retirement.org.nz

Forecast Statement of Service Performance

The outputs and performance standards for the Commission in 2006/2007 are provided below.  They are drawn from, and set out in more detail in, the Commission's work programme for 2006/07. 

The Retirement Commission provides services under the following output areas:

• Advice to its responsible Minister
• Research and Monitoring
• Education and Information
• Retirement Villages
• Workplace Financial Education Programme⁴

Outputs

5.1 Advice

Description
The advice part of the output class includes advising and reporting to the Minister on retirement income and related issues.

Key Deliverables
Review the retirement income policies being implemented by the Government (for more detail, see 'Our goals and outcomes' in Part 1 of this Statement).

Advice as may be requested by the Minister, or provided to the Minister by the Commissioner.

5.2 Research and Monitoring

Description
The research and monitoring part of this output class includes continuing to develop the Retirement Income Research Centre, monitoring trends in levels of awareness, knowledge, attitudes and behaviours relating to retirement planning.  It also includes monitoring the effectiveness of private sector financial ombudsmen.

Key Deliverables

Ongoing Activities/Projects 

• Undertake research and monitoring programmes that meet the needs of the 2007 review.
• Operate and promote the Retirement Income Research Centre and its website www.retirement.org.nz.   The Centre will be available for use by researchers, policy analysts and the financial services industry.
• Evaluation of the communications programme: The Commission will regularly monitor the effect its education and information programme on personal financial planning and financial preparation for retirement is having on the awareness, knowledge, attitudes and behaviours of New Zealanders. 

Research Projects

• Update the report Saving in New Zealand.
• Survey of Family Income and Employment (Sofie): In association with Treasury, analysis of the Sofie will be undertaken in 2006/07 to determine the adequacy of private financial provision for retirement. 

5.3 Education and Information

Description
The education and information part of the output class includes developing education and information programmes to improve the public's understanding of lifetime financial management; improve the public's knowledge of how to go about financial planning; encourage those who can to make voluntary savings; and encourage other organisations to have similar goals. 

Key Deliverables

'Sorted'

• Website: the Sorted website will be regularly refreshed and updated.
• Promotional component:  broadcast, online and print advertising and public relations are the ways the Commission draws attention to its education programme and the material on the Sorted website.

Other Educational Activities

• Maori programme:  the joint Ngai Tahu-Retirement Commission programme funded by Te Puni Kokiri for young Maori in schools will continue to be provided in 2006/07.
• Pathways to Financial Literacy programme: through Enterprise New Zealand Trust provides participating schools with resources aimed at improving the financial literacy of senior secondary school students.
• School Financial Curriculum programme: is aimed at providing teaching strategies and resources that can be used within the current curriculum to teach personal financial skills.  This will include teacher training.  

5.4 Retirement Villages

Description
The Retirement Commissioner has advisory, monitoring, education, and appointment of disputes panel functions under the Retirement Villages Act 2003.

Key Deliverables

• A monitoring and research programme on the effects of the Act, regulations and Code of Practice when in force.
• Advice to the Minister⁵ when requested or required by the Act.
• An education programme aimed at informing residents and intending residents, operators and advisers as appropriate. 
• Approving and overseeing suitable people for appointment by operators to disputes panels. 

5.5 Workplace Financial Education Programme

Description
The 'Workplace Financial Education Programme' part of the output class includes development and delivery of education and information programmes that improve workers' understanding of lifetime financial management; improve workers' knowledge of how to go about financial planning; encourage workers to consider saving options offered through the workplace and encourage those who can to make voluntary savings; and encourage employers and others to provide financial education in the workplace.

Key Deliverables

• Finalise a full programme strategy and workplan for 2006/07 in consultation with relevant interest groups.
• Enhance the At Work section of the Sorted website to include information on work-based savings schemes.
• Deliver the programme through a possible mix of printed educational information, workplace and public personal finance seminars, other financial educational information, employer packs and similar programmes.
• Evaluate and monitor through research to inform the development and delivery of this programme. 

Performance measures

All outputs will be delivered in accordance with the Output Agreement to be negotiated annually between the Minister for Social Development and Employment and the Retirement Commissioner.  More detailed performance and quality measures and reporting requirements will be included in the 2006/07 Output Agreement.

Particular measures will include:

Quantity

• Average number of monthly visits to Sorted website - 70,000 to 90,000.
• Average number of retirement income related calculations made on Sorted each month - 200,000 to 250,000⁶.
• Four major research and monitoring projects, including the review of retirement income policies required under section 83 (c) of the New Zealand Superannuation and Retirement Income Act 2001.
• One financial education programme for the New Zealand workforce as approved by the Minister for Social Development and Employment.
• Up to twelve retirement village disputes panel members approved.
• One personal financial education curriculum for schools.

Quality
Maintain or increase percentage (63%) of Sorted visitors who find the website useful⁷. 
Independent review panels will assess the appropriateness of the research projects.
The effectiveness of education programmes will be measured through annual surveys.
The review of retirement income policies meets the requirements of the New Zealand Superannuation and Retirement Income Act 2001, and the requirements of the terms of reference specified by the Minister.

Timeliness
Key dates as specified in the project plans will be met and reflect agreed priorities.
The review of retirement income policies will be completed by 31 December 2007.
The retirement village disputes panel members will be approved prior to the relevant sections of the Retirement Villages Act 2003 coming into force.
The personal financial education curriculum for schools will be completed by 31 December 2009.

Cost
The above output will cost $7.602m (Excl GST) in 2006/07, with the shortfall in Crown funding (see Forecast Financial Statements) being made up from the Commission's third party revenue, along with retained earnings from previous years.

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4.  This output is one of a number of initiatives being undertaken to coincide with the introduction of KiwiSaver in 2006/2007. In keeping with the Commissioner's statutory role, the focus will be on generic financial education rather than promoting a particular financial product or range of products.
5.  Minister for Building Issues.
6.  These figures have been updated from those in the 2006 Estimates of Appropriations.
7.  2005 Visitor Perceptions of Sorted Website. AC Nielsen