Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Mercer Welcomes Budget Boost To Kiwisaver

17 May 2007

Mercer Welcomes Budget Boost To Kiwisaver

Mercer has applauded the changes to KiwiSaver announced by the Government in today’s budget saying the incentives would promote New Zealanders’ good long term savings habits and substantially increase individual uptake of the KiwiSaver scheme.

Tim Jenkins, Head of Mercer in New Zealand said the tax credits on employee contributions to KiwiSaver, and phased compulsory matching employer contributions were a great sweetener to boost retirement savings in New Zealand. This will have many long-term benefits for New Zealand.

“If you can afford to contribute to a KiwiSaver scheme, then you should do so. This is the strongest incentive we’ve seen yet to encourage New Zealanders to save more for their retirement, and an opportunity that should be taken advantage of.”

Mercer said that employers should use the period up until 1 April 2008, before matched employer contributions apply, wisely and prepare remuneration and rewards policies that were satisfactory for both the business and its employees.

“This may represent a real moment of truth for employers and their employees. We encourage employers not to view compulsory KiwiSaver contributions as an additional or surprise cost to bear but as an opportunity to engage with employees and create a compelling reward and retention tool,” Mr Jenkins said.

Mercer was also pleased that the Government has made every effort to extend the KiwiSaver enhancements to existing superannuation funds which become complying superannuation funds. “This will substantially reduce the potential leakage of existing retirement savings from non-KiwiSaver arrangements that might otherwise occur, Mr Jenkins commented.

Mercer did, however, call for a swift resolution of regulatory issues relating to existing superannuation funds so that employers and trustees were able to make their existing arrangements complying superannuation funds, and ensure as many individuals as possible are able to take advantage of the changes.

“There will be some issues for employers and trustees to iron out. Many employers were planning to make company contributions to KiwiSaver as part of the 4 per cent contribution level. The company contribution can no longer be part of the 4 per cent for those who join KiwiSaver after 1 April 2008.

“Also, we are concerned that a number of New Zealand’s major employers operate hybrid funds which have defined benefit components. Currently these funds cannot comply with the KiwiSaver regulations until remedial legislation is passed. This means that there will be a delay before a significant number of existing fund members can take advantage of the changes to KiwiSaver,” Mr Jenkins added.

Mercer also welcomed the requirement for funds to disclose their approach to responsible investment.

“Responsible investing is an issue of growing importance to the public, but one that also needs to be thought through and implemented carefully to protect the interests of fund members. Mercer has responsible investment specialists globally so we do intend to make recommendations to the working party on this issue,” Mr Jenkins said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

General Assembly: Ardern Rejects Trump Call For War On Drugs

New Zealand will not be signing the United States' document calling for global action on the war on drugs, Prime Minister Jacinda Ardern says.

Ms Ardern is in New York for the United Nations General Assembly this week, along with about 140 other world leaders.

US President Donald Trump is kicking off his week at the UN by holding an event to promote the US document called the Global Call to Action on the World Drug Problem. More>>

 

Hunting v Pest Control: Tahr Control Needed To Protect Alpine Habitats

A cull of introduced Himalayan tahr browsing conservation land in Kā Tiritiri o Te Moana/ the Southern Alps is needed to protect special alpine plants and their habitats, Conservation Minister, Eugenie Sage said. More>>

ALSO:

Protest At Sea: Judge Discharges Greenpeace Activists

The judge today discharged Norman and Howell without conviction, saying the cumulative consequences of a conviction would be out of proportion to what was “low level” offending off the Wairarapa coast in April 2017. More>>

ALSO:

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels