28 July 2022
Kia ora
Some current and former school employees received incorrect employer contributions into their KiwiSaver account as a result of payroll errors made between 22 August 2012 and 17 November 2021.
The Ministry of Education is now paying remediation and compensation for the loss-of-investment-earnings to these employees.
The majority of current and former school employees affected by these KiwiSaver employer contribution errors will have the payment of remediation and loss-of-investment-earnings compensation made during July and August 2022.
To ensure no one will be left disadvantaged, the compensation for the loss-of-investment-earnings has been calculated using the investment returns from the highest performing KiwiSaver default scheme growth fund. The Ministry has worked with PwC to ensure that the compensation for loss-of-investment earnings payment has been calculated correctly.
Starting in July 2022, the Ministry will be contacting current and former school employees who are affected by the KiwiSaver employer contribution errors to let them know about the remediation and compensation payment and how it is being made.
Payments
Current KiwiSaver members
Affected employees who are current members of KiwiSaver, don’t need to do anything to receive payment of remediation and loss-of-investment-earnings compensation. The payment is being made to Inland Revenue who will pass this directly onto their KiwiSaver provider.
Exited KiwiSaver members
Because this group of affected employees are no longer members of KiwiSaver, remediation and loss-of-investment-earnings compensation will be paid to the individual employee’s bank account.
Affected employees who have exited KiwiSaver and are current employees don’t need to do anything to receive payment of remediation and loss-of-investment-earnings compensation. The payment is being made into the main bank account used by schools payroll to pay them.
Affected employees who have exited KiwiSaver and are former employees will need to provide the Ministry with additional information, including their nominated bank account, relevant tax code and validation details, before payment of remediation and loss-of-investment-earnings compensation can be made. The Ministry is endeavouring to contact all former employees who are affected by the KiwiSaver employer contribution errors using the last known contact details schools payroll holds for them.
If they don’t receive an email from the Ministry by 15 September 2022 and think they are affected by these errors, they can register on the schools payroll remediation portal to find out if they are due a payment. This registration facility will be available from 15 September 2022.
Information for affected employees
More information about the payments Information about the payments is available on the Ministry’s website: https://www.education.govt.nz/our-work/changes-in-education/kiwisaver-remediation-and-compensation from July 2022.
What do you need to do?
There is nothing you need to do. If employees have any questions, please direct them to the Ministry’s website.
*The URL addresses above are being provided for information purposes only. To protect yourself from email/online scams you should verify the source and the target URL before taking any action.
Ngā mihi
Education Payroll Limited