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Defence Force superannuation breaks new ground

2 March 2015

The New Zealand Defence Force (NZDF) has confirmed Mercer New Zealand has been awarded the investment management contract for its superannuation funds. The current $355M NZDF Superannuation Scheme is one of the largest remaining stand-alone schemes in New Zealand.

Mercer was awarded the contract after a competitive tender process in 2014. The contract involves the investment management and administration of the NZDF Superannuation Scheme and two new savings vehicles NZDF will introduce in 2015 – a Defence Force KiwiSaver Scheme and a Defence Force Flexible Saving Scheme.

Chief of Personnel, Brigadier Howie Duffy says the changes provide great savings options for its personnel who range from 18 to retirement age.

“The NZDF Superannuation Scheme has been a consistently good performer but it has restrictions which make it impractical for many NZDF personnel to use for retirement saving throughout their working lives. The new NZDF KiwiSaver and Flexible Saving schemes will provide compelling saving options for our people and allow them to continue to make contributions, and reap the benefits, if they decide to leave the Defence Force,” said Brigadier Duffy.

For NZDF, having members and their families enrolled in one scheme over time maximises the benefits that are able to be obtained from a large and growing investment pool. There will also be emphasis on assisting individuals through a comprehensive financial education programme and investment tool kit.

“Doing whatever we can to ensure the wellbeing of our people is always a paramount consideration for us. We recognise saving for retirement is important and we want to make it as logical and easy for our people as we can. We’re pleased to be in a position where we can work with Mercer to offer our people a range of excellent investment options to suit their individual circumstances.

“NZDF will also reflect its appreciation for the contributions made to it by NZDF families and ex-NZDF members by making these new schemes available to them as well,” said Brigadier Duffy.

The two new schemes will come into effect on 01 October 2015. Current civilian and military members can continue to contribute to the current scheme or move to the new schemes, or do both.

For more information contact Defence Public Affairs 021 487 980

ENDS

Scheme descriptions

Existing

NZDF Superannuation Scheme – existing scheme with over 4000 members and $355M invested. Open to anyone working for NZDF (military or civilian) but members can’t continue to pay into the scheme once they cease working for NZDF.

New schemes

NZDF KiwiSaver – Open to all NZDF personnel (including former personnel) and their spouses/family members (under age 65). There is the option to continue contributions to this scheme if a member leaves NZDF. All new recruits will be enrolled in this scheme unless they opt out.

Flexible Saving Scheme – a saving option where funds can be invested or withdrawn at any age.

 


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