Union warns of multibillion-dollar hit from National's KiwiSaver pledge
New Zealand's Public Service Association (PSA) has taken aim at the National Party's KiwiSaver policy, claiming it carries a multibillion-dollar hidden cost for schools, hospitals and other public services. The debate centres on retirement-savings contributions.
New Zealand's Public Service Association (PSA), a union representing public-sector workers, has criticised the National Party's pledge on KiwiSaver, the country's retirement-savings scheme. The union claims the policy carries a multibillion-dollar hidden cost for schools, hospitals and other public services.
According to the PSA, higher employer contributions could place a significant burden on the budgets of public-sector organisations. The union argued that this cost has not been adequately spelled out.
KiwiSaver underpins retirement savings for many New Zealanders, so changes to the policy affect a broad share of the population. The National Party and the government may set out their own assessment of the plan's costs and benefits, and the debate is expected to continue in the period ahead.
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