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OIA 20210251
Table of Contents
1.
Aide Memoire T2021 385 - Meeting with Government Superannuitants
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Association
2.
Email communication on GSA COLA options
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Reference:
T2021/385
CM-1-3-22-11
Date:
25 February 2021
To:
Minister of Finance (Hon Grant Robertson)
Deadline:
1 March 2021
Aide Memoire: Meeting with Government Superannuitants
Association
Purpose:
On 1 March, you are meeting with the Government Superannuitants Association
(GSA), represented by:
•
Tony Hamilton (President)
•
Karen Knobloch (Executive Officer)
•
GSA Board member (to be determined)
The purpose of this meeting is to discuss the GSA Cost of Living Adjustment issue and
its inclusion in the Budget 21 process.
The GSA advocates on behalf of members of the Government Superannuation Fund
(GSF) schemes and the National Provident Fund (NPF). They aim to safeguard the
existing provisions of the schemes and remove what they consider to be scheme
deficiencies and anomalies.
Background
The GSA submitted a petition to Parliament in July 2018, essentially requesting a
backdating of the Cost of Living Adjustment (COLA) increase that was introduced in
2009.
In 2009, the COLA adjustment was raised from 90% to 100% of CPI (following changes
made in 2006, 1985, 1976 and 1969). The 2008 Cabinet paper introducing the change
included two potential methods of increasing COLA from 90% to 100%.
•
Scenario A - increasing COLA to 100% from the date of the legislative change
(i.e. no backdating), and
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Scenario B - increasing COLA to 100% from the annuitant’s date of retirement
(i.e. backdating the calculation, as per earlier legislative changes).
The Cabinet paper was clear that the intention of the 2008 legislative change was to
implement the changes based on Scenario A and not to repeat the (backdated)
approach taken in previous COLA changes.
In considering the GSA’s petition, the Finance and Expenditure Committee found that
“the indexation formula…appears to be a different formula to that used in previous
iterations” and recommended to the Government that it “take note of this finding and
consider options for addressing the resultant lesser payments received by contributors
and beneficiaries of the fund”.
s9(2)(f)(iv)
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s9(2)(f)(iv)
s9(2)(k)
Ben Roberts, Analyst, Financial Institutions,
Joseph Sant, Manager, Financial Institutions, s9(2)(k)
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From: Paul Young <[email address]>
Sent: Wednesday, 31 March 2021 2:03 pm
To: Ben Roberts [TSY] <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
Thanks Ben
I will have a chat with Talei about this.
Ngā mihi
Paul
From: Ben Roberts [TSY] [mailto:[email address]]
Sent: Wednesday, 31 March 2021 1:39 PM
To: Paul Young <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
Hi Paul,
GSFA have now provided an update on the questions below:
• the number of pre 1985 retirees still alive in the scheme. = 1790 former contributors
• The average age of the pre 1985 retirees. = 85.6 years old
• the number of surviving spouses of pre-1985 retirees. = 2450 spouses
• The average age of the surviving spouses of pre 1985 retirees. = 88 years old
• The total amount paid to pre 1985 retirees in the most recent year. = $27.1 million
• The total amount paid to surviving spouses of pre 1985 retirees in the most recent
year. = $23.2 million
s9(2)(f)(iv)
It would be useful to get some direction from you on how to proceed here / how best to
incorporate the revised figures into the budget process?
Cheers,
Ben
From: Paul Young <[email address]>
Sent: Thursday, 11 March 2021 1:34 PM
To: Ben Roberts [TSY] <[email address]>
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Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
Thanks Ben.
Can I please ask you to get them to provide some numbers to support the logic because I am
struggling a bit to feel comfortable with telling the MoF that the numbers are safe. I hope this
won’t be too arduous. Can I please get:
• the number of pre 1985 retirees still alive in the scheme.
• The average age of the pre 1985 retirees.
• the number of surviving spouses of pre-1985 retirees.
• The average age of the surviving spouses of pre 1985 retirees.
• The total amount paid to pre 1985 retirees in the most recent year.
• The total amount paid to surviving spouses of pre 1985 retirees in the most recent
year.
Can we also get the actuarial assumptions around age of death being applied and an example
of the how much impact the COLA adjustment has – could just be an example of one person. I
understand that currently the pre 1985 retirees will be getting about 92% of the COLA applied
so this would be an increase of about 8% of the COLA.
Ngā mihi
Paul
Paul Young
Revenue and Finance Advisor
Office of the Hon Grant Robertson | Minister of Finance, Minister for Infrastructure, Minister
for Sport and Recreation, Minister for Racing
7.6 Executive Wing, Parliament Buildings, PO Box 18041, Wellington
Phone: s9(2)(k)
|Mobile: s9(2)(g)(ii)
Email: [email address]
From: Ben Roberts [TSY] [mailto:[email address]]
Sent: Thursday, 11 March 2021 1:08 PM
To: Paul Young <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
[UNCLASSIFIED]
Hi Paul,
Just following up on conversation from earlier, I can confirm the following after talking with
GSFA:
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s9(2)(f)(iv)
Regards,
Ben
From: Paul Young <[email address]>
Sent: Wednesday, 10 March 2021 2:35 PM
To: Ben Roberts [TSY] <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
Hi Ben
I’m working on it but haven’t managed to actually talk with Tony yet – the GSA office hours are
quite limited. I’ll get back to you on this as soon as I can.
Thanks
Paul
From: Ben Roberts [TSY] [mailto:[email address]]
Sent: Monday, 8 March 2021 2:47 PM
To: Paul Young <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: RE: GSA COLA options
Hi Paul,
s9(2)(f)(iv)
Did you get anything back from the GSA on what they were exactly after?
It would be great to get a response back on this as soon as possible.
Thanks,
Ben
From: Ben Roberts [TSY]
Sent: Monday, 1 March 2021 5:22 PM
To: ^Parliment: Paul Young <[email address]>
Cc: Joseph Sant [TSY] <[email address]>
Subject: GSA COLA options
[UNCLASSIFIED]
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Hi Paul,
s9(2)(f)(iv)
Cheers,
Ben
Ben Roberts | Analyst Financial Institutions | Te Tai Ōhanga – The Treasury Tel: s9(2)(k)
| Mobile: s9(2)(g)(ii)
| Email/IM: [email address]
CONFIDENTIALITY NOTICE
The information in this email is confidential to the Treasury, intended only for the addressee(s), and may also
be legally privileged. If you are not an intended addressee:
a. please immediately delete this email and notify the Treasury by return email or telephone (64 4 472 2733);
b. any use, dissemination or copying of this email is strictly prohibited and may be unlawful.
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Document Outline
