SSRSS and TRSS loss-of-investment-earnings compensation – schools’ payroll

We are paying compensation for loss-of-investment-earnings to the superannuation accounts of 677 school employees in the State Sector Retirement Saving Scheme (SSRSS) and the Teachers’ Retirement Savings Scheme (TRSS) who were remediated in 2015 for superannuation contribution errors.

What is happening?

In 2015 we remediated the superannuation accounts of around 675 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.

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.

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 for loss-of-investment earnings is calculated on the same basis as for current members but will be paid into their bank account.

We are contacting current and former school employees affected by the late superannuation contribution payments to let them know what we are doing to pay compensation.

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

Around 675 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, around 45 school employees who were affected by SSRSS or TRSS superannuation contribution errors after 2015 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 affected by the late SSRSS and TRSS superannuation contribution payments to let them know what we are doing to pay compensation for loss-of-investment earnings.

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 or use our online query form. You can access the query form here(external link). 

If I am eligible, what compensation will I receive?

If you are a current member of SSRSS or TRSS, the compensation payment will restore your investment in your superannuation account to where it would have been had the superannuation contributions been paid on time.

If you are no longer a member of SSRSS or TRSS, the compensation for loss-of-investment earnings is calculated on the same basis as for current members but will be paid into your bank account.

How has the compensation been calculated?

The compensation amount has been independently calculated and checked by PwC on behalf of the Ministry and the scheme managers (SSRSS and TRSS) have agreed to the principles and methodology applied. It takes into account the superannuation contribution errors that occurred, the individual’s 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 [insert date]. 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 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 [insert date].

If you are no longer a school employee, we will need to pay the compensation into your nominated bank account. 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.

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 no longer a member of SSRSS or TRSS, we have paid income tax and any other applicable deductions (e.g. student loan, child support) 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 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 or use our online query form(external link). 

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 or by using our query form(external link). 

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 links for the above email addresses and query form. To protect yourself from email scams, you should verify the source and the target URL before taking any action.

Contact us

The best way to get in touch is via our query form(external link).

 You can also contact the team by:

Keeping yourself safe from phishing scams

Phishing is when someone uses an email, text or phone call to try to get access to sensitive information (like bank account numbers and passwords).

For schools payroll remediation payments, we will never ask you for your bank account login and password. The information you receive from us will direct you to the Ministry of Education’s website.

Phishing scammers will claim to be from a legitimate organisation, and often have email addresses or websites that look very real. They'll often ask you to claim a prize, check your details, or tell you that your account is expiring or needs to be checked.

Email phishing scams – Netsafe(external link)

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