Benson-Pope David: Questions for Oral Answer — Questions to Ministers 
Benson-Pope David: Questions for Oral Answer — Questions to Ministers 
[Volume:613;Page:9788] 
2.  
DAVID BENSON-POPE (Labour—Dunedin South) 
 to the  
Minister of State Services 
: What is the Government doing to promote retirement saving schemes for those employed in the State sector? 
Hon TREVOR MALLARD (Minister of State Services) 
: 
 The Government has announced a new employment-based retirement savings scheme to be operational within the public sector from July next year. Employees will be able to choose their desired level of regular contributions which will be matched by employers up to a maximum of 1.5 percent of gross salary in year 1 or 3 percent of gross salary in year 2 less withholding tax. This is good for the public service and a good example to other employers about the importance of retirement savings schemes. 
David Benson-Pope 
: When was the last time State sector employees were able to join a Government-subsidised retirement savings scheme? 
Hon TREVOR MALLARD 
: There have been a number of small ad hoc arrangements from agency to agency but on a public service - wide approach it was in 1992. 
Dail Jones 
: As this measure is good for the public service which New Zealand First agrees that it is why does the Minister not take similar action with regard to or make incentives available also for the private sector? 
Hon TREVOR MALLARD 
: Of course it is available for the private sector if employers like employers in the State sector choose to make it so. 
Rod Donald 
: While we support this scheme we would like to know this: will it be available to all State sector employees—whether part-time or full-time what protections will the Minister put in place to ensure that the savings of low-income workers are not gobbled up by administration fees and other costs what is he intending to do about the regressive nature of the scheme and will the Government continue to contribute to superannuation while women are on paid parental leave in the light of the fact that women have lower lifetime earnings? 
Mr SPEAKER 
: There were four questions there. The Minister may answer two. 
Hon TREVOR MALLARD 
: There are a lot of details to work through. There will be at least three different options for each person involved to choose from. The scheme will be available to part-time workers. It is unlikely to be available to people on leave or not earning at the time but those are details that will be worked through over the next period of time. I thank the member for his support. This is an important policy in giving an indication to the community in general that retirement savings over and above Dr Cullen’s very good scheme are important. 
Lynne Pillay 
: Is the promotion of a retirement savings scheme for State sector employees supported by the industry? 
Hon TREVOR MALLARD 
: Yes overwhelmingly. Vance Arkinstall the chief executive of the Investment Savings and Insurance Association said that the scheme sent a powerful signal about the importance of personal saving for retirement. Traditional superannuation has been in decline for a decade now. We hope that this is the beginning of the reversal of that trend.