KiwiSaver

Changes to KiwiSaver

Changes to KiwiSaver from 1 April 2009 are:

• The minimum employee contribution rate (and default rate) will reduce from 4% to 2%. Employees will be able to choose to contribute 2, 4 or 8% of gross wages/salary.
• Compulsory employer contributions will be capped at 2%. Employers may contribute more but are not required to. 
• The employer tax credit will be discontinued.
• The employer superannuation contribution tax exemption will be capped at 2%.
• The member fee subsidy ($40 a year) will be discontinued.

In addition, providers will have limited compliance exemption to allow time to update material.

The ground for a personal grievance where an employee’s employment is adversely affected because of KiwiSaver membership has been removed, effective immediately, as it will no longer be required. When an employee joins KiwiSaver, the compulsory employer contributions must be in addition to their existing pay. In future wage negotiations, the parties will be able to agree their own arrangements in good faith.

Not changing are:

• The kick-start payment of $1,000
• The member tax credit of up to $20 per week 
• The mortgage diversion, deposit subsidy and first home withdrawal provisions.

Visit the Sorted website: http://www.sorted.org.nz/home/sorted-sections/kiwisaver/sorted-resources

KiwiSaver for new employees and employers:
http://www.kiwisaver.govt.nz/
  

If you have any questions, members can phone the NZRA advisors on 0800 472 472