MPs' super scheme a lot better than yours

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MPs' super scheme a lot better than yours

3News NZ

Bill English says the generous scheme is "pretty similar to what everyone has available to them"

Bill English says the generous scheme is "pretty similar to what everyone has available to them"

By Rebecca Wright

The Government says it's going to cut what it contributes to KiwiSaver because it doesn't make sense to borrow that money from overseas to encourage New Zealanders to save.

Which we thought raised a question – will the MPs themselves then also share in the pain when it comes to their own super schemes?

"I haven't personally looked at that matter," says Finance Minister Bill English. "There's a variety of different schemes in Parliament as I understand it – I'm not the expert at these things."

The current scheme says MPs get around $2.50 from the Government for every dollar they invest.

MPs can contribute up to 8 percent of a backbench MPs salary of $131,000 – that amounts to approximately $10,480.

The taxpayer then tops that up to a maximum of 20 percent – or $26,200 – meaning MPs' super is worth around $36,680 a year.

"As we said the MPs' scheme has been wound down over the last 20 years to something that is pretty similar to what everyone has available to them," says Mr English. "I think a number of MPs are probably members of KiwiSaver."

And change is coming for them and the 1.65 million kiwis currently enrolled with Prime Minister John Key announcing the $1040 tax credit will be scaled back.

To make up for the loss, employers and workers will be forced to contribute more than the current 2 percent. The $1000 kick start stays in place.

The Green Party says it's workers who'll pay as employers take increased KiwiSaver obligations into consideration when setting salaries.

"They won't want to have an increase in pay because they're going to have to increase their KiwiSaver contribution," says Dr Russel Norman.

The Government says all will be revealed next Thursday when the actual numbers are announced in the Budget, and Kiwis will have the chance to vote on changes to KiwiSaver when they go to the polls.

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Comments

14/05/2011 4:08:30 p.m.

Englishman wrote:

I would check your facts Brent, Guy Fawkes was nothing more than a terrorist. He certainly did not care for the common man.

13/05/2011 3:23:33 p.m.

Brent Schouten wrote:

Bring back Guy Fawkes. He was the last man to enter parliament buildings while actually trying to help out the common man

13/05/2011 1:58:13 p.m.

James J. Read wrote:

How tactless of Sir Roger Douglas to ask the rhetorical question, " Why can't ordinary workers have as good a Super scheme as M.P.s have given themselves? " I'm sure Bill English and John Key will not be keen to answer, but it is worth thinking about.

13/05/2011 1:58:13 p.m.

James J. Read wrote:

How tactless of Sir Roger Douglas to ask the rhetorical question, " Why can't ordinary workers have as good a Super scheme as M.P.s have given themselves? " I'm sure Bill English and John Key will not be keen to answer, but it is worth thinking about.

13/05/2011 12:23:08 p.m.

Elke Kurschus wrote:

Superannuation for publicservants is partially funded by money conficated from overseas pensioners. These people had saved money toward their retirement while still in their homecountry, with a system not unlike the NZ Kiwi-Saver. Would that be partially a reason for not wanting to change their superscheme? It is a very convenient for Government to fund NZ super. Is that fair?

13/05/2011 9:47:11 a.m.

Brent wrote:

So we now find the MP matched 2.50 is dropped from there salary. No story here.

13/05/2011 8:47:29 a.m.

Mike Ryland wrote:

it must be great to be bill english send nz into 18b in the red and then turn around and say it wasnt me,the gap between income and cost of living has widened massively with most of us not getting inflation ajustments to our annual wage, now they swipe money from kiwi saver when asked will mp's take a cut in there super good ole bill says i know nothing i am not an expert yet he runs our countries books mmm i smell a country going bankrupt do you.

13/05/2011 7:27:16 a.m.

Brent wrote:

What you lot think this happened just cause the Nats are in. lets just say 10 years plus, But you are right it is to much,

13/05/2011 3:05:32 a.m.

bludgers wrote:

Dont you know politicians are the only people in the country who can be given a portfolio on something they know nothing about and suddenly they are the top aythority on that subject and expected to make decisions that require intermit knoledge of the subject. Doesnt matter which bunch you vote in they are all looking after there own interests.

12/05/2011 10:22:43 p.m.

John wrote:

"The current scheme says MPs get around $2.50 from the Government for every dollar they invest." Your kidding right?, that can't be right, not to mention they need it even less than we do, given the huge salarys they collect.