Police Plan

PolicePlan is part of a range of financial services available through Police Welfare Fund Insurances Limited.
Police Plan is for you if you are looking for an effective savings plan to help you achieve your personal financial goals. PolicePlan, through participation in the TOWER Retirement Fund, offers a flexible savings accumulation plan that will help you to secure your financial future.

Nothing is more important to us than setting and achieving our goals - goals that reflect life's events ... family, children's education, university, travel and a comfortable lifestyle in retirement.
Now members of the Police Welfare Fund Limited can help themselves to attain their financial goals and aspirations through PolicePlan.
PolicePlan offers some significant advantages through it's participation in the TOWER Retirement Fund:

The TOWER Retirement Fund is a registered superannuation scheme.
PolicePlan can work either as a top-up to your existing superannuation arrangements (e.g. GSF or PSS), or as your main savings plan.

There are several things you should consider when deciding how much to contribute - your personal circumstances, how much you can afford and, of course, what you are saving for. The minimum contribution is $35.00 per fortnight, but this can be increased or suspended at any time. You can also decrease your regular payments as long as they stay above the minimum level. PolicePlan welcomes lump sum contributors.
PolicePlan is flexible - this means that you can contribute at the rate that suits your circumstances at any given time.

There are seven investment options for you to choose from. The funds are managed by consistently well-performing investment managers TOWER, BNZ and Bankers Trust (BT). The investment options range from low risk options to medium/high risk options. Each comprises of a differing distribution of assets (cash, shares,fixed income etc.).

Returns on each investment option will vary according to the market conditions at the time and the type of option you select. You may select one option or spread your investment across more than one. A brief description of each option is shown below. You can also transfer funds from one investment option to another once each year without incurring any additional fees.
Reports on the performance of each investment option will be distributed to members six monthly, although you can contact the PolicePlan administrator at TOWER toll free on 0800 486 937 whenever you would like an update.

There is a monthly administration fee of $5.00 per member. This is automatically deducted from your Member's Account in PolicePlan. $1 of this fee is paid to Police Welfare Fund Insurances Limited to cover their costs in collecting and remitting contributions to TOWER.

Each investment option incurs its own investment management fee, which ranges from 0.5% to 0.95% per annum, depending on the investment option selected. These fees are levied on the total value of all investments of all contributors in the investment option.
Full information on fthese and other fees and expenses is set out in the Investment Statement and Registered Prospectus.

The investment return that each investment option generates is allocated to you on a net of tax and investment management fee basis.

You are entitled to withdraw from PolicePlan at any time, without penalty, subject to trustee consent. The value of your account at the time of withdrawal would be paid directly to you. You may take partial withdrawals. The minimum withdrawal amount is $1,000.

If you leave the New Zealand Police, you can remain a member of Police Welfare Fund Limited, and you may continue contributions to the TOWER Retirement Fund rather than having to cease your savings plan and start another.

Membership is available only to Police Welfare Fund Limited members and their spouse/partner.

ASK YOURSELF... Benefit Illustration

The question on most people's mind is, am I saving enough to ensure that my retirement years are financially worry free?

How much is enough?

One guide to how much you may need in retirement is to base it on about 60% to 70% of the income you lived on just before retirement. If you are intending to work to age 65, you should subtract the appropriate rate of New Zealand Superannuation which will give you the net income you want. If you are intending to retire earlier, then your accumulated savings or investments will need to provide the basis for all of your retirement income until you are eligible for New Zealand Superannuation.

This table shows the combined effect of regular savings over specified periods and the compounding of investment returns.
These illustrations are based on the following assumptions.

net return (after tax and fees) of 5.0% per annum;
contributions are increased annually by 2.0% (to keep pace with inflation).

Contributions per fortnight	$ Value after years specified
$	5	10	20
35 50 75 100 150	4,960 7,230 11,020 14,812 22,380	11,710 17,050 25,970 34,880 52,720	32,780 47,700 72,500 97,440 147,180

There are Seven investment options available which utilise the skills of three investment managers - TOWER Asset Management, ANZ Fund Management and BT Funds Management (NZ) Limited.

TOWER Capital Preservation Fund (CPF) - low risk
An investment profile with a mix of lower risk assets including cash, fixed income, property and shares. It's aim is to ensure there is no negative return, regardless of how investment markets perform during the year.
Investment Components : Cash 34.9%, International Shares 19.70%, NZ Shares 8.10%, Property 11.30%, International Fixed Interest 12.70% NZ Fixed interest 13.30%

BNZ Capital Enhanced Fund - low risk
A fund with a high proportion in cash and the remainder in first registered mortgages. It may appeal to those conservative investors seeking lower volatility of investment risk.
Investment Components : Mortgages 36.00% Cash 64.00%

BT Balanced Fund - medium risk
A balanced fund investing in a broad range of assets both in New Zealand and overseas. The fund aims to achieve returns above inflation, wage growth and broad market indices in NZ over the medium to long term (five to seven years).
Investment Components : NZ Fixed interest 12.72%, International Fixed interest 15.26%, Property 5.07%, NZ Shares 19.00%, International Shares 39.41%, Cash 8.54%

TOWER Investment Linked Superannuation Fund (ILS) - medium risk
A balanced fund of equities, property and fixed interest securities, both domestic and global, which aims to return 3% per year above inflation on a rolling five-year basis after taxes and fees.
Investment Components : NZ Fixed Interest 17.50%, International Fixed Interest 10.50%, Property 12.90%, NZ Shares 10.70%, International Shares 32.10% Cash 16.30%

TOWER FuturePlan Growth Fund - medium/high risk
The fund invests predominantly in international and New Zealand shares with a small exposure to property and fixed interest securities. It aims to exceed the change in the Consumer Price Index by 5% per annum, net of all taxes, fees and costs, on a rolling five-year basis.
Investment Components : International Fixed interest 5.30%, Property 10.10%, NZ Shares 20.20% International Shares 57.80%, Cash 6.60%

TOWER Focus International Share Fund - high risk
The fund invests in shares and related securities on a worldwide basis, excluding New Zealand. It carries the prospect of high returns but at a higher level of risk particularly in the short term.
Investment Components : North America 57.22%, Europe 26.94%, Japan 8.27%, Asia ex Japan 5.57%, Australia 2.00%

TOWER Focus New Zealand Share Fund - high risk
This fund invests in shares and related securities that are listed on the New Zealand Stock Exchange. The objective is to achieve a return greater than the NZSE40 Gross Index on a rolling three-year basis.
Investment Components : NZ Shares 100%

This page outlines some of the features of PolicePlan and its participation in the TOWER Retirement Fund, which is a registered superannuation scheme. TOWER Employee Benefits Limited invites and encourages all requests for additional information on PolicePlan. Remember, this is available only for members of the Police Welfare Fund Limited and their spouse/partner.
Before deciding to invest you should obtain and read the Investment Statement which includes full details of how PolicePlan works, as well as an outline of all fees and conditions.