Frequently Asked Questions
Contributions
Can I
transfer my other retirement savings to the IRP?
Can my employer contribute?
Can I make additional payments?
Can
I change my contributions?
Can I suspend my contributions?
Can I get advice on how much to
save for retirement?
Can
I transfer my other retirement savings to the IRP?
Yes - You can transfer all or part of your retirement
savings from any other retirement savings plan or superannuation
scheme to the IRP with the permission of the Plan's Trustees
(and the permission of the other scheme trustees).
Can
my employer contribute?
Yes - Some employers like to encourage their
employees to save for their retirement by paying some
of
the fees and/or making additional contributions into your
Member Account. They can also help by allowing salary
deductions for your own contributions.
Can
I make additional payments?
Yes -You can make a lump sum payment (there
is no minimum or maximum amount) to the IRP anytime. Just
complete a Lump
Sum Contribution Advice form
Can
I change my contributions?
Yes - You can change your contributions
whenever you choose - to suit your changing lifestyle,
earning and spending needs. There is no minimum or maximum
amount.
If
you would like to change your contributions to the IRP,
simply change your bank payments by completing the attached regular
contribution advice and direct debit form or talk to
your employer about changing your salary deductions.
Can
I suspend my contributions?
Yes - You can stop, suspend and restart your
contributions whenever you choose. This means that you
can stop contributing to the Plan altogether, or you can
suspend your contributions for a certain period (while on
parental leave, study leave, or in between jobs), and your
Member Account will continue to have earnings applied at
the end of each Plan year. However, monthly administration
fees will continue to be deducted from your Member Account
while you are not contributing.
Can
I get advice on how much to save for retirement?
Yes - The Retirement Commission has an excellent
website that helps you to check that you are on track with
your savings plan and whether your current savings mean
that you will achieve the retirement income you want.To
get your money matters sorted, reach for your mouse and
visit www.sorted.org.nz
Member
Account
What
is my 'member account'?
When do I get a statement of
my account balance?
Can I get an account balance
any time?
Can
my account balance ever decrease?
What
happens if my member account reaches zero?
Can I borrow against my member
account?
Can I put my spouse's name on
my member account?
What
is my 'member account'?
When you join the Plan, we'll set up an individual
Member Account under your name. This account receives:
-
All
your regular contributions
-
Any
additional payments you make (including transfers from
other schemes)
-
Any
contributions paid by your employer on your behalf or
for your benefit
-
IRP
investment earnings credited to you (in some circumstances
this could be a negative amount).
The
Plan's fees and expenses are deducted from your Member Account
(or from the Plan's investment earnings before the return
is credited to your Member Account) - unless your employer
chooses to pay any of the fees for you.
When
do I get a statement of my account balance?
Each year as at 30 June, we prepare the IRP's
annual financial accounts. The Trustees determine the annual
investment returns, your share is then credited (or debited)
to your Member Account and the IRP's Annual Report is produced.
Once
this is complete, you'll receive a member statement with
details of your Member Account balance as at 1 July and
an Annual Report. Usually this is around September/ October
each year. See the Plan's latest Annual
Report ([PDF]).
Can
I get an account balance any time?
Yes - If you want to check on your current account
balance you can do this on line right here through the “Current
IRP Members” section. This will link you directly
to the IRP Administration Manager's (Jacques Martin) website
for the Plan and your details on the administration system.
Only you can view your account balance - you'll need to
have your IRP personal member contract number and password
ready.
Alternatively you can telephone (0800 477111) or fax (04
381 0501) Jacques Martin, the Plan Administration Manager,
for your account balance details. In either case you will
need to provide your full name, date of birth, and personal
member contract number in order for Jacques Martin to release
account details.
Can
my account balance ever decrease?
Yes. However, this is not expected to happen
over the long term (unless you stop contributing). The
nature of market-linked investments (such as the IRP) is
that their values will fluctuate (in response to the rise
and fall of the market) and if there was a significant fall
in the value of the Plan's investments your account balance
could be reduced. But in the long term the balance in your
Member Account should be greater than the amount you have
invested.
The
Trustees do not guarantee payment of any particular amount
if you withdraw from the Plan. Adverse market conditions
may reduce the value of your investments - that is why your
IRP investment should be considered a medium to long-term
decision.
What
happens if my member account reaches zero?
Your membership will automatically
cease after your Member Account balance and any insurance
benefits are paid out to you, or if for any other reason
your Member Account balance reduces to zero or below.
Can
I borrow against my member account?
No. You can't sell your investment or benefits
in the IRP to any person or entity or assign it as security
for a loan.
Can
I put my spouse's name on my member account?
No. A Member Account can only be in one name.
However, you can set it up in your spouse's name and then
make payments on their behalf.
Access
What
do I do when I change jobs?
Can I cash in my savings before age 50?
Is my spouse entitled to any of the money?
Can I transfer my money to another superannuation
scheme?
What happens if I permanently emigrate?
What
happens if I am in financial hardship?
What
do I do when I change jobs?
You will still be an IRP member wherever you
go. Simply set up your salary deductions with your new
employer or authorise direct debit payments to be made from
your bank. Remember, you receive a lower monthly administration
fee if you use a salary deduction. Complete a Change
of Member Details form ([PDF]) and send it to Jacques Martin
New Zealand Limited, P O Box 606, Wellington.
Can
I cash in my savings before age 50?
No - not normally. The IRP's trust deed sets
the minimum 'retirement' age for the IRP at 50 years, which
means that your savings are locked in until you reach age
50. Earlier access to funds is very restricted and requires
the Trustees' approval, which is only given in very exceptional
circumstances.
However,
the IRP is flexible, so you can stop your contributions
for a while if you need to.
Is
my spouse/partner entitled to any of the money?
Yes. If you are married or in a long-term de facto relationship,
then your interest in the Plan is likely to be regarded
as "relationship property" under the Property
(Relationships) Act 1976, in which event it would be subject
to the statutory presumption of equal sharing if your relationship
ended by reason of separation or death.
Can
I transfer my money to another superannuation scheme?
Yes. Simply put your request in writing and
complete a Request for Benefit Payment form ([PDF]) and mail
to Jacques Martin New Zealand Limited, P O Box 606, Wellington.
The Trustees will transfer the balance in your Member Account
to any other registered superannuation scheme that agrees
to accept your funds.
What happens if I permanently emigrate?
If it is your intention to permanently emigrate
from New Zealand, you can apply to the Trustees to withdraw
your funds from the Plan. Alternatively the Trustees could
transfer the balance in your Member Account to another
superannuation
scheme in your new country of residence, which agrees to
accept your funds.
What
happens if I am in financial hardship?
Unfortunately people sometimes find themselves in financially
stressful situations, which challenge them meeting their
short-term objectives, let alone their long-term retirement
objectives. In this situation we encourage people to seek
help - sometimes their employers have employee assistance
programmes, Budget Advisory Services provide free advice
nationally, and the Retirement Commission's website, www.sorted.org.nz has a useful section on getting out of debt. Members in
the Individual Retirement Plan can reduce or stop their
contributions at any time and the combined effect of reducing
outgoings and taking steps to get in control of debt, can
often help people get on top of financial difficulties.
For many, allowing early access to retirement savings would
be a complete disservice - these levels of funds have
often taken a long time to build up and it may be unlikely
the member will have the opportunity to save that amount
again before retirement. Most people envisage a retirement
lifestyle of family, friends and fun, and rarely consider
how they would fund this lifestyle. Retirement savings such
as the Individual Retirement Plan, which are only released
after age 50, are often the only savings a person has on
retirement. They can be the difference between enjoying
the years of not working, and having to scrape by on severely
restricted income levels.
Under the terms of the Individual Retirement Plan's
Trust Deed, member retirement funds are locked away until
age 50. Members must apply to the IRP Trustees for early
withdrawal of retirement funds. Such applications are treated
very seriously by the IRP Trustees and are only ever allowed
in very exceptional circumstances. Allowing members early
access to funds on any other bases than those prescribed
by the IRP Trust Deed, can risk the ongoing registration
of the Plan, to the detriment of all members of the IRP.
Retirement
What will my Member Account be worth
at retirement?
What do I get when I retire?
Do I have to retire at age 50?
What
will my member account be worth at retirement?
The IRP Trustees cannot give you an estimate
of what your Member Account will be worth when you retire
because it is dependent on how much you contribute (which
can vary) and what the investment returns are - which can
vary significantly. Returns can go up as well as down over
the short term and no one can predict the future, nor is
past performance necessarily a guide to future returns.
To
guess future returns in order to estimate your retirement
benefit can be very misleading - so the IRP does not provide
estimates.
What
do I get when I retire?
From age 50 you can retire from
the Plan and request a lump sum payment equal to the total
balance in your Member Account (including interim earnings
for the Plan year to date), even if you are still employed.
Do
I have to retire at age 50?
No. You can take payment any time after turning
50. But if you're still working, it is recommended that
you consider keeping part or all of your savings in the
Plan until you
actually
retire (or later). You may also continue contributing to
allow future investment earnings and your contributions
to accumulate within your Member Account.
Death/Disablement
What happens if I die?
What if I become totally and permanently
disabled?
What
happens if I die?
A lump sum will be paid to your
estate equal to the sum of your Member Account balance (including
interim earnings for the Plan year to date) and your life insurance cover if you
have any.
What
if I become totally and permanently disabled?
If you are totally and permanently disabled
while a member of the Plan (and in employment at the time
of disablement), you will receive a lump sum equal to your
disablement insurance cover (if you took up the option of insurance cover with the Plan).
You may also apply to the Trustees for early payment of
all or part of your Member Account balance.
Returns
What return
do I get when I withdraw my funds?
Are investment returns guaranteed?
What
return do I get when I withdraw my funds?
If you withdraw funds during the year, your Member
Account value will be calculated (at the date of your withdrawal)
using an 'interim investment return' declared by the Trustees,
prior to the final returns being determined at year-end.
These
interim returns are calculated each month on the basis of
the known year-to-date investment earnings (positive or
negative). During the year the Plan's investment earnings
can fluctuate depending on the performance of investment
markets. Considering the latest investment earnings of the
Plan ensures you receive a fair value that is not overstated
(thereby reducing the investment earnings available at year-end
for distribution to other Plan members).
Are
investment returns guaranteed?
No. Returns will fluctuate from one period to
the next. Your Member Account value relates to the value
of the Managed Funds' underlying assets and the earnings
derived from investing those assets.
General
What tax
do I pay?
What if I'm declared bankrupt?
What happens if the IRP finishes?
What
tax do I pay?
All Plan benefits are paid tax-free. This means
that the Plan pays any tax on your behalf. Under current
legislation
the Plan's taxable investment earnings are taxed at 33%.
This tax is deducted directly from the Plan's investment
returns.
The
withdrawal of amounts originally contributed by your employer
on your behalf can, in certain circumstances, be subject
to a superannuation fund withdrawal tax of 5%. See the
Plan's Investment Statement for more details.
In
addition, any employer contributions paid for your benefit
are subject to SSCWT before they are paid into the Plan.
Your employer is required to pay this tax.
What
if I'm declared bankrupt?
The trust deed currently provides that if you
become bankrupt then, to the maximum extent permitted by
law, your benefits will be forfeited and may be applied
as the Trustees see fit.
However,
new case law no longer allows this clause to be applied
effectively in all cases. The Trustees will endeavour to
apply the clause to the extent that the law allows. However,
you should not expect that your benefits will be protected
in the event of your bankruptcy.
Where
your benefits are not protected the Official Assignee will
stand in your shoes as a member of the Plan. The Official
Assignee will only receive your benefits when you would
have been entitled to a benefit by the trust deed (such
as withdrawal upon reaching retirement age (50), death or
permanent disablement).
What
happens if the IRP finishes?
The Trustees intend to continue the IRP indefinitely.
However,
if the IRP does finish or wind up, all assets held would
be liquidated and the total value of the Plan's funds, after
deduction of liabilities, would be applied in the following
way:
-
Benefits
that were payable before the date of winding up of the
Plan, and that had not been paid on that date, would
be paid first.
-
The
balance would be distributed to all members in the proportion
that their member account balances relate to the total
of all members' account balances.
Information
If
I have a problem, who do I complain to?
What information do I receive as
a member?
Who gets to see my personal information?
Do I have to let you know my change
of address?
What other information can I request?
If
I have a problem, who do I complain to?
The IRP Trustees use the following
disputes procedure:
If
you have a dispute or complaint about the operation of
the IRP, contact the Plan
Secretary.
-
The Plan Secretary
will acknowledge that the Trustees have received the
complaint
-
The Plan Secretary will
ensure the Trustees are notified of the complaint
-
The
Plan Secretary will check whether you have requested
anonymity and advise you whether or not this is
likely to be practicable
-
The
Plan Secretary will maintain a complaints register
which is brought to
the Trustees’ attention
at each quarterly meeting
-
The Trustees will set
a realistic timetable for managing each complaint and
will monitor compliance with
the timetable.
Complaints
about your employer's action or non-action fall outside
the IRP Trustees' complaints procedure.
What
information do I receive as a member?
As a Plan member you are entitled
to the following:
Who
gets to see my personal information?
Your personal information (such as your date
of birth) is required and held by the Plan's Trustees for
the purposes of maintaining and administering the Plan.
This information may be passed on to various parties such
as the Administration
Manager and Insurer of the Plan, and your employer, for the purposes of the
Plan.
You
may request to see any personal information relating to
you and ask that it be corrected if you believe any of the
details are wrong.
If
you have any concerns about how your personal information
is being used in connection with the Plan, please contact
the Plan Secretary, Individual Retirement Plan, c/o
Mercer (N.Z.) Limited, PO Box 2897,
Wellington.
Do
I have to let you know my change of address?
Yes. You have an ongoing responsibility to ensure
the Trustees are kept informed of any relevant changes to
your personal details - in particular any change of address.
In fact you
have an ongoing responsibility to make sure you tell us.
To make things even easier for you - you are now able to
update your address details on-line right here through the “Current
IRP Members” section. This will link you directly
to the IRP Administration Manager's (Jacques Martin) website
for the Plan and your details on the administration system.
To update your address details you will need to sign into
the website with your IRP personal member contract number
and password.
Once signed in you need to click on the "Member Details"
page. This page will show your current address details, which
can be updated by clicking the "Update" command.
Once you have updated your address details you should then
submit the change by clicking the “Submit” button.
Your updated address records will then be automatically updated
by the IRP Administrator – Jacques Martin.
Alternatively you can print off and complete a Change
of Member Details Form [PDF]. Then return this form to
the IRP Administration Manager – Jacques Martin New
Zealand Limited PO Box 606, Wellington.
What
other information can I request?
As a Plan member you are entitled
on request to the the nearest Mercer office:
-
Receive
a copy of the registered Prospectus and Financial
Statements (including the auditor’s report) for the Plan free of charge. (The Prospectus and Financial
Statements are also available for public inspection
at the Companies Office - for a fee).
-
View
a copy of the trust deed or purchase a copy at a cost
of not more than 20 cents per page with a maximum fee
of $10.
-
Receive
an estimate of your benefits at any time (available
from the Administration Manager, Jacques Martin
New Zealand Limited).
-
Receive
a copy of the current Investment
Statement [PDF].
-
View
or copy (free of charge) that part of the 'Register
of Members' that relates specifically to you. You
can
access the Register between the hours of 2pm to 4pm
by contacting Jacques Martin New Zealand Limited.
-
Receive
brief descriptions of the Trustees’ investment
objectives and policy for the Plan and of the means
by which those objectives and that policy can be
changed.
