New Zealand Fire Service Superannuation Scheme · New Zealand Fire Service Superannuation Scheme...

New Zealand Fire Service Superannuation Scheme Investment Statement No.18

27 August 2014

Important information

(The information in this section is required under the Securities Act 1978.) Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself.

Choosing an investment

When deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below: Key Information..........................................................................................................................3

What sort of investment is this?.................................................................................................6

Who is involved in providing it for me?......................................................................................8

How much do I pay? ..................................................................................................................9

What are the charges? ............................................................................................................12

What returns will I get? ............................................................................................................13

What are my risks? ..................................................................................................................14

Can the investment be altered?...............................................................................................16

How do I cash in my investment?............................................................................................19

Who do I contact with inquiries about my investment?...........................................................23

Is there anyone to whom I can complain if I have problems with the investment? ................23

What other information can I obtain about this investment?...................................................24

Glossary ...................................................................................................................................25

The Financial Markets Authority regulates conduct in financial markets

The Financial Markets Authority regulates conduct in New Zealand’s financial markets. The Financial Markets Authority’s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets. For more information about investing, go to http://www.fma.govt.nz

Financial advisers can help you make investment decisions

Using a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions. Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products. When seeking or receiving financial advice, you should check— � the type of adviser you are dealing with:

� the services the adviser can provide you with:

� the products the adviser can advise you on.

New Zealand Fire Service Superannuation Scheme Investment Statement No. 18

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A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of interest he or she may have. Financial advisers must have a complaints process in place and they, or the financial services provider they work for, must belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over an investment, you can ask someone independent to resolve it. Most financial advisers, or the financial services provider they work for, must also be registered on the financial service providers register. You can search for information about registered financial service providers at http://www.fspr.govt.nz You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser.

Warning – restricted disclosure

The law requires that persons considering whether to join a superannuation scheme must be supplied on request with a prospectus about that scheme. However, employer superannuation schemes have been exempted from this requirement. You should be aware that in choosing to become a member of this superannuation scheme you may be doing so on the basis of more limited information than is generally available to investors making important decisions about investments. However, every prospective member of this scheme has a right, under the Superannuation Schemes Act 1989, to request to receive certain information about the scheme (including a copy of the trust deed).


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Key Information

This section is a brief summary of key information about the Scheme. It is important that you read the rest of this document in full to understand how the Scheme works.

More info on pages

What is the New Zealand Fire Service Superannuation Scheme?

It is a superannuation scheme sponsored by the New Zealand Fire Service Commission for its employees and has been in existence since 1987. The Scheme is governed by the Scheme's Trustees, who are responsible for managing and administering the Scheme in accordance with the rules set out in the Scheme's Trust Deed. The Scheme is registered with, and regulated by, the Financial Markets Authority.

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Who can join?

The following Fire Service employees: Trainee Firefighters, Firefighters, Officers, Control Room Operators, Black Watch Staff Members, Community Safety Team Members, Mechanics, Executive Officers, Regional Commanders, the Deputy National Commander and the Regional Commander.

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Who contributes what?

The standard contribution rate is 6% of your 'superable salary'. This is deducted from your after-tax pay and held for you in an account called your 'Retirement Accumulation'.

The Fire Service will contribute $1.52 (after tax) to your Retirement Accumulation for every $1.00 you contribute. The Trust Deed gives the Fire Service the right to cease contributing on six months' notice.

You can choose to divert some of your contributions to a special section of Scheme called the 'Complying Fund Section'. You can choose a rate of either 3% or 4% of superable salary. The Complying Fund Section has some (but not all) of the rules and benefits of a KiwiSaver Scheme.

For every $1.00 you contribute to the Complying Fund Section, the Government will contribute $0.50, up to a maximum of $521.43 a year.

If you contribute to the Complying Fund Section at the 3% rate, for every $1.00 you contribute to the Complying Fund Section, the Fire Service will contribute $1.00 to the Complying Fund Section and $0.52 to the Regular Section.

If you contribute to the Complying Fund Section at the 4% rate, for every $1.00 you contribute to the Complying Fund Section up to 3% of superable salary, the Fire Service will contribute $1.00 to the Complying Fund Section and $0.52 to the Regular Section. For every $1.00 you contribute to the Complying Fund Section above 3% of superable salary, the Fire Service will contribute $1.52 to the Regular Section and nothing to the Complying Fund Section.

In general, you will not be able to make any withdrawals from the Complying Fund Section until you reach NZ Super Age (currently 65) and have been in the Scheme five years. Other rules apply. Read the rest of this Investment Statement for more details.

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You can under certain circumstances make additional, voluntary contributions by payroll deduction if the Trustees allow. Voluntary contributions do not attract a contribution from the Fire Service.

What are my Investment Choices?

Your Retirement Accumulation is invested in one or more of the Scheme's Investment Choices:

• Cash

• Conservative

• Balanced (Default)

• Growth

You can choose how much of your Retirement Accumulation to invest in each Investment Choice when you join. You can change your Investment Choice mix after that, but fees may apply.

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What benefits do I get?

Subject to the lock-in applying to the Complying Fund Section, you may withdraw money from your Retirement Accumulation on:

• Retirement: With the consent of the Fire Service, if you retire from the Fire Service between the ages of 55 and NZ Super Age (currently 65) OR, as of right, if you retire from the Fire Service or leave service on or after NZ Super Age.

• Resignation and Retrenchment: If you resign from the Fire Service or cease to be eligible to be a member of the Scheme as a result of retrenchment.

• Loss of Medical Fitness: If you are required to leave the Fire Service because two doctors the Commission nominates certify that you are substantially medically unfit to perform duties considered suitable for you. A top up to your Retirement Accumulation may apply.

• Loss of Physical Fitness: If you are required to leave the Fire Service because you cannot meet the required physical fitness standards and you cannot or do not respond to remedial action. A top up to your Retirement Accumulation may apply.

• Death: If you die while employed with the Fire Service. A top up to your Retirement Accumulation may apply. You can nominate one or more persons to receive your benefit on death. The Trustees will have regard to your wishes when paying out your death benefit. If you do not nominate anyone, the Trustees will pay this to your estate.

• Hardship - Canterbury Earthquakes: If you were affected by the Canterbury Earthquake and/or aftershock the Trustees may, in their discretion, and subject to you meeting certain criteria, pay you up to 50% of your Retirement Accumulation.

• Early Access Benefit: The Trustees may, in their discretion, and subject to you meeting certain criteria, pay you an early access benefit whilst you remain a member of the New Zealand Fire Service.

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What are the fees and expenses?

You will pay the following fees:

• Benefit Quotation fee: a fee of $62.53 for requesting a written quote of the current value of your Retirement Accumulation.

• Switching fee: you can switch your Investment Choice mix twice in any 12 month period. The first switch is free. The second switch costs $62.53.

The Scheme also pays other fees and expenses that will affect your returns. These include the Administration Manager's fee, Investment Consultant and Managers' fees, Trustees' fees and expenses and Scheme Secretary's remuneration.

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How do I apply to join the scheme?

By filling out the application form accompanying this Investment Statement. If there is no accompanying application form, please contact the Scheme Secretary using the details on page 23. An application form may also be available on the Scheme's website: www.firesuper.co.nz.


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What sort of investment is this?

The New Zealand Fire Service Superannuation Scheme (Scheme) is a retirement savings scheme sponsored by the New Zealand Fire Service Commission (Commission) for some of its employees. The section "Who is involved in providing it for me? " on page 8 has more details about those involved in providing the Scheme. If you join the Scheme, you contribute some of your pay to an account held for you within the Scheme (your Retirement Accumulation). The Commission also contributes money to your Retirement Accumulation. The section "Who can join?" on page 6 explains who can join the Scheme and the section "How much do I pay? " on page 9 explains the contributions made to your Retirement Accumulation. There are two sections of your Retirement Accumulation: the regular section (Regular Section) and the complying superannuation fund section (Complying Fund Section). Each section has different rules and benefits. By default your contribution and the Commission's contribution go into the Regular Section. However, you can choose for some of your contribution and some of the Commission’s contribution to go into the Complying Fund Section instead. The Complying Fund Section has rules and benefits that are similar to (but not exactly the same as) a KiwiSaver Scheme. If you contribute to the Complying Fund Section, the New Zealand Government will also make a contribution. The section "How much do I pay? " on page 9 explains this in more detail. Your Retirement Accumulation is invested into one or more of the Scheme’s investment choice options (Investment Choices). Over time, the value of your Retirement Accumulation increases or decreases depending on the performance of these Investment Choices and other factors, such as any fees you pay and the expenses of running the Scheme. The section "How is my Retirement Accumulation invested?" on page 6 explains this in more detail. You become entitled to withdraw some or all of your Retirement Accumulation as a cash payment on the occurrence of certain events. These payments are called “benefits” (Benefits). Because the Scheme is a retirement savings scheme, you can generally only get a Benefit on retirement, ceasing service or other extraordinary events such as serious illness. See the section "How do I cash in my investment?" on page 19 for more details. You may pay fees for services provided to you in respect of the Scheme. Also, the expenses of running the Scheme are paid out of the Scheme. These fees and expenses and their effect on your returns is explained in more detail in the sections "What are the charges?" on page 12 and "What returns will I get?" on page 13. You also need to know that no one guarantees your investment in the Scheme and there are various risks associated with investment in the Scheme as set out in more detail in the section "What are my risks?" on page 14. You should consider consulting a financial adviser authorised by the Financial Markets Authority (FMA) before joining the Scheme.

Who can join?

You can join the Scheme if you are a Firefighter, Trainee Firefighter, Officer, Control Room Operator, Black Watch Staff Member, Community Safety Team Member, Mechanic, National Commander, Deputy National Commander, Regional Commander or Executive Officer. You can join from your first day of employment with the Commission but if you do not join within three months, you can only join with the Trustees’ consent.


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You can join the Scheme even if you are already a member of a KiwiSaver Scheme. However, you may have to contribute to both this Scheme and your KiwiSaver Scheme unless, for example, you can get a contributions holiday from or opt-out of your KiwiSaver Scheme. Also, for as long as the Commission contributes to your Retirement Accumulation in this scheme it may not also provide an employer contribution to your KiwiSaver Scheme.

How is my Retirement Accumulation invested?

You select one or more Investment Choice(s) to invest your Retirement Accumulation into. You also select how much of your Retirement Accumulation is invested into each Investment Choice you choose. If you do not select any Investment Choices, your Retirement Accumulation will be invested in the default Balanced Investment Choice. Each Investment Choice is invested in wholesale investment funds managed by professional fund managers. These wholesale investment funds invest in a range of asset classes. Generally asset classes with the highest potential returns also have the highest risk. Each wholesale investment fund invests in different asset classes and therefore has a different level of risk. A brief description of each Investment Choice and its risk profile is set out below. The section “What are my risks?” on page 14 has a more thorough explanation of risks. � Cash: Preservation of invested capital plus stable, positive returns. As a guide this option is

expected to provide a long-term (10 years plus) return after tax and investment expenses of 0.25% p.a. above the inflation rate.

� Conservative: Relatively stable returns, with a low level of risk. As a guide this option is expected to provide a long-term (10 years plus) return after tax and investment expenses of 1.5% p.a. above the inflation rate, with a likelihood of a negative return of 1 year in every 7.

� Balanced (default): Medium level returns, with a moderate level of risk. As a guide this option is expected to provide a long-term (10 years plus) return after tax and investment expenses of 3% p.a. above the inflation rate, with a likelihood of a negative return of 1 year in every 4.

� Growth: Relatively high returns, with a high level of risk. As a guide this option is expected to provide a long-term (10 years plus) return after tax and investment expenses of 4% p.a. above the inflation rate, with a likelihood of a negative return of 1 year in every 3.

The Trustees calculate how each Investment Choice has performed and credit or debit your Retirement Accumulation based on the performance of your Investment Choice(s). The amount credited or debited is called "returns". Neither the Trustees (nor anyone else) guarantee the performance of the Investment Choices. The performance of your Investment Choices may be negative, in which case your Retirement Accumulation will be debited and the value of your Retirement Accumulation will go down. You can switch your Investment Choice(s) up to twice in the scheme’s financial year (01 April to 31 March) (Switch) by going to www.firesuper.co.nz and clicking "access account details". Your first Switch in the scheme’s financial year is free. The Administration Manager deducts a fee of $62.53 from your Retirement Accumulation for your second Switch. You should consider consulting a financial adviser authorised by FMA before making a Switch.


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Responsible Investment

Responsible investment, including environmental, social, and governance considerations, is taken into account in the investment policies and procedures of the Scheme as at the date of this investment statement. You can obtain a copy of the scheme’s policies and procedures: � On the Scheme's website at www.firesuper.co.nz, which is publicly accessible at all

reasonable times; and

� From the Trustees, free of charge, upon request.

Who is involved in providing it for me?

The Scheme is called the “New Zealand Fire Service Superannuation Scheme”.

Trustees

The Scheme is governed by the Scheme’s trustees (Trustees). There are seven Trustees in total. Three are appointed by the Commission, three are appointed by the New Zealand Professional Firefighters Union and one is appointed by the other six. This last one is referred to as the "Independent Trustee" because he or she is not appointed by either the Commission (being the employer) or the New Zealand Professional Firefighters Union (being the body representing employees). As at the date of this Investment Statement, the Trustees are: � Denis James Fitzmaurice of Leithfield Beach.

� Angela June Foulkes of Lower Hutt.

� Peter Stuart Harris of Wellington.

� Timothy Patrick McGuinness of Wellington (Independent Trustee).

� Boyd Gordon Raines of Auckland.

� Geoff Douglas Taylor of Wellington.

� Ian David Wright of Lower Hutt.

You can contact the Trustees through the Secretary to the Trustees (Scheme Secretary) at the address set out under the heading “Who do I contact with inquiries about my investment?” on page 23. The Trustees may change. You can find out who the current Trustees are by asking the Scheme Secretary.

Administration Manager

The Scheme’s administration manager is Mercer (N.Z.) Limited (Administration Manager). The Administration Manager's address is 113 - 119 The Terrace, Wellington 6011. The Administration Manager's address may change. Current details can be obtained from www.mercer.co.nz or by asking the Scheme Secretary.

Promoter

The promoter of the Scheme is the Commission and its members. The Commission’s address is Level 9, AXA House, 80 The Terrace, Wellington 6011. The members of the Commission are: � Rt. Hon. Wyatt Creech of Wellington.


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� Vicki Caisley of Auckland.

� Rangi Wills of Wanganui.

� Angela Hauk-Willis of Wellington.

� David McFarlane of Blenheim.

The Commission's membership and address may change. Current details can be obtained from www.fire.org.nz or by asking the Scheme Secretary.

Activities

The Scheme was established by Trust Deed dated 2 December 1987 and is an employer-based, defined contribution superannuation scheme registered with FMA under the Superannuation Schemes Act 1989. FMA has approved the Scheme as a "complying superannuation fund" under the Superannuation Schemes Act 1989.

How much do I pay?

Your regular contribution

The standard contribution rate of your "superable salary” to your Retirement Accumulation is 6%. This is deducted from your salary or wages. “Superable salary” means:

If you are a: Your "superable salary" is:

� Firefighter � Trainee Firefighter � Officer � Control Room Operator � Black Watch Staff Member � Community Safety Team Member

The annual amount of your "total weekly wage" plus bonuses or allowances made with every wage payment and for which no specific claim has to be made by you.

� Mechanic Your annual wage plus any industrial allowances you receive.

� National Commander � Deputy National Commander � Regional Commander � Executive Officer

Your annual salary plus the assessed value of the free benefit received for accommodation.

If you are temporarily absent from service without pay, or on reduced pay, your “superable salary” will be an amount agreed between you, the Commission and the Trustees.

Reduction or suspension of your contributions

There may be circumstances where you cannot continue to contribute at the 6% rate set out above. In those circumstances, you can ask the Trustees to reduce your contribution rate for a maximum period of two years only. You should contact the Scheme Secretary using the details under the heading "Who do I contact with inquiries about my investment?" on page 23 if you want to reduce your contribution rate. If the Trustees allow you to reduce your contribution rate, your minimum benefits on death, Loss of Medical Fitness and Loss of Physical Fitness will be adjusted downwards accordingly. See the section "How do I cash in my investment? " on page 19 for more information.


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Regular Section and Complying Fund Section

By default, your contributions will go into the Regular Section of your Retirement Accumulation. However, you can choose to direct either 3% or 4% of your superable salary to the Complying Fund Section instead of the Regular Section. If you choose 3%, the remaining 3% of your contribution goes into the Regular Section. If you choose 4%, the remaining 2% of your contribution goes to the Regular Section.

Commission’s regular contribution

For every $1.00 you contribute during your employment with the Fire Service, the Commission contributes $1.52 after tax.1 If you do not contribute to the Complying Fund Section, all of the Commission's contribution goes into the Regular Section of your Retirement Accumulation. If you do contribute to the Complying Fund Section (whether at 3% or 4%) the Commission takes an amount equal to 3% of your superable salary from its contribution and puts this into the Complying Fund Section of your Retirement Accumulation. The Commission then puts the rest of its contribution in the Regular Section. The Commission can stop making contributions to the Regular Section of your Retirement Accumulation on 6 months' notice. The Commission can re-start making contributions at any time after that by agreement with the Trustees. You will be told if the Commission has given notice it will stop making contributions and if it restarts making contributions. The Commission may not stop making contributions to the Complying Fund Section of your Retirement Accumulation.

Government contribution - Complying Fund Section only

As at the date of this Investment Statement, for every $1.00 you contribute to the Complying Fund Section of your Retirement Accumulation, the New Zealand Government contributes $0.50, up to a maximum of $521.43 a year. If you are also a member of a KiwiSaver Scheme this will be paid to whichever scheme applies first. Any remaining tax credit will be paid to the other scheme.

As at the date of this Investment Statement, the Complying Fund Section of your Retirement Accumulation is not eligible for the Government Kick-Start that you would get if you joined a KiwiSaver Scheme. Unlike a KiwiSaver Scheme, the Complying Fund Section does not allow you to make a withdrawal for the purchase of a first home or to withdraw your money on permanent emigration from New Zealand.

Transfers in

You can transfer amounts held for you in other superannuation schemes to the Scheme (a Transfer) but only with the Trustees’ consent. If the scheme you transfer from is a complying superannuation fund then your transfer will be put into the Complying Fund Section. Transfers do not attract a contribution from the Commission. You cannot make a Transfer from a KiwiSaver Scheme to the Scheme.

Voluntary contributions

You can make additional voluntary contributions (Voluntary Contribution) to your Retirement Accumulation but only with Trustees’ consent. Voluntary Contributions do not attract a contribution from the Commission. You can only make a Voluntary Contribution through the Fire Service payroll system. Additional Voluntary Contributions must:

1 If you are on a total remuneration package you will effectively be paying for the Commission’s contribution by way of salary reduction.


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� be calculated as a percentage of your salary or wages;

� not exceed 10% of your salary or wages; and

� otherwise be made in accordance with the requirements of paragraphs (a), (c) and (d) of the definition of 'limited employer superannuation scheme' in clause 20A of the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 (as amended).

As at the date of this Investment Statement the Scheme meets these regulatory conditions.

Commission’s special contribution

The Commission will make a special contribution to top-up your Retirement Accumulation to ensure your Benefit on death, Loss of Medical Fitness or Loss of Physical Fitness is, at a minimum, double your annual superable salary.2 See the section "How do I cash in my investment?" on page 19 for more information.

How long you have to keep contributing

Regular Section

You have to keep making regular contributions to the Regular Section until: � The Trustees allow you to reduce contributions;

� You become eligible for a Benefit; or

� You elect to discontinue contributing to the Regular Section by giving written notice to the Trustees.

If you elect to discontinue contributing to the Regular Section, the Trustees will hold the Regular Section of your Retirement Accumulation for you until you become eligible for a Benefit from the Regular Section. Complying Fund Section You must keep making regular contributions to the Complying Fund Section of your Retirement Accumulation until you reach 65 years of age and have been contributing to the Complying Fund section for at least five years, unless the Trustees allow you to discontinue contributing to the Complying Fund Section. You can apply to the Trustees for a break from contributing to the Complying Fund Section (this is called a "contributions holiday") in the following circumstances: � After your first contribution to the Complying Fund Section or another complying

superannuation fund or KiwiSaver Scheme (but before 12 months following that date), you are suffering, or are likely to suffer, financial hardship, in which case the length of the contributions holiday will be three months (unless the Trustees agree to a longer period); or

� 12 months have passed since your first contribution to the Complying Fund Section or another complying superannuation fund or KiwiSaver Scheme, in which case the length of the contributions holiday will be a minimum of three months and a maximum of five years. No contributions holiday may be for less than three months unless the Trustees agree.

2 Except where you are less than 2 years out from New Zealand Superannuation qualification age (currently 65) and the amount the superable salary

you would have earned until you reach New Zealand Superannuation qualification age would be less than double your superable salary. In that case the amount of the top-up will be to that lesser amount.


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You may apply for a new contributions holiday before the end of the current contributions holiday. There is no limit to the number of successive contributions holidays you can take. A contributions holiday can be revoked or reinstated by you at any time by applying to the Trustees and the Commission to start or stop (as applicable) making deductions from your salary or wages. If you take a contributions holiday from the Complying Fund Section, you will contribute to the Regular Section at the full 6% rate unless you have reduced or suspended your contributions to the Regular Section as set out under the heading "Reduction or suspension of your contributions" on page 9, above. While you are on a contributions holiday, the Commission will direct all of its contributions (as adjusted for any reduction or suspension in your contributions) to the Regular Section of your Retirement Accumulation. Further details about contribution holidays are available from the Scheme Secretary or the Administration Manager.

What are the charges?

Fees paid by Members

You pay the following fees. These will affect your returns.

Benefit Quotation fee

You can ask the Administration Manager for the current value of your Retirement Accumulation. The Administration Manager deducts a $62.53 fee from your Retirement Accumulation for providing this to you in writing. This information is also available at the scheme’s website – www.firesuper.co.nz

Switching fee

You can switch your Investment Choice(s) up to twice in the scheme’s financial year (01 April to 31 March) (Switch) by going to www.firesuper.co.nz and clicking "access account details". Your first Switch in the scheme’s financial year is free. The Administration Manager deducts a fee of $62.53 from your Retirement Accumulation for your second Switch.

Expenses paid by the Scheme

The Trustees pay the following expenses out of the Scheme. These will affect your returns.

Administration Manager's fee

The Trustees pay the Administration Manager for the administration services it provides for the Scheme. The amount of this fee is agreed between the Trustees and Administration Manager from time to time and depends on the level of service provided. You can find out the Administration Manager's fee for the previous financial year by looking in the annual accounts for the Scheme.

Investment Consultant and Managers' fees

Each Investment Choice and the wholesale investment funds that those Investment Choices invest into are managed by an investment manager (Investment Manager). The Trustees also engage an investment consultant (Investment Consultant) to assist in the selection of Investment Managers and the development of the Investment Choices. The Trustees pay the Investment Consultant and each Investment Manager for the investment management services they provide to the Scheme. The amount of these fees is agreed between the Trustee and the Investment Consultant and each Investment Manager from time to time. The fees of an Investment Manager may depend on the performance of the investments managed by that


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manager. You can find out the Investment Expenses for the previous financial year by looking in the annual accounts for the Scheme.

Trustees' fees and expenses

The Independent Trustee is paid for his role as a Trustee of the scheme. The remuneration for this position is reviewed annually. The Trustees are reimbursed for expenses (such as travel, accommodation and food expenses) that they incur in their role as trustees. The amount of these fees and the limits on the reimbursement of expenses is determined from time to time. You can find out the Trustees' fees and expenses by looking in the annual accounts for the Scheme.

Scheme Secretary's remuneration

The Trustees contract the Scheme Secretary to carry out the day to day management of the Scheme. The Scheme Secretary's remuneration for this management is reviewed annually. Other fees and expenses The Scheme pays other fees and expenses. These include fees for professional accounting, audit, tax and legal services as well as printing and stationery expenses. You can find out these fees and expenses by looking in the annual accounts for the Scheme.

What returns will I get?

Returns

Your returns from the Scheme are paid to you as Benefits. These are described in the section "How do I cash in my investment?" on page 19. The key factors that determine your returns are: � Contributions: how much you contribute, how much the Commission contributes and how

much the Government contributes to your Retirement Accumulation

� The performance of your Investment Choices.

� The amount of tax and expenses paid by the Scheme and the fees paid by you.

� How long you stay with the New Zealand Fire Service and your reasons for ceasing service.

� Whether you transfer amounts into or out of the Scheme.

� How much you withdraw from your Retirement Accumulation as Benefits.

� How much the Trustees retain in or pay out from the reserve fund (Reserve Fund).

No amount of returns is or has been promised to you. Returns can be negative as well as positive. The Trustees are the persons who are legally liable to pay your Benefits. As at the date of this Investment Statement, because the payment of your returns depends on when you become eligible for a Benefit: � Your returns are not quantifiable.

� The date(s) on which you will be paid your Benefit is unknown.


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Reserve Fund B

The Scheme has a Reserve Fund B into which the Trustees pay any of the following amounts that are not specifically required or allocated for another purpose: � Benefits foregone by Members who have ceased to be eligible to contribute to the Scheme.

� Unclaimed Benefits.

� Other money not required for the payment of Benefits.

� Any contribution by the Commission pursuant to the fourth schedule of the Trust Deed required to top-up Reserve Fund B to ensure that there are sufficient funds to pay the minimum Benefits provided for in the event of Loss of Medical Fitness or Loss of Physical Fitness or death. For more information about these Benefits see the section 'How do I cash in my investment?' on page 19.

The Trustees may use the Reserve Fund to pay Benefits on hardship, death, Loss of Physical Fitness Benefits, Loss of Medical Fitness and in other circumstances (which will be paid on an equitable basis to all Members) and to pay the expenses of administering the Scheme.

Taxation of the Scheme

The Scheme is a "widely-held superannuation fund" for tax purposes. As such, it pays tax on its taxable income (as determined by applicable law) at 28%. The Scheme may deduct the costs of developing, marketing, selling, promoting and advertising for members from its taxable income, provided certain requirements are met. The payment of tax from the Scheme will affect returns. Generally, you do not pay tax on the Benefits you receive from the Scheme. The Scheme is not a "Portfolio Investment Entity" or "PIE" for tax purposes. As at the date of this Investment Statement, the Trustees do not propose to apply for the Scheme to become a Portfolio Investment Entity, but this could change in the future. The Trustees and promoters accept no responsibility for the tax implications of you joining the Scheme. Tax legislation, its interpretation and the rates and bases of taxation are subject to change, and the application of tax laws depends on your individual circumstances. You should consult your own independent tax adviser before joining.

No guarantor

No one guarantees your benefits.

What are my risks?

Risks

All investments carry risk. There are risks associated with the Scheme that could: � impact on your returns from the Scheme; and

� mean that you do not get back some (or, in extreme cases, any) of the contributions to your Retirement Accumulation.

Investment Risks

The Trustees consider the principal investment risks of the Scheme to be:


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� Asset class risk: The value of the investment assets in your Investment Choice(s) could go down. The asset class risk associated with each Member depends on the mix of investment assets held in your Investment Choice(s). Generally, investment assets offering the highest potential returns also pose the highest risk. Members who have higher exposure to shares will generally suffer bigger and more frequent investment losses and gains over the long term than investments that carry a high weighting of fixed interest assets.

� Currency risk: Currency fluctuations where the underlying investment assets in your Investment Choice(s) are denominated in or hedged to currencies other than New Zealand Dollars will affect your returns.

Other Risks

There are other non-investment risks associated with the Scheme. The Trustees consider the principal non-investment risks of the Scheme to be: � Liquidity risk: The Scheme may not be able to meet monetary obligations in a timely manner.

For example, there could be a mismatch between the maturity profile of investments and the amounts required to pay Benefits.

� Regulatory risk: There could be future changes to tax, or general superannuation law that affect the Scheme or your interest in the Scheme.

� Administration risk: The risk of an outsourcing, technological or other failure impacting on the Scheme or financial markets in general.

� Employer ceases to contribute: Under the Trust Deed, the Commission is entitled to cease contributing to the Regular Section of your Retirement Accumulation on six months' notice.

Where possible, the Trustees take appropriate steps to mitigate these risks. For example, the Scheme’s performance is regularly assessed against investment guidelines adopted upon the advice of an investment consultant and the Scheme's investments are managed with a view to ensuring the Scheme's cash flow requirements are met. Any turmoil in the global credit and financial markets has in the past resulted in significant investment losses across most asset classes. This highlights investment risks and emphasises the likelihood that the value of your Retirement Accumulation may fluctuate from time to time. From time to time market conditions will materially and adversely affect the Scheme's investments. You should be prepared to experience short term declines in your Retirement Accumulation. It is foreseeable that, due to a decline in the value of investments of the Scheme, you may receive less from the Scheme than the contributions made for you or your Benefits may reduce over time.

Consequences of insolvency

You do not have to pay more money into the Scheme other than as described in the section “How much do I pay?” on page 9. You will not be liable to pay money to any person as a result of the insolvency of the Scheme or the Trustees. The Trustees are not aware of any claims on the Scheme's assets that will or may rank equally with or ahead of the claims of Members in the event of the Scheme being wound up other than the fees and expenses described in the 'What are the charges?' section on page 12 and the Scheme's liability for income tax.


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Can the investment be altered?

Commission may stop contributing

The Commission can stop making contributions to the Regular Section of your Retirement Accumulation on 6 months' notice. The Commission can re-start making contributions at any time after that by agreement with the Trustees. You will be told if the Commission gives notice that it will stop making contributions or if it restarts making contributions. The Commission may not stop contributing to the Complying Fund Section of your Retirement Accumulation.

Reduction of contributions

When you join the Scheme, you agree to contribute 6% of your superable salary to your Retirement Accumulation as explained in the section "How much do I pay?" on page 9. However, there may be circumstances where you cannot continue to contribute at that rate. In those circumstances, you can ask the Trustees to reduce your contribution rate. You should contact the Scheme Secretary using the details under the heading "Who do I contact with inquiries about my investment?" on page 23 if you want to reduce your contribution rate. If the Trustees allow you to reduce your contribution rate, your minimum benefits on death, Loss of Medical Fitness and Loss of Physical Fitness will be adjusted downwards accordingly. See the section "How do I cash in my investment?" on page 19 for more information. If you are temporarily absent from service without pay, or on reduced pay, your “superable salary” will be an amount agreed between you, the Commission and the Trustees.

Ceasing contributions

Regular Section

You have to keep making regular contributions to the Regular Section until: � The Trustees allow you to reduce contributions;

� You become eligible for a Benefit; or

� You elect to discontinue contributing to the Regular Section by giving written notice to the Trustees.

If you elect to discontinue contributing to the Regular Section, the Trustees will hold the Regular Section of your Retirement Accumulation for you until you become eligible for a Benefit from the Regular Section.

Complying Fund Section

You must keep on making regular contributions to the Complying Fund Section of your Retirement Accumulation unless the Trustees allow you to cease contributing to the Complying Fund Section. You can apply to the Trustees for a break from contributing to the Complying Fund Section (this is called a "contributions holiday") in the following circumstances: � After your first contribution to the Complying Fund Section or another complying

superannuation fund or KiwiSaver Scheme (but before 12 months following that date), you are suffering, or are likely to suffer, financial hardship, in which case the length of the contributions holiday will be three months (unless the Trustees agree to a longer period); or


17

� 12 months have passed since your first contribution to the Complying Fund Section or another complying superannuation fund or KiwiSaver Scheme, in which case the length of the contributions holiday will be a minimum of three months and a maximum of five years. No contributions holiday may be for less than three months unless the Trustees agree.

You may apply for a new contributions holiday before the end of the current contributions holiday. There is no limit to the number of successive contributions holidays you can take. A contributions holiday can be revoked or reinstated by you at any time by applying to the Trustees and the Commission to start or stop (as applicable) making deductions from your salary or wages. If you take a contributions holiday from the Complying Fund Section, you will contribute to the Regular Section at the full 6% rate unless you have reduced or suspended your contributions to the Regular Section as set out under the heading "Reduction or suspension of your contributions" on page 9, above. While you are on a contributions holiday, the Commission will direct all of its contributions (as adjusted for any reduction or suspension in your contributions) to the Regular Section of your Retirement Accumulation. Further details about contribution holidays are available from the Scheme Secretary or the Administration Manager.

Transfers

Transfers in

You can make a Transfer from another superannuation scheme to the Scheme, but only with the Trustees’ consent. If the scheme you Transfer from is a complying superannuation fund, your Transfer will go into the Complying Fund Section of your Retirement Accumulation. Otherwise, your Transfer will go into the Regular Section. Transfers do not attract a contribution from the Commission. You cannot make a Transfer from a KiwiSaver Scheme to the Scheme.

Transfers out

If you leave the Fire Service and join another superannuation scheme or KiwiSaver Scheme (or are already a member of another superannuation scheme or KiwiSaver Scheme), you can make a Transfer of your Retirement Accumulation from this Scheme to that other superannuation scheme or KiwiSaver Scheme. The Complying Fund Section of your Retirement Accumulation can only be transferred to another complying superannuation fund or KiwiSaver Scheme. After the Transfer you will not be entitled to any Benefits from this Scheme. You may be able to transfer your Retirement Accumulation from the Scheme to another superannuation scheme or KiwiSaver Scheme while you are still with the Fire Service. If you wish to do this, please contact the Scheme Secretary, using the contact details set out under the heading "Who do I contact with inquiries about my investment?" on page 23 for more information.

Voluntary contributions

You can make Voluntary Contributions to your Retirement Accumulation, but only with the Trustees’ consent. You can only make Voluntary Contributions through the Fire Service payroll system. Voluntary Contributions do not attract the Commission’s contribution. See page 10 for further information on the criteria Voluntary Contributions must meet.


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Switches

You can switch your Investment Choice(s) up to twice in the scheme’s financial year (01 April to 31 March) (Switch) by going to www.firesuper.co.nz and clicking "access account details". Your first Switch in the scheme’s financial year is free. The Administration Manager deducts a fee of $62.53 from your Retirement Accumulation for your second Switch. You should consult a financial adviser authorised by FMA before making a Switch.

Amendment to Trust Deed

The Trust Deed contains rules that govern the Scheme. The Trustees and the Commission can agree to amend the Trust Deed. However, they cannot make any amendment to the Trust Deed that:3 � Reduces, postpones or otherwise adversely affects the Benefits that may in due course flow

from, or are attributable to, membership of the Scheme up to the date the amendment is made; or

� Removes any right of the Scheme's Members or other Beneficiaries to participate in the management of the Scheme; or

� Increases the contributions, fees, or charges payable by any Member; or

� Provides for the reversion of any assets of the Scheme to the Commission to any greater extent than already provided for in the Trust Deed

unless they get written consent from every Member, and every other Beneficiary who is in receipt of a Benefit under the Scheme at the date the amendment is made, who would be adversely affected by the amendment.

The Trust Deed also prohibits amendments that would breach of section 84B of the State Sector Act 1988. Section 84B requires that: � The Scheme is registered under the Superannuation Schemes Act 1989; and

� The Scheme provides that the sum of all Benefits (including any lump sum payments, annuities, and other Benefits) payable from the Scheme in respect of any member of the Scheme will not exceed the sum of:

o Contributions paid by or on behalf of a member and investment earnings on the contributions; and

o Any allocations to the member from surplus funds held within the Scheme; and

o The amount paid in respect of that member from any insurance policy effected for the benefit of members of the Scheme; and

� The Trust Deed of the Scheme defines the rates or amounts (if any) of contributions of the Commission or officers or employees; and

� The Trust Deed of the Scheme entitles the Commission to cease contributing to the Scheme on behalf of a person if that person ceases to be an officer or employee of the Commission; and

� The Benefits provided by the Scheme are fully funded as they accrue; and

3 This is implied into the Trust Deed by section 9 of the Superannuation Schemes Act 1989.


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� The Scheme enables withdrawing members to transfer to other superannuation schemes the value (as determined in accordance with the terms of the Scheme) of the Benefits attributable to that person's membership of the Scheme up to the date of withdrawal; and

� The Scheme enables any person who becomes an officer or employee of the Commission, if the Commission agrees to contribute to the Scheme on that person's behalf, to become a member of the Scheme and to transfer to the Scheme the value of the Benefits attributable to that person's membership of other superannuation schemes; and

� The Trust Deed of the Scheme does not permit amendments to be made to the Scheme that would result in any provision above ceasing to apply to the Scheme.

Law Changes

The Government may introduce new laws and may amend existing laws such as the Superannuation Schemes Act 1989 and the KiwiSaver Act 2006. These law changes could affect the Scheme. For example, the recently enacted Financial Markets Conduct Act includes fundamental changes to the laws that regulate the structure and offering of collective investment vehicles in New Zealand. If the law changes, the Trustees and the Commission will cooperate to make such amendments to the Trust Deed, and such other changes to the administration of the Scheme, as they may consider necessary or desirable in light of those changes.

How do I cash in my investment?

Benefits

Retirement

If you retire or leave service from the Fire Service on or after reaching New Zealand Superannuation qualification age (NZ Super Age, currently 65): � You are entitled to all of the Regular Section of your Retirement Accumulation; and

� If you have been a member of the Scheme (or other complying superannuation fund or KiwiSaver Scheme) for at least 5 years, you are entitled to all of the Complying Fund Section of your Retirement Accumulation. A Statutory Declaration is required to be completed prior to any benefit being paid from the complying superannuation fund.

If you retire from the Fire Service with the Commission's consent between age 50 and NZ Super Age: � You are entitled to all of the Regular Section of your Retirement Accumulation; but

� The Complying Fund Section of your Retirement Accumulation will be held for you until you become eligible for a benefit on or after NZ Super Age (as above) or other permitted withdrawal (set out below).

The minimum retirement benefit payable to you is the amount of your contributions to the Scheme, including any transfers from other superannuation schemes to the Scheme.

Resignation and Retrenchment

If, before NZ Super Age, you resign from the Fire Service or you cease to be eligible to be a Scheme member as a result of retrenchment by the Commission: � You are entitled to all of the Regular Section of your Retirement Accumulation; but


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� The Complying Fund Section of your Retirement Accumulation will be held for you until you become eligible for a benefit on or after NZ Super Age (as above), or other permitted withdrawal (set out below).

The minimum resignation and retrenchment benefit payable to you is the amount of your contributions to the Scheme, including any transfers from other superannuation schemes to the Scheme.

Loss of Medical Fitness

If, before NZ Super Age, the Commission requires you to leave the Fire Service because two doctors it has nominated certify that you are substantially medically unfit to perform duties the Commission considers suitable for you (Loss of Medical Fitness): � You are entitled to all of the Regular Section of your Retirement Accumulation; and

� If the Trustees consider you are also suffering from "serious illness" (i.e., injury, illness or disability that results in you being totally and permanently unable to engage in work for which you are suited by reason of experience, education, or training or any combination of those things or that poses a serious and imminent risk of death) the Trustees may pay you up to 100% of the Complying Fund Section of your Retirement Accumulation; but

� If the Trustees do not consider you are also suffering from "serious illness" the Complying Fund Section of your Retirement Accumulation will be held for you until you become eligible for a benefit on or after NZ Super Age (as above), or other permitted withdrawal (including serious illness).

If, on Loss of Medical Fitness, your Retirement Accumulation is less than double your annual superable salary plus the amount(s) of any early access benefit(s) paid, the Trustees will top-up your Retirement Accumulation so that it is as if your Retirement Accumulation was double your annual superable salary.4 However: � If you are less than two years out from NZ Super Age and the amount of annual superable

salary you would earn before you reach NZ Super Age is less than double your annual superable salary, the top-up will be to that lesser amount; and

� If you are on a reduced contribution rate (i.e., less than 6% of superable salary) the calculation of what is double your superable salary will be adjusted downwards accordingly.

Loss of Physical Fitness

If, before NZ Super Age, the Commission requires you to leave the Fire Service because you cannot meet its physical fitness standards and you cannot or do not respond to remedial action (Loss of Physical Fitness): � You are entitled to all of the Regular Section of your Retirement Accumulation;

� If the Trustees consider you are also suffering from "serious illness" (defined above) the Trustees may pay you up to 100% of the Complying Fund Section of your Retirement Accumulation;

� If the Trustees do not consider you are suffering from "serious illness" the Complying Fund Section of your Retirement Accumulation will be held for you until you become eligible for a

4 The top-up is first paid from the Reserve Fund and, and, if there is not enough in the Reserve Fund, the Commission will make the special contribution as set out under the heading "Commission’s special contribution" on page11.


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benefit on or after NZ Super Age (as above), or other permitted withdrawal (such as serious illness).

If, on Loss of Physical Fitness, your Retirement Accumulation is less than double your annual superable salary plus the amount(s) of any early access benefit(s) paid, the Trustees will top-up your payment so that it is as if your Retirement Accumulation was double your annual superable salary.5 However: � If you are less than two years out from NZ Super Age and the amount of superable salary you

would earn before you reach NZ Super Age is less than double your annual superable salary, the top-up will be to that lesser amount; and

� If you are on a reduced contribution rate (i.e., less than 6% of superable salary) the calculation of what is double your annual superable salary will be adjusted downwards accordingly.

Payment for the above benefits is generally made within 15 working days of ceasing employment with the New Zealand Fire Service.

Death

If you die while still employed with the Fire Service, the Trustees will pay out all of your Retirement Accumulation. If, on death, your Retirement Accumulation is less than double your annual superable salary plus the amount(s) of any early access benefit(s) paid the Trustees will top-up the payment to double your annual superable salary.6 However if you were on a reduced contribution rate at the time of your death (i.e., less than 6% of superable salary) the calculation of what is double your annual superable salary will be adjusted downwards accordingly. On the application form, you can notify the Trustees about who you would like to receive your death benefit and how much of your Retirement Accumulation you would like them to receive. The person or persons you notify are called "beneficiaries" (Beneficiaries). You can change your Beneficiaries from time to time by filling out a change in the personal details form. If you do not notify the Trustees of any Beneficiaries your death benefit will be paid to the administrators or executors of your estate. If you do notify the Trustees of Beneficiaries, the Trustees will take into account your wishes and will generally follow them. However, the Trustees do not have to follow your wishes and, at their discretion, can instead pay your death benefit to the administrators or executors of your estate or to your Beneficiaries in different amounts to what you notified.

Hardship - Canterbury Earthquakes

If the Trustees are satisfied that: � At the time of the Canterbury Earthquake of 2010 and aftershock of 2011, you were residing

within the areas of Ashburton District Council, Christchurch City Council, Hurunui District Council, Selwyn District Council or Waimakariri District Council; and

� As a result of those earthquakes, in the period 4 September 2010 to 31 December 2011, you suffered destruction of, or damage to, your property, loss of employment or incurred costs

5 The top-up is first paid from the Reserve Fund and, and, if there is not enough in the Reserve Fund, the Commission will make the special

contribution as set out under the heading "Commission’s special contribution" on page 11. 6 The top-up is first paid from the Reserve Fund and, and, if there is not enough in the Reserve Fund, the Commission will make the special contribution as set out under the heading "Commission’s special contribution" on page 11.


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(including costs associated with relocating to a new home or dealing with trauma); then

the Trustees may, in their discretion, pay you up to 50% of your Retirement Accumulation. If you contribute to the Complying Fund Section, this will be paid equally from the Regular Section and the Complying Fund Section of your Retirement Accumulation. The Trustees may require you to provide information supporting your claim such as a statutory declaration of your assets and liabilities and evidence of loss of employment or costs that you have incurred. Early access benefit Upon application the Trustees may, in their discretion, pay you an early access benefit: � Which is no greater than the sum of 50% of your Member's Accumulation at the time of the

application to the Trustees.

� Where only the Member's Accumulation may be used to pay an early access benefit and in no circumstances shall Commission Accumulations be available to provide for an early access benefit.

� Where an early access benefit shall not be accessed until the aggregate value of the Commission Accumulation and Member's Accumulation exceeds the value of three times the Member's Salary.

� Where a Member shall not be entitled to receive an early access benefit more than twice during the period of his or her membership of the Scheme and the Trustees shall not approve a second payment of an early access benefit to a Member until at least five years have passed since the first payment of an early access benefit was made to that Member.

� Where any early access benefit(s) paid to a Member shall be taken into account where a Member subsequently becomes entitled to an additional benefit payment for Loss of Medical Fitness. Loss of Physical Fitness or Death set out in this section above.

The Trustees may determine at any time in their sole discretion that early access benefits will no longer be granted, whether for a particular time period or indefinitely, if they consider the circumstances deem it necessary and appropriate.

Continued membership after you cease service

If you cease service from the Fire Service you can continue to be a member of the Scheme by advising the Trustees within one month of your cessation of service of your wish to do so. If you do: � And you are a member of the Complying Fund section you will not continue to receive the

Government contribution.

� You can make four free withdrawals a year from your Retirement Accumulation. Additional withdrawals can be made for a fee of $62.53.

� Your Investment Choices will continue to be credited or debited with interest on the same basis as other members.

Winding up

The Scheme will be terminated and wound up:


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� If the Commission is dissolved and not replaced, and the Trustees do not resolve to continuethe Scheme; or

� If the Trustees and the Commission resolve to terminate and wind up the Scheme.

The winding up will occur on a date selected by the Trustees that is at least 6 months after the event triggering termination (Winding Up Date). From the Winding Up Date:

� No Benefits will be paid;

� No contributions will be accepted;

� The Trustees will sell the Scheme's investments for cash;

� The Trustees will pay out Benefits to all Scheme members in whatever way the Trustees thinkis fair, after consulting the Administration Manager.

No market

You cannot sell your Retirement Accumulation or your right to Benefits or use either of them as security for borrowing.

Relationship property and other claims

The Trustees may pay out amounts from your Retirement Accumulation where required by law or Court order. For example, the Trustees may pay out your former partner from your Retirement Accumulation as part of a Court ordered settlement of relationship property.

Who do I contact with inquiries about my investment?

You can contact the Scheme Secretary with inquiries:

Jan Barber

New Zealand Fire Service Superannuation Scheme PO Box 2897 Wellington 6140

Tel: 0800 MY SUPER 0800 69 78737 Email: [email protected] Website: www.firesuper.superfacts.co.nz

Is there anyone to whom I can complain if I have problems with the investment?

You can complain to the Trustees about the Scheme by contacting the Scheme Secretary using the details set out above. The Trustees have an internal dispute resolution process to consider your concerns.

The Trustees are registered on the Register of Financial Service Providers: www.fspr.govt.nz. The Trustees also belong to an independent, external dispute resolution scheme operated by Financial Services Complaints Limited (FSCL) and approved by the Ministry of Consumer Affairs.


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The Trustees have 40 days to respond to your complaint. If you are not satisfied by the Trustees' response you can refer the matter to FSCL by emailing [email protected] or by calling 0800 347 257. Full details of how to access the FSCL scheme can be obtained on their website: www.fscl.org.nz. There is no cost to you to use the services of FSCL.

What other information can I obtain about this investment?

Website

You can find information about the Scheme on its website: www.firesuper.co.nz. The Trustees give no guarantee that this website will be up and running at all times or that it will contain all the information relating to the Scheme. However, you should be able to access the website most of the time and download and/or view most, if not all, the information referred to below.

Financial Statements

The Scheme's financial statements contain information about the Scheme that is not in this Investment Statement. You can get these and other documents relating to the Scheme, free of charge, from the Companies Office website: www.companies.govt.nz by searching under "Search Other Registers", "Superannuation Schemes", reference number 1802197.

Annual information

The Trustees will send you a copy of the Scheme's annual report within five months of its 31 March balance date each year. The annual report will include a summary of the Scheme's financial statements. You will also receive a "Member Benefit Statement" setting out transactions and interest credited to or debited from your Retirement Accumulation for the previous financial year.

On-request information

You can request a copy of the Scheme's Trust Deed (and amendments), the most recent annual report, the most recent financial statements and the auditor's report relating thereto from the Scheme Secretary whose contact details are set out under the heading “Who do I contact with inquiries about my investment?” on page 23.


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Glossary

Administration Manager The person appointed by the Trustees to carry out the

administration of the Scheme. At the date of this Investment Statement, the Administration Manager is Mercer (N.Z.) Limited.

Benefits The payments you are entitled to receive from the Scheme.

In general these come out of your Retirement Accumulation. In some cases (ie, Loss of Medical Fitness, Loss of Physical Fitness or Death) a top-up may apply.

Beneficiaries The one or more persons you nominate to receive your

Death Benefit. The Trustees will take your wishes into account when paying a Death Benefit but are not obliged to follow them.

Commission The New Zealand Fire Service Commission, the sponsor of

the Scheme and the employer of its Members. Commission's regular contribution The $1.52 (after tax) contribution made by the Commission

to your Retirement Accumulation for every $1.00 of your regular contribution. The Trust Deed gives the Commission the right to cease making these contributions on six months' notice.

Commission's special contribution A special contribution the Commission will make to ensure

you get any applicable top-up to your Benefit on Loss of Medical Fitness, Loss of Physical Fitness or Death.

Complying Fund Section The Complying Fund Section of your Retirement

Accumulation, where you can choose to divert a portion of the contributions made for you to be deposited and invested. This has some (but not all) of the rules and benefits of a KiwiSaver Scheme.

Complying Superannuation Fund A type of superannuation scheme that is not a KiwiSaver

Scheme but which has some (but not all) of the same rules and benefits as a KiwiSaver Scheme. The benefits include a Government Contribution. The Scheme is a Complying Superannuation Fund and this is why you have the option of contributing to the Complying Fund Section of your Retirement Accumulation.

Contributions Money paid into a Retirement Accumulation. Contributions

to a Retirement Accumulation are paid by you (as a Member) by the Commission (as Sponsor and employer) and, if you are contributing to the Complying Fund Section,


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by the New Zealand Government. FSCL Financial Service Complaints Limited, the operator of the

approved external dispute resolution scheme to which the Trustees belong.

FMA The Financial Markets Authority, New Zealand's regulator of

superannuation schemes and financial markets more generally.

Independent Trustee The Trustee who is not appointed by either the

New Zealand Professional Firefighters Union or the New Zealand Fire Service Commission. This person is appointed by the other six trustees.

Investment Choices The options available through the Scheme for investment of

your Retirement Accumulation. Investment Consultant The professional adviser appointed by the Trustees to

assist them in choosing Investment Managers and formulating Investment Choices.

Investment Manager The professional advisers appointed by the Trustees, in

light of advice from the Investment Consultant, who are responsible for managing the investment of the Investment Choices.

KiwiSaver A government sponsored savings initiative designed to help

New Zealanders save for their retirement. See http://www.kiwisaver.govt.nz/ for more information.

KiwiSaver Scheme A scheme established under the KiwiSaver initiative. The

New Zealand Fire Service Superannuation Scheme is not a KiwiSaver Scheme. However, the Scheme is a Complying Superannuation Fund and as such offers you some (but not all) of the rules and benefits of a KiwiSaver Scheme through the Complying Fund Section of your Retirement Accumulations.

Loss of Medical Fitness If, before NZ Super Age, the Commission requires you to

leave the Fire Service because two doctors it has nominated certify you are substantially medically unfit to perform duties the Commission considers suitable for you.

Loss of Physical Fitness If, before NZ Super Age, the Commission requires you to

leave the Fire Service because you cannot meet its physical fitness standards and you cannot or do not respond to remedial action.

Member A person who has joined the Scheme. NZ Super Age New Zealand Superannuation Qualification Age. This is

currently 65 years old.


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Promoter In general, any person who is instrumental in the formulation of a plan or programme pursuant to which securities (such as interests in superannuation schemes) are offered to the public and, where that person is a body corporate, every director of that person. In the case of the Scheme, the Promoters are the New Zealand Fire Service Commission and each of its members.

Regular Section The Regular Section of your Retirement Accumulation,

where contributions, not diverted to the Complying Fund Section of your Retirement Accumulation, are deposited and invested.

Retirement Accumulation An account held for you within the Scheme. This is where

your contributions and other contributions made for you are held and invested. There are two sections of this account: a Regular Section and a Complying Fund Section.

Reserve Fund B A fund into which the Trustees pay certain amounts not

specifically required or allocated for other purposes. The Trustees use Reserve Fund B to pay the top-up to Benefits on Loss of Medical Fitness, Loss of Physical Fitness or Death.

Responsible Investment Also known as sustainable, socially conscious, "green" or

ethical investing; this is an investment strategy which seeks to consider both financial return and social good.

Scheme The New Zealand Fire Service Superannuation Scheme. Scheme Secretary The individual contracted by the Trustees to oversee the

day to day management and administration of the Scheme. Switch A change you request to the Investment Choice mix in

which your Retirement Accumulation is invested. Transfer The transfer of money or assets from one superannuation

scheme to another. For example, if you are a member of another superannuation scheme you may be able to transfer your interest in that other superannuation scheme to the New Zealand Fire Service Superannuation Scheme.

Trust Deed The legal document agreed between the New Zealand Fire

Service Commission, the Trustees and binding Members that sets out the rules of the Scheme.

Trustees The individuals who govern the Scheme and are ultimately

responsible for its administration and management. Three are appointed by the New Zealand Professional Firefighters Union, three are appointed by the New Zealand Fire Service Commission and one (the Independent Trustee) is


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appointed by the other six. Voluntary contribution A contribution you choose to make in addition to the regular

contribution you commit to making by joining the Scheme. A voluntary contribution is subject to certain limitations and does not attract a contribution by the New Zealand Fire Service Commission.

Your regular contribution The Contribution you commit to making by joining the

Scheme. This is 6% of your 'superable salary' and is deducted from your pay.

NEW ZEALAND FIRE SERVICE SUPERANNUATION SCHEME APPLICATION FOR MEMBERSHIP

I apply for admission as a Member of the Scheme and agree to the terms and conditions contained in the Trust Deed governing the Scheme. I authorise my Employer to deduct from my earnings the amount required to cover my contributions.

Member’s Full Name _______________________________ ______________________ First Names Surname

Date of Birth _______________________

(Please attach a copy of your birth certificate or drivers licence to this application)

Mailing Address ____________________________________________________________ ___________________________ Post Code ___ ___ ___ ___

E-Mail address _______________________________ Job Title _____________________________ Location ___________________ Contribution Rate 6 % per annum

I wish to have my future contributions to the scheme invested in the Member Investment Choice options as set out below until I make a further election and should I not make an election all of my future contributions to the scheme will be invested in the Balanced Option until I make a further election.

Member Investment Choice Option Cash Conservative Balanced Growth

Total

%

%

%

%

Columns must add up to100%

I have received and read a copy of the current Investment Statement, and I understand I am entitled to receive a copy of the current Member brochure, a copy of the latest Trustee Annual Report and a copy of the Member Investment Choice booklet prior to applying for membership. These are available, at no charge, by calling 0800 MY SUPER (69 78737) or by writing to PO Box 2897, Wellington 6140. By providing my e-mail address above I thereby consent to use, provide, or accept information or communications from the Trustees in an electronic form and by electronic means for all of the purposes of the Superannuation Schemes Act 1989 and the Electronic Transactions Act 2002. Signed ............................................................................ Date .............................................. Privacy Act Statement

In accordance with the Privacy Act 1993, you are advised that the information contained on this form is being collected to enable the scheme to maintain a membership file. Mercer (NZ) Ltd, of Wellington, will hold and maintain your membership file. The purpose for the collection of the information is to administer your interest in the scheme. No other agency will receive the information. You have the right to access and correct that information at any time. (Version 3 – September 15)

TO BE COMPLETED BY THE PAYROLL MANAGER

Payroll Number: ________________________ Date joined Fire Service: ____________________

Date deductions commence: ___________________ Commencing salary: ___________________

Signed _____________________________________ Date _______________________

Position Title _____________________________________ National Headquarters. SEND THIS FORM TO: NEW ZEALAND FIRE SERVICE SUPERANNUATION SCHEME

P O BOX 2897, WELLINGTON 6140.

NEW ZEALAND FIRE SERVICE SUPERANNUATION SCHEME

BENEFICIARY STATEMENT

Member’s Full Name _____________________________ ________________________ First Names Surname

Date of Birth _______________________ I wish to register with the Trustees the following beneficiaries in the event of my death.

STATEMENT OF BENEFICIARY

I request the Trustees in the event of my death to pay the Death Benefit payable under the Scheme to:

___________________________________ _________________________ (Insert beneficiary name) (Relationship)

Proportion of Benefit to be Paid ____________ %


I request the Trustees in the event of my death to pay the Death Benefit payable under the Scheme to: ___________________________________ _______________________ (Insert beneficiary name) (Relationship)








Note Total proportion of benefit to be paid must equal 100% If the benefit is to be paid “As Per Will”, please state this instead of beneficiary name.

This advice does not restrict the Trustees’ discretion to pay the benefits under the terms of the Trust Deed.

Signed ________________________________________ Date ________________________

TRUSTEE APPROVAL

Signed ______________________________________ Date _______________________ Signed ______________________________________ Date _______________________

(IS 18)

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