Massey University proposes to cut retirement savings contributions for staff aged 65 and over

Massey University proposes to stop contributions to KiwiSaver and UniSaver superannuation schemes for employees aged 65 and over.

In an email this morning, the Senior Leadership Team said, “The university currently goes above and beyond its statutory obligations as an employer”. 

The proposed change was expected to start this year.

The cost saving initiative comes as this year the university announced a year-to-date operating deficit of $14.2 million dollars. 

Employers are not obliged to pay employer contributions to KiwiSaver or UniSaver once they are aged 65 or over.

The email said the change had the potential to save approximately $1.2 million dollars annually.

The university defended its proposal saying that New Zealanders aged 65 and over can receive fortnightly pension payments from the Government. 

The email said, “The fact that most employees are also entitled to receive New Zealand Superannuation payments from the Government from age 65, the university is proposing to cease its current non-compulsory employer contributions”.

UniSaver NZ’s website said, “Your employer will generally contribute 1.35 times your contributions up to 6.75% of your salary to UniSaver.”

Massey University declined to comment.