KiwiSaver default providers
The Government has selected nine KiwiSaver default providers for a seven year term starting 1 July 2014.
AMP, ANZ, ASB, BNZ, Grosvenor, KiwiBank, Mercer, Fisher Funds and Westpac were selected, following a Request for Proposal issued on 29 October 2013.
The previous KiwiSaver default providers appointments were for a seven year term ending 30 June 2014.
Prior to issuing the Request for Proposal for the term commencing 1 July 2014, the default KiwiSaver provider arrangements were reviewed to determine whether they remained appropriate.
Decisions following the review
KiwiSaver default funds will retain a conservative investment approach including a 15 to 25 per cent allocation to growth assets.
Tender criteria and process
- The basic criteria for selecting default providers remained largely the same: investment capability, corporate strength, administrative capability, track record and stability.
- A new criterion required providers to offer investor education to default members.
Allocation of default members post tender
- If a current default provider is not reappointed, their default members will be asked if they want to stay with the provider. If they do not choose to stay, they will be reallocated to a new default provider. If they choose to stay, they cease to be a default member.
- It is expected that if they do not choose to stay, the default members will be reallocated evenly across the appointed default providers.
- New default members will be allocated evenly across the appointed default providers.
Related information on the review
- Cabinet paper: Future KiwiSaver Default Provider Arrangements [4 MB PDF]
- Cabinet minute: Future KiwiSaver Default Provider Arrangements [ 111 KB PDF]
- Cabinet minute: Additional Item: KiwiSaver Default Provider Review [59 KB PDF]
Review and consultation process
A discussion document was issued in November 2012 which was informed by the research, analysis and informal stakeholder conversations. The purpose of the discussion document was to consult with stakeholders on the design of the default product that would deliver the best outcomes for default members.
Submissions closed 24 December 2012.
- View the discussion document
- View consultation on KiwiSaver Default Provider Arrangements – list of submissions