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The Inland Revenue Department has apologised to KiwiSavers whose employer contributions are held up in its bureaucracy.
In an article supplied to today's Business Herald, the IRD responds to the paper's reports of six-month delays in employer contributions reaching savers' accounts.
The paper received a flood of emails from investors complaining about missing contributions, and contributions appearing in disjointed amounts and at odd times.
Senior department official Alan Pinder says contributions from employers can take a month to arrive at IRD, and if there are problems with the employer report, they need to be checked. This can take a month or two.
He says the money is safe and earns 5.36 per cent interest after tax while it waits to be allocated to an investor's account.
IRD says 93 per cent of employer contributions made between April 1 and July 31 have been processed.
