Green light on retirement scheme

The next wave of roll-out of the State Sector Retirement Savings Scheme (SSRSS) is on track and will go ahead as planned - despite rumours in the capital that the extension is to be delayed.

Wednesday, April 20th 2005, 8:23AM

by Rob Hosking

The employer subsidy is being extended to 3% from July and two working parties are also to consider other extensions to the scheme – one to lifting the subsidy to 6% and the other to extend it to the wider public sector.

There had been speculation that at least one of the two latter extensions is on hold, after warnings from within the government that public sector staff costs have grown too fast in recent years.

However State Services Minister Trevor Mallard’s office confirms that it is all going ahead.

“There has been no change,” says Astrid Smeele, a spokeswoman for Mallard.

The first working group, headed by economist Peter Harris, is about to report to the minister. The second, headed by former Council of Trade Unions head Angela Foulkes, will not begin working until October.

Foulkes told Good Returns that “I haven’t been fired, so far as I know,” and that speculation about the extensions being postponed is probably “the usual pre-Budget rumours”.

Her group will look at how to bring in the “non-core” public sector. This includes the large health sector and has the potential to massively increase the size of the scheme.

About half those eligible have signed up to the SSRSS.

The government is to announce details of a private sector workplace savings scheme in the May 19 Budget.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

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