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

 

Two Years With New Methods: Crime Stats Show Increase Led By Burglary

The two years of data show an increase in the total victimisation rate of 3.1 per cent, with 12,060 more victimisations in the 2015/16 year when compared to 2014/15 year. From this increase, 72 per cent is attributable to burglaries. More>>

ALSO:

Auckland Relocation Grants: 12 Grants Paid So Far

Since the policy took effect one month ago, 12 applicants have received the non-recoverable grant, supporting 32 people. $54,508 has been paid out, covering things like moving costs, bond, rent in advance and letting fees. More>>

ALSO:

Vaccine Funding Change: HPV Vaccines For All Children

PHARMAC has today announced changes to funded vaccines, which will benefit an extra 100,000 people... The human papillomavirus (HPV) vaccine will be available for all children and adults up to the age of 26 years, and boys will now be included in the HPV school vaccination programme. More>>

ALSO:

Gordon Campbell: On Why The Opinion Polls For Key And Trump Defy Gravity

What is going on? Donald Trump got confirmed as the Republican presidential candidate at a bizarrely chaotic political convention… and promptly received an upwards bump in the polls to where he’s now rating ahead of Hillary Clinton, for only the second time this year. More>>

Sugar: Auckland Leisure Centres Axe Unhealthy Drinks

Auckland Council is to stop selling drinks that are sweetened by sugar from vending machines at its leisure centres in a bid to try to reduce obesity and type 2 diabetes... More>>

ALSO:

Gordon Campbell: On Todd McClay’s Faulty Memory

Time and again, whenever an issue arises the initial response by government is to deny or diminish the problem – nothing to worry about here, everything’s OK, move on. Then, hang on. In line with the usual pattern, as embarrassing details emerged into daylight, the story changed. More>>

ALSO:

Labour's 'Future Of Work': Major Reform Of Careers And Apprenticeships

The next Labour Government will transform careers advice in high schools to ensure every student has a personalised career plan, Leader of the Opposition Andrew Little says. More>>

ALSO:

State Investments Management: Treasury Likes IRD, Not Education Or Corrections

The Inland Revenue Department has scored an 'A' in the first tranche of the Treasury's investor confidence rating for state agencies that manage significant Crown investments and assets, gaining greater autonomy as a result, while the Corrections and Education ministries gained a 'C' rating. More>>

ALSO:

Govt Goal: NZ To Be "Predator Free" By 2050

Prime Minister John Key has today announced the Government has adopted the goal of New Zealand becoming Predator Free by 2050... “That’s why we have adopted this goal. Our ambition is that by 2050 every single part of New Zealand will be completely free of rats, stoats and possums." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news