152-531: Colonial First State (CFS), is an Australian wealth management group that provides investment, superannuation and retirement products to individuals as well as corporate and superannuation fund investors. The company was established in 1988 when the State Bank of New South Wales created First State Fund Management as a subsidiary. In 1994, Colonial Mutual acquired the State Bank of New South Wales from
304-635: A benefit for an employee upon that employee's retirement is a defined benefit plan. In the U.S., corporate defined benefit plans, along with many other types of defined benefit plans, are governed by the Employee Retirement Income Security Act of 1974 (ERISA). In the United Kingdom , benefits are typically indexed for inflation (known as Retail Prices Index (RPI)) as required by law for registered pension plans. Inflation during an employee's retirement affects
456-557: A minority government can be formed if support from other parties during confidence and supply votes is assured. The governor-general appoints ministers under advice from the prime minister, who is by convention the parliamentary leader of the governing party or coalition. Cabinet , formed by ministers and led by the prime minister, is the highest policy-making body in government and responsible for deciding significant government actions. Members of Cabinet make major decisions collectively and are therefore collectively responsible for
608-471: A protectionist and highly regulated economy to a liberalised free-trade economy. Unemployment peaked just above 10% in 1991 and 1992, following the 1987 share market crash , but eventually fell to 3.7% in 2007 (ranking third from twenty-seven comparable OECD nations). However, the global financial crisis that followed had a major effect on New Zealand, with the GDP shrinking for five consecutive quarters,
760-469: A $ 56.3 million class action lawsuit with Maurice Blackburn for allegedly failing to transfer beneficiaries’ accrued default amounts to a MySuper as soon as reasonably practicable, however, the settlement came with no admission of liability or wrongdoing by CFS. In 2023, CFS settled a $ 100 million class action lawsuit with Slater & Gordon for allegedly raising fees on superannuation members to fund ongoing commissions to financial advisers, however,
912-589: A copy was sent to King William IV who had already acknowledged the flag of the United Tribes of New Zealand, and who recognised the declaration in a letter from Lord Glenelg . Aotearoa (pronounced [aɔˈtɛaɾɔa] in Māori and / ˌ aʊ t ɛəˈr oʊ . ə / in English; often translated as 'land of the long white cloud') is the current Māori name for New Zealand. It is unknown whether Māori had
1064-453: A defined contribution plan depends upon the account balance at the time an employee is looking to use the assets. So, for this arrangement, the contribution is known but the benefit is unknown (until calculated). Despite the fact that the participant in a defined contribution plan typically has control over investment decisions, the plan sponsor retains a significant degree of fiduciary responsibility over investment of plan assets, including
1216-496: A defined-benefit social security system, but is more controversial when applied to high levels of professional income. Why should younger generations pay for executive pensions which they themselves are unsure of collecting? Employers have sought ways of getting round this problem through pre-funding, but in civil-law countries have often been limited by the legal vehicles available. A suitable legal vehicle should ideally have three qualities. First, it should convince employees that
1368-452: A fund towards meeting the benefits. All plans must be funded in some way, even if they are pay-as-you-go, so this type of plan is more accurately known as pre-funded or fully-funded . The future returns on the investments, and the future benefits to be paid, are not known in advance, so there is no guarantee that a given level of contributions will be enough to meet the benefits. Typically, the contributions to be paid are regularly reviewed in
1520-506: A high level of innovation . Poverty in New Zealand is characterised by growing income inequality; wealth in New Zealand is highly concentrated , with the top 1% of the population owning 16% of the country's wealth, and the richest 5% owning 38%, leaving a stark contrast where half the population, including state beneficiaries and pensioners, receive less than $ 24,000. Moreover, child poverty in New Zealand has been identified by
1672-623: A name for the whole country before the arrival of Europeans; Aotearoa originally referred to just the North Island . Māori had several traditional names for the two main islands, including Te Ika-a-Māui ( ' the fish of Māui ' ) for the North Island and Te Waipounamu ( ' the waters of greenstone ' ) or Te Waka o Aoraki ( ' the canoe of Aoraki ' ) for the South Island . Early European maps labelled
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#17327823856871824-438: A new breed of collective risk sharing schemes where plan members pool their contributions and to a greater or less extent share the investment and longevity risk . There are multiple naming conventions for these plans reflecting the fact that the future payouts are a target or ambition of the plan sponsor rather than a guarantee, common naming conventions include: Defined contribution pensions, by definition, are funded, as
1976-785: A party must win at least one electorate or 5% of the total party vote before it is eligible for a seat. Elections since the 1930s have been dominated by two political parties , National and Labour . More parties have been represented in Parliament since the introduction of MMP. New Zealand's judiciary , headed by the chief justice , includes the Supreme Court , Court of Appeal , the High Court , and subordinate courts. Judges and judicial officers are appointed non-politically and under strict rules regarding tenure to help maintain judicial independence . This theoretically allows
2128-407: A portion of the employee's contributions to be matched by the employer. In exchange, the funds in such plans may not be withdrawn by the investor prior to reaching a certain age—typically the year the employee reaches 59.5 years old (with a small number of exceptions)—without incurring a substantial penalty. Advocates of defined contribution plans point out that each employee has the ability to tailor
2280-503: A shared Trans-Tasman identity between the two countries stemming from centuries of British colonisation. Nationally, legislative authority is vested in an elected, unicameral Parliament , while executive political power is exercised by the Government , led by the prime minister , currently Christopher Luxon . Charles III is the country's king and is represented by the governor-general , Cindy Kiro . In addition, New Zealand
2432-455: A similar stream of payments. The common use of the term pension is to describe the payments a person receives upon retirement, usually under predetermined legal or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree . A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both
2584-472: A specific amount of income throughout their retirement years. However this income is not usually guaranteed to keep up with inflation, so its purchasing power may decline over the years. On the other hand, defined contribution plans are dependent upon the amount of money contributed and the performance of the investment vehicles used. Employees are responsible for ensuring that their contributions are sufficient to provide for their retirement needs, and they face
2736-574: A tax break depending on the country and plan type. For example, Canadians have the option to open a registered retirement savings plan (RRSP), as well as a range of employee and state pension programs. This plan allows contributions to this account to be marked as un-taxable income and remain un-taxed until withdrawal. Most countries' governments will provide advice on pension schemes. Social and state pensions depend largely upon legislation for their sustainability. Some have identified funds, but these hold essentially government bonds—a form of " IOU " by
2888-819: A tiered system. For a simplified example, suppose there are three employees that pay into a state pension system: Sam, Veronica, and Jessica. The state pension system has three tiers: Tier I, Tier II, and Tier III. These three tiers are based on the employee's hire date (i.e. Tier I covers 1 January 1980 (and before) to 1 January 1995, Tier II 2 January 1995 to 1 January 2010, and Tier III 1 January 2010 to present) and have different benefit provisions (e.g. Tier I employees can retire at age 50 with 80% benefits or wait until 55 with full benefits, Tier II employees can retire at age 55 with 80% benefits or wait until 60 for full benefits, Tier III employees can retire at age 65 with full benefits). Therefore, Sam, hired in June 1983, would be subject to
3040-639: A trade which provided the basis for strong economic growth in New Zealand. High demand for agricultural products from the United Kingdom and the United States helped New Zealanders achieve higher living standards than both Australia and Western Europe in the 1950s and 1960s. In 1973, New Zealand's export market was reduced when the United Kingdom joined the European Economic Community and other compounding factors, such as
3192-409: A valuation of the plan's assets and liabilities, carried out by an actuary to ensure that the pension fund will meet future payment obligations. This means that in a defined benefit pension, investment risk and investment rewards are typically assumed by the sponsor/employer and not by the individual. If a plan is not well-funded, the plan sponsor may not have the financial resources to continue funding
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#17327823856873344-490: A yearly average of more than 2,000 hours of sunshine. The southern and southwestern parts of the South Island have a cooler and cloudier climate, with around 1,400–1,600 hours; the northern and northeastern parts of the South Island are the sunniest areas of the country and receive about 2,400–2,500 hours. The general snow season is early June until early October, though cold snaps can occur outside this season. Snowfall
3496-603: Is Wellington , and its most populous city is Auckland . The islands of New Zealand were the last large habitable land to be settled by humans. Between about 1280 and 1350, Polynesians began to settle in the islands and subsequently developed a distinctive Māori culture . In 1642, the Dutch explorer Abel Tasman became the first European to sight and record New Zealand. In 1769 the British explorer Captain James Cook became
3648-617: Is a constitutional monarchy with a parliamentary democracy , although its constitution is not codified . Charles III is the King of New Zealand and thus the head of state . The king is represented by the governor-general , whom he appoints on the advice of the prime minister . The governor-general can exercise the Crown 's prerogative powers , such as reviewing cases of injustice and making appointments of ministers , ambassadors, and other key public officials, and in rare situations,
3800-605: Is a "contribution based" benefit, and depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America. Many countries have also put in place a " social pension ". These are regular, tax-funded non-contributory cash transfers paid to older people. Over 80 countries have social pensions. Some are universal benefits, given to all older people regardless of income, assets or employment record. Examples of universal pensions include New Zealand Superannuation and
3952-743: Is a member of the United Nations , the Commonwealth of Nations and the Organisation for Economic Co-operation and Development (OECD), and participates in the Five Power Defence Arrangements . Today, New Zealand enjoys particularly close relations with the United States and is one of its major non-NATO allies , as well as with Australia , with a " Trans-Tasman " identity between citizens of
4104-401: Is a plan in which workers accrue pension rights during their time at a firm and upon retirement the firm pays them a benefit that is a function of that worker's tenure at the firm and of their earnings. In other words, a DB plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in
4256-415: Is a type of employment-based Pension in the UK. The 401(k) is the iconic self-funded retirement plan that many Americans rely on for much of their retirement income; these sometimes include money from an employer, but are usually mostly or entirely funded by the individual using an elaborate scheme where money from the employee's paycheck is withheld, at their direction, to be contributed by their employer to
4408-593: Is also a significant source of revenue. New Zealand is a member of the United Nations , Commonwealth of Nations , ANZUS , UKUSA , Five Eyes , OECD , ASEAN Plus Six , Asia-Pacific Economic Cooperation , the Pacific Community and the Pacific Islands Forum . It enjoys particularly close relations with the United States and is one of its major non-NATO allies ; the United Kingdom; Samoa , Fiji , and Tonga ; and with Australia , with
4560-480: Is also consistent with a much debated questionable third line of oral evidence, traditional genealogies ( whakapapa ) which point to around 1350 as a probable arrival date for many of the founding canoes ( waka ) from which many Māori trace their descent. Some Māori later migrated to the Chatham Islands where they developed their distinct Moriori culture. A later 1835 invasion by Māori resulted in
4712-582: Is classified as a non-self-governing territory , but is administered by a council of three elders (one from each Tokelauan atoll ). The Ross Dependency is New Zealand's territorial claim in Antarctica , where it operates the Scott Base research facility. New Zealand nationality law treats all parts of the realm equally, so most people born in New Zealand, the Cook Islands, Niue, Tokelau, and
Colonial First State - Misplaced Pages Continue
4864-869: Is common in the eastern and southern parts of the South Island and mountain areas across the country. New Zealand's geographic isolation for 80 million years and island biogeography has influenced evolution of the country's species of animals , fungi and plants . Physical isolation has caused biological isolation, resulting in a dynamic evolutionary ecology with examples of distinctive plants and animals as well as populations of widespread species. The flora and fauna of New Zealand were originally thought to have originated from New Zealand's fragmentation off from Gondwana, however more recent evidence postulates species resulted from dispersal. About 82% of New Zealand's indigenous vascular plants are endemic , covering 1,944 species across 65 genera . The number of fungi recorded from New Zealand, including lichen-forming species,
5016-466: Is equivalent to 15% of the population of New Zealand. New Zealand has a strong presence among the Pacific Island countries, and enjoys strong diplomatic relations with Samoa , Fiji , and Tonga , and among smaller nations. A large proportion of New Zealand's aid goes to these countries, and many Pacific people migrate to New Zealand for employment. The increase of this since the 1960s led to
5168-440: Is heavily dependent on international trade, particularly in agricultural products. Exports account for 24% of its output, making New Zealand vulnerable to international commodity prices and global economic slowdowns . Food products made up 55% of the value of all the country's exports in 2014; wood was the second largest earner (7%). New Zealand's main trading partners, as at June 2018 , are China ( NZ$ 27.8b), Australia ($ 26.2b),
5320-516: Is legally no different from the portability of defined benefit plans. However, because of the cost of administration and ease of determining the plan sponsor's liability for defined contribution plans (you do not need to pay an actuary to calculate the lump sum equivalent that you do for defined benefit plans) in practice, defined contribution plans have become generally portable. In a defined contribution plan, investment risk and investment rewards are assumed by each individual/employee/retiree and not by
5472-553: Is made up of two main islands and more than 700 smaller islands . The two main islands (the North Island , or Te Ika-a-Māui , and the South Island , or Te Waipounamu ) are separated by Cook Strait , 22 kilometres (14 mi) wide at its narrowest point. Besides the North and South Islands, the five largest inhabited islands are Stewart Island (across the Foveaux Strait ), Chatham Island , Great Barrier Island (in
5624-502: Is mainly derived from Māori and early British settlers, with recent broadening of culture arising from increased immigration to the country . The official languages are English, Māori , and New Zealand Sign Language , with the local dialect of English being dominant. A developed country , it was the first to introduce a minimum wage , and the first to give women the right to vote . It ranks very highly in international measures of quality of life , human rights , and it has one of
5776-436: Is not known, nor is the proportion of those fungi which are endemic, but one estimate suggests there are about 2,300 species of lichen-forming fungi in New Zealand and 40% of these are endemic. The two main types of forest are those dominated by broadleaf trees with emergent podocarps , or by southern beech in cooler climates. The remaining vegetation types consist of grasslands, the majority of which are tussock . Before
5928-568: Is organised into 11 regional councils and 67 territorial authorities for local government purposes. The Realm of New Zealand also includes Tokelau (a dependent territory ); the Cook Islands and Niue (self-governing states in free association with New Zealand); and the Ross Dependency , which is New Zealand's territorial claim in Antarctica . The first European visitor to New Zealand, Dutch explorer Abel Tasman , named
6080-458: Is that, whether or not some settlers arrived before 1314, the main settlement period was in the subsequent decades, possibly involving a coordinated mass migration. It is also the broad consensus of historians that the Polynesian settlement of New Zealand was planned and deliberate. Over the centuries that followed, the settlers developed a distinct culture now known as Māori. This scenario
6232-519: Is to regulate "the natural environment with particular emphasis on resource management ", while territorial authorities are responsible for sewage, water, local roads, building consents, and other local matters. Five of the territorial councils are unitary authorities and also act as regional councils. The territorial authorities consist of 13 city councils, 53 district councils, and the Chatham Islands Council. While officially
Colonial First State - Misplaced Pages Continue
6384-635: The 1973 oil and 1979 energy crises, led to a severe economic depression . Living standards in New Zealand fell behind those of Australia and Western Europe, and by 1982 New Zealand had the lowest per-capita income of all the developed nations surveyed by the World Bank . In the mid-1980s New Zealand deregulated its agricultural sector by phasing out subsidies over a three-year period. Since 1984, successive governments engaged in major macroeconomic restructuring (known first as Rogernomics and then Ruthanasia ), rapidly transforming New Zealand from
6536-872: The ANZAC tradition it shares with Australia. In addition to Vietnam and the two world wars, New Zealand fought in the Second Boer War , the Korean War , the Malayan Emergency , the Gulf War , and the Afghanistan War . It has contributed forces to several regional and global peacekeeping missions, such as those in Cyprus , Somalia , Bosnia and Herzegovina , the Sinai , Angola , Cambodia ,
6688-790: The Australian Prudential Regulation Authority and Foreign Investment Review Board , it would sell a 55% interest in the business to KKR . The transaction was completed in November 2021. On 1 December 2021, CFS became a standalone company. CFS announced its commitment on climate change, aligning CFS to the goals of the Paris Agreement and committing to net zero emissions by 2050 and to a 30 per cent reduction in Greenhouse Gas emissions from 2019 levels for its investment portfolios. In 2020,
6840-784: The Australian Securities and Investments Commission (ASIC) commended legal proceedings against Commonwealth Bank and CFS in relation to alleged conflicted remuneration of $ 22 million paid by CFS to Commonwealth Bank for the distribution of a super product issued by CFS. In 2022, the Federal Court of Australia dismissed the case and in 2023 dismissed an appeal by ASIC. In 2021, the Federal Court of Australia fined CFS $ 20 million for misleading superannuation members, resulting in CFS paying $ 67 million to remediate losses to 5,815 members. The court found that: In 2022, CFS settled
6992-685: The European Union ($ 22.9b), the United States ($ 17.6b), and Japan ($ 8.4b). On 7 April 2008, New Zealand and China signed the New Zealand–China Free Trade Agreement , the first such agreement China has signed with a developed country. In July 2023, New Zealand and the European Union entered into the EU–New Zealand Free Trade Agreement , which eliminated tariffs on several goods traded between
7144-725: The Gondwanan supercontinent. About 25 million years ago, a shift in plate tectonic movements began to contort and crumple the region. This is now most evident in the Southern Alps, formed by compression of the crust beside the Alpine Fault . Elsewhere, the plate boundary involves the subduction of one plate under the other, producing the Puysegur Trench to the south, the Hikurangi Trough east of
7296-621: The Great Depression . The depression led to the election of the first Labour Government and the establishment of a comprehensive welfare state and a protectionist economy. New Zealand experienced increasing prosperity following the Second World War, and Māori began to leave their traditional rural life and move to the cities in search of work. A Māori protest movement developed, which criticised Eurocentrism and worked for greater recognition of Māori culture and of
7448-628: The Hauraki Gulf ), D'Urville Island (in the Marlborough Sounds ) and Waiheke Island (about 22 km (14 mi) from central Auckland). New Zealand is long and narrow—over 1,600 kilometres (990 mi) along its north-north-east axis with a maximum width of 400 kilometres (250 mi) —with about 15,000 km (9,300 mi) of coastline and a total land area of 268,000 square kilometres (103,500 sq mi). Because of its far-flung outlying islands and long coastline,
7600-581: The Iran–Iraq border, Bougainville , East Timor , and the Solomon Islands . New Zealand has an advanced market economy , ranked 13th in the 2021 Human Development Index , and fourth in the 2022 Index of Economic Freedom . It is a high-income economy with a nominal gross domestic product (GDP) per capita of US$ 36,254. The currency is the New Zealand dollar , informally known as
7752-584: The Legislative Council , until this was abolished in 1950. The supremacy of parliament over the Crown and other government institutions was established in England by the Bill of Rights 1689 and has been ratified as law in New Zealand. The House of Representatives is democratically elected, and a government is formed from the party or coalition with the majority of seats. If no majority is formed,
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#17327823856877904-484: The Medal of Honor qualify for a separate stipend. Retirement pay for military members in the reserve and US National Guard is based on a point system. Many countries have created funds for their citizens and residents to provide income when they retire (or in some cases become disabled). Typically this requires payments throughout the citizen's working life in order to qualify for benefits later on. A basic state pension
8056-532: The South Island ( Te Waipounamu )—and over 700 smaller islands . It is the sixth-largest island country by area and lies east of Australia across the Tasman Sea and south of the islands of New Caledonia , Fiji , and Tonga . The country's varied topography and sharp mountain peaks, including the Southern Alps , owe much to tectonic uplift and volcanic eruptions. New Zealand's capital city
8208-691: The Statute of Westminster , confirming that the British Parliament could no longer legislate for the country without its consent. The British government's residual legislative powers were later removed by the Constitution Act 1986 , and final rights of appeal to British courts were abolished in 2003. Early in the 20th century , New Zealand was involved in world affairs, fighting in the First and Second World Wars and suffering through
8360-612: The United Kingdom and negotiate a treaty with the Māori. The Treaty of Waitangi was first signed in the Bay of Islands on 6 February 1840. In response to the New Zealand Company's attempts to establish an independent settlement in Wellington , Hobson declared British sovereignty over all of New Zealand on 21 May 1840, even though copies of the treaty were still circulating throughout the country for Māori to sign. With
8512-624: The United States Department of State noted that the New Zealand government generally respected the rights of individuals, but voiced concerns regarding the social status of the Māori population. In terms of structural discrimination , the New Zealand Human Rights Commission has asserted that there is strong, consistent evidence that it is a real and ongoing socioeconomic issue. One example of structural inequality in New Zealand can be seen in
8664-641: The West Coast of the South Island to semi-arid in Central Otago and the Mackenzie Basin of inland Canterbury and subtropical in Northland . Of the seven largest cities, Christchurch is the driest, receiving on average only 618 millimetres (24.3 in) of rain per year and Wellington the wettest, receiving almost twice that amount. Auckland, Wellington and Christchurch all receive
8816-413: The alienation and confiscation of large amounts of Māori land. New Zealand became a dominion in 1907; it gained full statutory independence in 1947, retaining the monarch as head of state . Today, the majority of New Zealand's population of 5.25 million is of European descent ; the indigenous Māori are the largest minority, followed by Asians and Pasifika . Reflecting this, New Zealand's culture
8968-478: The caldera of one of the world's most active supervolcanoes . New Zealand is prone to earthquakes . The country owes its varied topography, and perhaps even its emergence above the waves, to the dynamic boundary it straddles between the Pacific and Indo-Australian Plates . New Zealand is part of Zealandia , a microcontinent nearly half the size of Australia that gradually submerged after breaking away from
9120-481: The reserve powers (e.g. the power to dissolve Parliament or refuse the royal assent of a bill into law). The powers of the monarch and the governor-general are limited by constitutional constraints, and they cannot normally be exercised without the advice of ministers. The New Zealand Parliament holds legislative power and consists of the king and the House of Representatives . It also included an upper house,
9272-554: The seven-continent model. New Zealand's climate is predominantly temperate maritime ( Köppen : Cfb), with mean annual temperatures ranging from 10 °C (50 °F) in the south to 16 °C (61 °F) in the north. Historical maxima and minima are 42.4 °C (108.32 °F) in Rangiora , Canterbury and −25.6 °C (−14.08 °F) in Ranfurly , Otago . Conditions vary sharply across regions from extremely wet on
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#17327823856879424-445: The "Bradley Commission") in 1955–56. Pensions may extend past the death of the veteran himself, continuing to be paid to the widow. In the U.S., retired military receive a military retirement pay , not called a "pension" as they can be recalled to active duty at any time. Military retirement pay is calculated on number of years on active duty, final pay grade and the retirement system in place when they entered service. Members awarded
9576-446: The "Kiwi dollar"; it also circulates in the Cook Islands (see Cook Islands dollar ), Niue, Tokelau, and the Pitcairn Islands . Historically, extractive industries have contributed strongly to New Zealand's economy, focusing at different times on sealing, whaling, flax , gold, kauri gum , and native timber. The first shipment of refrigerated meat on the Dunedin in 1882 led to the establishment of meat and dairy exports to Britain,
9728-428: The "guarantee" made to employees is that specified (defined) contributions will be made during an individual's working life. There are many ways to finance a pension and save for retirement. Pension plans can be set up by an employer, matching a monetary contribution each month, by the state or personally through a pension scheme with a financial institution, such as a bank or brokerage firm. Pension plans often come with
9880-629: The 2024 Global Peace Index , New Zealand is the 4th most peaceful country in the world. New Zealand's military services—the New Zealand Defence Force —comprise the New Zealand Army , the Royal New Zealand Air Force , and the Royal New Zealand Navy . New Zealand's national defence needs are modest since a direct attack is unlikely. However, its military has had a global presence . The country fought in both world wars, with notable campaigns in Gallipoli , Crete , El Alamein , and Cassino . The Gallipoli campaign played an important part in fostering New Zealand's national identity and strengthened
10032-499: The Basic Retirement Pension of Mauritius . Most social pensions, though, are means-tested, such as Supplemental Security Income in the United States of America or the "older person's grant" in South Africa . Some pension plans will provide for members in the event they suffer a disability . This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age. The benefits of defined benefit and defined contribution plans differ based on
10184-597: The Chatham Islands Council is not a unitary authority, it undertakes many functions of a regional council. The Realm of New Zealand, one of 15 Commonwealth realms , is the entire area over which the king or queen of New Zealand is sovereign and comprises New Zealand, Tokelau , the Ross Dependency , the Cook Islands , and Niue . The Cook Islands and Niue are self-governing states in free association with New Zealand. The New Zealand Parliament cannot pass legislation for these countries, but with their consent can act on behalf of them in foreign affairs and defence. Tokelau
10336-424: The Government as a major societal issue; the country has 12.0% of children living in low-income households that had less than 50% of the median equivalised disposable household income as of June 2022 . Poverty has a disproportionately high effect in ethnic-minority households, with a quarter (23.3%) of Māori children and almost a third (28.6%) of Pacific Islander children living in poverty as of 2020 . New Zealand
10488-410: The MMP system, each person has two votes; one is for a candidate standing in the voter's electorate , and the other is for a party. Based on the 2018 census data, there are 72 electorates (which include seven Māori electorates in which only Māori can optionally vote), and the remaining 48 of the 120 seats are assigned so that representation in Parliament reflects the party vote, with the threshold that
10640-553: The Māori of later years. According to an early European synthesized interpretation of various Māori traditional accounts, around 750 CE the heroic explorer, Kupe , had discovered New Zealand and later, around 1350, one great fleet of settlers set out from Hawaiki in eastern Polynesia. However, from the late 20th century, this story has been increasingly relegated to the realm of legend and myth. An alternative view has emerged from fresh archaeological and scientific evidence, which correlates with doubts raised by historians everywhere as to
10792-433: The NSW Government, and on 23 September 1996 the merged entity was rebranded as Colonial State Bank, with First State Fund Management being branded as "Colonial First State" (CFS). CFS demutualised in 1997 and in 2000, it was acquired by the Commonwealth Bank , with the Colonial State Bank division being merged into the Commonwealth Bank. In May 2020, owner Commonwealth Bank announced that, subject to gaining approval from
10944-465: The Netherlands ($ 1.8T), Japan ($ 1.7T), Switzerland ($ 1.1T), Denmark ($ 0.8T), Sweden, Brazil and S. Korea (each $ 0.5T), Germany, France, Israel, P.R. China, Mexico, Italy, Chile, Belgium, Spain and Finland (each roughly $ 0.2T), etc. Without the vast body of common law to draw upon, statutory trusts tend to be more uniform and tightly regulated. However, pension assets alone are not a useful guide to
11096-602: The North Island, and the Kermadec and Tonga Trenches further north. New Zealand, together with Australia, is part of a wider region known as Australasia . It also forms the southwestern extremity of the geographic and ethnographic region called Polynesia . Oceania is a wider region encompassing the Australian continent , New Zealand, and various island countries in the Pacific Ocean that are not included in
11248-614: The North Island, saw thousands of imperial troops and the Royal Navy come to New Zealand and became known as the New Zealand Wars . Following these armed conflicts, large areas of Māori land were confiscated by the government to meet settler demands. The colony gained a representative government in 1852 , and the first Parliament met in 1854. In 1856 the colony effectively became self-governing, gaining responsibility over all domestic matters (except native policy, which
11400-630: The Ross Dependency are New Zealand citizens. During the period of the New Zealand colony, Britain was responsible for external trade and foreign relations. The 1923 and 1926 Imperial Conferences decided that New Zealand should be allowed to negotiate its own political treaties , and the first commercial treaty was ratified in 1928 with Japan. On 3 September 1939, New Zealand allied itself with Britain and declared war on Germany with Prime Minister Michael Joseph Savage proclaiming, "Where she goes, we go; where she stands, we stand". In 1951,
11552-694: The Social Security Reserve Fund and France set up the Pensions Reserve Fund ; in Canada the wage-based retirement plan (CPP) is partially funded, with assets managed by the CPP Investment Board while the U.S. Social Security system is partially funded by investment in special U.S. Treasury Bonds. In a funded plan, contributions from the employer, and sometimes also from plan members, are invested in
11704-476: The Tarawera eruption except for three of a decade or so earlier. Radiocarbon dating and pollen evidence of widespread forest fires shortly before the eruption might also indicate a pre-eruption human presence. Additionally, mitochondrial DNA variability within the Māori populations suggest that Eastern Polynesians first settled the New Zealand archipelago between 1250 and 1300, Therefore, current opinion
11856-470: The Treaty of Waitangi. In 1975, a Waitangi Tribunal was set up to investigate alleged breaches of the Treaty, and it was enabled to investigate historic grievances in 1985. The government has negotiated settlements of these grievances with many iwi, although Māori claims to the foreshore and seabed proved controversial in the 2000s. New Zealand is located near the centre of the water hemisphere and
12008-407: The U.S. since the 1990s. Cash balance plans, for example, provide a guaranteed benefit like a defined benefit plan, but the benefit is expressed as an account balance, like a defined contribution plan. Pension equity plans are a type of cash balance plan that credits employee accounts with a percentage of their pay each year, similar to a defined contribution plan. A Defined Benefit (DB) pension plan
12160-480: The US, defined contribution plans are subject to IRS limits on how much can be contributed, known as the section 415 limit. In 2009, the total deferral amount, including employee contribution plus employer contribution, was limited to $ 49,000 or 100% of compensation, whichever is less. The employee-only limit in 2009 was $ 16,500 with a $ 5,500 catch-up. These numbers usually increase each year and are indexed to compensate for
12312-659: The United Kingdom became increasingly focused on its European interests, while New Zealand joined Australia and the United States in the ANZUS security treaty. The influence of the United States on New Zealand weakened following protests over the Vietnam War , the refusal of the United States to admonish France after the sinking of the Rainbow Warrior , disagreements over environmental and agricultural trade issues, and New Zealand's nuclear-free policy . Despite
12464-425: The United States are a type of defined benefit pension plan. Traditionally, defined benefit plans for employers have been administered by institutions which exist specifically for that purpose, by large businesses, or, for government workers, by the government itself. A traditional form of defined benefit plan is the final salary plan, under which the pension paid is equal to the number of years worked, multiplied by
12616-505: The United States include individual retirement accounts (IRAs) and 401(k) plans . In such plans, the employee is responsible, to one degree or another, for selecting the types of investments toward which the funds in the retirement plan are allocated. This may range from choosing one of a small number of pre-determined mutual funds to selecting individual stocks or other financial assets. Most self-directed retirement plans are characterized by certain tax advantages , and some provide for
12768-474: The United States of America and Canada now face chronic pension crises. A defined contribution (DC) plan, is a pension plan where employers set aside a certain proportion (i.e. contributions) of a worker's earnings (such as 5%) in an investment account, and the worker receives this savings and any accumulated investment earnings upon retirement. These contributions are paid into an individual account for each member. The contributions are invested, for example in
12920-524: The United States's suspension of ANZUS obligations, the treaty remained in effect between New Zealand and Australia, whose foreign policy has followed a similar historical trend. Close political contact is maintained between the two countries, with free trade agreements and travel arrangements that allow citizens to visit, live and work in both countries without restrictions. In 2013 there were about 650,000 New Zealand citizens living in Australia, which
13072-438: The arrival of humans, an estimated 80% of the land was covered in forest, with only high alpine , wet, infertile and volcanic areas without trees. Massive deforestation occurred after humans arrived, with around half the forest cover lost to fire after Polynesian settlement. Much of the remaining forest fell after European settlement, being logged or cleared to make room for pastoral farming, leaving forest occupying only 23% of
13224-564: The assets are truly secured for their benefit. Second, contributions to the vehicle should be tax-deductible to the employer (or at least, a tax deduction should be secured already). And third, to the extent that it has funded the pension liability, the employer should be able to reduce the liability shown on its balance sheet. In the absence of appropriate statute, attempts have been made to invent suitable vehicles with varying degrees of success. The most notable has been in Germany where, until
13376-508: The attainment of normal retirement age (usually age 65). Companies would rather hire younger employees at lower wages. Some of those provisions come in the form of additional temporary or supplemental benefits , which are payable to a certain age, usually before attaining normal retirement age. Due to changes in pensions over the years, many pension systems, including those in Alabama , California , Indiana , and New York , have shifted to
13528-507: The average retirement age and lifespan of the employees, the returns to be earned by the pension plan's investments and any additional taxes or levies, such as those required by the Pension Benefit Guaranty Corporation in the U.S. So, for this arrangement, the benefit is relatively secure but the contribution is uncertain even when estimated by a professional. This has serious cost considerations and risks for
13680-516: The benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions , the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation , usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity ) may provide
13832-483: The best interests of the beneficiaries. These jurisdictions account for over 80% of assets held by private pension plans around the world. Of the $ 50.7 trillion of global assets in 2019, $ 32.2T were in U.S. plans, the next largest being the U.K. ($ 3.2T), Canada ($ 2.8T), Australia ($ 1.9T), Singapore ($ 0.3T), Hong Kong and Ireland (each roughly $ 0.2T), New Zealand, India, Kenya, Nigeria, Jamaica, etc. Civil-law jurisdictions with statutory trust vehicles for pensions include
13984-474: The consequences of these decisions. The 42nd and current prime minister, since 27 November 2023, is Christopher Luxon . A parliamentary general election must be called no later than three years after the previous election. Almost all general elections between 1853 and 1993 were held under the first-past-the-post voting system. Since the 1996 election , a form of proportional representation called mixed-member proportional (MMP) has been used. Under
14136-461: The country has extensive marine resources. Its exclusive economic zone is one of the largest in the world, covering more than 15 times its land area. The South Island is the largest landmass of New Zealand. It is divided along its length by the Southern Alps . There are 18 peaks over 3,000 metres (9,800 ft), the highest of which is Aoraki / Mount Cook at 3,724 metres (12,218 ft). Fiordland 's steep mountains and deep fiords record
14288-502: The criminal justice system. According to the Ministry of Justice , Māori are overrepresented, comprising 45% of New Zealanders convicted of crimes and 53% of those imprisoned, while only being 16.5% of the population. The early European settlers divided New Zealand into provinces , which had a degree of autonomy. Because of financial pressures and the desire to consolidate railways, education, land sales, and other policies, government
14440-441: The degree of financial security provided to the retiree. With defined benefit plans, retirees receive a guaranteed payout at retirement, determined by a fixed formula based on factors such as salary and years of service. The risk and responsibility of ensuring sufficient funding through retirement is borne by the employer or plan managers. This type of plan provides a level of financial security for retirees, ensuring they will receive
14592-690: The early 19th century, Christian missionaries began to settle New Zealand, eventually converting most of the Māori population. The Māori population declined to around 40% of its pre-contact level during the 19th century; introduced diseases were the major factor. The British Government appointed James Busby as British Resident to New Zealand in 1832. His duties, given to him by Governor Bourke in Sydney, were to protect settlers and traders "of good standing", prevent "outrages" against Māori, and apprehend escaped convicts. In 1835, following an announcement of impending French settlement by Charles de Thierry ,
14744-674: The effects of inflation. For 2015, the limits were raised to $ 53,000 and $ 18,000, respectively. Examples of defined contribution pension schemes in other countries are, the UK's personal pensions and proposed National Employment Savings Trust (NEST), Germany's Riester plans, Australia's Superannuation system and New Zealand's KiwiSaver scheme. Individual pension savings plans also exist in Austria, Czech Republic, Denmark, Greece, Finland, Ireland, Netherlands, Slovenia and Spain Many developed economies are moving beyond DB & DC Plans and are adopting
14896-441: The employee's plan. This money can be tax-deferred or not, depending on the exact nature of the plan. Some countries also grant pensions to military veterans. Military pensions are overseen by the government; an example of a standing agency is the United States Department of Veterans Affairs . Ad hoc committees may also be formed to investigate specific tasks, such as the U.S. Commission on Veterans' Pensions (commonly known as
15048-440: The employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as retirement income. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of "deferred compensation". A SSAS
15200-494: The employer is the reason given by many employers for switching from defined benefit to defined contribution plans over recent years. The risks to the employer can sometimes be mitigated by discretionary elements in the benefit structure, for instance in the rate of increase granted on accrued pensions, both before and after retirement. The age bias, reduced portability and open ended risk make defined benefit plans better suited to large employers with less mobile workforces, such as
15352-559: The employer offering a pension plan. One of the growing concerns with defined benefit plans is that the level of future obligations will outpace the value of assets held by the plan ( Unfunded mandate ). This "underfunding" dilemma can be faced by any type of defined benefit plan, private or public, but it is most acute in governmental and other public plans where political pressures and less rigorous accounting standards can result in excessive commitments to employees and retirees, but inadequate contributions. Many states and municipalities across
15504-404: The employer tends to pay higher contributions than under defined contribution plans), so such criticism is rarely harsh. The "cost" of a defined benefit plan is not easily calculated, and requires an actuary or actuarial software. However, even with the best of tools, the cost of a defined benefit plan will always be an estimate based on economic and financial assumptions. These assumptions include
15656-438: The end of the 20th century, most occupational pensions were unfunded ("book-reserved") promises by employers. Changes started in 1983. Most national pension systems are based on multi-pillar schemes to ensure greater flexibility and financial security to the old in contrast to reliance on one single system. In general, there are three main functions of pension systems: saving, redistribution and insurance functions. According to
15808-405: The extensive ice age glaciation of this southwestern corner of the South Island. The North Island is less mountainous but is marked by volcanism . The highly active Taupō Volcanic Zone has formed a large volcanic plateau , punctuated by the North Island's highest mountain, Mount Ruapehu (2,797 metres (9,177 ft)). The plateau also hosts the country's largest lake, Lake Taupō , nestled in
15960-513: The first European to set foot on and map New Zealand. In 1840, representatives of the United Kingdom and Māori chiefs signed the Treaty of Waitangi which paved the way for Britain's declaration of sovereignty later that year and the establishment of the Crown Colony of New Zealand in 1841. Subsequently, a series of conflicts between the colonial government and Māori tribes resulted in
16112-491: The formation of the Pasifika New Zealander pan-ethnic group, the fourth-largest ethnic grouping in the country. Permanent migration is regulated under the 1970 Samoan Quota Scheme and the 2002 Pacific Access Category, which allow up to 1,100 Samoan nationals and up to 750 other Pacific Islanders respectively to become permanent New Zealand residents each year. A seasonal workers scheme for temporary migration
16264-422: The former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement. The terms " retirement plan " and " superannuation " tend to refer to a pension granted upon retirement of the individual; the terminology varies between countries. Retirement plans may be set up by employers, insurance companies,
16416-512: The government, or other institutions such as employer associations or trade unions. Called retirement plans in the United States , they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super ) in Australia and New Zealand . Retirement pensions are typically in the form of a guaranteed life annuity , thus insuring against the risk of longevity . A pension created by an employer for
16568-400: The investment portfolio to his or her individual needs and financial situation, including the choice of how much to contribute, if anything at all. However, others state that these apparent advantages could also hinder some workers who might not possess the financial savvy to choose the correct investment vehicles or have the discipline to voluntarily contribute money to retirement accounts. In
16720-610: The islands Staten Land , believing they were part of the Staten Landt that Jacob Le Maire had sighted off the southern end of South America. Hendrik Brouwer proved that the South American land was a small island in 1643, and Dutch cartographers subsequently renamed Tasman's discovery Nova Zeelandia from Latin , after the Dutch province of Zeeland . This name was later anglicised to New Zealand . This
16872-447: The islands North (North Island), Middle (South Island), and South ( Stewart Island / Rakiura ). In 1830, mapmakers began to use "North" and "South" on their maps to distinguish the two largest islands, and by 1907, this was the accepted norm. The New Zealand Geographic Board discovered in 2009 that the names of the North Island and South Island had never been formalised, and names and alternative names were formalised in 2013. This set
17024-580: The islands are uninhabited except for about six people at Raoul Island station. These islands put the northern border of New Zealand at 29 degrees South latitude. After the 1982 UNCLOS , the islands contributed significantly to New Zealand's exclusive economic zone . In 1891, the Liberal Party came to power as the first organised political party. The Liberal Government , led by Richard Seddon for most of its period in office, passed many important social and economic measures. In 1893, New Zealand
17176-436: The judiciary to interpret the law based solely on the legislation enacted by Parliament without other influences on their decisions. New Zealand is identified as one of the world's most stable and well-governed states. As of 2017, the country was ranked fourth in the strength of its democratic institutions, and first in government transparency and lack of corruption . LGBT rights in the nation are also recognised as among
17328-511: The land in 1997. The forests were dominated by birds , and the lack of mammalian predators led to some like the kiwi , kākāpō , weka and takahē evolving flightlessness . The arrival of humans, associated changes to habitat, and the introduction of rats , ferrets and other mammals led to the extinction of many bird species, including large birds like the moa and Haast's eagle . Other indigenous animals are represented by reptiles ( tuatara , skinks and geckos ), frogs , such as
17480-641: The latter being common. New Zealand is a member of the Five Eyes intelligence sharing agreement, known formally as the UKUSA Agreement . The five members of this agreement compromise the core Anglosphere : Australia, Canada, New Zealand, the United Kingdom, and the United States. Since 2012, New Zealand has had a partnership arrangement with NATO under the Partnership Interoperability Initiative. According to
17632-589: The longest recession in over thirty years, and unemployment rising back to 7% in late 2009. The lowest unemployment rate recorded using the current methodology was in December 2021 during the COVID-19 pandemic , at 3.2%. Unemployment rates for different age groups follow similar trends but are consistently higher among youth. During the September 2021 quarter, the general unemployment rate was around 3.2%, while
17784-456: The lowest levels of perceived corruption in the world. It retains visible levels of inequality , having structural disparities between its Māori and European populations. New Zealand underwent major economic changes during the 1980s, which transformed it from a protectionist to a liberalised free-trade economy. The service sector dominates the national economy , followed by the industrial sector, and agriculture ; international tourism
17936-455: The massacre and virtual extinction of the Moriori. In a hostile 1642 encounter between Ngāti Tūmatakōkiri and Dutch explorer Abel Tasman 's crew, four of Tasman's crew members were killed, and at least one Māori was hit by canister shot . Europeans did not revisit New Zealand until 1769, when British explorer James Cook mapped almost the entire coastline. Following Cook, New Zealand
18088-450: The member's salary at retirement, multiplied by a factor known as the accrual rate . The final accrued amount is available as a monthly pension or a lump sum, but usually monthly. In the US, 26 U.S.C. § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan (see below) where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines
18240-485: The most tolerant in Oceania . New Zealand ranks highly for civic participation in the political process, with 82% voter turnout during recent general elections, compared to an OECD average of 69%. However, this is untrue for local council elections; a historically low 36% of eligible New Zealanders voted in the 2022 local elections , compared with an already low 42% turnout in 2019 . A 2017 human rights report by
18392-583: The names as North Island or Te Ika-a-Māui , and South Island or Te Waipounamu . For each island, either its English or Māori name can be used, or both can be used together. Similarly the Māori and English names for the whole country are sometimes used together ( Aotearoa New Zealand ); however, this has no official recognition. The first people to reach New Zealand were Polynesians in ocean going waka (canoes). Their arrival likely occurred in several waves, approximately between 1280 and 1350 CE. Those Polynesian settlers, isolated in New Zealand, became
18544-719: The nebulous United Tribes of New Zealand sent a Declaration of Independence to King William IV of the United Kingdom asking for protection. Ongoing unrest, the proposed settlement of New Zealand by the New Zealand Company (which had already sent its first ship of surveyors to buy land from Māori) and the dubious legal standing of the Declaration of Independence prompted the Colonial Office to send Captain William Hobson to claim sovereignty for
18696-475: The number of dairy cows doubling between 1990 and 2007, to become New Zealand's largest export earner. In the year to June 2018, dairy products accounted for 17.7% ($ 14.1 billion) of total exports, and the country's largest company, Fonterra , controls almost one-third of the international dairy trade. Other exports in 2017–18 were meat (8.8%), wood and wood products (6.2%), fruit (3.6%), machinery (2.2%) and wine (2.1%). New Zealand's wine industry has followed
18848-431: The pension for older employees than for younger ones (an "age bias"). Defined benefit pensions tend to be less portable than defined contribution plans, even if the plan allows a lump sum cash benefit at termination. Most plans, however, pay their benefits as an annuity, so retirees do not bear the risk of low investment returns on contributions or of outliving their retirement income. The open-ended nature of these risks to
19000-545: The pension plan allows for early retirement, payments are often reduced to recognize that the retirees will receive the payouts for longer periods of time. In the United States, under the Employee Retirement Income Security Act of 1974 , any reduction factor less than or equal to the actuarial early retirement reduction factor is acceptable. Many DB plans include early retirement provisions to encourage employees to retire early, before
19152-410: The plan. Traditional defined benefit plan designs (because of their typically flat accrual rate and the decreasing time for interest discounting as people get closer to retirement age) tend to exhibit a J-shaped accrual pattern of benefits, where the present value of benefits grows quite slowly early in an employee's career and accelerates significantly in mid-career: in other words it costs more to fund
19304-445: The private sector in many countries. For example, the number of defined benefit plans in the U.S. has been steadily declining, as more and more employers see pension contributions as a large expense avoidable by disbanding the defined benefit plan and instead offering a defined contribution plan. Money contributed can either be from employee salary deferral or from employer contributions. The portability of defined contribution pensions
19456-442: The protected endangered Hamilton's Frog , spiders , insects ( wētā ), and snails. Some, such as the tuatara, are so unique that they have been called living fossils . Three species of bats ( one since extinct) were the only sign of native land mammals in New Zealand until the 2006 discovery of bones from a unique, mouse-sized land mammal at least 16 million years old. Marine mammals, however, are abundant, with almost half
19608-542: The provisions of the Tier I scheme, whereas Veronica, hired in August 1995, would be permitted to retire at age 60 with full benefits and Jessica, hired in December 2014, would not be able to retire with full benefits until she became 65. In an unfunded defined benefit pension, no assets are set aside and the benefits are paid for by the employer or other pension sponsor as and when they are paid. Pension arrangements provided by
19760-569: The public sector (which has open-ended support from taxpayers). This coupled with a lack of foresight on the employers part means a large proportion of the workforce are kept in the dark over future investment schemes. Defined benefit plans are sometimes criticized as being paternalistic as they enable employers or plan trustees to make decisions about the type of benefits and family structures and lifestyles of their employees. However they are typically more valuable than defined contribution plans in most circumstances and for most employees (mainly because
19912-399: The purchasing power of the pension; the higher the inflation rate, the lower the purchasing power of a fixed annual pension. This effect can be mitigated by providing annual increases to the pension at the rate of inflation (usually capped, for instance at 5% in any given year). This method is advantageous for the employee since it stabilizes the purchasing power of pensions to some extent. If
20064-575: The reliability of interpretations drawn from the oral evidence of indigenous peoples, including from Māori. Regarding the arrival of these Polynesian settlers, there are no human remains, artefacts or structures which are confidently dated to earlier than the Kaharoa Tephra, a layer of volcanic debris deposited by the Mount Tarawera eruption around 1314 CE. Samples of rat bone, rat-gnawed shells and seed cases have given dates later than
20216-557: The report by the World Bank titled "Averting the Old Age Crisis", countries should consider separating the saving and redistributive functions, when creating pension systems, and placing them under different financing and managerial arrangements into three main pillars. The Pillars of Old Age Income Security: New Zealand New Zealand is an island country in the southwestern Pacific Ocean . It consists of two main landmasses—the North Island ( Te Ika-a-Māui ) and
20368-404: The risk of market fluctuations that could reduce their retirement savings. However, defined contribution plans provide more flexibility for employees, who can choose how much to contribute and how to invest their funds. Hybrid plans, such as cash balance and pension equity plans, combine features of both defined benefit and defined contribution plans. These plans have become increasingly popular in
20520-439: The selection of investment options and administrative providers. In the United States, the legal definition of a defined contribution plan is a plan providing for an individual account for each participant, and for benefits based solely on the amount contributed to the account, plus or minus income, gains, expenses and losses allocated to the account (see 26 U.S.C. § 414(i) ). Examples of defined contribution plans in
20672-445: The settlement came with no admission of liability or wrongdoing by CFS. Superannuation A pension ( / ˈ p ɛ n ʃ ən / ; from Latin pensiō 'payment') is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be: Pensions should not be confused with severance pay ;
20824-594: The signing of the treaty and declaration of sovereignty, the number of immigrants, particularly from the United Kingdom, began to increase. New Zealand was administered as a dependency of the Colony of New South Wales until becoming a separate Crown colony , the Colony of New Zealand , on 3 May 1841. Armed conflict began between the colonial government and Māori in 1843 with the Wairau Affray over land and disagreements over sovereignty. These conflicts, mainly in
20976-409: The sponsor/employer, and these risks may be substantial. In addition, participants do not necessarily purchase annuities with their savings upon retirement, and bear the risk of outliving their assets. (In the United Kingdom, for instance, it is a legal requirement to use the bulk of the fund to purchase an annuity.) The "cost" of a defined contribution plan is readily calculated, but the benefit from
21128-443: The state in most countries in the world are unfunded, with benefits paid directly from current workers' contributions and taxes. This method of financing is known as pay-as-you-go , or PAYGO . The social security systems of many European countries are unfunded, having benefits paid directly out of current taxes and social security contributions, although several countries have hybrid systems which are partially funded. Spain set up
21280-402: The state which may rank no higher than the state's promise to pay future pensions. Occupational pensions are typically provided through employment agreements between workers and employers, and their financing structure must meet legislative requirements. In common-law jurisdictions, the law requires that pensions be pre-funded in trusts, with a range of requirements to ensure the trustees act in
21432-415: The stock market, and the returns on the investment (which may be positive or negative) are credited to the individual's account. On retirement, the member's account is used to provide retirement benefits, sometimes through the purchase of an annuity which then provides a regular income. Defined contribution plans have become widespread all over the world in recent years, and are now the dominant form of plan in
21584-558: The total distribution of occupational pensions around the world. It will be noted that four of the largest economies (Germany, France, Italy and Spain) have very little in the way of pension assets. Nevertheless, in terms of typical net income replacement in retirement, these countries rank well relative to those with pension assets. These and other countries represent a fundamentally different approach to pension provision, often referred to as "intergenerational solidarity". Intergenerational solidarity operates to an extent in any country with
21736-467: The total workforce in 2016. In 2017, international visitor arrivals were expected to increase at a rate of 5.4% annually up to 2022. Wool was New Zealand's major agricultural export during the late 19th century. Even as late as the 1960s it made up over a third of all export revenues, but since then its price has steadily dropped relative to other commodities, and wool is no longer profitable for many farmers. In contrast, dairy farming increased, with
21888-486: The two regions. This free trade agreement expanded on the pre-existing free trade agreement and saw a reduction in tariffs on meat and dairy in response to feedback from the affected industries. The service sector is the largest sector in the economy, followed by manufacturing and construction and then farming and raw material extraction. Tourism plays a significant role in the economy, contributing $ 12.9 billion (or 5.6%) to New Zealand's total GDP and supporting 7.5% of
22040-481: The unemployment rate for youth aged 15 to 24 was 9.2%. New Zealand has experienced a series of " brain drains " since the 1970s that still continue today. Nearly one-quarter of highly skilled workers live overseas, mostly in Australia and Britain, which is the largest proportion from any developed nation. In recent decades, however, a " brain gain " has brought in educated professionals from Europe and less developed countries. Today New Zealand's economy benefits from
22192-847: The world's cetaceans (whales, dolphins, and porpoises ) and large numbers of fur seals reported in New Zealand waters. Many seabirds breed in New Zealand, a third of them unique to the country. More penguin species are found in New Zealand than in any other country, with 13 of the world's 18 penguin species. Since human arrival, almost half of the country's vertebrate species have become extinct, including at least fifty-one birds, three frogs, three lizards, one freshwater fish, and one bat. Others are endangered or have had their range severely reduced. However, New Zealand conservationists have pioneered several methods to help threatened wildlife recover, including island sanctuaries, pest control, wildlife translocation, fostering, and ecological restoration of islands and other protected areas . New Zealand
22344-569: Was centralised and the provinces were abolished in 1876. The provinces are remembered in regional public holidays and sporting rivalries. Since 1876, various councils have administered local areas under legislation determined by the central government. In 1989, the government reorganised local government into the current two-tier structure of regional councils and territorial authorities . The 249 municipalities that existed in 1975 have now been consolidated into 67 territorial authorities and 11 regional councils. The regional councils' role
22496-472: Was granted in the mid-1860s). Following concerns that the South Island might form a separate colony, premier Alfred Domett moved a resolution to transfer the capital from Auckland to a locality near Cook Strait . Wellington was chosen for its central location, with Parliament officially sitting there for the first time in 1865. In 1886, New Zealand annexed the volcanic Kermadec Islands , about 1,000 km (620 mi) northeast of Auckland. Since 1937,
22648-615: Was introduced in 2007, and in 2009 about 8,000 Pacific Islanders were employed under it. New Zealand is involved in the Pacific Islands Forum , the Pacific Community , Asia-Pacific Economic Cooperation , and the Association of Southeast Asian Nations Regional Forum (including the East Asia Summit ). New Zealand has been described as a middle power in the Asia-Pacific region, and an emerging power . The country
22800-584: Was the first nation in the world to grant all women the right to vote and pioneered the adoption of compulsory arbitration between employers and unions in 1894. The Liberals also guaranteed a minimum wage in 1894, a world first. In 1907, at the request of the New Zealand Parliament, King Edward VII proclaimed New Zealand a Dominion within the British Empire , reflecting its self-governing status. In 1947, New Zealand adopted
22952-528: Was visited by numerous European and North American whaling , sealing , and trading ships. They traded European food, metal tools, weapons, and other goods for timber, Māori food, artefacts, and water. The introduction of the potato and the musket transformed Māori agriculture and warfare. Potatoes provided a reliable food surplus, which enabled longer and more sustained military campaigns. The resulting intertribal Musket Wars encompassed over 600 battles between 1801 and 1840, killing 30,000–40,000 Māori. From
23104-706: Was written as Nu Tireni in the Māori language (spelled Nu Tirani in Te Tiriti o Waitangi). In 1834 a document written in Māori and entitled " He Wakaputanga o te Rangatiratanga o Nu Tireni " was translated into English and became the Declaration of the Independence of New Zealand . It was prepared by Te W(h)akaminenga o Nga Rangatiratanga o Nga Hapu o Nu Tireni , the United Tribes of New Zealand , and
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