In this wide ranging article is the following statement:-

The $1 billion saving Mr English referred to as a priority was signalled in the 2011 Budget where state agencies will be required to fund the employer contributions to KiwiSaver, the State Sector Retirement Scheme and the Teachers’ Retirement Scheme, saving $650 million over three years, and a further $330 million is being sought.

Full Article at

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10860601