National to consider change to KiwiSaver

National will consider a union proposal to protect low-income workers from KiwiSaver changes.

Prime Minister elect John Key invited and met Public Service Association national secretary Brenda Pilott and Council of Trade Unions economist Peter Conway yesterday.

National plan to cap the government contribution on KiwiSaver contributions at 2 percent.

This afternoon Mr Key confirmed he would consider a flat $20 contribution on weekly contributions by savers of $20 or more. That would effectively retain the government contribution at the same rate it is now for savers on income below $40,000 and paying in 4 percent of their wages.

Under National's proposed KiwiSaver changes, those savers would lose half the government contribution.

Mr Key said he would look at the idea.

"The point they raised yesterday with KiwiSaver is something we will genuinely have a look at. It's a fair point and it might be that we can accommodate that.

"I don't want to see people that earn less being worse off but it's something we would need to work through."

source: nzpa