Skip to main content
Check out our new content, navigation and design for KiwiSaver.

Employees who opt out late from KiwiSaver

Back
What
What happens if an employee asks to opt out of KiwiSaver late.
Who
Employers
When
After 8 weeks of starting work.

Your employees who choose to opt into KiwiSaver cannot opt out. Only new employees you auto-enrol into KiwiSaver can opt out.

Requests to be opted out after 8 weeks (57 days) are late opt out requests.

How your employee requests a late opt out

Employees will need to send their KiwiSaver late opt out request to us.

Opt out of KiwiSaver if you're over 18 years old

Approving a late opt request

We approve late opt out requests. We may approve them up to three months after the date we got your employee’s first KiwiSaver contribution.

We can only approve them for these reasons:

  • We did not send a product disclosure statement to your employee for the default KiwiSaver scheme we allocated them to.
  • You did not give your employee a product disclosure statement for your employer-chosen KiwiSaver scheme.
  • Events outside of your employee's control meant a late opt out request.
  • You did not give your employee their KiwiSaver enrolment pack within seven days of them starting work with you.
  • The employee should not have been automatically enrolled.

Stopping deductions and contributions for late opt outs

If you know your employee has applied to opt out of KiwiSaver late, keep:

  • deducting KiwiSaver from their pay
  • paying your compulsory employer contributions and the employer superannuation contribution tax.

We’ll let you know if we’ve approved their late opt out and when to stop deductions and contributions.

Employee refunds when they’re opted out

If you've:

  • already sent us deductions from your employee’s pay, we'll refund your employee their deducted contributions
  • not paid your employee’s deductions to us yet, refund them to your employee.

Do not refund your employee their deductions if you’ve already paid them to us. They'll end up getting two refunds for the same amount.

Your refunds when your employee’s opted out

We'll refund you any compulsory employer contributions you've made. You do not have to do anything to tell us.

You'll need to ask for a refund of any employer superannuation contribution tax (ESCT) you’ve paid on compulsory employer contributions. You can do this by either:

  • completing an Employer schedule amendments form - IR344
  • contacting us.

Opt a new employee out of KiwiSaver