Retirement savings for teachers

A working party to develop a retirement savings scheme for teachers and principals will report back to the Government by the end of the year.

Education Minister Trevor Mallard said the working party to design the scheme met for the first time this week. The scheme is due to be introduced from July next year.

“The Government is committed to working collaboratively with key unions to look at arrangements for retirement schemes,” Trevor Mallard said.

“It is an issue that is being discussed more widely as part of the tripartite forum which includes PSA representatives and government department chief executives.

“The teachers and principals retirement saving scheme working party was proposed by the Government in their offers to the NZEI and the PPTA for settlement of the respective teachers’ and principals’ collective agreements.

“I am confident that such a scheme will help the Government’s aims to improve the recruitment and retention of teachers as well as our wider aim to encourage all New Zealanders to look at options for their retirement savings.”

Trevor Mallard said the principles underpinning the recommendations for a scheme of Government contributions to retirement savings should include:

* Ensuring the best value for employees;
* Seeking to achieve economies of scale where possible;
* Allowing the Government to manage and control its fiscal liability for contributions;
* Ensuring equality of access for all employees while recognising existing

Government contributions to superannuation or retirement savings schemes already made on behalf of employees; and

* Ensuring that participation is voluntary for employees.