KiwiSaver Mark 1 ok, Mark 2 not ok

Media statement 15 August, 2007

KiwiSaver Mark 1 ok, Mark 2 not ok

Employers are finding KiwiSaver Mark 2 overly complicated, especially given the extremely tight implementation timeframes required, David Lowe, Employment Services Manager for the Northern Employers and Manufacturers Association told Parliament's Finance and Expenditure Select Committee today.

"Over 5,500 employers have been to EMA's information seminars on KiwiSaver and they are still struggling with the complexity of the Mark 2 version announced as part of the Budget," Mr Lowe said.

"Under Mark 2, employers have to re-write different pay slips for all staff to explain what will happen if they join KiwiSaver, what will happen if they don't join KiwiSaver, and what will happen if they take a holiday from KiwiSaver.

"Its just all too complicated.

"Employers have applauded our call for employees to be treated more fairly too.

"It just isn't fair that someone over 65 cannot join, or that a worker under 18 paying tax cannot get a tax credit for their savings in KiwSaver.

"But one simple change to the Bill would remove a lot of bother and expense.

"If the law provided for compulsory employer contributions to be treated as part of an employee's pay a lot of the scheme's compliance and other costs would disappear."

ENDS

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