ANZ KiwiSaver Scheme INformAtIoN for employers

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1 ANZ KiwiSaver Scheme Information for employers

2 One KiwiSaver scheme makes it easy KiwiSaver is a voluntary savings initiative, designed to make it easier for New Zealanders to save for their retirement. For employers, a key decision will be whether or not to offer a preferred provider KiwiSaver scheme. KiwiSaver is popular with employees who are looking for a simple, convenient way to save for retirement. Government incentives like the $1,000 kick-start contribution, member tax credits and the first home subsidy have wide appeal. There are definite advantages in offering a preferred provider scheme to your employees. Convenience Employees have a raft of different KiwiSaver schemes to choose from. For many, a preferred provider KiwiSaver scheme could be the most convenient option and may have the greatest uptake. Simplicity As an employer, you ll be involved in KiwiSaver. With so many KiwiSaver schemes available (including six default KiwiSaver schemes), encouraging participation in a single KiwiSaver scheme could help make KiwiSaver in your workplace simpler. Disclaimer Guardian Trust Superannuation Trustees Limited ( GTSTL ) is the Trustee and Issuer; OnePath (NZ) Limited ( OnePath ) is the Scheme Provider, Promoter and Administration and Investment Manager; and ANZ National Bank Limited ( ANZNB ) is the Distributor of the ANZ KiwiSaver Scheme (the Scheme ). Units or interests in the Scheme do not represent deposits or liabilities of ANZNB. Units and interests are subject to investment risk, including possible delays in repayment and loss of income and principal invested. No entity* guarantees (either partially or fully) the capital value or performance of any products issued or managed by OnePath, including the Scheme. *Please note, this includes OnePath, ANZNB, Australia and New Zealand Banking Group Limited, GTSTL, their respective directors, any member of their respective groups of companies and any other person. This brochure is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act It is recommended you seek advice from a financial adviser, which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ s financial advisers, please contact us on

3 Next steps Choosing the ANZ KiwiSaver Scheme as your preferred provider scheme is simple too. Just follow these easy steps: 1. Sign the Preferred Provider Agreement in your Employer Information Pack. 2. Return the form in the Freepost envelope provided. If you d like more information, feel free to talk to your ANZ Relationship Manager, or call us on Employer questions answered Employer obligations Do all employers have to provide KiwiSaver facilities in their workplace? Yes. Your obligations are outlined below. What do I have to do as an employer? As an employer, you must: within 7 days of a new employee* starting work, provide them with a KiwiSaver information pack (supplied by Inland Revenue). In addition, if you have a preferred provider scheme, you will need to provide them with an investment statement for that scheme, and a statement that if they do not choose their own KiwiSaver Scheme that they will be allocated to this scheme act on any opt-in requests, by providing information packs (and Investment Statements if appropriate) to employees within 7 days of them giving you a KiwiSaver deduction notice send all member details to Inland Revenue deduct KiwiSaver contributions from each member s pay and forward these to Inland Revenue once a fortnight or month via PAYE forward any opt-out requests to Inland Revenue, and refund any contributions deducted but not yet forwarded to Inland Revenue to any employee who opts out act on any contributions holiday notices. Employers are generally required to match employee contributions to a KiwiSaver scheme at a minimum of 2% of gross salary or wages. The Government has proposed that this will rise to 3% from 1 April *Some exceptions apply, such as for employees who are already KiwiSaver members or are employed by an exempt employer or are under 18 or over 65. Who can join? Do all employees have to join a KiwiSaver scheme? No. KiwiSaver is a voluntary savings initiative. However, once employees have joined they will generally remain KiwiSaver members until they reach the New Zealand Superannuation qualification age or if they join after the age of 60, have been a member of a KiwiSaver scheme for five years, whichever is later. What about overseas workers? Only people under the New Zealand Superannuation qualification age (currently 65) who are entitled to permanently reside in New Zealand, and are living in New Zealand (subject to certain exceptions), can join a KiwiSaver scheme. Employees on temporary work visas cannot join. What about part-time and temporary workers? Part-time workers can join a KiwiSaver scheme, however staff on contracts of 28 days or less do not have to be automatically enrolled in KiwiSaver. Employers are not required to automatically enrol casual employees. What about workers under 18? Workers aged under 18 will not be automatically enrolled in a KiwiSaver scheme. They can join at any time by opting in, however they will not be eligible to receive member tax credits or matching compulsory employer contributions until they turn 18. What if I m self-employed? If you re self-employed you can join a KiwiSaver scheme. What happens when new staff join? You must enrol all new eligible staff members aged who are not already KiwiSaver members in a KiwiSaver scheme (unless you are an exempt employer). They then have up to eight weeks to decide if they want to remain a KiwiSaver member or opt out. What if new staff are already KiwiSaver members? Because KiwiSaver accounts automatically follow employees from one job to the next, new staff may already have a KiwiSaver account when they join your organisation. In that case, you need to deduct contributions from their salary or wages at the rate advised by the employee (or if no rate is given, at the default rate), make the relevant employer contribution, and forward them to Inland Revenue. What about existing staff members? Existing employees who are eligible can opt in to a KiwiSaver scheme at any time by giving you a deduction notice.

4 1 2 Preferred provider schemes How do I choose the ANZ KiwiSaver Scheme as my preferred provider scheme? 1. First sign the Preferred Provider Agreement and return it in the Freepost envelope provided. OnePath will instruct Inland Revenue that the ANZ KiwiSaver Scheme is your preferred provider scheme. 2. You ll be sent ANZ KiwiSaver Scheme start-up packs (which include the ANZ KiwiSaver Scheme Investment Statement) for you to distribute to your staff. If I choose the ANZ KiwiSaver Scheme as my preferred provider scheme, do all my employees have to become ANZ customers? No. Employees don t need to be ANZ customers to join the ANZ KiwiSaver Scheme. What if I don t offer a preferred provider scheme? If you don t offer a preferred provider KiwiSaver scheme, employees simply choose their own scheme, or if an employee does not choose their own scheme, Inland Revenue will allocate that employee to a default scheme, resulting in a greater range of schemes held among your staff. Employer contributions Do I have to make an employer contribution? Yes, employers are required to match employee contributions to a KiwiSaver scheme at a minimum of 2% of gross salary or wages for contributing employees who are members aged 18 or over, and have not reached the end payment date (aged 65 or five years of membership, whichever is later). The Government has proposed that this will rise to 3% from 1 April How much can an employer contribute? Over and above the level of any compulsory employer contributions, you can contribute as much or as little as you like, and set your own rules and conditions around those additional contributions you make. Until 31 March 2012, employer contributions over 2% of an employee s salary or wages will be subject to employer superannuation contribution tax (ESCT). From 1 April 2012 all employer contributions will be subject to ESCT. Impact on employers What s the impact on payroll? As an employer you will be responsible for passing on all employee contributions to Inland Revenue as part of your fortnightly or monthly PAYE process. What records will I need to keep? You ll be required to keep KiwiSaver records in the same way you keep PAYE records. This will include recording which of your employees are KiwiSaver members, their contribution rates, and any notification of contributions holidays or opt-outs. Will I need to give financial advice to employees? No. Neither you nor any of your staff will be expected to provide financial advice. Inland Revenue will provide you with KiwiSaver information packs to give to your employees. These packs explain how KiwiSaver works, and tell employees how they can receive more information. If you are only passing on information about KiwiSaver to your employees, or choosing a preferred provider KiwiSaver scheme for your employees, you will not be liable as an investment adviser or promoter. For more information, visit You can find out more about the ANZ KiwiSaver Scheme by: Visiting anz.co.nz Talking to your ANZ Relationship Manager Calling You can find out more about KiwiSaver for employers at A copy of the ANZ KiwiSaver Scheme Investment Statement and the Bank s General Disclosure Statement are available on request from any ANZ Branch, free of charge.

5 ANZ KiwiSaver Scheme makes it even easier The ANZ KiwiSaver Scheme has been designed with the intention of being a simple and convenient retirement savings option available for employers and employees alike. The ANZ KiwiSaver Scheme is distributed through ANZ National Bank Limited; OnePath (NZ) Limited (OnePath) is the scheme provider, promoter, administration manager and investment manager of the ANZ KiwiSaver Scheme. OnePath is responsible for selecting and managing the assets held by the ANZ KiwiSaver Scheme, and for the overall administration and promotion of the ANZ KiwiSaver Scheme. Convenient: Administering KiwiSaver is easier with streamlined processes, clear information and online and phone support via a dedicated ANZ team. Competitive: The ANZ KiwiSaver Scheme investment funds are managed by OnePath. OnePath is one of the largest fund managers in New Zealand.* An easy option: For employees who d prefer the investment choice to be made simpler for them, the Lifetimes option simply adjusts investors allocations to higher and lower risk assets based on their length of time to age 65. Or a choice: Members who know what they want can choose from six investment funds, with a fund to suit most investor types. * FundSource Retail Managed Funds Trends & Market Composition Report, June If you d like more information, talk to your ANZ Relationship Manager or call Investors should be referred to the current ANZ KiwiSaver Scheme Investment Statement.

6 anz.co.nz ANZ National Bank Limited A /