New government savings scheme popular
More than 44% of eligible people in government ministries and departments have chosen to join the new government subsidised State Sector Retirement Savings Scheme, State Services Minister Trevor Mallard says.
Tuesday, July 20th 2004, 11:46PM
"It's great to see this level of sign up since the scheme started on July 1. This means 40,000 people in government departments and the state school sector are better preparing for their retirement. Twenty-two departments (out of 40) achieved take-up rates above 50%.
"The public service, as a collection of departments and organisations, is one of the country’s largest employers. As a good employer it is important that we encourage people to save for their retirement. The scheme also models the kinds of schemes we would like to encourage in the private sector.
"This government is committed to building strong public services to meet the needs of New Zealanders. It is important that state sector agencies can recruit and retain good people, and this scheme is an incentive for people to build a career in the public service.
"The scheme has been designed to offer its members lots of choice. AMP, ASB and AXA were selected as the providers. Employees joining the scheme can choose their own level of contribution, and the government will match that up to a maximum of 1.5% of salary in the first year and 3% from the second year.
"Union support for this scheme is also welcomed. This helped to push the take-up rates higher. Although the scheme has now been launched, new or existing eligible employees in the state sector can still join at any time.
"Teachers can join this scheme or the Teachers Retirement Savings Scheme, which is provided by GRT. More than 40% of the education sector are now enrolled in one of these schemes."
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