New Zealand ‘a land of milk and honey’, but for some ‘bread and water’, and this financial division is growing. Take for instance our Judges and MP’s, both are paid very good salaries but added to these they have exceptionally good superannuation schemes.

Salaries paid to Judges are padded nearly 40% by a superannuation scheme set by The Remuneration Authority, an independent body. This sees taxpayers (the public of New Zealand) contribute $7.50 for each $1 paid by Judges which is capped at 5% of their salaries. Our MPs who receive $2.50 in top-ups for each $1 they put in but still receive more than the average person saving in Kiwi Saver who only benefits $500 per year.

The lowest paid Judges in New Zealand are paid $340,900 gross per annum plus $4100 expenses. Calculating the capped 5% of this salary that they pay into the superannuation fund = $327.78 per week. The tax payer then pays a further $7.50 per dollar paid by each Judge (i.e. $7.50 x $327.78) equating out to $2458.35 per week. Add each Judge’s contribution to this and their superannuation grows by a whopping $2786.13 per week or $144,878.76 per year.

The Remuneration Authority last year gave our MPs nearly 2.5% pay rise. This takes an ordinary backbench MP's salary to $160,024 - a rise of nearly $4000 plus expenses. The maximum paid by the taxpayer into the superannuation to an MP is 16% of a backbencher’s salary or $25603.84 per year. This equates to $492.38 per week.

Now let us take the humble Pensioner They are paid, as a single person living alone, the princely sum of $20,209.40 net per year or $390.20 per week. This is $5394.44 less than the superannuation contribution of an MP and an unbelievable $124669.36 of our lowest paid Judges.

This sort of disparity between the rich and the poor in NZ can only be described as criminal and needs to be addressed but who will do it? On one hand we have the politicians who would be directly affected, one would assume there would be very little chance of them doing anything because they would suffer in the pocket as a result.

Then we have the judicial system who will argue that if they worked in the private sector they could earn significantly more that they are being currently paid and the high superannuation goes a long way to make up for the difference in earnings. In a previous article published in Stuff headed ‘Banking it on the Bench’ in December 2013 Michael Arrington, the chairman of the Remuneration Authority at the time said referring to the judicial system "We need to ensure the job pays well enough, and has superannuation generous enough, not to allow corruption".

This statement makes a mockery of our judicial system saying if we do not pay Judges enough there would be a chance of corruption.

This is the New Zealand we all live in, these are the people we foolishly elect to run our country and legal system. The question must be asked is New Zealand a democracy or are we living in a pseudo dictatorship where accountability has gone out the door?

Pensioners are taxed on their pensions and then pay a further tax (GST) on almost everything they purchase, making it very difficult to make ends meet especially if they are still paying a mortgage or rent. Some pensioners are living on as little as $6.00 per day.

Many immigrant Pensioners along with Kiwis who worked in other countries have their overseas self-funded retirement savings deducted under S70 by the New Zealand Government ($500 million a year). What would happen if when a New Zealander who had paid into Kiwi Saver retired and was given the option to either use their Kiwi saver or forfeit it and take NZ Super. There would be an outcry of epic proportions, but this is exactly what is happening to immigrants who’s savings are being used to subsidise their NZ super. This despite many of them having worked and paid taxes for 20 or 30 years in NZ far longer than the 10year eligibility requirement for full NZ Super. Criminals who have spent years in prison costing the tax payer thousands if not millions of dollars get full NZ Super when they reach 65 having never contributed one cent to society so is this a level playing field – one thinks not?

This is far from the case when applied to our elite rich, they are highly paid for doing a specific job but they, unlike most other New Zealanders, also get top-ups paid for by the taxpayer - where are the top-ups for Pensioners?

Paul Rea

Chairperson

NZSP

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