Strong response for guardians to run NZSF

Finance Minister Michael Cullen said today that the government should be in a position by March to appoint the board of guardians to run the New Zealand Superannuation Fund.

Friday, January 25th 2002, 12:35PM

Finance Minister Michael Cullen said today that the government should be in a position by March to appoint the board of guardians to run the New Zealand Superannuation Fund.

"The guardians will be responsible for appointing the funds managers and for setting the investment policies of the fund, including what proportion - if any - should be invested offshore.

"To ensure that the board will be free from political interference, the New Zealand Superannuation Act provides that the government has to appoint candidates from a short list drawn up by a specially appointed nominating committee," Dr Cullen said.

The committee, appointed last October under the chairmanship of the Chief Executive of the Investment Savings and Insurance Association, Vance Arkinstall, advertised for expressions of interest with a deadline of today.

"The legislation provides for between five and seven guardians and Mr Arkinstall advises me that more than a hundred nominations have been received.

"The government has been making payments of $23 million a fortnight into the partial pre-funding scheme but the money is sitting in a special account in the Debt Management Office of the Treasury pending the appointment of the board and the establishment by the board of the fund's governance and administrative arrangements," Dr Cullen said.

"This government has an active and positive response to the challenge of New Zealand's ageing population. If National wants to be taken seriously it will have to stop heckling from the sidelines and start being honest about what its alternative is.

"Mr English cannot continue to hide behind obfuscation and say a National government would honour current superannuation entitlements to those now in retirement and to those nearing retirement.

"He has to come clean and say where the cut off point will be so people know where they stand, and how little support they could expect from the state in their old age under a National-led government," Dr Cullen said.

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