KiwiSaver evaluation reports
Provider feedback on the engagement model
Research report 1.1
IRD Shoulder Number:
Document summary: Documents findings from research with KiwiSaver scheme providers. The research looks at the effectiveness of the engagement between Inland Revenue and providers during the roll-out of KiwiSaver.
Document content:
Executive summary
Introduction
The primary purpose of the KiwiSaver communications and awareness evaluation, undertaken by Colmar Brunton on behalf of Inland Revenue and the Retirement Commission, is to measure whether and how Inland Revenue's external communications activities and the Retirement Commission's KiwiSaver decision making guides have contributed towards informing participation in KiwiSaver.
An important component of Inland Revenue's communications activities has been relationship management with the KiwiSaver scheme providers1 and this report represents the findings from this strand of the evaluation.
The purpose of this report is to document the findings from research with KiwiSaver scheme providers, and is intended to be to read in conjunction with the overall findings of the KiwiSaver Communications and Awareness Evaluation.
The findings of this report are from qualitative in-depth interviews with 18 scheme providers who engaged with Inland Revenue during the KiwiSaver engagement period starting from July 2006. The interviews took place in Wellington and Auckland in July 2007.
Key findings
Context
Providers consider that implementing KiwiSaver has been a huge challenge for both the superannuation industry and Inland Revenue. Inland Revenue is perceived to be operationalising KiwiSaver under tight timeframes and with a range of stakeholders and providers. Nonetheless, Inland Revenue was considered the natural choice for KiwiSaver administration. It was seen as a stable 'hub' for employees to retain a connection with the scheme providers over the course of their working career.
The model is well received by all providers
Overall, providers considered the engagement model to be successful. Providers valued the engagement process and considered this to be a new and innovative development on Inland Revenue's part.
Inland Revenue is perceived to be listening and consulting
They consider that although Inland Revenue was initially perceived to have little experience in the superannuation industry, the department gained knowledge by consulting within the industry.
Indeed, providers considered that Inland Revenue had been generally more flexible and consultative than they had expected.
Perceptions of customer service received
Although providers are in agreement about the engagement model itself, there is variation in perception of customer service throughout the engagement by some providers. It was generally accepted that the engagement with default providers was prioritised. Large providers were generally happy with the level of service received. Some smaller providers perceive they have not received the required level of responsiveness and timeliness throughout the engagement period.
Strengths of the model are based on the use of relationship manager positions
Providers are particularly appreciative of two elements of the engagement model: the relationship manager positions and the forums. These were seen as appropriate and innovative ways for Inland Revenue to engage with the superannuation industry.
The relationship manager positions provided a point of contact, a liaison with the department, which has greatly helped providers by facilitating the channels of communication. The relationship managers themselves were generally regarded as enhancing the engagement by being responsive, friendly, customer-focused and helpful in their attitudes. They also had some experience of the superannuation industry which gave providers reassurance that Inland Revenue was "speaking their language". For any further changes or amendments to the KiwiSaver scheme, providers recommend this element is implemented again.
The forums were appreciated by providers as informative and timely. Many valued the opportunity to meet and discuss KiwiSaver with others in the industry.
Weaknesses based on short timeframes and lack of adequate communication
Weaknesses in the engagement from providers' perspectives arise from the context within which the department is operating. This gave rise to issues such as changing or shortening of the timeframes, short notice for forums and amendments to the Act2 (including the Budget surprise), and lack of consultation with providers on interpretation of the Act.
Weaknesses also centred on the limited number of relationship managers in relation to the number of scheme providers and contacts. This meant some providers considered they did not receive optimum customer service in terms of response times to queries and access to information.
Lessons learnt
Overall, providers endorse the engagement model. They acknowledge both they and Inland Revenue have been challenged by the rapid pace and scope of the KiwiSaver implementation. They consider Inland Revenue has provided a range of communications and information distribution channels to manage the process.
The providers recommend Inland Revenue retain the key features of the model for ongoing management of KiwiSaver (particularly the relationship managers) until at least July 2008 to allow it to become part of scheme providers' normal business.
Providers suggested the following operational improvements:
- provide a higher ratio of relationship managers to scheme providers
- keep a central location of draft 'versions' of documentation (a secure website) to ensure providers can access the latest version at any time
- communicate better when timeframes slip or deadlines are moved so providers are aware of both what they need to do, and what Inland Revenue is doing
- provide adequate notice of the agenda and timing of the forums to allow those providers who need to travel, time to attend.
1 Scheme providers means organisations that offer investment products or funds that meet the prescribed requirements (based on Superannuation Scheme Act 1989 requirements, with additional KiwiSaver components) and are registered as a KiwiSaver Scheme with the Government Actuary.
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Date published: 29 May 2008
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