National's Plans Will Leave Kiwisaver Anaemic

NZEI RELEASE

8th October 2008

National's Plans Will Leave Kiwisaver Anaemic

National's proposed changes to Kiwisaver will only serve to make the scheme less attractive, according to the education sector union NZEI Te Riu Roa.

NZEI is concerned that government moves to shut down access to existing schemes available to its members, was on the basis that the ultimate shape of Kiwisaver at 4% employer and 4% employee contributions (4+4) was better than the 3+3 of those existing schemes.

If National is elected, all that will be available to incoming school sector employees will be a 2+2 scheme. This is a backwards step.

"A scheme frozen at 2+2 is anaemic and will re-establish the gap between Australia and New Zealand when it comes to an attractive place for workers to live," says NZEI National Secretary Paul Goulter.

NZEI also views National's proposal to reverse the government's recent adjustments to Kiwisaver very seriously. The loophole that was recently closed would have resulted in workers in Kiwisaver paying both their own and the employers' contribution. Under National's plans, this abuse will now become widespread and further damage the credibility of Kiwisaver.

ENDS

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