KiwiSaver
KiwiSaver is part of a package of government initiatives designed to increase the level of savings by New Zealand households and support New Zealanders in retirement.
The KiwiSaver Act received Royal Assent on 6 September 2006.
Copies of the KiwiSaver Act 2006 (the Act) can be purchased from Government Bookshops and the Act will also be available online in due course from the Interim Website of New Zealand Legislation.
Appointment of KiwiSaver Default Providers
Finance Minister Michael Cullen and Commerce Minister Lianne Dalziel have confirmed the appointment of six default providers for KiwiSaver, the workplace-based retirement savings scheme which comes into operation on 1 July 2007. These providers were selected following an open competitive tender process undertaken by the Ministry of Economic Development. See Easier Saving One Step Closer – KiwiSaver Default Providers Signed Up - Ministers of Finance and Commerce Media Statement.
For more information on KiwiSaver default providers refer to the Insurance and Superannuation Unit (ISU) website
Registration of Schemes under the KiwiSaver Act
Schemes that meet the prescribed requirements specified in the KiwiSaver Act, Part 4, will also be able to be registered under the Legislation by the Government Actuary once that Part of the Legislation has been brought into force by an Order in Council. These schemes will be able to register before 1 July 2007. Schemes will also be able to continue to register post 1 July.
Impact for Existing Registered Superannuation Schemes
The intention is that KiwiSaver will complement rather than replace the existing registered superannuation scheme regime. This means existing schemes can continue to operate as they have done until now.
Existing registered superannuation schemes will have a number of options, including:
- Remaining as a registered superannuation scheme outside of KiwiSaver
- Converting fully to a KiwiSaver scheme
- Establishing a new KiwiSaver scheme under an umbrella trust that also governs the registered superannuation scheme
Participating Employer Exemption Applications
An employer with a registered superannuation scheme can be exempt from the automatic enrolment provisions if the scheme is:
- Open (in practice) to all new permanent employees
- Portable (members can transfer balances from and to other schemes)
- The minimum employee contribution combined with the maximum employer contribution is at least 4% of annual gross base salary
- The amount of the employer contribution that is considered as part of the 4% requirement must vest in the employee on or within five complete years of the employee becoming a member of the scheme
A defined benefit scheme can be exempt from the automatic enrolment provision if it meets the criteria above. It may also be eligible to be exempt if it does not meet the contribution requirements above, as long as it accrues benefits at a minimum rate of 4% of the employee’s annual gross base salary or wages.
There is no requirement for these schemes to have the same lock-in requirements as KiwiSaver. A scheme where the employer has an exemption from the automatic enrolment provision is not a KiwiSaver scheme. Members of these schemes will not qualify for the government contribution of $1000, contribution towards fees or the exemption from SSCWT for employer contributions, but will qualify the home ownership deposit subsidy (subject to meeting the eligibility criteria).
Applications for exempt employer status will be able to be lodged with the Government Actuary once that Part of the Legislation has been brought into force by an Order in Council.
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Cabinet Papers
Cabinet Papers relating to KiwiSaver
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Questions and Answers
Questions and Answers relating to KiwiSaver
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Snapshot of KiwiSaver
[ Published 18 May 2007 ]
In Budget 2007, the Government has significantly enhanced the incentives to save through KiwiSaver. These incentives include the provision of a member tax credit by the Government and increased employer participation in KiwiSaver schemes.
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Regulatory Impact and Business Compliance Cost Statements
Regulatory Impact and Business Compliance Cost Statements relating to KiwiSaver
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Media Statements
Media Statements relating to KiwiSaver
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Kiwisaver Amendment Regulations 2008
[ Published 05 February 2008 ]
The KiwiSaver Amendment Regulations 2008 will be available here until they are posted on the New Zealand Legislation website.
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Archive
KiwiSaver topics which are no longer current can be found in the archive section. These documents may no longer be updated or contain the most current information but are still provided for your reference.
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