Plenty has already been said about the Novopay shambles. The system was never ready for implementation, it never should’ve been signed-off, and the safeguards and contingencies that should have been in place weren’t. I’ll keep holding the government to account for their failure, but I’ll also be picking up specific issues and, where I can, working to ensure that people aren’t disadvantaged in the long-term because of Novopay.
Last week in the House I asked the Minister Responsible for Novopay, Steven Joyce, some questions about Novopay not handing over Kiwisaver contributions to savings providers. The money is being taken from employees pay packets, but it’s not showing up in their Kiwisaver accounts. In some cases I’m aware of, this has been going on for months and months. Not only are the employees concerned worried about where their money has gone, they’re also missing out on the returns that would otherwise have accrued had their money been paid over on time.
The most important comment Steven Joyce made was this one:
Chris Hipkins: Will employees who have had KiwiSaver or other superannuation contributions deducted from their salaries but not paid over to their scheme provider be compensated for lost returns that would otherwise have accrued, and if not, why not?
Hon STEVEN JOYCE: My understanding is that yes, they will be made good in those regards.
I welcome this commitment by Joyce. It means that not only will people affected get their money back, they will be compensated for any returns that would’ve accrued in the meantime. I’ll be interested to see the details of exactly how they’re going to calculate that, and will ask some more questions in that regard.
There are other specific concerns about Novopay that I hope to address in coming weeks, including people defaulting on child support payments, justice ministry payments, student loan repayments, and so on. I’ll blog more about those as the answers come through.