Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Govt to write off small Novopay overpayments

Media Statement

Govt to write off small Novopay overpayments

Minister Responsible for Novopay Steven Joyce today announced the Ministry of Education will not be seeking to recover small overpayments to school staff that are uneconomic to recover.

“In order to assist the recovery of the system and clearance of the overpayment backlog, I have taken the pragmatic decision that the Ministry should not seek to recover a number of smaller overpayments that would take up a lot of time for little benefit to any party,” Mr Joyce says.

“Since Novopay went live in August last year there have been thousands of school staff around the country that have received overpayments as a result of errors with the payroll system. Recovering the smaller overpayments would’ve cost the Education Ministry more money than the amounts that have been overpaid and slow down the clearance of the backlog.”

The errors where recoveries will not be sought are:

· A public holiday related defect which caused 7,949 staff to be overpaid an average of $6.05 for a total of $48,106

· A previously-advised voluntary bonding configuration error that occurred in Pay Period 1 which caused 1,478 staff to be overpaid an average of $64.75 for a total of $92,323

· All other overpayments where the individual overpayment amount does not exceed $100; to a maximum of $300 in a calendar year. It is estimated that this will involve writing off a total between $200,000 and $300,000 known overpayments.

Individual staff will be notified of overpayment debt write-offs when they occur, and that the Ministry will not be seeking the repayment. However, staff will still be able to pay it back if they wish to. Schools will also be advised and school budgets will not be affected. The amounts written off will be deducted from Ministry baselines.

Mr Joyce says that the write-off is estimated to reduce the number of known significant overpayments immediately from 13,200 to around 10,000 (these numbers excluded the 7,949 listed in bullet point one above). He says that list will still take considerable time to clear and will involve recovering some millions of dollars.

“This has always been expected to be the slowest and hardest part of the remediation programme,” Mr Joyce says. “These pragmatic steps will help speed it up but we have a long way to go on clearing the overpayments.

“We make further decisions in regards to low-value write offs, if other particular examples come to light during the overpayment clearance process.”

Mr Joyce says the use of debt collectors to recover overpayments caused by Novopay remains suspended by the Ministry until further notice.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Gordon Campbell: On Where Greece Goes From Here

As one candid British commentator tried to come to grips with why his confident prediction of a “Yes” vote in Greece has failed so resoundingly, he said that he’d made that prediction from his own viewpoint – as someone with savings to protect. But most Greek people, he suddenly realised, didn’t have that concern anymore after five years of austerity. Duh. More>>

ALSO:

Post-Cabinet Presser: EQC Reform, Greece & Surplus Stimulation

Prime Minister John key discussed proposals for reform of the EQC act and the Greek economic crisis at a press conference in Wellington. More>>

ALSO:

GCSB/NZSIS: Intelligence And Security Reviewers Seek Public’s Views

“We are seeking public submissions to help us determine what issues to focus on during the review,” says Sir Michael Cullen. “We want to hear your views on what the GCSB and NZSIS should be doing to protect New Zealand and how they should do it.” More>>

Education: Schools Funded To Trial Innovative Approaches

Education Minister Hekia Parata has announced the successful applicants for a new $10 million fund to encourage innovative teaching practices. “I’m delighted with the quality of the 39 projects that have won funding in the first round of the Teacher-led Innovation Fund worth a total of about $2.6 million,” says Ms Parata. More>>

ALSO:

Generation Zero: Skypath Granted Resource Consent

Generation Zero is delighted and relieved that the ‘Skypath’ walking and cycling addition to the Harbour Bridge has been granted resource consent. More>>

ALSO:

Housing: Two New Auckland Special Housing Areas

Two new greenfield Special Housing Areas (SHAs) that will provide up to 1800 new homes in Auckland have been announced today by Building and Housing Minister Dr Nick Smith and Mayor Len Brown. More>>

ALSO:

Royals: The Prince Of Wales And Duchess Of Cornwall To Visit

Prime Minister John Key welcomes today’s announcement that the Prince of Wales and The Duchess of Cornwall will visit New Zealand in November. This will be the second joint visit for Their Royal Highnesses to New Zealand. More>>

ALSO:

Tracey Martin Replaced: Ron Mark Is New New Zealand First Deputy Leader

Clayton Mitchell was the successful candidate for the Associate Whip position. Winston Peters was re-elected as Leader by the Caucus. Ron Mark was elected as the Deputy Leader with effect from 10am, Friday, 3rd July. More>>

ALSO:

Rebuild Rebrand: "Regenerate Christchurch" To Replace CERA

The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes control of the rebuild, Canterbury Earthquake Recovery Minister Gerry Brownlee says. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news