A/HRC/45/14/Add.2 employment or engage in other types of income earning activities. Since there is no compulsory retirement age and employers are not allowed to specify a mandatory retirement age in employment contracts, a high percentage (around 24 per cent) of older persons is in paid work, representing 6 per cent of the workforce.38 Old-age employment is estimated to rise to between 8 and 11 per cent of the workforce in 2038 and to between 9 and 29 per cent, depending on the source, in 2068.39 Noteworthy in this regard is the fact that Superannuation will be taxed at 30 to 35 per cent rather than 17.5 per cent if the total earnings, that is, additional earnings and Superannuation, exceed NZ$ 48,001.40 56. Superannuation coverage extends to the vast majority of the population aged 65 years and above, but remains close to the poverty threshold. 41 In 2007, the KiwiSaver scheme was introduced as a voluntary, work-based savings scheme, complementing the Superannuation. 42 It can contribute to improving future pension adequacy and reduce poverty. New employees are automatically enrolled in the scheme and have eight weeks in which they can decide to opt out. Existing employees may opt in if they wish. 57. As the KiwiSaver schemes mature, it is projected that the medium and long-term poverty rates of older persons will decrease through the savings. Lower earners, however, who are more likely to opt out of the automatic enrolment scheme as a way to help them overcome short-term financial constraints, may still be at risk. 43 As the KiwiSawer is a contributory scheme, it is dependent on a person’s income. 58. This concerns particularly those groups that are more likely to be affected by a lack of economic activity and employment, including women, Māori and Pasifika. Older women, for instance, are less likely to have retirement savings, as over a lifetime they will have earned considerably less than men. Any change to superannuation and retirement provision is likely to have a gendered impact. Owing to the existing spousal deduction policy, some older women receive a reduced rate of New Zealand Superannuation. The Independent Expert was pleased to learn that it is anticipated that this policy will be amended from 9 November 2020. 59. The Accident Compensation Corporation no-fault scheme provides a subsidy on medical and rehabilitation costs following an accident. Individuals may make a claim to the Corporation if they experience physical injury, a mental injury related to a physical injury, mental injury arising from sexual assault or abuse and work-related gradual process injuries. Persons with injuries covered by the Corporation are eligible for compensation, rehabilitation and financial assistance without having to make a court claim. 44 F. Care 60. Certifying and monitoring nursing homes for older persons is one of the responsibilities of the Ministry of Health, whereas long-term care coverage and funding is the responsibility of the district health boards. These boards are responsible for ensuring the supply of residential care rooms. In doing so, they consult with providers of rest homes and dementia and geriatric hospital-level facilities. 61. Every person who wishes to receive support services funded by a district health board must be needs assessed by a Needs Assessment Service Coordination agency. Older persons are not only needs-tested, but also means-tested. Once a person’s need for residential care is established, a financial means assessment is undertaken to determine eligibility for a government-funded residential care subsidy. 38 39 40 41 42 43 44 Stats NZ, Labour market statistics: March 2020 quarter. New Zealand Human Rights Commission, “Submission on strategy for an ageing population”, para. 8; and Stats NZ, National labour force projections: 2017(base)–2068. See www.govt.nz/browse/tax-benefits-and-finance/tax/choose-the-right-tax-code-for-your-nzsuperannuation/. Superannuation coverage is close to 98 per cent for persons aged 65 and above. See ILO, Social protection for older persons: Key policy trends and statistics (Geneva, ILO, 2014). See www.ird.govt.nz/kiwisaver. See www.oecd.org/els/public-pensions/New%20Zealand_eng_final.pdf. A/HRC/WG.6/5/NZL/1, para. 84. 11