Sharechat Logo

KiwiSaver options need careful exploration

NZPA

Thursday 4th August 2011

Text too small?

BusinessNZ has called for a time of careful consideration before any decisions are made on automatic enrolment for KiwiSaver.

Chief Executive Phil O'Reilly says employers are supportive of employee choice and the reasoning behind making enrolment automatic would have to be sound.

"It should be acknowledged that KiwiSaver might not be appropriate for all people in all circumstances.

"Another point to be addressed is KiwiSaver's tendency to displace a certain amount of existing savings.

"These factors raise questions about the necessity of making KiwiSaver enrolment automatic at this stage."

O'Reilly said any moves in that direction should be transparent and employers should have the ability to contribute to the decisions.

"Any sudden change to the scheme would have a significant impact on employers, and those with stretched wage budgets experiencing tight business conditions would find a sudden potential increase in co-funding costs hard to deal with.

"Compliance costs would also need to be carefully considered."



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report