Bank errors short-change Kiwisavers
ANZ is to spend at least $2 million compensating Kiwisavers for ‘‘processing errors’’ that meant they didn’t receive their full member tax credits.
Member tax credits are contributions from the Government that help make Kiwisaver so attractive to savers.
But ANZ said errors had resulted in some 51,000 customers not getting their full tax credits, with some errors going back as far as 2009. For most of the people affected, the underpaid amounts were expected to be $50 or less.
The bank said the number of members affected could rise as it continued to investigate.
‘‘ANZ is making a claim on behalf of impacted Kiwisaver members to Inland Revenue for the additional member tax credits to be credited to those customers’ Kiwisaver accounts,’’ ANZ spokesman Stefan Herrick said.
‘‘In addition, ANZ will credit their Kiwisaver accounts with the investment returns that would put them in at least the same position they would have been if the error had not occurred.’’
ANZ said the payments would be completed in August.
The errors were spotted by the Inland Revenue Department and ANZ, not the Kiwisaver scheme’s trustee or auditor, Herrick said.
In total, compensation was expected to cost the bank about $2m.
‘‘ANZ has worked closely with Inland Revenue to ensure claims are complete and correct,’’ Herrick said.
It has also worked with its supervisor, The New Zealand Guardian Trust Company Limited, and the Financial Markets Authority, to ensure that best practice has been used in resolving the matter and establishing appropriate compensation for customers.
‘‘ANZ is committed to putting the errors right and members do not need to take any action. ANZ will communicate with impacted customers when payments are completed in August.
‘‘ANZ has taken steps to ensure the circumstances leading to this error won’t be repeated … ANZ apologises to customers for any inconvenience.’’
The errors were in some cases caused by incorrect dates.
Others were caused by a one-off processing error in 2009 that involved a small number of members who made a voluntary contribution by direct debit.