‌APRIL 2025‌ <<First names>> <<Surname>> Membership number: <<Membership number>> Kia ora What we’re talking about We’re talking about what everyone is talking about right now – what the tariffs imposed by the Trump administration on almost all its trading partners mean for our savings. Investors are concerned about the prospect of higher prices and lower growth as businesses and consumers tighten their belts. This has seen a significant – but not unprecedented – fall in global share prices, which you will likely see reflected in your PSS and KiwiSaver balances. We caution against changing your investment strategy based on short-term events and remind you that we have a financial advice service in place if you want to talk through your options. The team can also help if you’re a constabulary member thinking about reducing your employee contributions when flexible contribution rates come in later this month. And we cover another topic in our series on building financial resilience – this time, it’s about making sure you have an up-to-date will and enduring powers of attorney. Trump’s tariffs see markets tumble You will have noticed your PSS account balance has fallen in recent weeks, especially if you are invested in an option with a significant allocation to shares. At the time of writing, the S&P 500 index, which tracks the performance of the 500 largest US companies, has fallen almost 18% from its all-time high on 19 February. The sell-off has been triggered by a changed US trade policy as President Trump imposed tariffs initially against its three largest trading partners – Canada, Mexico and China – and subsequently on imports from most other countries. Investors are concerned about possible consequences such as an uptick in inflation, a slowdown in the expected rate of interest rate cuts and even the prospect of the US economy being tipped into a recession. Market sentiment shifts quickly, which means any comment about the current state of play is soon outdated. For this reason, you might be interested to follow the weekly market updates provided by our investment consultant Russell Investments. •  Read Russell Investments’ blog Think carefully before switching investment options Remember, volatility is to be expected with growth assets like shares. Options like High Growth and Growth have performed well over the past 18 months, but with the potential for the longer-term growth in value comes a greater risk of occasional shorter-term losses in value. Sometimes the magnitude of those losses in value is significant as they are now. However, history tells us markets generally recover – eventually. Think back to the beginning of the coronavirus pandemic in 2020 where share prices plunged and then recovered in a little over a month. Or the dramatic drop in share prices during the 2008 global financial crisis, which sparked what is known as the Great Recession and a much more drawn-out recovery. So what can we learn from this? Past returns are not an indicator of future returns, and this is true in the short term as it is in the long term. When markets fall sharply as they have now, it’s natural to want to take action by moving to a more conservative option. The danger with that approach is that you ‘lock in’ the losses and miss out on the market recovery when it comes. Short-term events shouldn’t change your long-term approach. However, if you need to access your funds in the short term, you may not want to risk your balance falling further if markets continue to fall. Unfortunately, all investment involves an element of risk and none of us knows what is around the corner. That’s why we recommend you stick to an investment strategy based on your personal circumstances, which may mean taking a conservative approach if you are nearing retirement or need access to your savings. Mercer’s financial advice team is here to help If you’re thinking about making a change, we suggest you make a time to talk with someone from Mercer’s financial advice team. Talking to a professional adviser can help you identify your investment ‘personality’ and what level of risk you are truly comfortable with. They can give you advice based on your specific circumstances. Talking through your situation might reassure you that your current strategy is the right one – or identify that a change in strategy would be appropriate at some point. To arrange a time to talk with Mercer, simply complete a call-back request form. There is no individual charge to you for this service. How to change your employee contributions Sworn staff will soon have the option of reducing standard employee contributions from 7.5% of salary to 5%, 3% or 0%. Deductions will continue to be made from your pay at the default rate of 7.5% unless you make a change. From ‌Monday‌ ‌28‌ ‌April‌, you can change your standard employee contribution rate online. Visit the MyPolice Employee Self Service portal and look for the ‘Superannuation’ tab under ‘My Services’. Any change you make will be effective from the next pay run. You will be able to reduce your contributions for a short period if you need to and then change them back again. You will also continue to have the option of making additional voluntary employee contributions between 1% and 10% of salary (in 0.5% increments). Again, you can do this online via the MyPolice Employee Self Service portal. These flexible member contribution rates mean you can effectively choose any rate between 0% and 17.5% of salary. Whichever rate or combination of rates you choose, Police will continue to contribute 15.2% of salary on your behalf (less tax). Make a time to talk to someone from Mercer’s financial advice team if you’re not sure what the best option is for you. How the changes affect leave without pay entitlementss You may be wondering how the change in employee contribution options affect leave without pay entitlements. You will continue to be eligible for employer contributions while on parental leave and some other kinds of leave without pay as long as you pay the employee contributions you’ve missed. You will need to make catch-up contributions at a rate of 7.5% of salary – not the rate you’ve chosen for your standard employee contributions. Building financial resilience This is the second in a series of topics in support of the Office of the Retirement Commissioner’s strategy to help New Zealanders improve their financial preparedness and wellbeing. One goal is to help build resilience for the unexpected, including having a will and powers of attorney. Having a valid will makes sure your savings are distributed as you would wish and makes things easier on the people you leave behind. You can either use a lawyer or a professional trustee company or use a DIY online service to write a will yourself. The MoneyHub website has an excellent guide that explains the pros and cons of each option. The guide is written in plain English and packed with good information. While you’re getting your affairs sorted, you might also want to set up enduring powers of attorney for property and personal care and welfare. Again, MoneyHub has a useful guide. It’s a good idea to print a copy of this page and keep it with your will. •  Read MoneyHub’s guide to making a will •  Read MoneyHub’s guide to enduring powers of attorney 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, log in to your account online and complete a call-back request form. We’re here to help – it’s quicker by phone Helpline/waea āwhina – 0800 777 243 The helpline hours are ‌9.00am to 7.00pm‌ ‌Monday to Friday‌ (except public holidays). policesuper.co.nz This e-newsletter is produced in an email format, but if there’s a problem with the layout, please call the IT helpdesk on extension ‌43333.‌ 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.