NZX opts for immediate maximum KiwiSaver employer contribution
Press Release: NZX has opted to make the maximum 4% employer contribution to its employees' KiwiSaver funds from the 1 July 2007 KiwiSaver launch date.
Tuesday, May 29th 2007, 1:12PM
The 2007 Budget contained an enhancement to KiwiSaver that requires employers to contribute to their employees' KiwiSaver account on a graduating scale, beginning at 1% on 1 April 2008 and climbing to 4% over four years. NZX will contribute the full 4% on commencement of KiwiSaver in two months' time.NZX is doing so to reflect the company's commitment to personal savings and investments, and its support of New Zealand capital markets and New Zealand companies.
"NZX has long been a supporter of a national savings framework, so when KiwiSaver was developed we looked at ways we could make it an even more compelling proposition for our employees, both current and future," said NZX CEO Mark Weldon.
"We've stated publicly that there's no doubt that we're in a global competition for the best talent, and that we see KiwiSaver as a tool to attract and retain high value talent on and offshore. Treating a subsidised, tax efficient personal savings scheme like KiwiSaver as part of an employee's package is a powerful way to demonstrate how much we value our employees.
"We've done the math and we believe that the net cost in dollar terms to our company of immediately offering the maximum KiwiSaver employer contribution will be far outweighed by the value it brings to our talent recruitment and retention," said Weldon.
In addition, NZX expects to see KiwiSaver confer benefits on New Zealand listed companies in the form of increased investment levels to help fund growth.
"It's a proven fact that in Australia, where they have a compulsory retirement savings scheme, people are generally more aware of their investments and take a keen interest in the companies they're invested in," said Weldon.
"KiwiSaver can only be good for New Zealand companies because all of a sudden you'll get people whose KiwiSaver funds are invested in those companies really caring about how they perform. What better motivation is there to perform well?"
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