NEW ZEALAND - Parliament has given finance minister Michael Cullen the green light to develop the New Zealand Superannuation Fund.
In his May 2001 budget, Cullen committed NZ$600m ($252.9m) to the new fund, a move that is likely to create opportunities for international managers.
The initial $600m contribution, along with a further NZ$1.2bn ($505.7m) earmarked for the New Zealand Superannuation Fund next year, is likely to remain with the government’s Debt Management Office until the New Zealand Superannuation Fund can be established.
The fund will be managed by a Crown entity and will exist for every person who attains the age of 65 years. The Government treasury will open a Crown bank account for the fund at any bank or banks that Cullen may direct.
No capital withdrawal is allowed from the New Zealand Superannuation Fund before July 2020.
Under current arrangements, annual payments into the fund are expected to rise from their current levels of about 4% of GDP to around 9% of GDP over the next 50 years.
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