Fees and tax

The income you get from an investment is only one side of the equation. The other, of course, is cost. We monitor the scheme's costs and expenses closely. The size of the scheme means we can negotiate very competitive fees with our investment managers and other service providers. Fixed costs are shared among more than 9,500 members which also helps keep them low.

Scheme fees and costs fall into two categories:

Investment management costs

Administration costs

Management expenses relating to investing the scheme's assets. Expenses associated with operating and administering the scheme.

Investment management costs

Investment management costs are deducted from investment returns before they are applied to your accounts. They include the costs charged by the Mercer Investment Trusts New Zealand and the investment managers it uses to invest the assets of the scheme.

Investment management expenses vary from one option to another. The fees for the Stable option, for example, are lower than for the Growth option. This is because the types of investments in a stable fund tend to be held for a longer period before trading. Growth assets tend to be traded more frequently.

Investment option

Investment management cost per $100
invested (p.a.)

Growth 74 cents
Balanced 65 cents
Stable 43 cents
Cash Plus 21 cents

Updated 21 September 2017

Administration costs

Administration fees meet the cost of running the scheme. They cover a range of professional services, such as investment, audit and legal advice, as well as the cost of providing member services. This includes things like maintaining member and general scheme records, operating the member helpdesk and website and reporting to and communicating with members.
Type of fee


Monthly fee
The monthly fee is based on the amount based on the amount necessary to cover the cost of running the scheme.
Up to $5.50 per member per month
Transaction fees
Transaction fees are charged if:
  • You are paid a benefit
$62.24 per benefit calculation
  • You make a partial withdrawal
    This applies both to active and retained members
$62.24 per withdrawal
  • A registered charge is placed on your benefit
$31.08 per registered charge
  • You request a benefit quotation
    You can check your account balances at any time for free by logging into the secure part of this site.
$10.00 per quotation
  • You change your investment option (s) your account balances are invested in more than once in any scheme year (1 July to 30 June)
  • Changes to the investment of your future contributions are always free.
First switch each year: Free
Subsequent changes: $62.24 per switch

Contribution history
You can check your contribution history for the past two years online. Contact the helpline if you need a copy of your contribution history over a longer period.

Updated 8 January 2018

Fees are deducted from your employer's account if you have one or from your member's account if you don't. The exception is the registered charge fee which is deducted from your member's account.

The annual report and benefit statement we send to you each year lists any amounts deducted from your accounts.




Tax on employer contributions

Contribution tax is deducted from employer contributions before they are credited to your employer's account. The amount of the contribution tax varies, depending on:

  • your taxable income in the prior tax year (or an estimate of the current year's earnings if you have worked for less than a year), plus
  • employer contributions received.

The rates are:


Total income plus employer contributions

Rate (%)

Up to $16,800 10.5
Between $16,801 and $57,600 17.5
Between $57,601 and $84,000 30.0
Greater than $84,000 33.0

Tax on investment income

The investment income less deductible expenses is taxed at 28%. Under current tax legislation, you do not need to declare any payment from the scheme if you need to complete a tax return. This is because tax has been paid within 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.