New Zealand Harbours Superannuation Plan

1. New Zealand Harbours Superannuation Plan An update for members of the KiwiSaver Scheme June 2012

2. Originsof the Scheme • Cash accumulation scheme established in 1985 by the employers and unions in the New Zealand Harbour Industry. • Aim was to provide a better and more flexible means of saving for retirement than membership of the National Provident Fund. • Original union was Harbour Workers which amalgamated to form Rail & Maritime Transport Union in 1995. • KiwiSaver Scheme was added in June 2007

3. Benefit entitlements • Retirement, death, illness, hardship and emigration benefits provided for members and their dependants. • NZ Super age (65), Serious Illness and Death – total of member and employer accounts. • Financial Hardship – up to total of member and employer contributions, with balance remaining in Scheme for eventual member benefit. • Emigration – total of member and employer accounts less the regular contributions from government (unless, from July 2013, emigrating to Australia – full balance transferrable to Australian scheme).

4. Contribution details • Member must contribute 2% of all earnings directly from pay (increasing to 3% 1 April 2013). • Member can make additional voluntary lump sum or regular contributions. • Employer must contribute a minimum of 2% of earnings (increasing to 3% 1 April 2013). • Employer’s Superannuation Contribution Tax is deducted from employer contributions. • Government provides $1,000 at start and up to $521 each year.

5. Investment overview • The Scheme is invested in a balanced mix of assets comprising NZ and Offshore equities and bonds, properties, and cash. • Trustees: • Set proportion of funds in each asset class • Set investment objectives/policy and monitor performance. • Select and review investment managers. • Investment objectives • Minimum real rate of return after tax of 2.5% p.a. • An average return compared to the balanced funds in the MJW investment survey. • The assets of the KiwiSaver Scheme will be invested with the assets of the Superannuation Scheme.

6. Fund managers • AMP Capital Investors New Zealand: • Owned by large Australian parent company, $11.7 billion of managed funds. • Actively manages 23% of Scheme assets in their NZ shares, NZ bonds and Property funds. • OnePath (NZ) Limited: • Fully owned subsidiary of ANZ National Bank, $7.0 billion of managed funds. • Actively manages 15% of Scheme assets in their Global shares fund. • TOWER Asset Management Limited: • Operating division of TOWER limited, $4.0 billion of managed funds. • Actively manages 27% of Scheme assets in their Global shares, Global bonds and Property funds. • Tyndall Investment Management Limited: • Owned by Nikko Investment Asset Management, $3.4 billion of managed funds. • Actively manages 5% of Scheme assets in their Option Fund and Multi-manager Multi-strategy Hedge fund.

7. Recent Scheme investment results The table below shows the gross returns credited to members, after investment fees, but before tax, with a comparison to inflation.

8. Governanceof the Scheme (1) • The Scheme has its own Trust Deed • Maximum of nine Trustees: • Up to four appointed by the Rail and Maritime Transport Union. • Up to four are appointed by a unanimous decision of the remaining Trustees. • A Chairman is appointed unanimously by Trustees. • Current Trustees: • Chairman: David Stevens. • From Union: Wayne Butson, Hal Upton, Dion Young • Appointed by Union: Roy Cowley (ex-Deloitte) • Appointed by Trustees: David Sharman (CFO, Port Taranaki), Sara Lunam (Corporate Services Manager, Port of Tauranga)

9. Governance of the Scheme(2) • Independent Scheme managed by its own Trustees. • Trustees make decisions based on the needs of their industry and their members. • The Scheme has own relationship with its advisers. • Operated on a “not for profit” basis with costs kept to minimum. • No shareholder return on capital requirements. • Has long and established history.

10. Advisers involved with the Scheme • Auditor Deloitte • Solicitor Johnson Lawrence • Administration Manager Melville Jessup Weaver • Plan Secretary Leonie Stieller • Insurer Sovereign • Investment adviser Melville Jessup Weaver

11. Member Benefits from Scheme

12. Regular information to members • Annual Report as at 31 March year end • Financial Statements as at 31 March year end • Member Benefit Statement as at 31 March year end • Chairman’s newsletter each quarter • Website with Scheme and Member information – www.harbourssuper.org.nz • Administrator or Scheme Secretary can be contacted at any time, for information such as: • Estimate of current benefits • Copy of current Investment Statement • Copy of current Prospectus, Trust Deed

13. Other information • Harbours Plan (for information about the present Plan) – www.harbourssuper.org.nz • Sorted (for information about your finances and KiwiSaver) – www.sorted.org.nz • Inland Revenue (for information about KiwiSaver) – www.kiwisaver.govt.nz

14. Dialogue with members • Always keen to receive feedback and ideas about the Scheme. • Presentations or meetings can be arranged, including question and answer sessions.