Cook Islands superannuation pension rate reduced

The new pension rate for members turning 60 years of age from March 1, 2018, is reducing from NZD$69 to NZD$67 per NZD $1000 invested.

This new rate will not affect existing pensioners, confirmed Terai Nga, client services officer at the Cook Islands National Superannuation Fund.

Nga said the reduction in the pension rate reflected the increase in life expectancy from the Actuarial Review.

The review dated November 2, 2017 was prepared by Aon New Zealand trading as Aon Hewitt.

It was done at the request of the board of Fund and the trustee of the Fund. This review was conducted as at December 31, 2016.

“To value pensioners’ mortality, I have used the 2010-12 New Zealand Life Tables for Maori Population, consistent with the previous actuarial investigation,” said Marcelo Lardies, who prepared the review.

“The only change to assumptions used in the previous actuarial investigation to value the pensioners’ benefits was a decrease in the rate to value pensions from 5.5 per cent to 5.25 per cent, which increased the liability by approximately NZD$97,000.”

Aon Hewitt, in providing this report, advised that any person accessing this report acknowledges that they cannot rely on the information contained in the report for any purpose other than what is stated in the report and also, there are no data privacy issues.

Aon Hewitt has taken care in the production of this document and the information contained in it has been obtained from sources that Aon Hewitt believes to be reliable.

Aon Hewitt does not make any representation as to the accuracy of the information received from third parties and is unable to accept liability for any loss incurred by anyone who relies on it.

“The new pension rates will take effect from March 1, 2018, and will only be applied to members applying for a pension from March 1, 2018. Existing pensioners will not have any changes made to their pension rates,” Nga said.

“The new pension rate for members turning 60 years of age from March 1, 2018, reduces from $69 to $67 per $1000 invested. This reflects the increase in life expectancy from the Actuarial Review.”....PACNEWS


SOURCE: COOK ISLANDS NEWS