The Pension National Scheme is a defined contribution scheme. The benefits payable by your scheme are guaranteed by the Government.
The earnings rate declared by the Board for the scheme for the year ended 31 March 2019 was 4.0% on Members' Total Credits as at 1 April 2018, and 1.6% on contributions paid during the year. The investment return (after tax and operating expenses) earned by the scheme for the year ended 31 March 2019 was 3.57%.
The Locked-in section of the Pension National Scheme was created on 1 July 2007 as an alternative to KiwiSaver. The Locked-in section has many of the benefits of KiwiSaver, but also has the Government guarantee and the 4% minimum earnings. These two features are hallmarks of the NPF schemes and are not available to KiwiSaver.
How your money is invested
The scheme's asset allocation strategy is set by the Board and reviewed regularly. The asset allocation strategy for the scheme was reviewed during the year. The pie chart shows the scheme’s asset allocation strategy effective from 1 May 2018 and the new strategy effective from 1 October 2018.