“It’s time in the market, not timing the market, that matters.”

Share prices, as measured by indices like the S&P 500, have ticked up since April but are still well below February’s peak and remain volatile. The volatility experienced this year is not unusual by historical standards. For example, in March 2020, share prices as measured by the S&P 500 index jumped by as much as 9.38% in a single day and fell as much as 11.98%. Given the current market volatility, we think it’s worth illustrating the danger of trying to time the market either by moving to a more conservative or higher-risk option. It is wiser to make a choice based on your long-term goals and stay the course. Read more

Investment switches do not happen in real time even if you make the change online. If you decide to change your current investment, your account balance will be valued based on the unit price for the day you request the change, which is typically known two business days later. Your online account shows an estimated balance based on the latest available unit price, which could be two days old, so your balance will always be different at the time your switch (or withdrawal) takes effect. The value of your holdings may have increased or decreased when the change is processed. This is something to be aware of and important to consider particularly during times of increased market volatility.

Recruits and constabulary employees now have the option of reducing standard employee contributions from 7.5% of salary to 5%, 3% or 0%. Deductions will continue to be made from your pay at the default rate of 7.5% unless you make a change. 

A review New Zealand and international markets for the year ended 31 March 2025 from our investment manager, Mercer.

Investment markets navigated significant volatility and transformation, influenced by economic trends, geopolitical events, and shifting monetary policies during the year ended 31 March 2025. 

The year began with positive economic momentum as equity markets continued to experience growth, despite concerns about resurgent inflation and an overheating US economy. As inflation fears subsided, major asset classes generally posted favorable returns with large-cap developed market equities leading the way. Read more

There are several ways to measure PSS performance against its KiwiSaver peers. One is to track where PSS funds sit against KiwiSaver funds ranked from lowest to highest. Over the long term, we expect to place consistently in the second quartile (top 50–75%) of KiwiSaver funds with a similar mix of assets.

Employer Superannuation Contribution Tax (ESCT) is deducted from employer contributions before they are paid to PSS. The tax rate depends on your personal income. ESCT is not applied in the same tiered way as personal income tax rates and only one rate applies to the total amount of the employer contribution. Income thresholds for the various ESCT rates changed on 1 April 2025. They have increased by between $2,000 and $10,000 with no change for those earning over $216,001.

The Office of the Retirement Commissioner recently launched its strategy to help New Zealanders improve their financial preparedness and wellbeing. This year, we’ll be covering a series of topics that support that strategy. One goal is to help build resilience for the unexpected, including encouraging more emergency savings. Murphy’s law says that the car/washing machine/hot water cylinder never blows up at a time that’s financially convenient. PSS offers a partial withdrawal facility that may provide an avenue of support if life throws you a curve ball. However, there are limits on withdrawals, so you might also want to think about building up an emergency fund over time. A rule of thumb is to salt away enough cash to cover 3 months’ worth of expenses. This article by financial journalist Mary Holm includes some tips and tricks.

Your investment mix will change on 1 April if you’re invested in Super Steps and you’re aged 45 or over. Super Steps is a ‘set and forget’ investment option where your investment mix changes automatically as you get older. From age 45, your investments are gradually transitioned from mainly growth assets to mainly income assets at 64. The change happens on 1 April each year rather than on your birthday or the anniversary of the date you joined the scheme.

• Read more about Super Steps

Late last year, our administration manager Mercer moved to a login system that uses a combination of a password of your choosing and the email address it has on file. The first time you log in to your account following the change, you’ll be asked to follow a once-only authentication process. First, you’ll be asked to enter your member number, date of birth and the email address you have registered with PSS (your QID email, another Police email or your personal email). Then, you’ll be prompted to set up your security methods: email, password and mobile phone number. This allows for multi-factor authentication which provides an additional layer of security. For example, if you attempt to log in from a new device, we’ll send a verification code by email or SMS just to make sure it’s you. Contact the helpline if you have trouble with the authentication process.

It's been widely reported in the New Zealand media that cost of living pressures have seen a rise in the number of significant financial hardship applications from KiwiSaver members. We’ve noticed a similar trend.

As you know, you can use your savings as security for a loan with the Police and Families Credit Union or other lender. If you do, a charge is registered against your account. This gives the lender the option of having any outstanding balance repaid at the time you make a withdrawal from the scheme. When you apply for a benefit, Mercer contacts the lender. The lender assesses the security of the loan and either authorises Mercer to process the payment or contacts you if an amount needs to be repaid or retained in your account as security. If there’s a charge against your account, Mercer needs to follow this process whether or not you have repaid the loan. Expect your payment to be delayed by up to a week while the charge matter gets sorted.

You’ll be aware that, after 3 years’ membership of the scheme, you are entitled to make partial withdrawals from your member’s account subject to certain limits. There is a second benefit still in play that was introduced before the partial withdrawal facility. The in-service benefit allows you to make one withdrawal from your member’s account on reaching age 45 and/or 20 years’ service. However, the limits on these withdrawals are intertwined – they apply across both benefits. Our current policy is that each amount you withdraw under these benefits will be expressed as a percentage of the total amount available on the occasion of that withdrawal. When the aggregate sum of all withdrawals under these benefits reaches 100%, subsequent withdrawals are limited to 5% of your member’s account balance each year. For example, if you meet the criteria for an in-service benefit and have previously made partial withdrawals totalling 60% of your member’s account balance, the most you could withdraw as an in-service benefit is 40% of your member’s account balance.

PSS offers all members (including retained members) access to a limited financial advice service provided by Mercer. Its financial advice team can help with questions about PSS and KiwiSaver, choosing the best investment option for your circumstances, saving for a first home, managing your PSS funds in retirement and more. The team can provide specific advice in relation to your savings in PSS and general information on other types of financial products.

You can change your investment choice online by signing in to your account or downloading a form from our website. You can choose one (or more) of five investment options, each with a different mix of assets, or Super Steps where the mix of investments changes automatically based on your age. You can choose a different strategy for your current account balances and for future contributions (unless you select Super Steps where this doesn’t apply). Make sure you read this part of the form carefully and double check your choices before you submit the change online or send in the completed form.

We will pay your benefit to your legally nominated personal representative(s) if you die while you are an active member of PSS or while you are entitled to a deferred benefit from the scheme. ‘Personal representative’ means the person(s) granted probate (where the deceased left a will) or letters of administration (where the deceased did not leave a will).

It’s never too early – or too late – to start planning for retirement. The Financial Services Council’s retirement planning guide might be a useful starting point to help get you thinking about how you might create an income in retirement.

The scheme is a popular way of salting away extra cash either for a first home or for retirement. Around one in 10 members choose to make additional voluntary employee contributions which totalled more than $4 million last year. You can make voluntary contributions of between 1% and 10% of salary (in increments of 0.5%) as regular deductions from your pay.

• Constabulary members can start making or change voluntary contributions online via the MyPolice Employee Self Service portal. Look for the 'Superannuation' tab under 'My Services'.
• Optional entrants and savings contributors can start making or change voluntary contributions by completing a vary contributions form and returning it to payroll.

Regulations mean that we can’t accept contributions from retained members.

Most PSS members are also in KiwiSaver. Many choose to take a savings suspension from KiwiSaver, but still top up their account by $1,042.86 each year (around $20 a week), so they qualify for the full government contribution of $521.43. If you’re not already in KiwiSaver, there’s nothing to stop you joining so you can take advantage of this extra money from the government. However, you will have to contribute 3% of your salary for a year before you can take a savings suspension. Read more about PSS and KiwiSaver.

We can only pay benefits into an account in your name. This means we cannot pay benefits into family trust accounts, business accounts or accounts in someone else’s name. That’s why we need to ask for supporting evidence of your bank account details when you make a withdrawal, and it also helps prevent a slip-up in transcribing your account number. The evidence needs to show the name the account is in and the bank account number. The simplest way is to take a screenshot from your internet banking or a photocopy of the top of a bank statement or ask your bank to print and sign a verification of account slip. Once Mercer has this information on file, you won’t need to provide it again unless you change your account. This extra step is designed to help protect members against fraud. It’s also required by our auditor.