Media Release for immediate use: Tuesday 17 August 2010
FOMA supports compulsory superannuation

The Federation of Maori Authorities (FOMA) supports the Government’s move to re-examine compulsory superannuation in an effort to lift national savings.

FOMA Chief Executive, Ron Mark, believes this is an extremely positive move for Maori and one supported by FOMA’s membership which represents large Maori landholdings and business entities valued collectively between $11-20 billion.

“As legacy business entities, Maori employers would applaud compulsory superannuation. The need to balance the social development and long-term well-being of their people against a fiscally pure bottom line is fundamental to Maori business,” says Mr Mark.

“It is disturbing that FOMA stakeholders and whanau are often employed by those who have expressed opposition to compulsory superannuation. Indeed it is of great concern to hear the strong comments expressed by other employers in this regard, and ironic that many of those people are the first to negotiate superannuation into remuneration packages for themselves.”

Mr Mark suggests compulsory superannuation could be tied to a tax cut, as it was in the 1997 proposed scheme, and FOMA would also like the ability for contributions to be paid back to the estate with interest.

“This would greatly assist bereaved families with no savings or insurance to meet funeral costs if the family member contributing to a scheme dies prior to eligibility,’ he says.

Mr Mark says compulsory superannuation would ultimately have a positive impact on Maori families who contributed, citing Defence Force employees as a good example.

“In my experience those who do make contributions in departments where it is required, such as the Defence Force, adjust their lifestyles to get over any initial barrier they might face, and once they have taken the step they are very pleased they have,” he says.

ENDS

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