promoting workplace superannuation in New Zealand says the National Party's plans for KiwiSaver allays fears the scheme would be rendered unattractive under a National Government.

The Association of Superannuation Funds of New Zealand (ASFONZ) says National's policy should continue to improve the overall health of workplace savings.

The National Party has promised that instead of being forced to contribute 4 per cent of an employee's gross salary into KiwiSaver in future years, employers would have to give only 2 percent.

The trade off is the removal of the employer tax credit, currently worth up to $20 per week, to help subsidise employer contributions.

ASFONZ chair David Ireland says the key foundations on which KiwiSaver has been developed would remain unaffected by the policy, and the main incentives to participate remain.

"The proposed changes provide a more sustainable path for both KiwiSavers and employers in the challenging economic climate that we now face.

"Reducing the minimum contribution to 2% is a change we endorse to make the scheme more affordable to all, and removes a disincentive to join that limits its accessibility for some workers.

"It is also important to acknowledge that for many, saving 2% of salary, even if matched by employer contributions, may be insufficient to fund a comfortable retirement.

"In particular ASFONZ welcomes National's plan to scrap the ill-considered amendments to the ERA rushed through Parliament last month that denied the right to factor in employer KiwiSaver contributions to employment negotiations.

"Those changes may have compromised the overall level of retirement savings made through the workplace.

"Regardless of the outcome of the election, ASFONZ is committed to working with whoever holds power to rectify the potential harm inflicted on workplace savings by the latest ERA amendments," says Mr Ireland.

KiwiSaver survey shows higher levels of understanding

Mon, 06 Oct 2008 00:00:00 +1300

Despite global financial market turmoil more New Zealanders understand what KiwiSaver is all about and are using it to save for their retirement, a new survey shows.

Financial Adviser Bill changes ‘provide certainty for employers’

Wed, 24 Sep 2008 00:00:00 +1200

The Association promoting workplace superannuation in New Zealand says it is pleased the Government is providing more certainty for employers through the Financial Advisers Bill, passed under urgency on 24 September.

The new law, designed to toughen protection for investors and crack down on advisers, was only reported back to the House a fortnight earlier.

But the new chair of the Association of Superannuation Funds of New Zealand (ASFONZ), David Ireland of law firm Kensington Swan, says one aspect remained of concern.

"Our primary concern was for employers who make savings arrangements - including KiwiSaver - available to their employees through the workplace, and who discuss the terms of those arrangements with staff members.

The question is whether these people should be considered to be providing ‘financial advice' when doing so.

"We have maintained throughout that this group should be excluded from the definition of a financial adviser - unless they are actually expressing an opinion or recommendation as to suitability of a particular financial product."

Following a meeting between ASFONZ representatives and the Minister, Hon Lianne Dalziel, changes were incorporated into the legislation before it was passed.

Mr Ireland says he is pleased some of the concerns of ASFONZ were taken on board.

"We wanted a pragmatic solution that will not discourage employers from being involved in workplace savings - but at the same time will not undermine the objectives of the legislation by encouraging employers to dabble in providing actual financial advice without the appropriate level of regulatory oversight.

"Some definition problems remain, but the changes introduced at the last minute are largely positive.

"They mean employers will have more certainty as to how far they can go in assisting employees with their workplace savings arrangements without needing to be registered as financial advisers," says Mr Ireland.

More mortgages qualify for KiwiSaver mortgage diversion

Mon, 15 Sep 2008 00:00:00 +1200

Amendments to the mortgage diversion regulations signed by Order in Council today allow more types of mortgages to qualify for the mortgage diversion facility.

Offsetting Employer KiwiSaver Contributions

Fri, 12 Sep 2008 00:00:00 +1200

On 3 September a rushed amendment to the Employment Relations Act was passed that impacts on every employer offsetting their contributions to KiwiSaver within the remuneration package paid to employees. The prospect of total remuneration arrangements being under threat had been signalled as long ago as July - what had not been anticipated had been the lack of consultation that occurred with the wording of the amendments made, and the possible far reaching implications.

In brief, the changes were tacked into the Employment Relations (Breaks and Infant Feeding) Amendment Bill just as it was about to be passed. They result in employees having ground for a personal grievance if their employment is adversely affected because they are a KiwiSaver or complying superannuation fund member. This is generally accepted as meaning that if your employer reduces your take home pay to take into account its compulsory KiwiSaver contribution, resulting in you getting less in the hand than someone who is not a KiwiSaver, you can bring a personal grievance claim. That had been anticipated. The law amendment outlaws total remuneration arrangements to that extent, but was predictable in light of earlier announcements by the Minister of Labour.

The concern now is that with the wide scope of what may be included as an adverse affect, the reform goes beyond that anticipated position. Many employers are now in the position of needing to revisit the terms of employment they are offering, even though they would not previously have considered themselves a target for this reform. And there is no transition period - agreements entered into on or after 2 September 2008 are caught, as are variations to older agreements.

ASFONZ is currently working hard as a matter of urgency with industry experts and relevant officials to gain some greater clarity around the intended impact of this reform upon employer superannuation scheme contributions. In light of earlier political comments made, we understand that the amendment was not intended to cut across workplace superannuation arrangements. Unfortunately, the wording of the legislation leaves the position open to argument, and experts are divided. We are hoping to get some official clarity within the next few days, and will issue a newsflash at that time. For now, we urge our employer members to take a cautious approach with respect to setting new employment arrangements and varying existing arrangments where any form of adjustment to take into account KiwiSaver contributions is involved.

OCR reduced to 7.5%

Thu, 11 Sep 2008 00:00:00 +1200

The Reserve Bank today reduced the official cash rate (OCR) by 50 basis points from 8.0% to 7.5%.

Credit crisis: not all bad news

Wed, 03 Sep 2008 00:00:00 +1200

Regulators will seek to impose a 'speed limit' on the financial economy as they pay the price of cleaning up after the credit crisis, Medley Global Advisors analyst Paul Silk says.

Consensus grows on financial advisers bill

Thu, 24 Jul 2008 00:00:00 +1200

MPs and the finance sector appear to be reaching a consensus on regulation of financial advisers. Parliament's finance select committee heard submissions on the finance advisers' bill yesterday.

Seniors protest against rules on foreign pensions

Thu, 24 Jul 2008 00:00:00 +1200

Septuagenarian protesters greeted Social Development Minister Ruth Dyson at an Auckland Grey Power meeting yesterday with placards demanding their rights to foreign pensions.

KiwiSaver law change to remove conflict

Wed, 23 Jul 2008 00:00:00 +1200

Labour Minister Trevor Mallard says KiwiSaver legislation will be altered to ensure there is no conflict with employment law when workers and bosses thrash out remuneration packages.

The minister last week moved to make it unlawful for employers to pay different amounts to KiwiSaver members and non-members amid concerns a minority were deducting employees' wages but pocketing tax credits.

Agreement expected on trans-Tasman retirement savings portability by end of October

Thu, 17 Jul 2008 00:00:00 +1200

Officials from Australia and New Zealand will finalise the text of a deal by the end of October that will facilitate the portability of private retirement savings across the Tasman, Australian Treasurer Wayne Swan and New Zealand Finance Minister Michael Cullen said at the conclusion of their first formal bilateral talks, which were held at Parliament in Wellington today.

"At our meeting today we surveyed the good progress that senior officials from the two countries have made on the design of some practical options for improving the portability of savings between Australian and New Zealand retirement savings schemes".

"We are now confident that KiwiSaver and complying Australian superannuation accounts are mutually compatible and that outstanding policy issues can be addressed in time for a Memorandum of Understanding to be ready for signing by the end of October," the Ministers said.

The basic framework has been agreed, but officials, in conjuction with local financial services industries, still need to design the domestic arrangements in either country.

Progress on the issue would mark another important step forward in efforts to facilitate the free-flow of people between Australia and New Zealand.

"Both governments are committed to all measures that make the Australasian economy a more competitive place in which to work, invest and to do business, and we are delighted that we have been able to make such quick progress in this area," the Ministers said.

Further background information for reporters that seek some more context

The New Zealand and Australian labour, financial, and goods and services markets are highly integrated by international standards and the Single Economic Market (SEM) policy agenda builds on the open trading environment created by the Closer Economic Relations (CER) and related agreements.

The SEM agenda aims to improve the operation of trans-Tasman markets by addressing behind-the-border impediments to trade and the free movement of people.

The introduction of the New Zealand KiwiSaver scheme in July 2007 presented an opportunity for both countries to explore the potential for further retirement savings integration. Improved savings portability is expected to reduce impediments to trans-Tasman labour market mobility.

Currently, personal retirement savings accumulated in Australia cannot be taken to New Zealand before retirement is reached. This restriction was historically attributable to both an automatic ability of New Zealanders to retire in Australia and the absence of a retirement savings scheme in New Zealand with equivalent preservation requirements.

The inability of individuals to streamline and consolidate their personal retirement savings has potentially inhibited the free flow of workers between the two countries and some individuals may have historically ended up paying multiple fees for the administration of their savings accounts.

The Working Group, which was established to examine this issue following the meeting between the New Zealand Minister of Finance and the former Australian Treasurer on 29 January 2007, recently reported its recommendations to Ministers.

Scheme Design

Ministers agreed that all retirement savings transferred between the two countries, via the new portability regime, would be ring-fenced within domestic pension funds and tagged as being sourced from their country of origin. Ring-fencing administratively separates funds in order to allow country specific rules to be applied. For example, savings originating from Australia and transferred to a New Zealand KiwiSaver account will be tagged as being "Australian‑sourced".

Country specific requirements will be designed to address policy differentials between the two countries. Differences in preservation requirements were given special attention. For example, Australian funds will not be able to be used to purchase a first home as this KiwiSaver provision is not allowed under current Australian legislation.

The specific details design of domestic arrangements still needs to be finalised. Officials will engage with local industry in the next couple of months to ensure that compliance costs are kept to a minimum.

Australia, NZ agree to progress work on mutual recognition of imputation and franking credits

Thu, 17 Jul 2008 00:00:00 +1200

The Australian and New Zealand governments are open to the idea of moving toward mutual recognition of imputation and franking credits between firms that invest in each other's country, Australian Treasurer Wayne Swan and New Zealand Finance Minister Michael Cullen said today.

Britain studies KiwiSaver scheme

Mon, 14 Jul 2008 00:00:00 +1200

KiwiSaver has been subjected to a rigorous examination by retirement specialists in Britain to see if lessons can be learned before a new scheme is rolled out to Britons. In a move similar to that taken by the New Zealand Government with KiwiSaver, from 2012 British workers not already in occupational pension schemes will be enrolled into "personal accounts" unless they opt out.

Bosses' KiwiSaver loophole plugged

Mon, 14 Jul 2008 00:00:00 +1200

Employers will no longer be allowed to pay less to KiwiSaver employees than to those not in the scheme, under a move to be announced today by Labour Minister Trevor Mallard. "There is no way that it is fair for one employee to be paid less each week in their take-home pay than an employee doing the same tasks.....

Evaluation of the impacts of KiwiSaver on New Zealand’s superannuation market

Fri, 04 Jul 2008 00:00:00 +1200

The Ministry of Economic Development has commenced a study of the impacts of KiwiSaver on New Zealand's superannuation market and the wider financial sector. As part of this study a number of industry participants will be asked to take part in a workshop or interview. Read more....

Happy Birthday KiwiSaver

Tue, 01 Jul 2008 00:00:00 +1200

It's been one year since KiwiSaver was let loose on New Zealand and Finance Minister Michael Cullen and Revenue Minister Peter Dunne are celebrating more than 718,000 members joining up.

Don’t Risk Your Members Dying Poor – Encourage Them to Decumulate!

Mon, 30 Jun 2008 00:00:00 +1200

Ever wondered what you'll be doing during retirement? Or where you'll be? A significant number of New Zealanders see themselves buying a caravan and traveling around the country, enjoying their new found freedom...but what if their planned retirement income is depleted before they hit the road? Read more.

Budget 2008

Thu, 22 May 2008 00:00:00 +1200

The Minister of Finance Hon. Dr. Michael Cullen today delivered his 9^th consecutive budget. The government is introducing a $10.6 billion programme of tax cuts from 1 October 2008, with further changes scheduled to take effects from 1 April 2010 and 1 April 2011.

What impacts will this have for New Zealand employers? What will it mean for the taxation of investment income, especially from a PIE investment? What is intended to happen to better protect investors?

To learn more from today's budget announcements please click here

KiwiSavers 'likely to opt for higher-risk options'

Mon, 12 May 2008 00:00:00 +1200

Conservative funds will be ditched for higher-risk options as KiwiSavers adopt a more hands-on approach to investing in the scheme, say major providers.

Jail threat for KiwiSaver providers who mislead

Thu, 10 Apr 2008 00:00:00 +1200

KiwiSaver providers who mislead investors over their commitment to responsible investment could face fines of up to $300,000 or five years in prison.

BNZ Foresees 10c fall in Kiwi

Mon, 31 Mar 2008 00:00:00 +1300

Global economic problems will cause the New Zealand dollar to plunge against its US counterpart, a leading economist says.

Guidance Note on Responsible Investment Disclosure

Wed, 26 Mar 2008 00:00:00 +1300

For a copy of the Securities Commission's Guidance Note on Responsible Investment by KiwiSaver Scheme Providers which was published on Thursday, 20 March 2006, click here.

Piggy puts Nats in a stew

Tue, 25 Mar 2008 00:00:00 +1300

It's an offer Kiwis are finding hard to refuse. You put aside four cents in every dollar from your before-tax pay and the Government matches it with a tax break to a maximum of $20 a week.

Nats silent on KiwiSaver Tax

Wed, 19 Mar 2008 00:00:00 +1300

Kiwisaver members will still get a government subsidy under National, but finance spokesman Bill English is refusing to say whether that means keeping up to $20 a week in tax breaks.

Just 13pc 'embrace' KiwiSaver, poll finds

Tue, 18 Mar 2008 00:00:00 +1300

Despite a surge in KiwiSaver enrolments, a large number of people are still sceptical of the scheme.

National pressed on KiwiSaver policy

Thu, 13 Mar 2008 00:00:00 +1300

National is under pressure to say whether it will keep KiwiSaver as combined nest eggs head toward $1 billion after just eight months and young workers embrace the scheme.

Employer critical of KiwiSaver 'red tape headaches'

Tue, 11 Mar 2008 00:00:00 +1300

An employers' group is irate about what it claims are anomalies and complexities in the law governing KiwiSaver, causing red tape headaches for bosses.

Adviser regulation a step closer

Wed, 20 Feb 2008 00:00:00 +1300

Financial Advisors will be held to higher standards of competency, accountability and disclosure under the Financial Advisors Bill sent to the Finance and Expenditure Select Committee yesterday, Commerce Minister Lianne Dalziel says.

Advisers Beware

Wed, 20 Feb 2008 00:00:00 +1300

Financial advisers face a tough year, says ING head of sales and marketing Wayne Becker – and he predicts the government may fast-track some of its planned new regulations in response to public pressure.

Putting spotlight on financial advisers

Wed, 20 Feb 2008 00:00:00 +1300

The Securities Commission will move fast to ensure strict new disclosure rules - making financial advisers' economic incentives transparent to their clients - are being followed.

KiwiSaver 'will change plans for retirement'

Wed, 13 Feb 2008 00:00:00 +1300

Less importance will be placed on home ownership at retirement due to KiwiSaver and housing affordability, Mercer investment managers and consultants predict.

A Budget for a sustainable, prosperous New Zealand

Wed, 13 Feb 2008 00:00:00 +1300

Finance Minister Michael Cullen will deliver his ninth Budget on 22 May 2008.

KiwiSaver breaks through 40,000 barrier

Thu, 07 Feb 2008 00:00:00 +1300

The number of New Zealanders joining KiwiSaver continues to beat initial expectations, finance minister Michael Cullen said today.

Merchants of KiwiSaver doom are wrong

Wed, 30 Jan 2008 00:00:00 +1300

Commentary: Headlines generated by commentators suggesting that KiwiSaver portfolios are taking a beating and that investors would be better keeping their money under the mattress and out of growth assets like shares are financially naive and simply wrong.

Bank tips two more interest rate rises

Wed, 16 Jan 2008 00:00:00 +1300

The prospect that inflation will continue to rise has prompted Westpac economists to predict the central bank will lift the official cash rate twice this year to an eye-watering 8.75 per cent.

Social and ethical attitudes crucial

Mon, 14 Jan 2008 00:00:00 +1300

During recent years, investors have increasingly considered environmental, social, and broad governance issues in their investment decisions, over and above a narrow focus on financial return.

The new KiwiSaver Legislation

Thu, 03 Jan 2008 00:00:00 +1300

Special report from the Policy Advice Division of Inland Revenue.

Tax Bill’s KiwiSaver provisions to be fine-tuned

Tue, 11 Dec 2007 00:00:00 +1300

The government has introduced a number of minor changes to fine-tune KiwiSaver legislation in the taxation bill currently before Parliament.

http://www.taxpolicy.ird.govt.nz/publications/files/sop167.pdf

Kiwis keep it real on hopes for retirement

Wed, 24 Oct 2007 00:00:00 +1300

Research by default KiwiSaver provider Mercer shows that while we would prefer to retire at the age of 57, most of us don't expect to stop working until at least 65.