retirement.org.nz

The outputs and performance standards for the Commission in 2007/2008 are provided below.  They are drawn from, and set out in more detail in, the Commission’s work programme for 2007/08.

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 Programme⁶

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

To provide a report to the Minister by 31 December 2007, and at 3-yearly intervals thereafter, on the retirement income policies being implemented by the government in accordance with section 83c of the New Zealand Superannuation and Retirement Income Act. (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.

Quality

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

The review of retirement income policies will be completed by 31 December 2007.

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:

• Provide 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.
• Report on the effectiveness of the Insurance and Savings Ombudsman, the Banking Ombudsman and others by June 2008.

Research Projects:

• Survey of Family Income and Employment (Sofie): In association with Treasury, work will continue on the analysis of the Sofie in 2007/08 to determine the adequacy of private financial provision for retirement.

Quality

Independent review panels will assess the draft national strategy and the appropriateness of the research projects.

Timeliness

Key dates as specified in the project plans will be met and reflect agreed priorities.

5.3 Education and Information

Description

The education and information part of the output class includes developing education and information programmes to improve public understanding of lifetime financial management; improve public 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.  A new range of Sorted brochures will be printed to help deliver Sorted information to those without Internet access.
• 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:

• Māori programme: based on the evaluation of the Ngāi Tahu-Retirement Commission programme being conducted, the Retirement Commission will provide advice to other iwi wishing to implement financial education programmes for young Māori in schools during 2007/08.
• 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.
• National strategy: to develop a national strategy for financial education in New Zealand. The strategy, led by the Retirement Commissioner with the assistance of an advisory committee, will identify what must be done to lift New Zealanders' financial literacy.

Quality

Maintain or increase percentage (63%) of Sorted visitors who find the website useful to some degree⁷. 

The effectiveness of education programmes will be measured through annual surveys.

Timeliness

Key dates as specified in the project plans will be met and reflect agreed priorities.

The personal financial education curriculum for schools will be completed by 31 December 2009.

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 Minister⁸ 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. 

Quality

A follow-up survey of retirement villages and their residents will be carried out by June 2008, to measure resident satisfaction and knowledge of their financial and legal arrangements.

5.5 Workplace Financial Education Programme

Description

The 'workplace financial education programme' part of the output class includes the provision of education material to employees including 'at risk' groups, employers, self-employed and information conduits, so that individuals can make informed decisions on participation in KiwiSaver or other savings options in the context of their wider personal financial situation.

Key Deliverables

• Implement the strategy and workplan for 2007/08 in consultation with relevant interest groups.
• Add specific information, tools and employer resources on KiwiSaver to the Sorted website, to help employees make an informed decision.
• Deliver the programme through a 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. 

Quality

The effectiveness of the workplace education programme will be measured by KiwiSaver evaluation showing at least 50% of employees report that they had enough information to make an informed decision about workplace savings, as measured by 12 and 24 months after July 2007.

Timeliness

The workplace financial education programme is currently funded to 30 June 2008.

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 2007/08 Output Agreement.

Particular measures will include:

Quantity

• Average number of monthly visits to Sorted website – 80,000 to 120,000.
• Average number of retirement income related calculations made on Sorted each month – 240,000 to 300,000.
• 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.
• Retirement village disputes panel members maintained and overseen.
• One personal financial education curriculum for schools.
• One national strategy for financial education in New Zealand.

Cost

The above output will cost $6.264 (excl GST) in 2007/08, 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.