Vote: Government Superannuation Fund
Key
Departmental Output Class
D1 Management of the Government Superannuation Fund
Non-Departmental Activities
Output Class O1 - Administration of GSF Schemes
The GSF is engaged to manage the Crown's interest in the Government Superannuation Fund by:
- maximising the value of the Fund within the investment guidelines of the Minister of Finance; and
- maintaining and improving the integrity of the administration of the schemes, taking into account the potential risks to the unfunded liability of the Fund.
Output Class D1 - Management of the Government Superannuation Fund
This output class provides superintendent services, investment management, scheme management services for the Government Superannuation Fund (GSF), and support to establish the GSF Authority.
Outputs within this class are:
- policy advice on the operation of the GSF;
- establishment of the GSF Authority;
- exercise of the statutory powers of the Superintendent of the GSF;
- management of the contract between the Crown and the administrator of the GSF schemes; and
- management of the investment and custody of the portfolio of the GSF.
Under the GSF Amendment Act 2001 there was a change in governance for the GSF and the GSF moved from the Ministry of Economic Development to a new Crown entity, the GSF Authority, on 2 October 2001. Accordingly, the following performance measures reflect only the period 1 July 2001 - 1 October 2001.
Quantity, Quality, Timeliness and Cost
Details of performance against the generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the section Policy Advice and Ministerial Servicing.
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister.
Key deliverables in the work programme for the year included:
Establishment of the GSF Authority
Preparation work for the transition of the GSF from the Ministry of Economic Development to the new GSF Authority was successfully completed with all investments of the Fund transferred to the new Custodian of the Authority (J P Morgan) from 2 October 2001.
Schemes Management
Quantity
Number of cases for determination:
- 82 (75) cases were referred to the Superintendent for determination by the Scheme's Administrator.
Numbers are demand driven.
Quality
Compliance with the Act and Regulations and with published policies - 100% (90%) of all decisions referred to the Appeals Board were upheld.
Timeliness
Cases referred to the Superintendent for determination by the Scheme's Administrator:
- 97% (90%) were determined and AXA New Zealand Limited advised within five working days of receipt;
- 100% (100%) were determined and AXA New Zealand Limited advised within one month of receipt.
Contract Management
Quantity
Comprehensive management of one administration contract - all contractual requirements were met as evidenced in monthly reports.
Quality
The Scheme's Administrator complied with the contractual provisions.
Timeliness
Advice to the Minister on non-compliance is to be provided within five working days.
There were no instances of non-compliance.
Investment Management
Quality
All GSF assets, valued at $3.4 billion, were invested in accordance with the Minister's investment policies. A revised schemes policy document was published.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | - | 954 | 478 | 5,666 |
| Other | - | - | 475 | 1,727 |
| Total Revenue | - | 954 | 953 | 7,393 |
| Expenses: | | | | |
| Annual appropriations | - | 954 | 953 | 7,393 |
| Other appropriations | - | - | - | - |
| Total Expenses | - | 954 | 953 | 7,393 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| 2002 | 2001 |
|---|
| | $000 | $000 |
| Inter-departmental revenue | 309 | 1,266 |
| Rental from sub-let of office space | 155 | 426 |
| Miscellaneous | 11 | 35 |
| Total Revenue Other | 475 | 1,727 |
Major Budget Variances
The Supplementary Estimates increase provided for expenditure incurred by the Ministry of Economic Development up to 1 October 2001 to provide services including the purchase of policy advice, ministerial servicing, investment management, contract management and statutory decision-making in respect of the GSF Schemes and to meet costs incurred in establishing the GSF Authority prior to it coming into existence on 2 October 2001.
Back to Top