Govt Super. Fund to be reviewed

Press, 29 October 1981, Page 14

Govt Super. Fund to be reviewed

PA Wellington The Cabinet has decided to conduct a "thorough and wide-ranging” review of the Government Superannuation Fund. y.

This followed up representations sby the Government Sup.era.nnuitants’ Association and the Combined State Unions, said the Prime Minister (Mr Muldoon),

The review would take place under the general oversight .of a steering committee consisting of the Deputy Secretary to the Treasury, the Deputy Chairman of the State Services Commission, the Government Actuary, the Commissioner of the Government Life Office, and the superintendent of the Superannuation Fund. . The main work would be

done by a working group comprising officials of the Treasury, the Government Actuary’s office, and the State Services Commission.

They would be assisted by advice from two former public servants. Dr’ R. M. Williams, a former Chairman of the State Services Commission, and Mr 0. D.- Good, a former Government Actuary- ■ ; ’■

The group would report by April 30, 1982, on the terms of reference. While the review ’ would concentrate oh the superannuation scheme as it relates to public servants, it will also consider the application of any changes, notably those on earlier retirement, on the Armed Forces, the police and Prison Setvice, and the Calibration

Flight of the Civil Aviation Division.

Mr Muldoon said that the review group would be required to review and report on the range and level of benefits offered bj the fund, in particular:

© Provisions for withdrawal, transfer, convertibility, and portability, especially in the light of the Superannuation Scheme Regulations. 1976; the possibility of providing optional alternative schemes within the Government Superannuation Fund; compulsory membership; implications and costs of earlier or later and/or more flexible retirement; ways to effect a linkage with National Superannuation; and investment of members’ funds, including the possibility of the Government Superannuation Fund's

providing housing finance.

0 Range and level of benefits; calculation of retiring allowance; benefits payable, on death of a contributor; effect of inflation on benefits now being paid and the implication of any changes for present contributors; the effect of inflation on the cost of living adjustment scheme. 0 Present contribution rates and scale of contributions; whether any special needs of contributors. particularly those in trading departments, are adequately covered: present means by which the Government finances its contribution to the fund in view of long-term implications for Government expenditure; and the effect of possiblechanges on existing contributors.