JU‌LY 2‌024 Kia ora What we’re talking about This issue focuses on some of the formal reports and documents we are required to prepare and make available to members. It might seem a little dry, but it is important that you have accurate information on which to base your decisions and confidence we are meeting our compliance obligations. That includes us being upfront when mistakes are made. Unfortunately, while preparing this year’s reports, we discovered errors in reports from 20‌22 and 20‌23. We explain these reporting errors and what we have done to remediate them. We also take a closer look at the advantages and potential limitations of our Super Steps investment option, report on retirement planning sessions held in Palmerston North and Hastings and remind you that contacting the helpline via phone rather than email is the fastest way to get an answer to your question. Annual report, fund updates and financial statements The 20‌24 annual report, financial statements and fund updates are available to view on our website and the Disclose Register. Fund updates are formal reports we are required to prepare at 31 March each year for each investment option and for Super Steps at a range of representative ages. You are entitled to receive a hard copy of any of these documents free of charge. Call the helpline on 0800 777 243, and we’ll send them to you. Reporting errors affecting previous fund updates Mercer has identified a number of reporting errors that affect all 20‌23 and some 20‌22 fund updates. The most significant error is in the calculation for those reports of returns after expenses and tax. These reporting errors have no impact on unit prices. They do not affect the value of your investments or actual returns, nor do they affect the year-to-date or historical returns reported on our website. We do use after-tax returns in the comparative graphs we publish each quarter showing PSS returns versus the median from KiwiSaver funds. The comparison graphs for the March 20‌24 quarter have been restated and published here. We have corrected the errors in the fund updates and published replacement documents on Disclose and on our website. Mercer will meet the costs of reissuing these documents so there will be no cost to the scheme. You may wish to review your investment choice if you relied on these fund updates in making your decision. Remember too, you can make a time to discuss your investment strategy with someone from the financial advice team if you wish. Please contact the trustee via the scheme secretary if you have questions or concerns about these reporting errors. • View replacement fund updates • View comparison of PSS returns vs KiwiSaver Updated statement of investment policy and objectives Late last year, we signalled changes to the mix of assets of some of our investment options (called strategic asset allocation). These are set out in our statement of investment policy and objectives (SIPO). This document provides guidance to all parties involved in the investment management of the scheme on how the assets of the scheme are to be managed. It’s an interesting read if you want to know more about the nuts and bolts of how we invest. We have published a revised SIPO now that the transition to the new strategic asset allocation is complete. • Download the new SIPO Retirement planning sessions popular At the request of district Police leaders, Mercer’s financial advice team have been out and about delivering retirement preparedness sessions to staff in Palmerston North and Hastings. Feedback from both these sessions has been positive and generated some really good conversations. One attendee particularly appreciated the practical ideas suggested by the team such as splitting funds into higher and lower-risk options at retirement with the idea of drawing on the lower-risk funds in the near term while still benefiting from long-term growth from the higher-risk option. Another commented that the session had helped “put their mind at rest about their situation”. If you have a number of staff in your area/district who are intending to retire shortly, you might like Mercer to run a session to assist them in their planning. Just send a request via the financial advice request form, and the team will be in touch. Focus on Super Steps Super Steps is a ‘set and forget’ investment option. The underlying principle of Super Steps is to reduce your risk/return profile progressively over time using the Growth, Balanced and Stable options as building blocks. It’s a popular choice, especially among new members, but it does have its limitations. It doesn’t, for example, anticipate that you might want to withdraw funds before retirement. If you’re planning to make a first-home withdrawal in the near term, you might want to choose one of our lower-risk funds. You can always switch to Super Steps afterwards. Also, Super Steps tends to be fairly conservative. For example, from age 64, your funds are invested 100% in Stable. With a long retirement ahead of you, you may not want to have all your funds invested so conservatively (see retirement planning story above). Get in touch with the financial advice team if you’re unsure whether or not Super Steps is your best option. • Read more about Super Steps Calling the helpline is the quickest way to get answers to your questions Calls to our helpline are typically answered within 40 seconds, whereas getting an answer via email will take at least 2‌4 ho‌urs and possibly considerably longer if we have to go back and forth to get the information we need. If you talk with one of our team, we can ask for any additional details we need during the course of the conversation. Calling the helpline is also the fastest way to reset your PIN. The helpline team can action the change straight away. Sometimes it helps to talk to an expert when making decisions about your super. PSS has engaged Mercer to provide a financial advice service to members. You can receive advice about anything to do with your savings in the scheme. There is no individual charge to you for this service. To arrange a time to talk, sign in to your account online and complete a call-back request form. helpline / waea āwhina 0800  777  243 hours / 9.00am to 7.00pm - Monday to Friday (excluding public holidays) PSS Trustees Limited is the issuer of the Police Superannuation Scheme (PSS). A copy of the PSS product disclosure statement is available under documents and forms and on the Disclose  Register.