Risk is inherent in all investments. None of the Trustee (Arotahi Trust Limited), the Promoter (BCF Limited), the Government or anyone else guarantees that you will receive back the money invested for you in the BCF Scheme and there is no guarantee or promise of any particular rate of return on your investment.
Because your returns will be linked to the amounts in your BCF Scheme accounts when you receive benefit payments, and because those accounts will have earnings allocated to them at rates determined by the Trustee (and be debited with expenses and possibly investment losses) there is a risk that you will not fully recover the contributions made to the Scheme for your benefit. Possible reasons for this include those set out at pages 22 to 24 of the Investment Statement.
Under current law while you are aged 18 or more and you qualify:
- The first $1,042 a year of your own contributions will entitle you to Government contributions at the rate of 50 cents per dollar of your contributions, up to a maximum Government contribution of $521.43 per full year of KiwiSaver membership; and
- Your employer (if any) must contribute at the current before tax rate of 3% of your salary or wages.
These incentives minimise the risk of you receiving less than your own contributions.