KiwiSaver deductions and employer contributions may change depending on your employee’s situation.
Employees aged 60 years or over
There's a withdrawal rule for employees who joined KiwiSaver before 1 July 2019. The rule is members must be in KiwiSaver for at least 5 years before they can withdraw their savings.
From 1 April 2020 your employee can choose to exit KiwiSaver when they turn 65. They do not need to be locked in for 5 years.
If your employee does not choose to exit KiwiSaver you’ll need to continue:
- deducting KiwiSaver contributions from their pay (unless they’re on a savings suspension)
- paying compulsory employer contributions.
Keep doing this until your employee either:
- completes their 5 year lock in period
- opts out during the lock in period (they can do this anytime after becoming eligible for NZ Super)
- retires.
When any of these happens stop compulsory employer contributions.
An employee may continue their deductions beyond the 5 year lock in period. To stop they must give you a Non-deduction notice - KS51.
Employees on accident compensation
If you take part in the ACC partnership programme, or have an ACC employer reimbursement agreement, you continue:
- paying an employee after an accident
- deducting their KiwiSaver contributions from these payments.
Your employee can stop deductions from their pay with a savings suspension notice.
If your employee continues deductions, you can choose to continue making employer contributions.
When ACC pays weekly compensation to your employee, you can stop:
- deductions from their pay
- paying employer contributions.
Suspending KiwiSaver deductions and contributions
Employees on paid parental leave
If you continue to pay your employee while they’re receiving paid parental leave, keep:
- deducting employee contributions
- making employer contributions unless they’re on a savings suspension.
When an employee returns to work re-start deductions and your contributions.
