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Changes to the number and nature of KiwiSaver default scheme providers is "worth examining in slower time", according to a Treasury paper on 54 Budget 2011 KiwiSaver reforms. 54

the paper, dated february 18, is one of a host released by the treasury [54] last week relating to budget 2011.

The paper also revealed Ministers rejected proposals for a ‘soft' compulsion recommendation and that the Treasury was aware the changes would create "uncertainty and unpredictability which is not helpful or encouraging to individual savers. "

One of the proposals rejected by Ministers would have seen "all eligible employees who have not previously been auto-enrolled and are not already members of KiwiSaver or an approved superannuation scheme, who do not indicate in advance of the enrolment that they do not wish to be enrolled. "

The need to carefully communicate the recommendations was also highlighted 54, as the paper acknowledges the changes "may reduce perceptions of the stability and predictability of the scheme. "