Law-makers overlooked the needs of one member group, she says
The Commission for Financial Capability (CFFC) has expressed its support on the submission on the bill that proposes changes to KiwiSaver, recommending that the age requirement for funds withdrawal be made younger for those with conditions like Down syndrome.
Joan Fairhall, a mother of a 39-year-old son with Down syndrome, made a submission on her son’s behalf to the Select Committee considering the Taxation Bill, which contains a number of improvements to KiwiSaver rules and provisions. She also recommended a principles-based element be added to the legislation allowing KiwiSaver providers greater discretion in withdrawal requests.
The move follows her son’s desire to draw down on his KiwiSaver funds that he saved through his job in a supermarket, before his premature ageing, which is part of Down syndrome. Fairhall reportedly tried every avenue to have her son’s funds released but discovered it is impossible under the current legislation. With his condition, he has an average life expectancy of 57, while KiwiSaver funds are locked in until members reach 65.
“We believe that KiwiSaver is an excellent retirement scheme for most New Zealanders, but it discriminates against people like Tim with a congenital condition that causes premature ageing,” Fairhall said.
CFFC Retirement Commissioner Diane Maxwell, meanwhile, said the Fairhalls came to her for help in late 2016 and the CFFC had supported them in their efforts to their son’s funds released.
Maxwell noted the Fairhalls simply want what is available to all other New Zealanders – access to a retirement savings fund that grows through their own and their employer’s contributions and the government’s annual Member Tax Credit, which their son can withdraw when it’s time for him to retire.
“I congratulate the team the drafted the original legislation on getting it almost right,” Fairhall stated. “They just overlooked the needs of one group of members.”
The Fairhalls are looking forward to speaking to their submission before the Select Committee on or around September 5.
