Board of Trustees of the
National Provident Fund
Annual Reports for the year ended 31 March 2021
CONTENTS
Annual Reports of the Board of Trustees
of the National Provident Fund
for the year ended 31 March 2021
• Board of Trustees of
the National Provident Fund
• Report required under Section 67 [1A] of the
National Provident Fund Restructuring Act 1990
Presented to the House of Representatives pursuant to section 67
of the National Provident Fund Restructuring Act 1990.
Board of Trustees of the
National Provident Fund
• Annual Report
for the year ended 31 March 2021
Board of Trustees of the National Provident Fund
Statement of Comprehensive Income
for the year ended 31 March 2021
Note
2021
2020
($000)
($000)
Revenue
Interest
146
200
3
2,437
2,208
Management fee
2,583
2,408
Total Revenue
4
2,452
2,227
Less expenses
131
181
Operating surplus before income tax
6
37
51
Income tax expense
Net surplus for the year
94
130
Total comprehensive income for the year
94
130
Board of Trustees of the National Provident Fund
Statement of Changes in Equity
for the year ended 31 March 2021
2021
2020
($000)
($000)
Equity at the beginning of the year
5,882
5,752
Total comprehensive income for the year
94
130
Equity at the end of the year
5,976
5,882
The notes to the financial statements on pages 4 to 10 form an integral part of these financial statements.
1
Board of Trustees of the National Provident Fund
Statement of Financial Position
as at 31 March 2021
Note
2021
2020
($000)
($000)
Equity
7
5,976
5,882
Represented by:
Current assets
Cash
227
368
Bank term deposits
5,875
5,878
Receivables and prepayments
8
531
626
Total current assets
6,633
6,872
Total assets
6,633
6,872
Current liabilities
Payable to National Provident Fund superannuation
schemes
2
143
552
Income tax payable
-
17
Other payables
9
514
421
Total current liabilities
657
990
Net assets
5,976
5,882
Authorised for issue on 24 June 2021.
On behalf of the Board of Trustees of the National Provident Fund.
Edward Schuck
Stephen Ward
Board Chair
Chair
Audit and Risk Review Committee
The notes to the financial statements on pages 4 to 10 form an integral part of these financial statements.
2
Board of Trustees of the National Provident Fund
Statement of Cash Flows
for the year ended 31 March 2021
Note
2021
2020
($000)
($000)
Cash flows from operating activities
Cash was provided from:
Interest
168
200
Management fee
2,028
2,131
2,196
2,331
Cash was applied to:
Operating expenses
2,264
2,437
Taxation
54
52
2,318
2,489
Net cash (outflow)/inflow from operating
10
(122)
(158)
activities
Cash flows from financing activities
Cash was applied to:
Bank term deposits
(19)
(180)
(19)
(180)
Net cash (outflow) from financing activities
(19)
(180)
Net (decrease)/increase in cash held
(141)
(338)
Opening cash brought forward
368
706
Closing cash carried forward
227
368
The notes to the financial statements on pages 4 to 10 form an integral part of these financial statements.
3
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
1 PRINCIPAL ACTIVITY
The Board’s principal activity is to act as the Trustee to the Global Asset Trust (the GAT)
and nine defined contribution and defined benefit superannuation schemes.
2 RELATED PARTIES
Under the terms of the Act, the Board is trustee of the nine National Provident Fund
superannuation schemes (the Schemes) and the GAT. Members of the Board are appointed
by the Minister of Finance (the Minister). The Board provides annual reports on the
activities of the Schemes and the GAT to the Minister. The GAT holds the investment assets
of the Schemes.
The GAT entered into reimbursement transactions with the Board during the year. These
related to the reimbursement of professional fees, Goods and Services Tax and the
purchase of fixed assets which are incurred by the Board on behalf of the GAT. The Board
also leases office equipment and computer hardware from the GAT. The total amount
reimbursed for the year was $222,422 (2020: $261,958). In addition to this
reimbursement, money was received into the Board on behalf of the GAT for Use of Money
Interest and Class Actions. The total amount for the year was $11,370 (2020: $26,675).
At year end the Board had a payable of $142,767 (2020: $551,583), owing to the
Schemes. This refund relates to surplus funds from the Schemes that was not required to
meet the Board expenses during the year.
The Board and the Government Superannuation Fund Authority (the Authority) have
formed a joint venture company, Annuitas Management Limited (Annuitas). Each
organisation has entered into a management services agreement with Annuitas. The main
function of Annuitas is to provide staff (Management) who act in management and
secretarial roles on behalf of the Board and the Authority. Edward Schuck and Stephen
Ward are the two Board appointed directors of Annuitas. The costs of running Annuitas
are shared between the Board and the Authority on an equitable basis, as agreed between
the two parties. The Board paid fees for this service during the year amounting to
$1,426,188 (2020: $1,301,021). The amount payable to Annuitas from the Board at year
end was $40,114 (2020: $16,074 receivable).
The Board, through Management, monitors the performance of the managers appointed
by the Board, either directly or as trustee of the Schemes and the GAT, to provide services
to the Board, and their adherence to the terms of their contracts, and co-ordinates
actuarial, accounting, taxation, legal and communication services for the Board. There
were no transactions between the Board members as individuals and the Board, other than
the payment of fees or expenses (refer note 5). There were no individual transactions with
Management, other than reimbursement of expenses incurred on Board business.
3 MANAGEMENT FEE
This fee was received by the Board from the Schemes for administering the Schemes.
4
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
4 EXPENSES
Note
2021
2020
($000)
($000)
Expenses borne by the Board directly:
Audit fee
14
14
Expenses recovered through the
management fee:
Board members’ fees and expenses
5
230
228
Communications
160
154
Management services fee
2
1,426
1,301
Other expenses
120
107
Professional fees (excluding taxation)
241
172
Taxation consultant fees
261
251
Total expenses recovered
2,438
2,213
Total expenses
2,452
2,227
5 BOARD MEMBERS’ FEES AND EXPENSES
2021
2020
($000)
($000)
Fees and expenses paid to the Board during the
year ended 31 March were:
Fees
215
200
Expenses
15
28
230
228
Fees paid to Board members were*:
2021
2020
($000)
($000)
Louise Edwards
28
23
Catherine McDowell
-
6
Graeme Mitchell
-
8
Daniel Mussett
32
33
Sarah Park
32
6
Edward Schuck
55
58
Wayne Stechman
28
29
Stephen Ward
40
37
215
200
*Board Members’ fees are determined by the individual’s position on the Board. They also differ because some
members charge GST. Board fees were decreased by 20% for 6 months from 1 May 2020 as part of the Covid-
19 response.
5
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
6 INCOME TAX
2021
2020
($000)
($000)
Income tax is calculated as follows:
Operating surplus before income tax
131
181
Income tax expense for the year at 28%*
37
51
7 EQUITY
The equity is represented by the Free Reserves which originally arose from the
restructuring of the National Provident Fund on or before 1 April 1991. There is no share
capital. The Minister, by letter dated 1 April 1991, gave a direction, under section 64 of
the Act, that the Board should not disburse or otherwise allocate the Free Reserves for
any purpose whatsoever, without the prior consent of the Crown or further direction from
the Minister. No direction was sought during the 2021 financial year (2020: No direction
was sought).
8 RECEIVABLES AND PREPAYMENTS
2021
2020
($000)
($000)
Accounts receivable from the Schemes
395
392
Other receivables and prepayments*
136
234
531
626
*Includes $8,000 right of use asset in 2021 (2020: $53,000)
9 OTHER PAYABLES
2021
2020
($000)
($000)
Accruals
164
124
Accounts payable*
350
297
514
421
*Includes $8,000 lease liability in 2021 (2020: $53,000)
6
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
10 RECONCILIATION OF NET SURPLUS FOR THE YEAR TO NET CASH FLOWS
USED IN OPERATING ACTIVITIES
2021
2020
($000)
($000)
Net surplus for the year
94
130
Movement in working capital items:
Receivables and prepayments
117
(107)
Current liabilities
(316)
(180)
Income tax payable
(17)
(1)
Net cash (outflow) from operating activities
(122)
(158)
11 FINANCIAL INSTRUMENTS
At balance date the Board had the following financial assets: cash, bank term deposits,
accounts receivable, prepayments and the following financial liabilities: payables to the
schemes and accounts payable.
11.1 CREDIT RISK
The values attached to each financial asset in the Statement of Financial Position represent
the maximum credit risk. No collateral is held with respect to any financial assets.
11.2 FAIR VALUE
The carrying value of all financial instruments, recognised in the Statement of Financial
Position, is considered to be approximate fair value.
11.3 CURRENCY AND INTEREST RATE RISK
The interest rate earned on the bank account is variable. The money held on term deposit
is rolled on a regular basis, and the interest rates are reviewed at each rollover.
The Board has no financial instruments denominated in foreign currencies, except for those
held in the Board’s capacity as trustee of the GAT.
12 CONTINGENT LIABILITIES
There were no contingent liabilities as at 31 March 2021 (2020: nil).
13 COMMITMENTS
As at 31 March 2021 the Board had no commitments (2020: nil).
14 SUBSEQUENT EVENTS
There have been no events since balance date which would have a material effect on these
financial statements.
7
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
15 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
15.1 BASIS OF PREPARATION
The reporting entity is the Board of Trustees of the National Provident Fund (the Board).
The Board was established by the National Provident Fund Act 1950 and continued under
the National Provident Fund Restructuring Act 1990 (the Act). The Board has financial
reporting obligations under the Financial Markets Conduct Act 2013 (the FMCA).
15.2 STATEMENT OF COMPLIANCE
The financial statements have been prepared in accordance with New Zealand generally
accepted accounting practice (NZ GAAP) and the requirements of the FMCA. For the
purposes of complying with NZ GAAP, the Board is a for-profit entity and has adopted
External Reporting Board Standard A1 Application of the Accounting Standards Framework
(XRB A1). The Board qualifies for New Zealand Equivalents to International Financial
Reporting Standards Reduced Disclosure Regime (NZ IFRS (RDR)) as it does not have
public accountability and it is not a large for-profit public sector entity. The Board has
elected to apply NZ IFRS (RDR) and has applied disclosure concessions.
The preparation of financial statements, in conformity with NZ IFRS (RDR), requires
judgements, estimates and assumptions to be made that affect the application of policies
and reported amounts of assets and liabilities, income and expenses. The estimates and
associated assumptions made are based on historical experience and other factors that
are believed to be reasonable under the circumstances. The results of the estimates and
associated assumptions form the basis of making the judgements about the carrying value
of assets and liabilities, which are not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which an estimate is revised, if the
revision affects only that period, or in the period of the revision and future periods, if the
revisions affect both current and future periods.
15.3 MEASUREMENT BASE
The financial statements are prepared on a historical cost basis.
15.4 PRESENTATION AND FUNCTIONAL CURRENCY
The financial statements are presented in New Zealand dollars, rounded to thousands
($000), which is also the Board’s functional currency.
15.5 CASH AND CASH EQUIVALENTS
Cash comprises current deposits with banks. Cash equivalents are short term, highly liquid
investments that are readily convertible to known amounts of cash, are subject to an
insignificant risk of changes in value and are held for the purpose of meeting short-term
cash commitments rather than for investment or other purposes.
8
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
15 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
15.6 FINANCIAL INSTRUMENTS
Financial instruments include both financial assets and financial liabilities.
Financial assets, measured at amortised cost include various bank term deposits,
receivables from related parties and other receivables and prepayments.
Financial liabilities, measured at amortised cost, include trade and other payables and
amounts payable to National Provident Fund superannuation schemes.
15.7 RECOGNITION
The Board recognises a financial asset or a financial liability on the date the Board becomes
a party to the contractual provisions of the instrument.
15.8 IMPAIRMENT
All assets are reviewed at balance date to determine whether there is objective evidence
of impairment. If any such indication exists, an impairment loss is recognised in the
Statement of Comprehensive Income as the difference between the asset’s carrying
amount and the present value of estimated future cash flows.
The Board has adopted the simplified expected credit loss model for receivables in
accordance with
NZ IFRS 9: Financial Instruments.
15.9 DERECOGNITION
The Board derecognises a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the financial asset and the transfer qualifies
for derecognition. A financial liability is derecognised when the obligation specified in the
contract is discharged, cancelled or expired.
15.10 REVENUE
Interest income is accrued at balance date using the effective interest rate of the
instrument. The effective interest method is a method of calculating the amortised cost
of a financial asset and allocating interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset, or, where appropriate, a shorter period. Interest
income is accrued at balance date.
Management fees are recognised as income in the period to which the related service is
provided.
15.11 EXPENSES
All expenses are recognised in the Statement of Comprehensive Income on an accrual basis.
9
Board of Trustees of the National Provident Fund
Notes to the Financial Statements
for the year ended 31 March 2021
15 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
15.12 TAXATION
Income tax on the surplus for the year comprises current tax.
Current tax is the expected tax payable on the taxable income for the year, using tax
rates enacted at the financial statement date, and any adjustment to tax payable in
respect of previous years.
15.13 GOODS AND SERVICE TAX (GST)
The Board is not registered for GST. The Statement of Comprehensive Income and
Statement of Financial Position are stated on a GST inclusive basis.
15.14 STANDARDS ISSUED BUT NOT YET EFFECTIVE
Certain new accounting standards and interpretations have been issued that are not
mandatory for 31 March 2021 reporting periods and have not been adopted early by the
Board. None of these standards are likely to have a material impact on the Board when
they are adopted. All standards will be adopted in the period in which they become
mandatory.
15.15 CHANGES IN ACCOUNTING POLICIES
There have been no changes to the accounting policies. All policies have been applied
consistent with the prior year.
10
Board of Trustees of the National Provident Fund
Directory
for the year ended 31 March 2021
Principal Activity
To act as the Trustee to the Global Asset Trust
and nine superannuation schemes
Board Members
Edward Schuck (Board Chair)
Louise Edwards
Daniel Mussett
Sarah Park
Wayne Stechman
Stephen Ward (Deputy Chair)
Secretary to the Board
Fiona Morgan
Auditor
Silvio Bruinsma, Deloitte Limited (on behalf of
the Auditor-General
)
Bank
Bank of New Zealand
Solicitor
DLA Piper New Zealand
All correspondence relating to the Scheme should be
addressed to:
The Manager
National Provident Fund Administration
Datacom Connect Limited
PO Box 1036
WELLINGTON 6140
OR
The Secretary
Board of Trustees of the National Provident Fund
PO Box 3390
WELLINGTON 6140
For and on behalf of the Board of Trustees of the National Provident Fund.
Edward Schuck
Board Chair
24 June 2021
11
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF BOARD OF TRUSTEES OF THE NATIONAL PROVIDENT FUND FOR THE
YEAR ENDED 31 MARCH 2021
The Auditor-General is the auditor of Board of Trustees of the National Provident Fund (the Board). The
Auditor-General has appointed me, Silvio Bruinsma, using the staff and resources of Deloit e Limited, to
carry out the audit of the financial statements of the Board on his behalf.
Opinion
We have audited the financial statements of the Board on pages 1 to 10, that comprise the statement
of financial position as at 31 March 2021, the statement of comprehensive income, statement of
changes in equity and statement of cash flows for the year ended on that date and the notes to the
financial statements that include accounting policies and other explanatory information.
In our opinion, the financial statements of the Board on pages 1 to 10:
•
present fairly, in all material respects:
o
its financial position as at 31 March 2021; and
o
its financial performance and cash flows for the year then ended; and
•
comply with general y accepted accounting practice in New Zealand in accordance with New
Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and
International Financial Reporting Standards (IFRS).
Our audit was completed on 24 June 2021. This is the date at which our opinion is expressed.
The basis for our opinion is explained below. In addition, we outline the responsibilities of the Board of
Trustees and our responsibilities relating to the financial statements, we comment on other information,
and we explain our independence.
Basis for our opinion
We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which
incorporate the Professional and Ethical Standards and the International Standards on Auditing (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities
under those standards are further described in the Responsibilities of the auditor section of our report.
We have fulfil ed our responsibilities in accordance with the Auditor-General’s Auditing Standards.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
We have determined that there are no key audit matters to communicate in our report.
Responsibilities of the Board of Trustees for the financial statements
The Board of Trustees are responsible on behalf of the Board for preparing financial statements that
are fairly presented and that comply with general y accepted accounting practice in New Zealand.
The Board of Trustees are responsible for such internal control as they determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the Board of Trustees are responsible on behalf of the Board for
assessing the Board’s ability to continue as a going concern. The Board of Trustees are also
responsible for disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting, unless the Board of Trustees intend to wind-up the Board or to cease
operations, or have no realistic alternative but to do so.
The Board of Trustees’ responsibilities arise from the Public Finance Act 1989 and the Crown Entities
Act 2004.
Responsibilities of the auditor for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a
whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in
accordance with the Auditor-General’s Auditing Standards wil always detect a material misstatement
when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise
from fraud or error. Misstatements are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the decisions of readers taken on the basis of these
financial statements.
We did not evaluate the security and controls over the electronic publication of the financial
statements.
As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. Also:
•
We identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
•
We obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Board’s internal control.
•
We evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board of Trustees.
•
We conclude on the appropriateness of the use of the going concern basis of accounting by
the Board of Trustees and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
Board’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Board to cease to continue as a going
concern.
•
We evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with the Board of Trustees regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Our responsibilities arise from the Public Audit Act 2001.
Other information
The Board of Trustees are responsible for the other information. The other information comprises the
information included on page 11, but does not include the financial statements, and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information. In doing so, we consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on our work, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Independence
We are independent of the Board in accordance with the independence requirements of the Auditor-
General’s Auditing Standards, which incorporate the independence requirements of Professional and
Ethical Standard 1:
International Code of Ethics for Assurance Practitioners issued by the New Zealand
Auditing and Assurance Standards Board.
Other than the audit, we have no relationship with, or interests in, the Board.
Silvio Bruinsma
for Deloitte Limited
On behalf of the Auditor-General
Wel ington, New Zealand
Board of Trustees of the
National Provident Fund
• Report required under Section 67 [1A] of the
National Provident Fund Restructuring Act 1990
for the year ended 31 March 2021
REPORT REQUIRED UNDER SECTION 67(1A)
OF THE NATIONAL PROVIDENT FUND RESTRUCTURING ACT 1990
FOR THE YEAR ENDED 31 MARCH 2021
A.
SCHEME ASSET ALLOCATIONS AND SCHEME INVESTMENT PERFORMANCE
A1.
Scheme Asset Allocations
The benchmark allocations and actual percentages shown below are as at 31 March 2021.
The tilted benchmark allocations are also shown. They are as at 31 March 2021 and applied
in accordance with the Dynamic Asset Allocation tilting programme as outlined in the
Statement of Investment Policies, Standards and Procedures (SIPSP).
Month-end actual asset allocation weights may differ from benchmark weights because the
Schemes are rebalanced at the start of each month. Thus month-end actual weights will
reflect market movements over the month. In addition, to minimise unnecessary transaction
costs, each asset class has a Board approved rebalancing range within which rebalancing will
not necessarily occur each month.
Tilted
Benchmarks
Benchmarks
Actual
Pension National Scheme
Alternative Assets
5.0%
5.0%
5.7%
Fixed Interest
47.5%
47.5%
45.0%
New Zealand Equities
9.5%
7.5%
6.9%
Overseas Equities
38.0%
40.0%
42.4%
Lump Sum National Scheme
Alternative Assets
5.0%
5.0%
5.7%
Fixed Interest
47.5%
47.5%
45.0%
New Zealand Equities
9.5%
7.5%
6.9%
Overseas Equities
38.0%
40.0%
42.4%
Meat Industry Scheme
Alternative Assets
5.0%
5.0%
5.7%
Fixed Interest
47.5%
47.5%
45.0%
New Zealand Equities
9.5%
7.5%
6.9%
Overseas Equities
38.0%
40.0%
42.4%
National Provident Pension Scheme
Alternative Assets
5.0%
5.0%
5.7%
Fixed Interest
57.5%
57.5%
55.0%
New Zealand Equities
7.5%
5.5%
5.1%
Overseas Equities
30.0%
32.0%
34.2%
DBP Contributors Scheme
Fixed Interest
80.0%
80.0%
78.3%
Overseas Equities
20.0%
20.0%
21.7%
1
A1. Scheme Asset Allocations (continued)
Tilted
Benchmarks
Benchmarks
Actual
DBP Annuitants Scheme
Cash
100.0%
100.0%
100.0%
Aircrew Scheme
Alternative Assets
5.0%
5.0%
5.8%
Fixed Interest
57.5%
57.5%
55.1%
New Zealand Equities
7.5%
7.5%
7.1%
Overseas Equities
30.0%
30.0%
32.0%
Pension Cash Accumulation Scheme*
Cash
N/A
N/A
N/A
Fixed Interest
N/A
N/A
N/A
New Zealand Equities
N/A
N/A
N/A
Overseas Equities
N/A
N/A
N/A
Lump Sum Cash Accumulation Scheme
Alternative Assets
5.0%
5.0%
5.7%
Fixed Interest
47.5%
47.5%
45.0%
New Zealand Equities
9.5%
7.5%
7.0%
Overseas Equities
38.0%
40.0%
42.3%
* The Pension Cash Accumulation Scheme liquidated its investment assets at the end of March. As at 31 March
2021 the assets were held in the BNZ bank account.
A2.
Scheme Investment Performance
The investment performance of each scheme, for the year ended 31 March 2021, is shown in
the attached Schedule 1. These returns are net of income tax and expenses.
B.
THE INVESTMENT PERFORMANCE OF THE SEPARATE CLASSES OF ASSETS
The investment performance of the separate classes of assets, for the year ended 31 March
2021, is shown in the attached Schedule 2. These returns are gross of income tax and
expenses.
C.
THE ALLOCATION OF COSTS TO EXISTING SCHEMES
The allocation of costs (expenses) to each existing scheme, for the year ended 31 March
2021, is shown in the attached Schedule 3.
D.
CHANGES IN THE ACTUARIAL BASIS FOR VALUING SCHEME LIABILITIES
There were no changes to the actuarial bases for valuing scheme liabilities during the year
ended 31 March 2021.
2
E.
PAYMENTS BY THE CROWN UNDER SECTION 72 OF THE NATIONAL PROVIDENT
FUND RESTRUCTURING ACT 1990
Pursuant to Section 72 of the National Provident Fund Restructuring Act 1990, $1,619.88 has
been claimed from the Crown by the Board, as Trustee of the Lump Sum National Scheme
for the year ended 31 March 2021.
F.
RESERVE POSITIONS OF THE DEFINED CONTRIBUTION AND PERSONAL SCHEMES
The reserve positions of the defined contribution and personal schemes, as at 31 March 2021,
are as shown in the attached Schedule 4.
G.
SOLVENCY POSITION OF THE NATIONAL PROVIDENT PENSION SCHEME
The solvency position of the National Provident Pension Scheme, as at 31 March 2021, is as
shown in the attached Schedule 5.
3
SCHEDULE 1
Scheme Investment Performance
for the year ended 31 March 2021 (and 2020)
Investment Returns1
2021
2020
%
%
Defined Contribution Schemes
Pension National Scheme
22.49
(2.40)
Lump Sum National Scheme
22.53
(2.68)
Meat Industry Scheme
21.29
(2.51)
National Provident Pension Scheme
19.06
(2.00)
Defined Benefit Schemes
DBP Contributors Scheme
13.02
(0.95)
DBP Annuitants Scheme
(1.18)
0.29
Aircrew Scheme
12.93
(1.70)
Personal Schemes
Pension Cash Accumulation Scheme
17.78
(0.27)
Lump Sum Cash Accumulation Scheme
21.56
(4.22)
Note
1.
Returns are net of tax and expenses.
4
SCHEDULE 2
Investment Performance of the Separate Asset Classes
for the year ended 31 March 2021
Unit Fund
Actual Return2
Benchmark3
%
%
Alternative Assets
(1.19)
0.31
Cash
0.57
0.31
Fixed Interest
9.58
1.39
Fixed Interest No 24
2.95
1.06
New Zealand Equities
32.21
28.93
Overseas Equities
49.79
41.01
Notes
2.
Returns are for the unit funds of the National Provident Fund Global Asset Trust and are before tax and
expenses.
3.
The benchmarks comprise the indices used to measure individual manager performances. Details of
the various indices are as fol ows:
Alternative Assets
Bloomberg NZ Bond Bank Bil Index.
Cash
Bloomberg NZ Bond Bank Bil Index.
Fixed Interest
Barclays Capital Global Aggregate Bond Index ful y hedged to New Zealand
dollars.
Fixed Interest No 2
Bloomberg New Zealand Bond Swaps 1-3 Year Index.
New Zealand Equities
NZX 50 Gross with Imputation Credits Index.
Overseas Equities
MSCI World Net Dividend Reinvested, 55.6% hedged into New Zealand
Dol ars.
4.
Fixed Interest No 2 was closed in October 2020, therefore the returns are year to 30 September 2020.
5
SCHEDULE 3
Allocation of Costs (Expenses) to Existing Schemes
for the year ended 31 March 2021 (and 2020)
Expenses5
Expenses5
2021
2020
$000s
$000s
Defined Contribution Schemes
Pension National Scheme
883
866
Lump Sum National Scheme
895
847
Meat Industry Scheme
165
167
National Provident Pension Scheme
806
759
Defined Benefit Schemes
DBP Contributors Scheme
252
270
DBP Annuitants Scheme
645
629
Aircrew Scheme
198
208
Personal Schemes
Pension Cash Accumulation Scheme
123
131
Lump Sum Cash Accumulation Scheme
602
551
Note
5.
The expenses exclude some specific transaction fees charged direct to members’ accounts e.g.
extinguished liability transaction fees and transfer fees, as provided for in the schemes’ trust
deeds.
6
SCHEDULE 4
Reserve Positions of the Defined Contribution and
Personal Schemes as at 31 March 2021
Reserves to
Contributors’
Contributors’
Total Credits
Reserves
Total Credits
$000s
$000s
%
Defined Contribution Schemes
Pension National Scheme
471,286
30,930
6.56%
Lump Sum National Scheme
507,457
31,568
6.22%
Meat Industry Scheme
28,619
1,728
6.04%
Personal Schemes
Pension Cash Accumulation Scheme
15,442
512
3.32%
Lump Sum Cash Accumulation Scheme
286,075
16,921
5.91%
7
SCHEDULE 5
Solvency Position of the National Provident Pension Scheme
as at 31 March 2021
Net Assets
Pension
$000s
Actuarial
Solvency
Liabilities
Surplus6
Ratio7
$000s
$000s
%
National Provident Pension
409,734
345,088
64,646
118.7%
Notes
6.
At 31 March 2021, the National Provident Pension Scheme solvency position was 118.7%. Board policy
is to consider pension increases once the solvency position is over 110%.
The Board has determined not to increase the pensions in payment under the Scheme at this time. The
Board has requested Management develop a total financial management framework for the Scheme for
consideration by the Board, including the investment strategy and the approach to pension increases.
The Board wil then consider (by 31 March 2022), whether pensions should be increased and, if so, by
what percentage and from what date.
7.
Solvency Ratio = Net Assets ÷ Pension Actuarial Liabilities.
8