 |
|
|
|
|
|
KiwiSaver is a voluntary work-based savings scheme that aims help New Zealanders save for their retirement.
|
|
 |
| KiwiSaver is a voluntary savings initiative that aims to help New Zealanders save for a first home or their retirement. KiwiSaver is open to all New Zealand residents - and people entitled to be in New Zealand indefinitely - aged up to 65. |
|
| Most KiwiSaver members will build up their savings through regular contributions from their salary or wages, which are deducted by the members employer and passed on to the individual's KiwiSaver scheme by the Inland Revenue. |
|
| Those who do not earn a salary or wage subject to PAYE can contribute directly to their chosen KiwiSaver scheme. |
|
| KiwiSaver for employees |
|
 |
employees who are eligible for KiwiSaver and aged between 18 and 65 will be enrolled automatically in a KiwiSaver scheme when they commence employment |
|
|
employees have the ability to opt out between week 2 and 8 of commencing employment |
|
|
existing employees under the age of 65 can join KiwiSaver at any time. |
|
|
| Member contributions |
|
|
the minimum contribution for employees is 2% (the Government intends to increase this minimum employee contribution rate to 3% from 1 April 2013) of gross salary or wages. However, members can save more by choosing to contribute either 4% or 8% of their gross pay |
|
|
employees can change the amount they contribute by notifying their employer |
|
|
those who do not earn a salary or wage subject to PAYE can make voluntary contributions directly to their scheme subject to any minimum rate set by their scheme provider |
|
|
| All contributions deducted in the first three months of an employee’s membership with a KiwiSaver scheme are held by the IRD. |
|
| These contributions will then be passed on to the member’s scheme, with any interest. |
|
| Withdrawing KiwiSaver savings or taking contribution holidays |
|
| KiwiSaver savings can be accessed upon eligibility for New Zealand Superannuation (currently 65 years old), or after 5 years of KiwiSaver membership, whichever is later. Being a KiwiSaver member will not affect eligibility for New Zealand Super. |
|
| In certain circumstances a member may be able to make earlier withdrawals |
|
|
for the purchase of a first home |
|
when facing significant financial hardship |
|
in cases of serious illness |
|
when they permanently emigrate from New Zealand. |
|
if required by statute or upon death of member |
|
| Members may apply to IRD for a contributions holiday if suffering financial hardship or if 12 months have passed since making their first KiwiSaver contribution. |
|
 |
| KiwiSaver members may be eligible for the following Government incentives |
|
|
one-off $1,000 kick-start payment when members join their first KiwiSaver scheme |
|
Member Tax Credit of 50 cents for every dollar the member contributes up to a maximum of $521.43 per year until the member turns 65 or has been a member of a KiwiSaver scheme for 5 years, whichever is later (subject to eligibility criteria) |
|
compulsory employer contributions - 2% of an employee’s gross pay (the Government intends to increase this to 3% from 1 April 2013) |
|
first-home purchase subsidy of up to $5,000 |
|
|
| Give an IRD KiwiSaver information pack to |
|
|
new employees who are eligible for KiwiSaver |
|
existing employees who are interested in joining. |
|
| If you have chosen a preferred KiwiSaver scheme, supply employees with a |
|
|
written statement advising employees that if they don’t select a scheme they will be enrolled in your chosen scheme |
|
|
copy of the scheme’s investment statement. |
|
| Give KiwiSaver enrolment details to the IRD for |
|
|
new employees who are subject to automatic enrolment |
|
current employees who choose to join a KiwiSaver scheme. |
|
| Deduct KiwiSaver contributions |
|
|
from employees’ gross salary or wages, and |
|
|
forward to the IRD with employees’ PAYE. |
|
|
| Make employer contributions |
|
|
make compulsory employer contributions for eligible employees |
|
consider making additional employer contributions |
|
| Help manage KiwiSaver for employees |
|
|
stop KiwiSaver deductions for employees who opt out or request a contribution holiday |
|
maintain KiwiSaver records for your staff. |
|
| For more information about KiwiSaver for employers visit www.ird.govt.nz |
|
