SSRSS and TRSS superannuation compensation – schools payroll

What is happening?

In 2015 we remediated the superannuation accounts of around 700 school employees in the State Sector Retirement Saving Scheme (SSRSS) and the Teachers Retirement Savings Scheme (TRSS). This remediation was for employer superannuation contribution errors that occurred from 2012 to 2015 after the introduction of the schools’ payroll, Novopay, in 2012. These errors were corrected in 2015 and once employees paid their missed employee contributions, the Ministry of Education paid the matching employer contributions.

We are now paying compensation for the loss-of-investment-earnings related to the late payment of these superannuation contributions, as well as any made after 2015.

These compensation payments restore employees’ investments to where they would have been had the employee and employer contributions been paid on time.

We are contacting current and former school employees who were remediated in 2015, as well as any remediated after 2015, to let them know what we are doing to pay compensation.

Who is eligible for loss-of-investment-earnings compensation?

Current and former school employees in SSRSS and TRSS, who were remediated by the Ministry of Education in 2015 for employer superannuation contribution errors that occurred from 2012 to 2015, are eligible for loss-of-investment-earnings compensation.

Additionally, any school employees who were affected by SSRSS or TRSS superannuation contribution errors after 2015 and have since paid their missed employee contributions and had the matching employer contributions paid, are also eligible.

How will I know if I am eligible for compensation?

If you are eligible, you should receive an email from the Ministry of Education to advise you we are paying loss-of-investment-earnings compensation.

We are emailing all current and former school employees, whose SSRSS or TRSS account was remediated in 2015 or who since 2015 have paid missed employee contributions and had the matching employer contributions paid.

We are endeavouring to contact all former employees using the last known contact details we hold for them.

If you are eligible for loss-of-investment-earnings compensation and you have not received an email from the Ministry about this, please contact us by emailing schools.superannuation@education.govt.nz.

(Please note, to help protect you from online scams, we have not provided a link for the above email address.)

What is the compensation amount that I’m being paid?

The compensation payments restore current SSRSS and TRSS members’ investment in their superannuation account to where they would have been had the superannuation contributions been paid on time. Where a current or former employee is no longer a member of SSRSS or TRSS, the compensation payments recognise their loss-of-investment-earnings through to April 2022.

The compensation amount has been independently calculated and checked by PwC on behalf of the Ministry and your scheme manager has agreed to the principles and methodology applied. It takes into account the superannuation contribution errors that occurred, your specific investment mix, and the fund’s investment returns since the errors were made.

Where and when will the compensation be paid?

Current members of SSRSS and TRSS

If you are a current member of SSRSS or TRSS, and you are eligible for compensation, loss-of-investment-earnings compensation will be paid into your superannuation account and will appear as a contribution in your SRSS (AMP or ASB) or TRSS (Mercer) superannuation account. If you are a member of SSRSS, your superannuation account will be with either AMP or ASB. If you are a member of TRSS, your superannuation account will be with Mercer. 

The loss-of-investment-earnings compensation is being paid to SSRSS and TRSS on 14 April 2022. The scheme managers have advised that it may take up to a week before the funds are allocated to your superannuation account.

Former members of SSRSS and TRSS

If you are no longer a member of SSRSS or TRSS (former member) and you are eligible for compensation, we will pay the loss-of-investment-earnings compensation into your personal bank account.

If you are a current school employee, we will pay the compensation into the bank account that Education Payroll Limited (schools payroll) holds for you on 14 April 2022.

If you are no longer a school employee, we will need to pay the compensation into your nominated bank account. In order to make the compensation payment into your bank account we have asked NLC Payroll to arrange payment. Please email NLC Payroll at education@nlcpayroll.com and they will send you the information that will be required from you so payment can be made. This will include verification of your identity including if you are acting on behalf, bank account details, and a completed and signed IR330 tax code declaration form.

Estates of former members of TRSS and SSRSS are also able to claim compensation in the same way as former members.  NLC will be able to guide you through the process.

Once NLC receives this information, the compensation will be paid into your bank account. The compensation amount is taxable, and any tax payable will be paid on your behalf to Inland Revenue.

(Please note, to help protect you from online scams, we have not provided a link for the above email address.)

How has the compensation been calculated?

The compensation amount has been independently calculated and checked by PwC on behalf of the Ministry and your scheme manager has agreed the principles and methodology applied. It takes into account the superannuation contribution errors that occurred, your specific investment mix, and the fund’s investment returns since the errors were made.

Do I need to pay tax on the compensation?

If you are eligible for loss-of-investment-earnings compensation we will pay the relevant tax on your behalf to Inland Revenue.

If you are a current member of SSRSS or TRSS you do not need to do anything. We have paid the employer superannuation contributions tax to Inland Revenue.

If you are a former member of SSRSS or TRSS, we have paid income tax and any other applicable deductions (e.g. student loan, KiwiSaver) from your compensation payment based on your tax code at the time of payment into your bank account.  You may want to contact the relevant organisation such as Inland Revenue for advice about whether your taxable compensation payment affects any agreement you have with them about your current earnings, benefits, child support or any other matters.

How can I contact the Ministry of Education for more information?

If you would like further information or think you may be eligible for loss-of-investment-earnings compensation and you haven’t received an email, letter or text from the Ministry of Education, please contact us by emailing schools.superannuation@education.govt.nz.

(Please note, to help protect you from online scams, we have not provided a link for the above email address.)

How can I be sure that any email or communication I receive from the Ministry of Education or NLC limited is legitimate?

If you receive an email or letter from the Ministry of Education about the payment of loss-of-investment-earnings compensation and you want to verify its authenticity, please get in touch with us at schools.superannuation@education.govt.nz.

If you are eligible for loss-of-investment-earnings compensation and you are no longer a member of SSRSS or TRSS or a school employee, we have asked NLC Payroll to make payment of compensation to your nominated bank account on behalf of the Ministry of Education. This means you will need to email NLC Payroll at education@nlcpayroll.com and they will subsequently email and request information from you so they can make payment. The information needed will include verification of your identity including if you are acting on behalf, bank account details, and a completed and signed IR330 tax code declaration form.

(Please note, to help protect you from online scams, we have not provided a link for the above email addresses.)

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