KiwiSaver, Being a Member.
Membership of KiwiSaver is voluntary, and if you've been automatically enrolled you have the right to opt out. Employers play an important role in the administration of KiwiSaver. Each pay day your contribution is deducted from your pay for investment through your KiwiSaver account. You can choose to save 4%, or 8% to speed things up. You can also choose to take a temporary break from saving, known as a contributions holiday.
Membership
Membership is voluntary and is open to all New Zealand citizens and people entitled to live here indefinitely who are below the age of eligibility for New Zealand Super, currently 65. If you're 18 or over and start a new job you'll be automatically enrolled in KiwiSaver (with some exceptions). Other people can choose to join by opting in.
Opting out
If you're a new employee who is subject to automatic enrolment and don't want to become a KiwiSaver member, you can choose to opt out. You can do this after you've been in your job for at least two weeks, but before your ninth week starts (from day 14 to day 56 from the day you start your new job). If you don't opt out in this timeframe you'll remain a KiwiSaver member.
Role of employers
Employers play an important role in KiwiSaver. Your employer gives you a KiwiSaver employee information pack (KS3) and deducts your KiwiSaver contributions from your pay. Your employer can also help you save by making tax-free contributions to your KiwiSaver account (limits apply).
Your pay and contributions
Each payday your KiwiSaver contributions are deducted from your pay. You can choose to save 4% or 8% of your gross pay. Inland Revenue ensures the safe transfer of your money to your KiwiSaver scheme provider, who invests the money for you in a KiwiSaver scheme. After a year in KiwiSaver you can take a break from saving, called a contributions holiday.
Special circumstances
If you have more than one job, you can choose which of your job(s) to have KiwiSaver deducted from. If you're on paid parental leave and are still being paid by your employer, your contributions will automatically continue unless you apply for a contributions holiday. You can choose to have KiwiSaver contributions deducted from your ACC or benefit payments.
This information is used by permission. For more info on government services go to newzealand.govt.nz © Copyright 2007 Inland Revenue