Complying Super Funds and Redundancy Payments

Q: Can you please confirm whether Complying Super Fund contributions are treated the same as Kiwisaver contributions on Redundancy Payments? That is, Gross Pay for KS and Complying Super Funds does not include Redundancy compensation payments.

Can employees contribute to KS and Complying Super Funds on Redundancy payments if they want to?

A: If an employee is made redundant and is paid a redundancy compensation (agreed term) this payment is not part of KiwiSaver or superannuation.

The employee can do what they want with their payment once paid this should not be a payment that payroll does.

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