PRODUCT DISCLOSURE STATEMENT

Transcription

1 Dated 8 March 2018 PRODUCT DISCLOSURE STATEMENT This document replaces the Product Disclosure Statement dated 2 August 2017 Offer of membership in Division 2 of the Bank of New Zealand Officers Provident Association retirement savings scheme, a restricted workplace savings scheme Issued by the Bank of New Zealand Officers Provident Association Board of Management This document gives you important information about this investment to help you decide whether you want to invest. There is other useful information about this offer on the Offer Register at The Board of Management of the Bank of New Zealand Officers Provident Association has prepared this document in accordance with the Financial Markets Conduct Act You can also seek advice from a financial adviser to help you to make an investment decision 0

2 SECTION 1 KEY INFORMATION SUMMARY What is this? This is a managed investment scheme. Your money will be pooled with other investors money and invested in various investments. The Board of Management (the Board) of the Bank of New Zealand Officers Provident Association (BNZOPA) will invest your money and charge you a fee for its services. The returns you receive are dependent on the investment decisions of the Board and of its investment managers and the performance of the investments. The value of those investments may go up or down. The types of investments and the fees you will be charged are described in this document What will your money be invested in? BNZOPA allows you to select one from a total of 4 investment funds. These Investment Options are summarised below. More information about the investment target and strategy for each Investment Option is provided in Section 3 on pages 7 and 8. More information about fees can be found in Section 5 on page 10 and11. Members are not charged fees for one-off actions such as switching funds. There are no performance based fees or contribution fees. Cash option Investment objective and strategy: Invests in cash, for investors who do not want any loss in the value of their investment and who accept they may get a lower long-term return than investors in other funds. Risk indicator: Potentially lower returns Potentially higher returns Lower risk Higher risk Estimated Annual Fund Charges: 0.40% of fund net asset value Conservative option Investment objective and strategy: Invests mostly in assets with lower risks and returns, with some investment in growth assets that may give higher returns. The fund has a low to medium level of volatility. Risk indicator: Potentially lower returns Potentially higher returns Lower risk Higher risk Estimated Annual Fund Charges: 0.60% of fund net asset value Balanced option Investment objective and strategy: Invests in a wide range of assets with the aim of making a steady rate of return for investors over the medium to long term. This fund has a medium to high level of volatility. Risk indicator: Potentially lower returns Potentially higher returns Lower risk Higher risk Estimated Annual Fund Charges: 0.80% of fund net asset value 1

3 Growth option Investment objective and strategy: Invests mainly in growth assets that may give high returns, such as shares and bonds. This fund has a high level of volatility. Risk indicator: Potentially lower returns Potentially higher returns Lower risk Higher risk Estimated Annual Fund Charges: 0.95% of fund net asset value How to read the risk indicators? See Section 4 for an explanation of the risk indicator and for information about other risks that are not included in the risk indicator. To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at Who manages the BNZOPA? The manager of the BNZOPA is its Board of Management who employ a Scheme Secretariat to administer the Scheme. See Section 7 on page 12 for more information about who is involved. The Board of Management consist of 4 people elected by members of the Scheme and 4 people appointed by Bank of New Zealand (the Bank), and 1 person who is independent of the members and the Bank. The Bank is the sponsor of the Scheme. How do you get your money out? You can give notice to withdraw your investment at any time by contacting the Scheme Secretariat by to bnzopa@bnz.co.nz or via our website There are limits and conditions on how much you can withdraw and your application will be processed per the Scheme Rules. See Section 2 on pages 4 and 5 for more information on withdrawing your investment. Your investment in the BNZOPA cannot be sold or transferred to anyone else. How will your investment be taxed? The BNZOPA is registered as a portfolio investment entity (PIE). The amount of tax you pay in respect of a PIE is based on your prescribed investor rate (PIR). This can be 10.5%, 17% or 28%. See section 6 of the PDS (What taxes will you pay?) on page 11 for more information. Where can you find more information on the funds? The Board is required to publish annual updates for each Investment Option. The updates show the returns, and the total fees actually charged to investors, during the previous year. The latest fund updates are available at The manager will also give you copies of those documents on request. 2

4 TABLE OF CONTENTS Content Page SECTION 1 KEY INFORMATION SUMMARY 1 SECTION 2 HOW DOES THIS INVESTMENT WORK? 4 SECTION 3 DESCRIPTION OF YOUR INVESTMENT OPTION(S) 7 SECTION 4 WHAT ARE THE RISKS OF INVESTING? 9 SECTION 5 WHAT ARE THE FEES? 10 SECTION 6 WHAT TAXES WILL YOU PAY? 12 SECTION 7 WHO IS INVOLVED? 12 SECTION 8 HOW TO COMPLAIN 13 SECTION 9 WHERE YOU CAN FIND MORE INFORMATION? 13 SECTION 10 HOW TO APPLY 13 3

5 SECTION 2 HOW DOES THIS INVESTMENT WORK? The BNZOPA has been managing a superannuation scheme for over 125 years. The Scheme is governed by an Act of Parliament and Rules in place of a trust deed. A Board of Management (equivalent to a board of trustees) govern the Scheme, with an Investment Committee of the Board making investment management decisions, and monitoring performance of various investment managers, with input from an investment advisory firm. You can access up-to-date information about your investments in the BNZOPA through the Member Login section at This document is an offer to join the BNZOPA. BNZOPA is a managed investment scheme established under the Rules. The BNZOPA operates under an Act of Parliament, the Bank of New Zealand Officers Provident Act Your investment is co-mingled with other investors money and invested in various investments. The contributions you make are allocated to the Investment Option you choose. Each Investment Option invests in assets, such as shares, bonds and cash. Allocation does not imply legal ownership of the fund s assets but gives you rights to the returns of the assets. Assets attributable to an Investment Option are available to be applied to meet the liabilities attributable to any other Investment Option. The Investment Options do not operate under unit pricing. Financial statements are prepared at each month end, and as a sub-set of that process income and expenses are allocated to each Investment Option to determine an earning rate percentage for each Investment Option. The earnings are allocated as dollar values, using a proprietary register system, to members proportionate to their benefit entitlement ratio of total entitlements for that Investment Option. A change in the value of the fund s assets affects the earning rate. The earning rate for an Investment Option will change as the market value of those fund s assets changes. An increase gives a positive rate, a decrease a negative rate. Your contributions (member and employer) plus monthly earnings, after deduction of tax at your PIR (Prescribed Investor Rate), gives you the total value of your entitlement (subject to vesting and prior withdrawals). The BNZOPA has a pension section, referred to as Division 1, which is closed to new members and is not offered under this product disclosure statement. It is covered by a separate investment mandate with the assets of the mandate available to meet liabilities of the closed pension section and a residual scheme surplus. An Actuary appointed by the Board values the pension liabilities annually with the Board monitoring that the assets within the pension mandate will remain sufficient to cover the future pension liabilities. On winding up of the Scheme, if the cost of purchasing annuities for the pensioners exceeds the amount that has been allocated by the Board to safeguard their pension rights, this would result in a reduction of the amount available for distribution to Division 2 members. The mandate is invested primarily in New Zealand government stock securities. Members are not personally liable. In the unlikely event that the Scheme becomes insolvent, Section 3(3) of the Bank of New Zealand Officers' Provident Association Act 1971 states that members of the BNZOPA are not personally liable for any debts or other liabilities of the BNZOPA. On 7 March 2018 the Board of Management (with the Bank) communicated to members and pensioners about proposed changes that are being considered for BNZOPA. 4

6 The Bank intends to establish a new workplace savings scheme for all members. It will be modelled on the BNZ KiwiSaver scheme. By the end of 2018 the Bank intends to seek consent from the Financial Markets Authority (FMA) to transfer all members of BNZOPA and their entitlement balances to the new scheme. The FMA can only give the required consents if satisfied that the new scheme is no less favourable to transferring members than the BNZOPA and the transfer proposal is otherwise reasonable in all the circumstances for members and pensioners. It is further intended the BNZOPA will continue exclusively for the pensioners, with management outsourced to a specialist administrator. The Board of Management supports the Bank s proposal subject to the FMA requirements being met (including that the terms and conditions of the new scheme are no less favourable to transferring members and the transfer proposal is otherwise reasonable); is obtaining legal and actuarial advice; and will closely monitor the project. More detail may be accessed from under the heading Other Information. Joining the Scheme Qualifying Employees (as defined in the Rules) are eligible to join the BNZOPA. This includes all permanent (including part time and fixed term) employees of the Bank. Further details and conditions of membership apply and can be found in the 'other material information' document for the BNZOPA on the Offer Register at (Offer Register). The Board also has discretion as to whether it accepts any application to join. To apply to join, fill out the enrolment form at the end of this document. The minimum member contribution level is 2% of salary. You choose the Investment Option you would like to invest in by using the Investment Choice section of the enrolment form. Making investments You make regular fortnightly contributions, which are deducted from your pay by the Bank and paid direct to the BNZOPA, plus you may make lump sum contributions. Minimum contribution amounts and other conditions follow: Minimum contribution Other conditions Fortnightly payroll deduction 2% of salary Note, the employer contribution is matched to your May change level once a year at time of own choosing member contribution with a maximum employer contribution rate at 6% Lump sum $2,000 Must satisfy Anti-Money Laundering Act requirements The Bank, as employer sponsor of the Scheme, reviews the employer contribution annually at 31 October. For the year commencing 1 November 2016 the maximum matching employer contribution rate is 6% of base salary, with ESCT (Employer Superannuation Contribution Tax) absorbed by the Bank. That is, if you contribute 6% of salary, the Bank matches with 6% (not 6% less ESCT). The minimum contribution rate member and employer combined is 4%. Withdrawing your investment Full Benefit If you: are a Total Fixed Remuneration (TFR) employee 1 of the Bank and leave the Scheme after you have been a member for five years or more; or 1 Your Bank remuneration status is either Total Fixed Remuneration (TFR) or Total Fixed Package (TFP). If you have questions relating to your package you should contact BNZ People & Communications. 5

7 are a Total Fixed Package (TFP) employee 1 of the Bank, - you will receive a lump sum full benefit (net of any partial or special withdrawals) comprising your member (and lump sum) contributions, employer contributions, and earnings on both. You will also receive a full benefit (as shown above) if you leave the BNZOPA for the following reasons: Termination of employment due to involuntary resignation (redundancy); Retirement at or after age 60; Retirement with the Bank s consent before age 60; Cessation of employment after 25 years with the Bank; Permanent incapacity; or, Death in service. Benefit Subject to Vesting If you leave the BNZOPA for any reason other than those set out above under Full Benefit and you: are a TFR employee of the Bank; and have less than five years membership, - you will receive a lump sum benefit with the employer contribution value based on a sliding scale of 20% for each completed year of membership up to 5 years. Benefit retention Should you wish you may, under criteria set from time to time by the Board, leave your benefit entitlement within the BNZOPA after you leave the Bank. If you do this you need to be aware of the following: (a) You may not continue to contribute; and (b) You will continue to have the right to switch options, the right to vote in ballots, and other rights as though you were a contributing member. In service withdrawals You may give us notice to withdraw part or all of your entitlement subject to conditions within the Rules. After five years membership you may withdraw between 20-50% of your entitlement each 10 year period on one month s written notice. You may withdraw your full entitlement by in-service withdrawal on three months written notice but must then stand-down for one year before being eligible to re-join once in continuous employer service. We will acknowledge your partial or in-service withdrawal application and give a payment date when a direct credit will be processed to your bank account. If you opt to leave your entitlement within the Scheme after leaving employment of the Bank, you may set up withdrawals to be made at regular intervals. There are conditions around these withdrawals (refer to For further information on these benefits and withdrawals, please contact the Scheme Secretariat at the addresses shown in Section 7. How to switch between options You can also change (switch) money between the four Investment Options at monthly intervals. You can request to switch by ing bnzopa@bnz.co.nz. A switch request will only be processed after earnings for the previous month have been allocated. You will not be charged a fee when switching. You may only invest in one option at any time. You can change your Investment Option at times advised by the Board. 6

8 SECTION 3 DESCRIPTION OF YOUR INVESTMENT OPTIONS Investment option Cash Summary of investment objective and strategy The objective is to provide returns consistent with traditional cash investments such as term deposits. To achieve this, the fund will invest in a portfolio of wholesale New Zealand cash and short term investments. The target investment return from investing 100% in wholesale cash will be to perform closely in line with the S&P / NZX 90 Day Bank Bill Index (a wholesale cash benchmark), adjusted to take into account tax (at 28% maximum PIR), fund expenses and fees In any given year this Investment Option has a negligible probability of experiencing a negative return after tax, fund expenses, and fees are taken into account. Target asset mix Cash and cash equivalents Risk category 1 Minimum suggested investment timeframe No suggested minimum investment timeframe Investment option Conservative Summary of investment objective and strategy The objective is to provide returns over the long term (over10 years), that are modestly higher than those of traditional cash investments. Returns will be generated primarily from income with some capital growth. There will be variations in returns from year to year, including the prospect of negative returns. To achieve this, the fund will invest across a diversified mix of asset classes including, but not limited to, cash, fixed interest, and equities. The allocations to income assets (cash and fixed interest) will be significantly higher than to growth assets (equities). It is expected the investment return will outperform, over a long term horizon (over 10 years), the S&P / NZX 90 Day Bank Bill Index by 0.75% p.a., after tax (at 28% maximum PIR), fund expenses and fees are taken into account. Over a 10 year time horizon, the probability that the investment return will fall below the wholesale cash benchmark after tax (at 28% maximum PIR), fund expenses and fees are taken into account is currently approximately 25%. Target asset mix Cash and cash equivalents 30.0% New Zealand fixed interest 10.0% International fixed interest 40.0% Australasian equities 5.0% International equities 15.0% Risk category Minimum suggested investment timeframe 3 2+ years Changes can be made to the Statement of Investment Policy and Objectives (SIPO) in compliance with the procedures set out in our Rules and the Financial Markets Conduct Act The Rules, any updated SIPO, and further information about the assets in the fund can be found in the fund updates, all at 7

9 Investment option Summary of investment objective and strategy Target asset mix Risk category 8 Minimum suggested investment timeframe Balanced The objective is to provide returns over the long term (over10 years), that are moderately higher than those of traditional cash investments. Returns will be generated from both income and capital growth. There will be variations in returns from year to year, including the prospect of negative returns. To achieve this, the fund will invest across a diversified mix of asset classes including, but not limited to, cash, fixed interest, and equities. The allocations to income assets (cash and fixed interest) and growth assets (equities and property) will be roughly equal. It is expected that the investment return will outperform, over a long term horizon (over 10 years), the S&P / NZX 90 Day Bank Bill Index by 1.5% p.a., after tax (at 28% maximum PIR), fund expenses and fees are taken into account. Cash and cash equivalents 2.5% Over a 10 year time horizon, the probability that the investment return New Zealand fixed interest 10.0% 3 4+ years will fall below the wholesale cash benchmark after tax (at 28% maximum PIR), fund expenses and fees are taken International fixed interest 37.5% Australasian equities 10.0% into account is currently approximately International equities 40.0% 25%. Changes can be made to the Statement of Investment Policy and Objectives (SIPO) in compliance with the procedures set out in our Rules and the Financial Markets Conduct Act The Rules, any updated SIPO, and further information about the assets in the fund can be found in the fund updates, all at Investment option Summary of investment objective and strategy Target asset mix Risk Minimum category suggested investment timeframe Growth The objective is to provide returns over the long term (over10 years) that are materially higher than those of traditional cash investments. Returns will be generated from both income and capital growth. There will be wide variations in returns from year to year, including the prospect of negative returns. To achieve this, the fund will invest across a diversified mix of asset classes including, but not limited to, cash, fixed interest, and equities. The allocation to growth assets (equities and property) will be significantly higher than the allocation to income assets (cash and fixed interest). It is expected the investment return will outperform, over a long term horizon (over 10 years), the S&P / NZX 90 Day Bank Bill Index (a wholesale cash benchmark) by 2.5% after tax (at 28% maximum PIR), fund expenses and fees 4 5+ years are taken into account. Over a 10 year time horizon, the probability that the investment return will fall below the wholesale cash benchmark after tax (at 28% maximum PIR), fund expenses and fees are taken into account is currently approximately 25%. Cash and cash equivalents 2.5% New Zealand fixed interest 5.0% International fixed interest 17.5% Australasian equities 17.5% International equities 57.5% Changes can be made to the Statement of Investment Policy and Objectives (SIPO) in compliance with the procedures set out in our Rules and the Financial Markets Conduct Act The Rules, any updated SIPO, and further information about the assets in the fund can be found in the fund updates, all at

10 SECTION 4 WHAT ARE THE RISKS OF INVESTING? Understanding the Risk indicator Managed funds in New Zealand must have a standard risk indicator. The risk indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment. You can compare funds using the risk indicator. Potentially lower returns Potentially higher returns Lower risk Higher risk See Section 3 (Description of your Investment Options) for the risk indicators that have been calculated for the BNZOPA Investment Options. The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. To help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at Note that even the lowest category does not mean a risk-free investment, and there are other risks (described under the heading Other specific risks ) that are not captured by this rating. This risk indicator is not a guarantee of a fund s future performance. The risk indicator is based on the returns data for the five years to 31 December While risk indicators are usually relatively stable, they do shift from time to time. You can see the most recent risk indicator in the latest fund update for this fund. General investment risks Some of the things that may cause the fund s value to move up and down, which affect the risk indicator, are: Investment return risk Investment markets pricing affects the value of assets to varying degrees. For example, the returns from shares tend to go up and down more than the returns from bonds. This means as Investment Options shown in Section 3 progress toward higher risk the chances of losses increase Market risk Economic changes, regulatory conditions (for example, changes in the law) and political events. If the changes mentioned are adverse they usually translate as investment losses Company risk Changes to management, company performance of companies held within Equities and Fixed Interest sector investments. Again, if the changes are adverse they will impact on the scheme as losses in value Credit risk Borrowers not meeting loan obligations, resulting in reduction in returns Currency risk International investments may be affected by movements in foreign exchange rates. All other factors equal, if an investment is held in a foreign currency an increase in the value of the New Zealand dollar results in an investment loss if the investment is unhedged. A decrease in the value of the New Zealand dollar results in an investment gain, if unhedged. Other specific risks Other risks to returns not already reflected in the risk indicators are: Contributions The Bank can set a 0% employer contribution rate and decide not to absorb ESCT. If the employer contribution were to be set at 0% then to continue saving for your retirement at the current level you would need to increase your member 9

11 contribution by an amount equivalent to the reduction in the employer contribution. If the Bank ceases to absorb ESCT then the amount received as employer contribution will reduce by the amount then deducted as ESCT. Division 1 annuities purchase may cause shortfall. There is a risk that on a winding up of the Scheme, the cost of purchasing annuities for the pensioners may exceed the amount that has been allocated by the Board to safeguard their pension rights. This would result in a reduction of the amount available for distribution to Division 2 members. As at 31 October 2014, being the date of the most recent Actuarial Valuation of the Scheme, it was estimated that the cost of purchasing annuities for the current pensioners had the Scheme been wound up at that date would have been $5 million to $6 million greater than the amount that has been provided. This is due mostly to the prevailing low interest rates and the small number of annuity providers in the New Zealand market. This would have resulted in members entitlements being reduced by 3% to 4%. It is anticipated that this position will self-correct by 2020 without any additional contribution by the Bank. The proposal from the Bank (mentioned earlier in section 2 "How does this investment work?" on page 5) would transfer members to a proposed new workplace savings scheme and so mitigate this potential risk to members. If the proposal from the Bank does not proceed as planned, there may be adverse implications, such as extra costs, disruptions, and other uncertainties. SECTION 5 WHAT ARE THE FEES? You will be charged fees for investing in the BNZOPA Investment Options. Fees are deducted from your investment and will reduce your returns. If the Board invests in other funds, those funds may also charge fees. The fees you pay will be charged in two ways: regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over the long term; and one-off fees (currently none]. Estimated annual fund charges you will pay Investment Option Estimated annual fund charges (% net asset value) Cash 0.40% Conservative 0.60% Balanced 0.80% Growth 0.95% The annual fund charges above are an estimate based on last year s actuals and cover investment management fees, management fees, and all other scheme expenses. None of the costs are fixed. All fees and expenses are allocated to Investment Options proportionate to the value of the Investment Option relative to total funds invested. The total fees you pay are deducted from the earnings allocated to you each month, and reduce your returns. There are no performance based fees and no other fees. Individual Action Fees There are no one-off or annual fees charged such as set-up, contribution, performance, switching or exit fees. 10

12 Example of how fees apply to an investor Deb invests $10,000 in the Growth Option of the BNZOPA. She is not charged an establishment fee or a contribution fee as there are currently none. This brings her starting value of her investment to $10,000. She is also charged management and administration fees, which work out to about $95 (0.95% of $10,000). These fees might be more or less if her account balance has increased or decreased over the year. There are no other charges that she will be charged. See the latest Fund Update for an example of the actual returns and fees investors were charged over the past year. This example applies only to Growth Option. If you are considering investing in other Investment Options in the Scheme, this example may not be representative of the actual fees you may be charged. The fees can be changed We can change fees from time to time. We can also add new fees. The rules about fee changes are on the Offer Register. If a fee is increased or a new fee is brought in, we must update the Offer Register and tell you at least three months before the change takes place. The Board must publish a Fund Update for each fund showing the fees actually charged during the most recent year. Fund Updates, including past Updates, are available at 11

13 SECTION 6 WHAT TAXES WILL YOU PAY? BNZOPA is a Portfolio Investment Entity. The amount of tax you pay is based on your prescribed investor rate (PIR). At the time this document was listed there were PIR s of 10.5%, 17.5% and 28%. To determine your PIR, go to If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department. It is your responsibility to tell us your PIR when you invest or if your PIR changes. If you do not tell us, a default rate may be applied. If the advised PIR is lower than the correct PIR, you will need to complete a personal tax return and pay any tax shortfall, interest, and penalties. If the default rate or the advised PIR is higher than the correct PIR, you will not get a refund of any overpaid tax. SECTION 7 WHO IS INVOLVED? BNZOPA began in 1887 and since 1990 has been a hybrid scheme comprising a closed pension section (Division 1) and a cash accumulation scheme (Division 2). It operates exclusively for Bank of New Zealand employees on a not-for-profit basis. If at any time you have any questions or wish to change your personal details you can contact us by: Telephone: bnzopa@bnz.co.nz In writing: BNZOPA, P O Box 2392, Wellington In person: Level 7, 1 Victoria Street, Wellington The Scheme is administered by a Scheme Secretariat and governed by a Board of Management. The Board of Management as at the date of this document are: Position Name Member elected representatives Matthew Rowland Cullum Kyle Roderick Berryman Adam Reinhardt Ward Leanne Jane Stapylton-Smith Bank appointed Christopher Harril Reid (Chairperson) Vacancy Vacancy Graeme David Liddell Licensed Independent Trustee Paul Steven Bevin The BNZOPA is the custodian of the scheme. Who else is involved? The sponsor for the Scheme is Bank of New Zealand. The contact address is: Bank of New Zealand Level 4, 80 Queen Street P O Box 995. Auckland The Investment Consultant to the Scheme is Russell Investment Group Limited. 12

14 SECTION 8 HOW TO COMPLAIN Any complaints about BNZOPA can be given to us via the contact details on page 11. If you have made a complaint to us and it has not been resolved within 40 days or if you are dissatisfied with the proposed resolution, you can refer it to Financial Services Complaints Limited ( FSCL ) at: 4th Floor, 101 Lambton Quay, Wellington P O Box 5967, Lambton Quay, Wellington 6011 Telephone: or Facsimile: FSCL is an independent dispute resolution scheme approved by the Ministry of Consumer Affairs. There is no charge for making a complaint to FSCL. Further information about referring a complaint to FSCL can be found at SECTION 9 WHERE YOU CAN FIND MORE INFORMATION Further information relating to the BNZOPA (for example, financial statements) can be found by visiting our website, contacting the Scheme Secretariat at the addresses shown in Section 7 or going to the Offer Register and the Scheme Register which may be found at A copy of the information on the offer register and the Scheme Register is available on request to the Registrar of Financial Service providers. Fund Updates and other information relating to the BNZOPA can be obtained without charge by contacting the Scheme Secretariat at the addresses shown in Section 7. SECTION 10 HOW TO APPLY Complete an Application To Join form An Application To Join form is appended to this document or may be found on our website, under a homepage heading Forms. 13

15 APPLICATION TO JOIN To: Via Internal Mail or scan as a.pdf file and to Bank of New Zealand Officers Provident Association Internal Mail Location Code 1269D07 1 Victoria Street Wellington I confirm I have received the Product Disclosure Statement relating to the membership of Division 2 of the Bank of New Zealand Officers Provident Association. I wish to join the Scheme and agree to be bound by the terms of the Rules of the Scheme. Surname Given name(s) Preferred Name Address Staff Number Date of Birth Bank address I joined Bank after 1 July 2007 Bank Location Location Code Yes / No I wish to contribute % * of my gross base salary to the Scheme each pay period effective from..(date) * For a new member who commenced permanent employment with the Bank on or after 1 July 2007 the minimum amount is 2% of salary, with increases in multiples of 0.5% (e.g. 2.5%; 3.0%; 3.5% etc.). There is no maximum. I am eligible for a PIR (prescribed investor rate) of 17.5% and elect to have my earnings taxed at that rate. (If you tick the PIR box you must elect an Investment Option marked 17.5) My IRD Number is: (required field) I elect as my investment choice Investment Option tick one box below only. Cash Cash 17.5 Conservative Conservative 17.5 Balanced Balanced 17.5 Growth Growth 17.5 I will accept electronic communications including the Annual Report. I wish to make a lump- sum deposit. Please send me deposit instructions. The minimum amount for a lump sum deposit is $2,000 Signature Date In accordance with the Privacy Act, the information supplied on this application form will only be used for purposes of the Scheme. FOR OFFICE USE ONLY 8 March 2018 Entered in Registry Date By Payroll Advised