NEW ZEALAND - The government is to introduce changes to its KiwiSaver legislation to ensure fees charged by complying superannuation schemes are "not unreasonable".
The government actuary will be empowered to monitor any fee changes to complying superannuation funds to see if they are unreasonable.
In addition, the Finance and Expenditure Committee has recommended allowing employees who contribute to KiwiSaver schemes to phase in their minimum 4% contribution, starting at 2% on 1 April 2008 and arriving at the full 4% by 1 April 2011. The option is also being offered to members of complying superannuation schemes.
The government also plans to introduce a public register of complying superannuation funds, so that people can determine whether membership in a specific scheme will attract the relevant KiwiSaver benefits.
In a joint statement, Finance Minister Michael Cullen and Revenue Minister Peter Dunne, said: "The changes are being made to some of the details of the proposed KiwiSaver legislation to ensure that, once enacted, it works as intended and to best effect.
"There has been a lot of public interest in the introduction of compulsory employer contributions to KiwiSaver and the accompanying employer tax credit.
"That interest is evident in the quality and detail of submissions that the bill attracted, and in the many ensuing discussions that have taken place both with employers and the superannuation fund industry, who have suggested a number of these changes."
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