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:

8th December 2021 Morning Report
New Zealand King Salmon Investments Limited (NZX: NZK) Market Update
Scales Corporation Limited (NZX: SCL) Market update
Delegat Group Limited (NZX: DGL) $333 million syndicated bank facilities
7th December 2021 Morning Report
Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance
PGG Wrightson Limited (NZX: PGW) FY22 Operating EBITDA forecast to better last year
Vulcan Steel Limited (NZX: VSL) Trading Update & Earnings Upgrade
6th December 2021 Morning Report
Synlait Milk Limited (NZX: SML) Partnership to enhance soil health; test regen ag practices