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Vote: Government Superannuation Fund


This Document is Archived


Report of the Ministry of Economic Development for the Year Ended 30 June 2000

[ Last Updated 10 February 2006 ]


Breakdown of Actual Expenditure

Breakdown of Actual Expenditure

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.

During the year GSF business systems and schemes policies were reviewed to ensure quality and continuity of client services. In April 2000 the Government approved the diversification of the GSF investment portfolio with new governance arrangements for the Fund.

Output Class D1 - Management of the Government Superannuation Fund

This output class provides superintendent services, investment management and scheme management services for the Government Superannuation Fund (GSF).

Outputs in this class are:

  • policy advice on the operation of the Government Superannuation schemes;
  • exercise of the statutory powers of the Superintendent of the Government Superannuation Fund;
  • management of the contract between the Crown and the Administrator of the Government Superannuation schemes; and
  • management of the investment and custody of the assets of the Government Superannuation Fund.

A key activity performed during the year was the publishing of a revised and comprehensive Government Superannuation Fund schemes policy statement.

Quantity, Quality, Timeliness and Cost

Performance MeasuresPerformance StandardsActual
Quantity   
Ministerial Correspondence50 (estimated)27
Parliamentary Questions15 (estimated)14
Policy Advice   
Policy advice and briefings will be delivered in accordance with the prioritised requirements of a work programme negotiated with the Minister.Delivery of policy advice in accordance with the terms of the work programme agreed with the Minister.Achieved.
Coverage   
Provision of a comprehensive service which has the capacity:
to react urgently;

to offer timely and relevant briefings on significant issues; and

to give ministerial services and support as required.		   
Quality   
The Ministry's Policy Framework provides that advice has the quality characteristics above.The Minister's feedback is within the range (4) "met expectations" to (5) "fully met expectations" in the quarterly review of the Ministry's performance.22The Minister gave the Ministry a rating of (2) for the policy services provided during the fourth quarter. No other assessments have been received.
Timeliness   
Reports and oral advice to the Minister are delivered within the timeframes required by, and agreed with, the Minister.100%Achieved.
Draft ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.100%Achieved.
Where only an interim reply is possible a final reply shall be provided within the following timeframes.90% within 20 working days of the original receipt in the Ministry; and

100% within 30 days of receipt in the Ministry.		Achieved.
Ministerial servicing in the form of letters and parliamentary questions is undertaken as required by the Minister.An acceptance rate of 100% is achieved in respect of first drafts.Achieved.
Investment Management   
Quantity   
All GSF assets, valued at $3.5 billion, will be invested in accordance with the Minister's investment policies.100% compliance at Investment Committee Review.100%
Quality   
The return achieved on Fund assets.Meet or exceed the relevant agreed industry benchmarks.Exceeded the CSFB index by 18 points.
Timeliness   
Six-monthly reports on compliance and performance submitted to the Minister.By 20 October 1999 and 20 February 2000.Achieved.
Exercise of Statutory Powers   
All cases referred to the Superintendent for determination by the Schemes' Administrator.Demand driven, it is estimated that 700 cases will be dealt with.250
Quality   
Compliance with the Act and Regulations and with published policies.All decisions referred to Appeals Board upheld.Achieved.
Timeliness   
Cases referred to the Superintendent.90% determined within five working days of receipt.Achieved.
  100% determined with one month of receipt.98% (Determination after one month of receipt in four cases.)
Contract Management   
Quantity   
Comprehensive management of the administration contract.All contractual requirements met as evidenced in monthly and quarterly reports.Achieved.
Quality   
Ensuring compliance by the Schemes' Administrator with contractual provisions.Performance report required by section 32A of the Public Finance Act 1989.The Deloitte Touche Tohmatsu performance review did not highlight any major issues.
Timeliness   
Advice to the Minister on non-compliance is timely.Within five working days.No instances of non-compliance.

Cost

(Figures are GST exclusive)

  2000
Main
Estimates		2000
Supple-
mentary
Estimates		2000
Actual		1999
Actual
  $000$000$000$000
Revenue:       
Crown1,2831,5831,5831,086
Other1,8621,5621,8862,396
Total Revenue3,1453,1453,4693,482
Expenses:       
Annual appropriations3,1453,3953,3903,376
Other appropriations----
Total Expenses3,1453,3953,3903,376
Net Surplus/(Deficit)-(250)79106

Source of Revenue Other

$000
Interdepartmental Revenue1,408
Rental from sub-let of office space465
Miscellaneous13
  1,886

Major Budget Variances

The Supplementary Estimates adjustment provides for a technical adjustment to write off a receivable incorrectly raised against the GSF Fund for expense recovery during the last financial year.

22The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.


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