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As a KiwiSaver scheme provider you will perform all of the usual functions of a superannuation scheme provider and/or administrator:
- administering enrolments and withdrawals
- allocating contributions
- investing members' contributions
- meeting reporting requirements
- working with Inland Revenue
- promoting your own schemes
- having the primary relationship with KiwiSaver members.
KiwiSaver is different from other superannuation schemes in that:
- Inland Revenue administers the collection of contributions from the employer through the pay as you earn (PAYE) tax system
- Inland Revenue forwards members' contributions to their KiwiSaver scheme provider
- there are technical requirements for interfacing with Inland Revenue
- there may be different trust deed rules as different legislation applies
- if your scheme is a default scheme or an employer-chosen scheme, you are required to accept all members default-allocated to you.
Types of scheme providers
The type of KiwiSaver scheme a member belongs to depends on whether they have:
- selected the scheme themselves, or
- been allocated a default scheme.
Eligible new employees are automatically enrolled in KiwiSaver and allocated a default scheme.
Employers may choose one scheme for all their employees, otherwise the employees will be allocated to one of six default schemes.
The employee then has:
- eight weeks in which to decide whether or not they want to opt out, and
- three months to seek financial advice and actively select their own scheme before the enrolment is finalised.
Existing employees can choose to apply to any KiwiSaver scheme provider, including the employer-chosen and default scheme providers.
Default scheme providers
The Government has appointed nine default providers to offer KiwiSaver schemes for people who don't choose their own scheme. This process was managed by the Ministry of Business, Innovation and Employment. The default scheme providers are:
- AMP Services (NZ) Limited
- ANZ New Zealand Investments Limited
- ASB Group Investments Limited
- BNZ Investment Services Limited
- Fisher Funds Management Limited
- Grosvenor Investment Management Limited
- Kiwi Wealth Limited
- Mercer (NZ) Limited
- Westpac New Zealand Ltd.
Default scheme providers have to accept all members allocated to them.
Active choice scheme providers
If you are not a default scheme provider you will be known as an active choice scheme provider. People will apply to you directly to join your scheme, but you are not bound to accept all applicants.
Employer-chosen scheme providers
If you are a scheme provider you can become an employer-chosen scheme provider. Employers may come to you to negotiate to become their employer-chosen scheme provider. While you have to accept all the employees allocated to you, the employee still has the option of opting out, or choosing another scheme.
Working with other providers
You work with other scheme providers when members change from one provider to another. You pass your member's accumulated savings to the new scheme provider, along with the following information:
- the date of their first contribution
- whether they've had a housing withdrawal
- whether they've received a kick-start
- whether they're on a contributions holiday
- the amount of contributions saved.
If you require more information from a member's previous scheme you can make that request directly to the "old" scheme provider.