About the Police Superannuation Scheme


Police has a unique working environment with its own challenges and pressures. In your line of work, looking out for each other is a given. The Police Superannuation Scheme (PSS) fits with that ethos. Set up in 1992, it gives everyone who works for Police the opportunity to protect their financial future and provide for life after Police.

Here is a quick overview of the main features of the scheme. These are covered in detail elsewhere on the site.

Contributions

 

How much you need to contribute to the scheme – and how much Police may contribute on your behalf – varies depending on your membership category.

If you are an employee of Police in training to become a constabulary employee, you will join the scheme as a 'recruit' when you enter the Police College. You automatically become a 'standard constabulary entrant' on graduating. Membership is compulsory for recruits and new constabulary employees.

Membership is voluntary if you are a Police employee (including an authorised officer). In this case, you would join the scheme as an 'optional entrant'.

 

Member category Member contribution rates (% of salary)
  Member contribution Employer contribution (before tax)
Recruit/standard constabulary entrant 7.5% 15.2%
Optional entrant1 6.0% 12.5%

 

1If you are an optional entrant, the employer's contribution comes from within your existing total renumeration.

Benefits

 

The main purpose of the scheme is to provide a benefit when you retire from Police. However, the benefit is the same whatever the reason you leave. This includes retirement, resignation, dismissal, redundancy, medical disengagement or death.

Your leaving benefit is based on the accumulation of contributions made by you and Police (if any), together with investment earnings (interest).

You can continue to invest your savings in the scheme after you leave service if you wish, however you cannot continue to make contributions.

Under certain circumstances you may be eligible for a benefit before you leave Police.

Investment options

 

There are five investment options for you to choose from. You can choose:

  • one (or more) of four options each with a different mix of assets and risk/return profile, or
  • Super Steps – where the mix of investments changes automatically based on your age.
 

Let's look at those options in a little more detail.

Options based on risk and return

You can choose to invest your savings in one, or a combination, of these options:

  • Growth
  • Balanced
  • Stable
  • Cash Plus

Each of these investment options has a different mix of assets and has a different 'risk and return' profile. Generally, the higher the expected return from an investment, the greater the variation in return from month to month or year to year (called 'volatility').

Growth assets, like shares, tend to produce the highest long term returns but with the greatest fluctuations. So, if you choose Growth, which as you'd expect invests mainly in growth assets, there's a strong possibility your benefit will reduce in value some years and have strong growth in others.

At the other end of the scale is Cash Plus, which invests in bank deposits and short term fixed interest investments. Cash and fixed interest are known as income assets. Income assets tend to produce lower returns in the long term, but with less volatility.

Remember, while growth assets tend to be more volatile than income assets, all asset classes can sometimes produce negative returns.

Super Steps – the age-based option

With Super Steps, your savings are invested automatically in one, or a combination, of Growth, Balanced and Stable depending on your age. Up until age 45, your savings are invested solely in Growth. From then your savings are switched progressively to Balanced and later Stable as you get older.

Changing your investment options

You can change your investment choice any time by signing into your account.

Fees and expenses

 

We keep a close eye on the scheme's costs and expenses to make sure they are fair and reasonable. This is helped by the size of the scheme which means we can negotiate very competitive fees with our service providers. It also means fixed costs are spread among many members which also helps keep them low.

Scheme fees and costs fall into two categories:

Investment management costs

These are fees and costs relating to investing the scheme's assets. Investment management costs are deducted from investment returns.

Administration costs

Expenses associated with operating and administering the scheme. Administration costs are paid from your employer's account if you have one, or from your member's account if you don't.

 

Find out more

 

See the Product disclosure statement for detailed information about the scheme.

 

This website is provided by Mercer (N.Z) Limited on behalf of the trustee of the Police Superannuation Scheme (PSS). The trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.

PSS Trustees Limited is the issuer of the Police Superannuation Scheme (PSS). A copy of the PSS product disclosure statement is available under Documents and forms and at companiesoffice.govt.nz/disclose.