KiwiSaver schemes
It's up to your employee to choose their own scheme - we refer to this as an "active choice". If they don't choose a scheme, we will allocate them to your employer-chosen scheme, if you have one, or to a default scheme provider.
Active choice schemes
Your employee can apply to belong to one of the many KiwiSaver schemes available. Schemes can have specific criteria for membership, with the right to refuse applications from potential members. For example, a scheme can restrict membership to members of a particular trade union.
If your employee chooses their own scheme within the first three months of starting their new job, they won't be allocated to a default scheme, or to your employer-chosen scheme (if you have one).
Employer-chosen schemes
You can nominate a KiwiSaver scheme for your employees to join if they don't choose one of their own. This is an employer-chosen KiwiSaver scheme and means that employees who don't choose their own savings scheme are allocated to your employer-chosen scheme instead of to a default scheme allocated by us.
Employers who select a KiwiSaver scheme for their employees as an employer-chosen scheme will not be liable if the scheme fails.
If you choose a scheme for your employees, you must:
- write to us giving the details of your chosen KiwiSaver scheme after you reach an agreement with the scheme provider
- arrange for the scheme provider to give you a supply of investment statements to distribute to your employees.
Within seven days of a new employee joining, or an existing employee (who meets the eligibility criteria) opting in or requesting a KiwiSaver employee information pack (KS3) you must also give them:
- a copy of the investment statement for your chosen scheme
- a statement advising them that they will be allocated to your employer-chosen scheme unless they make an active choice and choose their own scheme.
You may choose any KiwiSaver scheme, as long as it is open to all new permanent employees who meet the eligibility criteria for KiwiSaver. Once an employee is enrolled in the scheme and becomes a member, then either you or the provider must notify us if the employee ceases to be eligible to be a member of your chosen KiwiSaver scheme. For example, they may choose to belong to another scheme.
Changing employer-chosen schemes
If an employer's choice of KiwiSaver scheme ceases or changes, the change does not affect employees who actively chose to become a member of that scheme while the scheme was also the employer's chosen KiwiSaver scheme.
Exceptions may be made in certain circumstances, under an amendment made to the Superannuation Schemes Act 1989 which provides for transfers without consent.
Default scheme providers
The government has appointed six default providers to offer KiwiSaver schemes for people who don't choose their own scheme. This process was managed by the Ministry of Economic Development. The default scheme providers are:
- AMP Services (NZ) Limited
- ASB Group Investments Limited
- AXA New Zealand (National Mutual Corporate Superannuation Services Limited)
- ING (NZ) Limited
- Mercer Human Resource Consulting Limited
- Tower Employee Benefits Limited.
The default schemes' investment products will be funds with a conservative investment risk profile (not necessarily cash). Providers of default schemes are required to offer a suite of other investment products that people can choose.
Default scheme providers must accept all members allocated to them.
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Date published: 03 May 2007
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