Money: How super fund will be managed in future

If it passes in its present form, Michael Cullen's New Zealand Superannuation Bill would:

* Spell out who is entitled to superannuation - everyone who reaches the age of 65, as long as they meet the residence rules.

* Continue benefits at present-day rates, plus annual cost-of living adjustments, with a requirement that the after-tax superannuation payment for a married couple would have to be at least 65 per cent of the average ordinary-time weekly wage, after tax.

* Set up the NZ Superannuation Fund, to help meet the cost of future superannuation payments.

* Establish the Guardians of New Zealand Superannuation, a group of five to seven people to oversee the fund. Those people would be required to have investment management backgrounds and would be appointed on the recommendation of the Minister of Finance, after being nominated by a committee, which would also be established by the minister.

* Spell out the requirements the Guardians would have to meet - invest on a prudent commercial basis, maximise return without undue risk, avoid "prejudice to New Zealand's reputation ... "

* Allow the Guardians to appoint investment managers and custodians to look after the fund's assets.

* Detail how the Government's annual contribution to the fund is to be calculated.

* Set out the procedures the Guardians would have to follow - detailing the assets they will invest in, reveal the benchmarks for measuring how the fund is performing, how it will balance risk and return and its stance on "ethical" investment, among other things.

* Provide for reviews of how well the Guardians are performing, at least once every 5 years.

* Allow for the possibility that super entitlements could be converted into individual accounts some time, although it provides no detail on how this would be done.