The Retirement Commissioner has been asked to take leave while an investigation into bullying allegations takes place.
Commerce and Consumer Affairs Minister Kris Faafoi has asked the State Services Commission (SSC) to investigate Diane Maxwell after accusations of bullying were levelled at the Commissioner.
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An investigation by Newsroom revealed that more than a dozen former staff at the Commission for Financial Capability have raised concerns about Ms Maxwell's management and a culture of bullying.
Mr Faafoi said the allegations were serious and bringing in the SSC was the best course of action.
Current or former staff members are able to come forward, while Ms Maxwell will be given an opportunity to respond to the allegations, which she has since denied.
Deputy Prime Minister Winston Peters told The AM Show that, while he couldn't comment on the individual case and didn't know Ms Maxwell well, it was unfortunate people often lost their jobs based on allegations.
"It is a very unfortunate aspect where people can make allegations and they can be totally baseless, they may be meritless, we don't know. But, in the meantime, someone loses their job temporarily," he said.
"I've seen countless cases in the past where the allegations have been malicious, baseless and when push came to shove they couldn't put the evidence up."
Mr Peters said it was an issue that the Retirement Commissioner's job wasn't supervised by anyone; something he believed would need to be corrected.
The SCC is expected to report back with findings early next year.