KiwiSaver

KiwiSaver starting today discriminates against people aged 65 and over, the Employers & Manufacturers Association (Northern) says.
Press Release

“This is from the government that sensibly passed the law removing a retirement age from all employment agreements and reinforced the illegal nature of any discrimination against older people,” said Alasdair Thompson, EMA’s chief executive.

“By making people 65 or over ineligible for KiwiSaver, Government is denying them access to the $1000 tax funded kick start, a $1040 annual tax credit, and tax free employer contributions.

“This is serious discrimination against equal opportunities for older people and it must be remedied with urgency.

“Besides being grossly unfair, it is incredibly short sighted.

“People these days are living and working much longer, and with today’s tight labour market employers are keen to keep them on long after they reach 65.

“The discrimination gives older people no encouragement to keep working though valued for their experience and ability to train younger staff.

“It’s a particularly serious concern for employers having trouble growing their businesses due to an inability to get staff.

“KiwiSaver’s age discrimination is taking us in the opposite direction from Australia. Across the Tasman from today, their Better Super scheme will see older people in work paying extremely low tax rates by offsetting tax free income from their superannuation savings. This is specifically aimed at keeping them in the workforce.

“Most seriously for the government, KiwiSaver seems to us clearly in breach of the Human Rights Act, the Bill of Rights, and the Employment Relations Act 2000.

“Section 21(i) of the Human Rights Act states plainly no one can discriminate on the basis of age. Section 22 (1) (d) notes it is illegal to discriminate against age for the purposes of retirement.

“Section 105 (1) (i) of the Employment Relations Act states that ‘age’ discrimination is grounds for an individual to bring a personal grievance claim against their employer.
“Why should Government rule itself above these laws?”

All the information employers and individuals need about KiwiSaver is readily available, says Inland Revenue Deputy Commissioner Colin MacDonald.
Press Release

Inland Revenue has sent 1.5 million Employee Information Packs and 200,000 Employer Guides to employers registered with the department.

More than 130,000 copies of the packs have so far been downloaded from www.kiwisaver.govt.nz, which has been seeing growing numbers of visitors since it was launched nine months ago.

“We’re working with many employers to help them implement the work-based savings scheme, MacDonald said.

“Our focus in the first few months of the scheme is going to be very much on education and support, to make the implementation of the scheme as smooth as possible,” MacDonald said.

“Employers’ obligations for KiwiSaver are very simple – provide information to workers who want it and enrol new staff and others who want to opt in. For 1 July, nothing has changed.

“Everything they need is available at the website and we’re also encouraging people to contact our KiwiSaver call centre if they have any other queries.

“The call centre has been getting a steadily growing number of inquiries from employers, individuals and tax agents.

“Yesterday we had 1135 calls and we’re geared up to take a lot more calls from next week.

“We are also receiving an average of over 15,000 visitors a day to the website.”

MacDonald said the information campaign will continue as KiwiSaver goes through milestones, including next week’s official start, and 1 October when Inland Revenue will begin passing contributions to the scheme providers.

“Our message right now is very much business as usual – anyone who is eligible and wants to join will be able to, ” MacDonald said.

As we rapidly approach 1 July (Sunday), opening date for KiwiSaver, it has become clear that there has been a surge in public interest, said Vance Arkinstall, CEO, Investment Savings & Insurance Association (ISI).
Press Release

Following the Budget announcements providing a tax credit of up to $20 per week and the phased in compulsory employer contributions from 1 April next year, KiwiSaver has become a compelling opportunity for retirement savings. This surge in interest is no surprise, said Arkinstall.

Approved KiwiSaver product providers are well prepared for this wave of interest and the solid stream of application that are being received.

We expect further KiwiSaver product providers to be approved over the coming weeks and months. We anticipate further new entrants to the market as the success of KiwiSaver grows said Arkinstall.

In making their choice KiwiSaver investors should consider the KiwiSaver schemes financial strength, size and track record of the manager. You need to be comfortable that the fund you choose has the experience and skill to manage your KiwiSaver funds. You also have the flexibility to change KiwiSaver providers if you choose, said Arkinstall.

Investors will have a choice of funds (eg conservative, balanced or growth), dont be automatically attracted to the most conservative fund but look for a fund that suits your appetite for risk. Many people should be looking at funds with growth prospects such as balanced or growth funds, said Arkinstall.

Dont panic if you or your employer have not received the IRD KiwiSaver packs, demand may have stretched resources. Further supplies will be available shortly. You can join any time from 1 July, said Arkinstall.

TOWER shows a new side of its personality today, with the launch of its new KiwiPlan website at www.towerkiwiplan.co.nz.
Press Release

Since long before the KiwiSaver Act was passed, the Government recognised a need for New Zealanders to become more financially literate.

Even so, most investment statements and explanatory notes on investments and superannuation are still fairly complicated.

Seeing a need for clear, concise KiwiSaver information tailored specifically to employers and individual members, TOWER has created an interactive, video-based website to explain the process.

TOWER Investments Chief Executive Tony Hildyard said that the decision to develop the new website was largely based on TOWER’s commitment to helping to improve financial literacy among New Zealanders.

“When you’ve been in the industry for as long as us, it’s easy to get caught up in financial jargon. The problem is that it doesn’t make it any easier for people who want to invest.

“It’s as simple as this. Once someone explains the benefits of long-term savings to you in simple terms, it’s obvious how important it is to get started. We want people to know the benefits of KiwiSaver so that they can make an educated decision before they sign up.”

Hildyard said that he was pleased that KiwiSaver has raised people’s awareness about the need to save for retirement, and commended Inland Revenue and the Retirement Commission for playing such a big role in the education process.

The website will be online at www.towerkiwiplan.co.nz from 10am on 29 June.

Visitors can learn about KiwiSaver, how it affects them as employers or individual members, and TOWER’s KiwiPlan.

They can sign up online, ask questions, and download or order investment statements, information sheets and sign up forms. For those with dial-up connections or older browsers, the TOWER KiwiPlan site is also available as an HTML site.