A review New Zealand and international markets for the quarter ended 30 June 2024 from our investment manager, Mercer. Read now

Predicting returns over a single year is always fraught, as demonstrated by Mercer’s periodic table of investment returns. Produced each year, the table colour codes 16 major asset classes and ranks how each performed on an annual basis over the last 10 years. The table illustrates the adage that past performance is not a reliable indicator of future returns. Let’s look at a couple of examples: New Zealand equities and global equities.

The volatility experienced this year is not unusual or extreme 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 single day and fell as much as 11.98%. Sharemarkets move in broad cycles known as bull and bear markets. A bull market is when share prices are generally rising and investors are optimistic. A bear market is when share prices are generally falling and investor sentiment turns negative. The trouble is that it’s very difficult to predict when these cycles will begin and end.

Late last year, several media outlets reported a rise in the number of significant financial hardship applications from KiwiSaver members as cost of living pressures began to bite. We’ve noticed a similar trend.

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).

With the support of the Commissioner and service organisations, we've amended the trust deed to allow members to access their savings from age 65 while still in service.

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.

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.

You’re eligible for employer contributions while on parental leave and some other kinds of leave without pay. You just need to pay the member contributions you’ve missed. For most members, Police contributes around $1.35 (after tax) for every dollar you make up, so it’s well worth making up your contributions if you can. 

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 contributions which totalled more than $4 million last year. You can make additional voluntary contributions of between 1% and 10% of salary. Complete the following form and return it to Payroll.

• Constabulary members: voluntary contributions form
• Non-constabulary members and savings contributors: vary contributions form

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, but still top up their KiwiSaver 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.

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.

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.