Is the Kiwi Wealth Super Scheme right for my business?
The Kiwi Wealth Super Scheme is an addition to your workplace benefits, supporting the financial future of your people. It's an alternative to KiwiSaver, giving you greater flexibility to tailor the scheme to the needs of your business and your employees. You can set contribution rates for yourself and your employees, cater to early retirement, set specialised eligibility criteria, and pay fees customised to your plan.
This might suit you if you're:
- a large business looking for a flexible workplace superannuation scheme for your employees
- looking for an employee benefit that's easy to set up, run and communicate to your employees
- interested in a personalised scheme
- keen to partner with a Kiwi-owned and operated scheme
- looking for a global investment strategy where your funds will be actively managed by our expert in-house investment team
- wanting clear, transparent, and accessible reporting and communications so you can be confident your employees are kept informed about their investment.
If you're interested in learning more about how the Kiwi Wealth Super Scheme can work for your business, or set up a participation agreement with us, please contact us.
How it works
Anyone can join the Kiwi Wealth Super Scheme as an Employer Member as long as they are an eligible employee of a workplace that has a participation agreement with the Kiwi Wealth Super Scheme.
While there are general rules for workplace-based superannuation schemes, employers may decide to amend these for their employees. You can see the general rules in the Kiwi Wealth Super Scheme Trust Deed with our other Super key documents.
Any specific terms and conditions which apply to the plan set up by an employer are set out in the participation agreement. This may include information on contribution rates and when you can make withdrawals. These specific terms and conditions will also be set out in the Supplement given to you with the Product Disclosure Statement.
Check the Supplement
While you can find some of the general rules for employer superannuation schemes on this page, your employer may have made changes to these rules as part of their participation agreement, so make sure you check the Supplement given to you with the Product Disclosure Statement to find the specific terms of your membership of the Kiwi Wealth Super Scheme.
How to join
To join the Kiwi Wealth Super Scheme, please complete the application form at the back of the Product Disclosure Statement on our Super key documents page. We'll need to verify your ID before you can join.
Your employer will decide how much and how often they make contributions to the Kiwi Wealth Super Scheme. You can find the details about this in the Supplement given to you with the Product Disclosure Statement.
Your contributions are paid directly to the Kiwi Wealth Super Scheme by your employer. You can also make additional voluntary contributions to your account if you choose.
Making voluntary contributions
You can make a voluntary contribution of at least $50 to your Kiwi Wealth Super Scheme account by direct debit - simply fill in the direct debit form at the back of the Product Disclosure Statement on our Super key documents page and send it to us.
You can withdraw all your money from your Kiwi Wealth Super Scheme account when you reach the latter of either:
- age 55, as long as you’ve been a member of the Kiwi Wealth Super Scheme for at least five years
- a later date, if your employer has agreed to a later date in their participation agreement. This will be set out in the Supplement.
You don't have to cash in your investment once you're eligible to withdraw from your Super account. You can keep your account open and set up regular withdrawals, or make withdrawals occasionally.
If you leave or change jobs
If you leave your employer, you may be able to withdraw all of your money from your Kiwi Wealth Super Scheme account. However, you can also remain a member and make voluntary contributions to your account. If you choose this option, remember that your employer will not be required to continue making contributions.
You may be able to withdraw some or all of your money earlier in certain circumstances.
If you're 55 or older but haven't yet reached the normal retirement age, you can apply for an early withdrawal. You may be able to withdraw up to 20% of your total member account balance every 12 months, subject to approval. You can find more information on this type of withdrawal in the Product Disclosure Statement.
Significant financial hardship
If you are experiencing significant financial hardship, such as being unable to afford minimum living expenses or mortgage repayments on your main family home, you may be able to make an early withdrawal from your Kiwi Wealth Super Scheme account subject to Supervisor approval. If you would like more information on this withdrawal, please contact us.
Total and permanent disablement
If you're suffering total and permanent disablement, as defined in the Trust Deed or your employer's participation agreement, you may be able to withdraw up to the total value of your member account. We will require you to provide certain information about your circumstances to assess your eligibility for this withdrawal.
If you're made redundant by your employer you may be able to withdraw the total value of your Kiwi Wealth Super Scheme account. Please contact us for more information.
The full value of your member account will be paid to your estate on your death, on application by your personal representative.
You can find more information on these withdrawals on our Super key documents page, in the Product Disclosure Statement and the Other Material Information - Withdrawals document for the Kiwi Wealth Super Scheme.
Changes made by your employer
If your employer changes their workplace plan to another superannuation scheme, or if they are put into liquidation or bankruptcy, or just cease participating in the Scheme, you can close your Kiwi Wealth Super Scheme account. If you continue to be an Employer Member with the Kiwi Wealth Super Scheme, but no longer work for the employer you joined the scheme through, or your employer no longer participates in the Kiwi Wealth Super Scheme, different benefits will apply. You can find more information about this in the Other Material Information - Withdrawals document which you can download from our Super key documents page.
Funds transferred from another super scheme
You may not always be able to withdraw funds that you've transferred to your Kiwi Wealth Super Scheme account from another superannuation scheme, as the withdrawal conditions from the other scheme may still apply. You will need to check with the superannuation scheme you are transferring from to find out more.
Tax on investment income
The Kiwi Wealth Super Scheme is a portfolio investment entity, which means that the amount of tax you pay is calculated according to your prescribed investor rate (PIR). You can use the Find my prescribed investor rate tool on the Inland Revenue website to calculate your current PIR.
If you are unsure of your PIR, we recommend you seek professional advice or contact Inland Revenue. It is your responsibility to tell us what your PIR is and to let us know if it changes. If you don’t let us know your PIR, a default rate may be applied.
Provided that you advise us of your correct PIR and IRD number, tax paid by the Scheme on income attributed to you will generally be a final tax.
NZ tax residents
Inland Revenue will calculate any PIE tax over/underpaid based on the PIR applied and add that to your end of year income tax position as part of its automated year-end assessment process. No further action is required where the PIR applied is correct for the year.
Non-NZ tax residents
If your PIE income is taxed using the 28% PIR, no further action should be required
If your PIE income is taxed using an advised PIR less than the 28% PIR, you may be required to file an NZ income tax return and be liable to Inland Revenue for further tax and penalties.
Tax on employer contributions
Your employer will have to pay Employer Superannuation Contribution Tax (ESCT) on any contributions they make to your Kiwi Wealth Super Scheme account, which will affect the amount you receive from them. You can learn more about ESCT on Inland Revenue's website.