Treasury has asked consultants to bid for its regular five-yearly review of the New Zealand Superannuation Fund and has specified a review of the fund's target rate of return of 2.5% over the Treasury bill rate. It also wants a review of manager bonuses and the fund's recently established in-house management of New Zealand stocks.
The Government completed its first seven-yearly review of KiwiSaver default providers and decided to stick with the current policy of directing default funds into conservatively managed funds, rather than adopt the 'lifecycle' approach recommended by the OECD and others. Labour also prefers the 'lifecycle' approach. Here's my briefing on the policy's details, the pros and the cons, the process and the political positioning.