BUDGET: Govt says National cost Super Fund $24.1 billion
Contributions to the NZ Superannuation Fund will continue under the current government but at a lower rate than prescribed.
Thursday, May 30th 2019, 2:00PM
Over the next five years it plans to invest $9.6 billion into the NZ Super Fund, compared to the $11.6 billion which is prescribed to be contributed.
However, the government defends the lowering contribution, saying the previous National government cost the fund $24.1 billion in lost contributions and investment returns by stopping contributions between 2010 and 2017.
The Budget says contributions are expected to increase the size of NZ Super to $64 billion by 2022/23.
Lower contributions in the short term will reduce the government’s borrowing requirements and consequently debt, which supports the Government’s ability to meet the future fiscal fiscal pressures of an ageing population.
“Contributions below those prescribed by the formula will lead to the legislated formula calculating higher contributions in future years.”
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