Workplace savings gets qualified tick

Wednesday 13th October 2004

The country's largest regional employer group has issued a qualified endorsement of the government-commissioned Workplace Savings Group report.

A survey of members by the Employers and Manufacturers Association (Northern) shows support in principle for more workplace-based savings.

Most though - more than 80% - reject the suggestion they should select a savings product on behalf of their employees.

"Employees should be offered the opportunity to save in an approved scheme that they themselves pick," association chief executive Alasdair Thompson says.

"Employees take responsibility for the bank account their wages are paid into, and they would no doubt be pleased to nominate their own savings scheme."

The association says the result of the survey is so overwhelming the issue needs revisiting.

Apart from that one point through, the employers are supportive of the thrust of the group's suggestions.

The group suggested making employers with less than six employees, exempt from having to provide mandatory access to savings. Yet a third of those small employers, according to the survey, said they felt the compliance costs are worth it.

With the exception of the issue of employees picking their savings product, "there appears to be a solid measure of acceptance by employers for the principles of the group's proposals," Thompson says.

The concerns lie around details, such as the scope of savings products. Two thirds of the employers want the design expanded beyond superannuation funds to include an (undefined) wider range of government- approved savings products.

Submissions on its suggestions - which are not government policy - are due at the end of the month.

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