Nats mull KiwiSaver change

Published: 7:59AM Friday November 14, 2008 Source: NZPA

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National will consider a union proposal to protect low-income workers from KiwiSaver changes.

Prime Minister-designate John Key has met Public Service Association national secretary Brenda Pilott and Council of Trade Unions economist Peter Conway.

National plans to cap the government contribution on KiwiSaver contributions at 2%.

The Dominion-Post reports that the unions asked Key to consider a flat $20 contribution on weekly contributions by savers of $20 or more. That would effectively retain the government contribution at the same rate it is now for savers on income below $40,000 and paying in 4% of their wages.

Under National's proposed KiwiSaver changes, those savers will lose half the government contribution.

Key says he will look at the idea.

"We gave them an assurance we'd have a look at it. We understand the issue."

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