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KiwiSaver cuts will further tighten noose on gov departments

KiwiSaver cuts will further tighten noose on government departments

May 5th, 2011
For Immediate Use

Changes to the way public servants’ contributions are paid to KiwiSaver could further squeeze departmental budgets and impact on services says the PSA.

Public Service employer contributions are presently administered through a centralised fund but it’s speculated that the government is looking to change this so that employer contributions are paid directly out of departmental budgets.

“Government departments are already stretched. This move would add more pressure and the impact would result in loss to services and jobs,” says Richard Wagstaff.

“We know from our members that public sector employees are already doing more for less. They are working longer and harder and wage growth is falling behind the private sector significantly making it harder to attract new talent.

“KiwiSaver has been highly successful in encouraging people to save. The government says that’s what it wants people to do and that’s what is good for the country but cuts and changes to the way contributions are paid to the scheme fly in the face of that.

“The government’s tax cuts which amount to over $14 billion over the next four years benefit high income earners most. Cuts to KiwiSaver would be further evidence that the government has no interest in helping normal working New Zealanders,” says Richard Wagstaff.


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