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 Public Access to Legislation Project web site at www.legislation.govt.nz (see under Statutes).
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 now that Part of the Legislation has been brought into force by the 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. For information regarding the registrations process please see Newsletter 60.
Complying Superannuation Fund Approvals
A person can apply for approval of a registered superannuation scheme as a complying superannuation fund if:
- The scheme is a defined contribution scheme registered on or before 1 July 2007 and has 20 or more non-associated members;
- Any relevant participation agreements were entered into on or before 1 July 2007; and,
- The registered superannuation scheme and any relevant participation agreements have been amended to meet the requirements of the complying fund rules specified in the Income Tax Act 2004.
Any applications under section 34 of the Superannuation Schemes Act 1989 for complying superannuation fund approval made to the Government Actuary should include a completed CSF checklist.
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 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 or contribution towards fees, but will qualify the home ownership deposit subsidy (subject to meeting the eligibility criteria).
Applications for exempt employer status are to be lodged with the Government Actuary. See Newsletter 60.
Instruments of Appointment
The Minister of Finance and Minister of Commerce have executed under section 177 of the KiwiSaver Act 2006, instruments of appointment appointing six KiwiSaver default providers.
Complying Superannuation Fund Checklist
Any applications under section 34 of the Superannuation Schemes Act 1989 for complying superannuation fund approval made to the Government Actuary should include a completed checklist.
Government Actuary KiwiSaver Issues Q&A
Answers to KiwiSaver questions that have been raised with the Government Actuary
Exempt Employer Listing
Search for Exempt Employer Schemes and view results.
KiwiSaver Schemes Register
Search the KiwiSaver Schemes Register and view scheme details.
KiwiSaver Annual Reports
Yearly KiwiSaver reports of the Government Actuary.
Guidelines
KiwiSaver Guidelines issued pursuant to section 127 of the KiwiSaver Act 2006.
Newsletters
Complete list of newsletters produced by the Insurance and Superannuation Unit since 19991.
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