Essential information for employees, self-employed people, non-working spouses and children

How KiwiSaver works

Starting on 1st July 2007, KiwiSaver is a voluntary savings plan to help you with retirement saving.

• It is open to all people aged under 65 who are New Zealand citizens or entitled to live here permanently.
• If you are eligible, you can open a KiwiSaver account by contracting directly with a scheme provider, such as Professionals Group Holdings Ltd, on or after 1st July 2007.
• If you are aged over 18 and you start a new job after 1st July 2007, you will be automatically enrolled in KiwiSaver.
• If you are already employed when KiwiSaver starts, you can choose to open a KiwiSaver account by completing a deduction notice (KS2) and handing it to your employer.

Making contributions

You can make regular or lump sum payments into your KiwiSaver account.

• If you are an employee, you can choose to make contributions of either 2%, 4% or 8% of your gross pay which will be deducted from your wages. Your employer will send these contributions to IRD at the same time as PAYE deductions. The contributions will then be passed onto your KiwiSaver scheme for investment.
• If you are self-employed or not employed, the amount you will contribute every year is agreed between you and your scheme provider. It will be a dollar amount rather than a percentage of income. The minimum contribution with PSBG KiwiSaver is $200 a year.
• You can only have one KiwiSaver account. If you become employed at any time, let your employer know if you already have a KiwiSaver account. KiwiSaver contributions deducted from your salary or wages.

The benefits of KiwiSaver

You are entitled to all the benefits of KiwiSaver.

• $1000 kick-start from the government, paid into your account.
• A first home deposit subsidy of $1000 per year of membership (up to a maximum of $5000) will be available with some restrictions.
• 9or those over 18, the Government will match an individual's contributions by up to $1040 a year
• From 1st April 2008 employers are required to make a matching employer contribution of up to 2% of gross salary/wages.
• Any employer contribution is exempt from Specified Superannuation Contribution Withholding Tax (in other words, tax free) up to the lesser of:
  • the employee's deductions, or
• 2% of the employee's before-tax pay.

The Benefits of PSBG KiwiSaver

PSBG KiwiSaver has been designed to look after you in many ways.

• Simple enrolment.
• Online access to your account 24 hours a day 7 days a week.
• A website with information about KiwiSaver, savings calculators, forms and news.