Dancing back: a retrospective look at the early politics of the National Superannuation Scheme

Abstract

The origins of the National Superannuation scheme (introduced in 1977) are described and analysed. National Superannuation was very much a policy of its time, firmly rooted in the existing political and economic environment. The private papers of Sir Robert Muldoon and the New Zealand National Party show that the existing National Party policy making structures were used in the formation of the scheme. A four man caucus sub-committee, the Superannuation Policy Committee, was the hub of the formation process. The subsequent journey of National Superannuation in the 1970s - its implementation, the changes made to it, and the debate it generated - is examined. Since evidence and analysis of the nature and characteristics of the debate in existing literature is, on the whole, lacking, textual analysis of various primary sources, in particular letters to the editor and parliamentary debates, was undertaken. It was found that New Zealanders tended to look to the political parties for financial security and the continuance of National Superannuation. However, other factors besides partisan differences also had the potential to affect the provision of retirement income. The debate in the 1970s on retirement income policy often failed to go beyond the consideration of monetary benefits and costs. In particular, the fact that retirement income policy is an intergenerational issue was not widely recognised. Suggestions are made on ways to improve relations between the generations. Something more than money needs to be part of the political response to the needs of the elderly, even if it is only education of the public on, for example, what taxes are paid for. Politicians should be made to recognise and use their ability to educate the public. Society as a whole needs to examine the existing links between the generations and to re-evaluate its criteria for determining whose arguments deserve the most attention.