The Ministry of Business, Innovation and Employment (MBIE) has released a discussion document as part of a scheduled review of the six current KiwiSaver default providers, whose appointments expire at the end of June 2014. Submissions are open until 24 December 2012.
MBIE is seeking submissions on whether changes should be made to the default KiwiSaver provider arrangements. The discussion document focuses on three key areas:
the objective of the default fund, particularly in the context of whether it should focus on capital preservation or long-term retirement income maximisation;
which would be the more suitable investment strategy for a default fund – balanced, aggressive or life-cycle based - If retirement income maximisation is the agreed objective; and
the impacts of fund size, scale and fees on final accumulation balances, including institutional architecture questions – notably, how many default providers there should be.
MBIE are also asking for submissions on how to transition members into any new arrangements.
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