1. Background
1.1 The Superannuation Schemes Act 1989 places emphasis on the role and responsibilities of trustees and makes no distinction between schemes which are provided to the general public, set up by individuals for themselves, or sponsored by private and state sector employers.
As can be seen from the figures given in Appendix 5, the predominant arrangements are private sector employer-sponsored schemes and retail schemes, with assets of $8.7 billion and $6.4 billion respectively, and membership of 246,376 and 390,212 respectively. The average amount of assets per member in private sector employer-sponsored schemes is $35,312, compared to $16,401 in retail schemes. It may be noted that these figures are based on returns for balance dates in the calendar year 2003, with most being as at 31 March 2003. I would also like to draw your attention to the fact that the asset values of private sector employer sponsored schemes, including master trust products, have for the second year in a row been below the asset values at 1 January 1990, the date from which this statistics series commenced.
These figures do not include the Government Superannuation Fund, which was closed 30 June 1992, and which at 30 June 2004 had $3.374 billion in assets and 77,180 members of whom 53,473 were receiving pensions or had deferred pension entitlements. Special requirements for state sector schemes are set out in the State Sector Act 1988, Defence Act 1990 and Police Act 1958. Appendix 5 shows 8 such schemes, with assets of $0.453 billion and 25,362 members. These membership figures do not include the members who have joined the State Sector Retirement Savings Scheme effective 1 July 2004. There are now 32 schemes whose trust deeds satisfy the requirements of section 84B of the State Sector Act 1988.
1.2 Principally, my role is to react to the decisions and actions (or lack of action) of persons responsible for managing registered superannuation schemes, where necessary or appropriate. My aim is to encourage compliance with the Act; and to resort to the use of my statutory powers only where that encouragement has proved ineffective, or where "encouragement" would be inappropriate due to the circumstances of the particular matter under consideration. From time to time, whether on request or when a situation comes to my attention, I may indicate what my view is likely to be of a particular decision, or of a course of action under consideration. Section 6 of this report identifies the discretionary powers that may be exercised by the Government Actuary under the Act.
1.3 In practice, the services that I require for the administration of the Act have been provided by the Insurance and Superannuation Unit of the Business Services Branch of the Ministry of Economic Development. In this report the operations of myself and the Insurance and Superannuation Unit in connection with the Act are referred to as "the office".
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