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  KiwiSaver for employees with special circumstances

What
Situations where employee KiwiSaver deductions and employer contributions can be different.
Who
Employers
When
Each time you pay salary or wages to an employee in KiwiSaver.

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.

Stop KiwiSaver deductions

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.

Calculate KiwiSaver deductions and contributions