KiwiSaver off to great start

The latest figures on KiwiSaver enrolments are encouraging, the Council of Trade Unions said today, following an announcement that 212,794 people had joined a KiwiSaver scheme.

“The figures don’t show us as yet the average income level of those signing up to KiwiSaver though, and it will be important to assess this information also,” CTU economist Peter Conway said.

“The CTU has submitted that there should be a 2 per cent minimum contribution from workers rather than the current required level of 4 per cent. This will help lower paid workers join up.”

“A number of employers are agreeing to an initial 2+2 deal which reflects the fact that it is easier for workers to come on board at that level of contribution.”

This can be done using the transitional provisions in the KiwiSaver legislation, so that in April 2008 the worker puts in 2 per cent and the employer 2 per cent, going up to 3 per cent each in 2010, and 4 per cent each in 2011.

“The New Zealand Nurses Organisation recently reached a deal on this for 20,000 DHB employees, and unions are encouraging other employers to do so as well,” Peter Conway said.