A new retirement villages complaints and disputes resolution scheme has been proposed by the New Zealand Dispute Resolution Centre.
Te Ara Ahunga Ora Retirement Commission asked the Centre to undertake a comprehensive investigation into what a new scheme could look like, building on previous studies and feedback from various stakeholders.
Retirement Commissioner Jane Wrightson says the goal is to create a fair, efficient and easy-to-use scheme for both retirement village residents and operators.
“The existing complaints and disputes system does not meet best practice standards, and both the Retirement Commission and Te Tūāpapa Kura Kāinga - Ministry of Housing and Urban Development want to address these issues as part of the broader sector review underway,” she says.
“We recognise the unique dynamics and challenges of the retirement sector, where residents often cannot easily move out of their villages. Therefore, the scheme must prioritise restoring and preserving relationships, be accessible, and provide efficient and trusted dispute resolution as early and as close to the source of the issue as possible.”
The Retirement Villages Complaints and Dispute Resolution Scheme Report sets out possible functions and design choices, discusses where the scheme could be located, evaluates the pros and cons of different options, recommends the preferred option based on principled criteria, and identifies high-level key legislative changes needed.
The Retirement Commissioner says this report will help inform the Ministry’s ongoing work to review the Retirement Villages Act 2003 and shape policy recommendations.
“It’s important that improvements and change happens. A new scheme will achieve better outcomes for both residents and the industry,” she says.
“Having a fit-for-purpose, independent disputes resolution scheme will help take the onus off village managers from trying to resolve the messier disputes and provide a safety valve for both parties.”
The Retirement Commissioner first called for a review of the legislation following the release of her white paper published in 2020 and the response to submissions received in 2021. The then Associate Minister of Housing and the Ministry accepted the recommendation that a full review was overdue. The Ministry subsequently issued a discussion paper in 2023, which received more than 11,000 submissions.
Earlier this year, the Government announced its intention to bring forward the timeline for the review of the Retirement Villages Act. Cabinet’s decisions on any legislative changes, are now expected to be made between November and December 2025, with legislative amendments potentially introduced in July 2026.
Comparison between the current scheme and the recommended scheme
|
Aspect |
Current scheme |
Recommended scheme |
|
Complaint handling |
Operator is the first point of contact for resolving issues. Escalation to statutory supervisor, mediation, or disputes panel. Resident needs to apply for the complaint to be escalated to each stage. |
Operator is the first point of contact for resolving issues. Issues can be escalated to an independent complaints body for evaluation, facilitated resolution, mediation, or a binding decision. Case manager assists residents. Case assessor controls the process. |
|
Statutory Supervisor |
Assists in resolution of a broad range of disputes. |
Minimised role, with case assessor and senior decision-maker taking on more responsibilities. |
|
Mediation and Disputes Panel |
Mediation used in some cases. Disputes Panel (up to 3 people) hearing the issue, used infrequently. |
Facilitated resolution at an early stage encouraged. Case assessor provides early evaluation and recommendations. Case assessor determines whether mediation, evaluation and recommendation or a binding decision is most likely to resolve the issue. Complex cases may be escalated to senior decision-maker. |
|
Timeframes |
Structured timeframes, but they are longer, with potential delays. |
Structured timeframes: 10-working-day period for operator to resolve issue, total resolution timeframe of 25 to 35 working days. Parties may extend by agreement or extensions may be agreed or granted.
|
|
Accessibility |
Perceived as not user-friendly or accessible, residents often feel intimidated. |
Designed to be user-friendly and accessible, with multiple means of access. Navigator and support functions performed by case manager.
|
|
Legal Representation |
Operators often have legal representation, leading to power imbalance. |
Legal representation minimised, parties encouraged to resolve issues directly or via the Scheme based on facilitated discussion, or on the documentation and information provided. Hearings are only held in exceptional circumstances.
|
|
Funding |
Funded directly by operators, creating a perception of bias because the operator selects and pays the statutory supervisor, mediator and dispute panel. |
Funded by operator levies for Scheme costs and direct payment by the operator for specific process steps. The Scheme chooses, engages and pays the dispute resolvers. |
|
Privacy |
Dispute panel hearings held in public. |
Private processes, confidential outcomes, although outcomes, case summaries and guidance notes may be issued, with residents’ details anonymised. |
Notes to editors
The full Retirement Villages Complaints and Dispute Resolution Scheme Report is available here: June-2025-Retirement-Village-Industry-Complaints-Scheme-report-final.pdf
A summary of the report can be found: Retirement-Villages-Complaints-and-Dispute-Resolution-Scheme-Summary-Report.pdf
ENDS
For media inquiries contact:
Anika Forsman | Director, Stakeholder & Communications
Ph: +64 21 246 4302
Email: anika@retirement.govt.nz