Section 101FC minimum contribution rate

Clause 538

Submission

(10 – New Zealand Society of Actuaries)

Proposed section 101FC should be amended to provide that employers are not required to pay a top-up if the amount of “other contributions” is calculated using a percentage at least as great as the compulsory employer contribution rate.

Comment

Section 101FC requires that the amount of other contributions be calculated at the same percentage as the relevant compulsory employer contribution rate in section 101D(4). This proposal will also apply to those employers contributing at a higher rate than the required compulsory employer contribution rate, so these employers do not have to pay a top-up if the requisite conditions are met.

Recommendation

That the submission be accepted.