KiwiSaver clarification welcomed

The Council of Trade Unions has welcomed moves to amend employment law to ensure workers get their fair share of KiwiSaver entitlements.

"New Zealanders have shown a strong interest in KiwiSaver, with over 700,000 members joining since the scheme started last year," CTU president Helen Kelly said.

"KiwiSaver has been a great success, and the amendments the government will introduce will help clarify that KiwiSaver employer contributions are a new entitlement workers can expect, and not something their employer can trade off."

"In most cases workers and employers are getting on with the job - people are joining, and employer contributions are coming through. And for the first few years, the employers of many workers will have their compulsory contributions fully covered by the employer tax credit."

"This clarification has been necessitated by some employers who have from the beginning not regarded KiwiSaver as an extra entitlement."

It reflected a problem created by a relatively small number of employers, particularly where there was no union presence, Helen Kelly said.

Ends.  For more on KiwiSaver from the CTU, click here: http://union.org.nz/unionsuper