Super watchdog resigns

New Zealand's superannuation scheme watchdog Geoff Rashbrooke has unexpectedly resigned his position before his contract was due to expire.

Rashbrooke has been at odds with many in the industry for more than a year.

In New Zealand a fund can only have the legal status of a superannuation scheme if its purpose is "principally for the purpose of providing retirement benefits." However, the phrase has not been tested in court.

Rashbrooke said earlier that some funds had been pushing "the edge of the envelope" and he has been forced to take firmer action.

Last year he suggested, in a discussion document, that non-retirement benefits should form a relatively small proportion of the benefit payment from a scheme.

He suggested that would face deregistration if their level of payouts exceeded this limit.

The Association of Superannuation Funds of New Zealand, which represent employer-sponsored super schemes opposed the idea.

"There appears to be some far-reaching implications for employment-related superannuation schemes in the content of this discussion document," executive director David Stevens said at the time.

Besides having a fight with the industry Rashbrooke also expressed frustration at his inability to influence superannuation policy because of the way Ministry of Economic Development is structured.

Currently the ministry (which the Government Actuary is part of) is split into operational and policy divisions. Since the actuary is considered to be an operational area, it has no influence over policy.

This situation is frustrating as the actuary sees many of the issues that are facing superannuation schemes, particularly employer sponsored ones, yet he can't do anything to fix them.

Rashbrooke also said he is not able to talk directly to Commerce Minister Paul Swain.