This Government is serious about finding a medium term way of making superannuation sustainable and affordable for not just this generation but for our children and grandchildren.

There are two main initiatives involved in the Government's move to help secure the accountability and sustainability of the present scheme

1. Formation of Superannuation 2000 Taskforce.

is a proactive move to find a sustainable solution to deliver superannuation to New Zealanders in the new millennium. It will offer an alternative to the failed Superannuation Accord.

the Taskforce is a grouping of community leaders and political parties charged with looking at the long-term sustainable solution to the superannuation issue.

Superannuation 2000 Taskforce will start in November this year and report to the Government in November 2000

2. Continuing CPI indexing while reducing the wage floor to help ensure that the scheme is fair and financially sustainable for the future.

• No older New Zealander receiving New Zealand Superannuation will have their pension cut now or in the future.
• Superannuation will not reduce at any stage but will continue to increase in line with inflation.
• This will protect superannuitants' purchasing power. This means superannuation will keep in step as prices increase generally.
• Superannuitants will not get any less than they are now on 1 April 1999 when pensions will be aligned in line with inflation as usual.
• Superannuation has been linked to the CPI for the past decade and will continue to be.

Superannuation is also linked within a range to the average wage. This will continue, and a fair linkage will be maintained. However, the bottom of that range cannot be kept at an unsustainable level. That is why the floor is being lowered.