IRD records headache for KiwiSaver providers

Problems with Inland Revenue records mean hundreds of thousands of New Zealanders are in the dark over their KiwiSaver funds, say providers.

They may not receive the letter telling them who their KiwiSaver provider is or the annual statement on their KiwiSaver balance and annual report explaining the returns of their fund.

The problem is most acute for people who are auto-enrolled in the Government's default schemes - where the Inland Revenue randomly allocates new employees to one of six schemes and their details are then sent to the provider, the New Zealand Herald reported.

At a meeting of KiwiSaver providers in Auckland yesterday, Investment Savings and Insurance Association ISI chief executive Vance Arkinstall said it appeared as many as 30 percent, or about 200,000, of those in the default schemes could not be contacted because of wrong information.

"The information being provided by the Inland Revenue is not up to scratch and it looks like there is a problem with them getting information."

A spokesman for Inland Revenue said it was compulsory for employers to provide contact information for any staff that joined KiwiSaver and it then passed on that information to the provider. But it was then up to individuals to keep their provider up to date.

Up to 5 percent of the largest default scheme, ASB Group Investment, which has more than 200,000 members, could not be contacted, said its head of wholesale distribution Greg McAllister.

Tower head of investments Sam Stubbs said providers should be allowed to contact employers to get contact information about their members.

AMP head of marketing Blair Vernon said providers had to respect the privacy of individuals, despite the company being forced to put large-scale resources into tracking people down.

"The key thing is if you haven't received correspondence and you think you are with a scheme, call and ask."

- NZPA