Want to grow old graciously?
Whether you plan to work as a teacher or support staff until you’re 65 or make a million on the side and retire early, it is critical that you start saving for your retirement now. People are living longer – by 2031 men are expected to live until they’re 84 and women until they’re 87 – you could be retired for 20 years! What’s more, attitudes to retirement are changing. If you want an active and fulfilling life in your older years, it’s important to make savings decisions now that will give you choice and security later on.
The best time to start saving is now. Although paying off your student loan, your mortgage or your children’s growing needs may be your first priority, starting early and saving regularly – even if it is a small amount – is key to a comfortable retirement.
A great deal for NZEI members
As well as negotiating the best employment conditions for you today, NZEI aims to support you in your non-working years in future. We want to play our part in ensuring you can retire with dignity.
NZEI has negotiated excellent retirement provisions with the Government for all NZEI teacher members who work for state or state-integrated schools. If you’re a teacher or a principal covered by an NZEI collective agreement in a primary or area school, you can join the Teachers Retirement Savings Scheme (TRSS) and the Ministry of Education will match your contribution dollar for dollar up to 3 percent of your income (gross base salary).
Kindergarten teachers, employees of Group Special Education and other non-teacher NZEI members such as support staff are now being offered a new government scheme known as the State Sector Retirement Savings Scheme (SSRSS). After lengthy negotiations, a union team which included NZEI persuaded the Government to establish the new scheme and match your fortnightly contributions dollar for dollar:
- 1.5 % of your gross base salary until June 2005, then
- up to 3% of your gross base salary from July 2005.
The longer you postpone joining a retirement savings scheme, the more dollars you give away by not taking up your entitlement to the Government’s contribution!
If neither of the government schemes apply to you (for example you are an early childhood teacher in the community/not for profit or private sector, or a schools adviser nominally employed by a university or college of education), NZEI continues to advocate to Government that the existing state sector scheme be widened to include you. In the meantime however, NZEI strongly advises you to seek independent financial advice about a private retirement scheme that best suits your needs.
Potted History
In 2001, NZEI negotiated, in principle, a retirement savings scheme as part of the settlement of the primary teachers’ and principals’ collective agreements. The TRSS, available to NZEI teacher and principal members since September 2002, was developed by NZEI, the Government and a provider called the Global Retirement Trust. More than 10,000 teachers have now joined this scheme. Please note that this scheme is restricted to NZEI members who are primary teachers or principals in state or state-integrated schools.
When the SSRSS was introduced in 2004, the Government was persuaded to set up a similar scheme with three other providers: AXA New Zealand, AMP and ASB. NZEI members (including teachers) can choose to join this scheme and choose any of the providers.
How do these retirement savings schemes benefit you?
The employer subsidy is a relatively generous one and all the schemes are portable – that is you can choose to change schemes or employers or both. Because your contributions are automatically deducted from payroll, the cost will less painful to you.
Find out more…
To get more information, visit the retirement scheme provider’s website, or contact them and ask for an explanatory booklet to be sent to you:
TEACHERS RETIREMENT SAVINGS SCHEME
Visit www.teachersretire.org.nz, email teachersretire@mercer.com or call on 0508 4 TEACHERSRETIRE (0508 4 83224)
STATE SECTOR RETIREMENT SAVINGS SCHEME
The State Services Commission (SSC) publishes two useful booklets about the State Sector Retirement Scheme (one aimed specifically at the Education Service) – you can visit the SSRSS site at www.superscheme.govt.nz and ask for the booklets by filling in the feedback/contact us form or calling the State Services Commission on 04 495 6600.
You can also contact one or more of the following providers direct:
AMP Services (NZ) Ltd
Visit www.ampsuper.co.nz Tel 0800 2 PLAN SUPER (0800 275 267)
ASB Group Investments:
Visit www.superscheme.asbbank.co.nz Tel 0800 878 404
AXA New Zealand:
Visit www.statesector.axa.co.nz Tel 0800 ASPIRE (0800 277473)
Make an informed choice - here's some background Information..
www.consumer.org.nz has the Consumer Institute’s views on the superscheme providers.
To find out more about retirement savings in general, visit www.sorted.org.nz, the website of the Retirement Commission.