KiwiSaver remediation and compensation

What is happening?

Some current and former school employees have received incorrect employer contributions into their KiwiSaver account as a result of payroll errors made between 22 August 2012 and 17 November 2021.

We are now paying the underpaid KiwiSaver employer contribution amounts and compensation for the loss-of-investment-earnings related to the late payment of these contributions.

We are contacting current and former school employees who were affected by the errors to let them know about the remediation and compensation payment and how it is being made.

How is payment being made?

Current KiwiSaver member and a current or former school employee

If you are a current KiwiSaver member and are affected by these KiwiSaver employer contribution errors, you don’t need to do anything to receive payment of remediation and compensation. The payment is being made to Inland Revenue, who will pass this directly on to your KiwiSaver provider. 

We are sending you an email using the contact details held by schools payroll to inform you that payment is being made.

Once the payment is made, you will be able to see the combined payment of remediation and compensation in your KiwiSaver account.

Former KiwiSaver member and a current school employee

If you are no longer a member of KiwiSaver but you are a current school employee, and are affected by these KiwiSaver employer contribution errors, you don’t need to do anything to receive payment of remediation and compensation. The payment is being made directly into the main bank account used by schools payroll to pay you.

We are sending you an email using the contact details held by schools payroll to inform you that payment is being made.

You will be able to see the combined payment of remediation and compensation, which will be identified as Min of Edu KiwiSaver payment, in your bank account.

Former KiwiSaver member and former school employee

If you are a former KiwiSaver member and no longer a school employee, and are affected by these KiwiSaver employer contribution errors, we need you to do the following before payment of remediation and compensation can be made:

  • Confirm your bank account details.
  • Provide us with your tax information.
  • Verify your identity.

If you are due a payment, we will endeavour to contact you using the last contact details schools payroll holds for you.

If you don’t receive an email from us by 15 September 2022 and you think you are affected by these errors, you can register on the schools payroll remediation portal to find out if you are due a payment. The registration facility will be available from 15 September 2022.

If you are acting on behalf of a former employee or for the estate of a deceased former employee, the payment process is the same.

When will the remediation and compensation be paid? 

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.

Current member of KiwiSaver or current school employee

If you are a current member of KiwiSaver or current school employee, and you do not receive a payment by the end of August, you are not affected by the errors.

Former KiwiSaver member and former school employee

If you are a former KiwiSaver member and no longer a school employee, and are affected by these KiwiSaver employer contribution errors, we need you to confirm your bank account details, provide tax information and verify your identity before we can make payment. If you are due a payment, we will endeavour to contact you using the last contact details we hold for you.

If you don’t receive an email from us by 15 September 2022 and you think you are affected by these errors, you can register on the schools payroll remediation portal to find out if you are due a payment. The registration facility will be available from 15 September 2022.

How has the payment been calculated?

If you are affected by the KiwiSaver employer contribution errors that occurred between 22 August 2012 and 17 November 2021, a combined remediation and compensation payment will be made.

The remediation amount is the actual amount of underpaid KiwiSaver employer contribution errors that occurred during this period.

Compensation for the loss-of-investment-earnings related to the late payment of these contributions has been calculated using the investment returns from the highest performing KiwiSaver default scheme growth fund.

We have worked with an external adviser, PwC, to ensure that the compensation for loss-of-investment-earnings has been calculated correctly. If you are a current KiwiSaver member, the compensation payment restores your KiwiSaver account to where it would have been had the correct employer contributions been paid on time. If you are no longer a KiwiSaver member, the loss-of-investment-earnings compensation has been calculated on the same basis as if you are a current member of KiwiSaver.

What happens if I no longer belong to KiwiSaver – will I still receive payment of remediation and compensation?

If you are affected by the KiwiSaver employer contribution errors between 22 August 2012 to 17 November 2021, but you are no longer a member of KiwiSaver, you will receive a combined payment of remediation and loss-of-investment-earnings compensation.

If you are a current school employee, this payment will be made to your bank account, which is the main bank account used by schools payroll.

If you are an affected former school employee, we will endeavour to contact you using the last contact details schools payroll hold for you.

What is KiwiSaver remediation and compensation?

Remediation is the payment amount to rectify the KiwiSaver employer contribution errors that occurred between 22 August 2012 and 17 November 2021.

Compensation is the amount being paid for the loss-of-investment-earnings related to the late payment of these KiwiSaver employer contributions.

How much am I getting – how can I find out the amount of my remediation and compensation?

Current KiwiSaver member

If you are a current KiwiSaver member, and affected by the KiwiSaver employer contribution errors, you will be able to see the combined payment of remediation and compensation in your ‘myIR’ account on Inland Revenue’s website(external link).

The payment will be identified as an ‘employer contribution’. Once the payment has been passed on to your KiwiSaver provider, the amount will also be visible in your KiwiSaver account.

Former KiwiSaver member and current school employee

If you are no longer a KiwiSaver member, but you are a current school employee and affected by the KiwiSaver employer contribution errors, you will be able to see the payment in the main bank account used by schools payroll to pay you.

Breakdown of payment

To see the breakdown of your combined remediation and compensation payment, you can do this securely by going to the Ministry of Education’s KiwiSaver remediation and compensation(external link) page. Once you are on this page, go to ‘check your payment amount’ and enter the unique ‘access key’ we provided in the email we sent you about the payment, as well as any two of the following three identifiers: your date of birth, IRD number, and Ministry of Education number.

Former KiwiSaver member and former school employee

If you are a former KiwiSaver member and no longer a school employee, and you are affected by the KiwiSaver employer contribution errors, the process is different.

We need you to confirm your bank account details, provide tax information and verify your identity before we can make payment. If you are due a payment, we will endeavour to contact you using the last contact details schools payroll holds for you.

If you don’t receive an email from us by 15 September 2022 and you think you are affected by these errors, you can register on the schools payroll remediation portal to find out if you are due a payment. This registration facility will be available from 15 September 2022.

More information

More detailed information about payments is available on the Ministry of Education’s KiwiSaver remediation and compensation website(external link).

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