KiwiSaver cuts ignore MPs' super

VERNON SMALL
Last updated 05:00 13/05/2011

Relevant offers

Politics

Could Jacinda Ardern's star rise further on a Mt Albert by-election win? New 'swimmable' fresh water targets are also 100% pure politics New Government target to see 90 per cent of rivers and lakes 'swimmable' by 2040 Auckland central's new Labour candidate to take on Nikki Kaye Peter Dunne proposes Civil Defence merger with new fire service after recent problems Alison Franklin wants to give back to Tararua through new councillor role Stand-down for employers who exploit migrants not enough: unions Pattrick Smellie: Bill English struggles to offload a billion dollars On oldie but a goodie: Joyce is playing the election year tax-cut shuffle Labour leader Andrew Little's divide and conquer 'not kaupapa Maori'

MPs' generous superannuation schemes will not be cut, despite Government plans to slash the subsidies paid to KiwiSaver accounts.

Finance Minister Bill English, who was elected in 1990 and so qualifies for the gold-plated pre-1992 scheme, said the Government had not considered cutting politicians' entitlements.

He said MPs' super "has been reduced quite significantly over the years to the point where I think MPs who come into Parliament in recent elections get pretty much the same deal as everybody else".

Since 1992, MPs have been entitled to a subsidy of up to 20 per cent of their salary, receiving $2.50 for every dollar they put in. Those elected before 1992 receive a subsidy equal to 23 per cent of their gross salary.

Asked why taxpayers should subsidise MPs up to 20 per cent when he was winding back KiwiSaver subsidies, Mr English said they were different schemes.

"The MPs' scheme has been wound down over the last 20 years to something that is pretty similar to what everyone has available to them. In fact, I think a number of MPs are probably members of KiwiSaver."

Prime Minister John Key has said the May 19 Budget will include plans to reduce, but not scrap, the KiwiSaver member tax credit, worth up to $20 a week. It will force employers and employees to increase their minimum 2 per cent contributions to make up the difference. The tax credit is budgeted to cost the Government $880 million this year.

Labour finance spokesman David Cunliffe said the move undermined confidence in the scheme, which has more than 1.7 million members.

He said Labour would release its savings policy later. "That does not mean we will not restore the member tax credit. But we will have to make a judgment after seeing the Budget books."

Labour would aim to "build up, broaden and grow KiwiSaver".

Ad Feedback

- The Dominion Post

Comments

Special offers
Opinion poll

Should the speed limit be raised to 110kmh on some roads?

Yes

No

Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content