KiwiSaver Act 2006

  • This version was reprinted on 10 August 2015 to make changes to the format of formulas under section 25(1)(k) of the Legislation Act 2012.

Reprint as at 1 June 2015

Coat of Arms of New Zealand

KiwiSaver Act 2006

Public Act
 
2006 No 40
Date of assent
 
6 September 2006
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Inland Revenue Department, the Ministry of Business, Innovation, and Employment, and the Treasury.

Contents

1Title
2Commencement
3Purpose
4Interpretation
5Meaning of provider
6Application
7Act binds the Crown
8Outline
9Outline of how people become members of overall KiwiSaver scheme
10Who automatic enrolment rules apply to
11Meaning of new employment and secondee
12Temporary employment
13Employment in schools [Repealed]
14Other situations when automatic enrolment rules do not apply
15Effect of automatic enrolment
16Time limit for opting out
17How to opt out
18Extension of opt-out period
19Commissioner must give notice to employer of opting out
20Effect of opting out
21Opt-out only applies to employment that triggered automatic enrolment rules
22Employees giving information to employers
23Employers must give information to Commissioner
23APAYE intermediaries
[Repealed]
24Purpose of being exempt employer [Repealed]
25Eligibility to be exempt employer [Repealed]
26How 4% minimum amount may be calculated for exempt employer defined contribution schemes [Repealed]
27Eligibility of employers who provide access to more than 1 scheme [Repealed]
28Eligibility of employers who have schemes established under master trusts [Repealed]
29How to apply to be exempt employer [Repealed]
30How applications to be exempt employer must be dealt with [Repealed]
31Revocation of exempt employer approval [Repealed]
32FMA must give notice to Commissioner of exempt employers [Repealed]
33Certain persons may opt in
34Opting in by person 18 years or more
35Opting in by persons under 18
36Effect of opting in by employees
37Effect of opting in by persons other than employees
38Providers must give notice to Commissioner if they contract directly with members
39Commissioner must give notice to employer if provider gives notice that employee has opted in under section 38
40Commissioner must supply information pack
41What information pack must contain
42Employer must supply information pack to certain employees
43Employer must also supply product disclosure statement for employer’s chosen KiwiSaver scheme (if any)
44Outline of how people are allocated to KiwiSaver schemes under subpart
45People may choose their own KiwiSaver scheme
46Employer may choose scheme for employees
47When employer choice of KiwiSaver scheme is effective
48Effect of employer choice of KiwiSaver scheme
49Effect on existing members of change, etc, in employer chosen scheme
50Commissioner provisionally allocates certain people to default KiwiSaver schemes and sends product disclosure statement
51Completion of allocation to default KiwiSaver scheme if person does not choose his or her own KiwiSaver scheme
52Effect of completion of allocation
53Person may be member of only 1 KiwiSaver scheme at any one time
54Application
55People may transfer between KiwiSaver schemes and between complying superannuation fund and KiwiSaver scheme
56Notification of transfers and requirement to transfer funds and information
57Involuntary transfers
58Information if employee ceases to be eligible to be member of employer’s chosen KiwiSaver scheme
59Commissioner must send information to involuntary transferees
59AWhen this subpart applies
59BInitial back-dated validation
59CConfirmed back-dated validation
59DWhat happens when initial back-dated validation ends, with no confirmed back-dated validation?
60Application of subpart
61Commissioner may give notice
62When subpart does not apply
63Part also applies to PAYE intermediaries
63AHow subpart applies to private domestic workers
64Contribution rate
65Contribution rates may be changed by Order in Council
66Obligation to make deductions: general rule
66AObligation to make deductions: transitional rule [Repealed]
67PAYE rules apply to deductions
68Money paid for things other than retirement benefits does not count as contribution under this Act
69Unremitted deductions made by employers
70Unexplained remittances of deductions received from employers
71Time at which unexplained remittances deemed to be received
72Inland Revenue KiwiSaver Holding Account
73Deductions entered in and paid out of holding account
74Other contributions entered in and paid out of holding account
75Initial contributions stay in holding account for 3 months
76Employer contributions may stay in holding account until deducted contributions paid
77Small amounts of contributions may be held until big enough to be on-paid
78Treatment of unremitted deductions in holding account
79Information that Commissioner must supply to providers when paying contributions
80Refund by Commissioner of amounts paid in excess of required amount of deduction or if employee opts out
81Refund by provider of amounts paid in excess of required amount of contribution
81BResidual refunds
82Trustee investment rules do not apply to contributions in holding account
83Unclaimed money held by Commissioner
84Interest on money in holding account
85Time when contributions treated as received for interest purposes
86Interest rate
87Amount of interest payable
88How and when interest is paid on on-payments
89How and when interest is paid on refunds
90Position if Commissioner’s paying rate changes
91Overpaid interest
92Application of this subpart
92AHow subpart applies to private domestic workers
93Employer contributions paid via Commissioner
94Employer must give notice that employer contributions to be paid via Commissioner [Repealed]
95Contributions from persons other than employers may be paid via Commissioner
96What Commissioner must do with contributions received under this subpart
97Commissioner must give notice if employer contributions not remitted
98Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions
98AQuantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994
99Short payments if not enough employer contribution remitted to cover all employees
100Refunds of employer contribution by Commissioner if employee opts out
101Refunds of employer contribution by provider
101AGeneral
101BCompulsory contributions must be paid on top of gross salary or wages except to extent that parties otherwise agree after 13 December 2007
101CEmployee’s requirements
101DCompulsory employer contribution amount: general rule
101EPayment: allocation between schemes and funds
101FPayment rules: employers
101FBGrace periods: employers
101FCDe minimis: other contributions and hybrid schemes amount
101GRules: providers
[Repealed]
101HFailure to pay: provider notice [Repealed]
101IFailure to pay: FMA’s duties [Repealed]
101JFailure to pay: Commissioner [Repealed]
101KRecovered amounts [Repealed]
102Who may apply for contributions holiday
103How to apply for contributions holiday
104Granting of contributions holiday
105Commissioner must give notice of grant of contributions holiday
106When deductions stop at start of contributions holiday
107Employers to whom contributions holiday applies
108Contributions holidays have 3-month minimum life
109Commissioner must give notice before contributions holiday ends
110Commissioner must give notice to employer of end of contributions holiday
111When deductions start at end of contributions holiday
112Revocation and reinstatement of contributions holiday
112BNon-deduction notices
113Refund of initial contributions
114Refunds if employee loses, etc, contributions holiday notice
115Overview of Part
116KiwiSaver scheme rules are implied in trust deeds establishing KiwiSaver scheme
116ARequirements for restricted KiwiSaver schemes [Repealed]
116BRequirements for managers of KiwiSaver schemes [Repealed]
116CDuty of manager with respect to money received [Repealed]
116DRequirements for trustees of KiwiSaver schemes other than restricted schemes [Repealed]
116ERemoval of trustees of KiwiSaver schemes other than restricted schemes [Repealed]
116FManager and trustee must be independent [Repealed]
116GInvestments and property of KiwiSaver schemes [Repealed]
116HNomination of person [Repealed]
116IAppointment of nominee by nominated person [Repealed]
116JTrust deed or other instrument must not exempt trustees, managers, or investment managers from liability [Repealed]
116KTrustees of KiwiSaver schemes other than restricted schemes may apply to High Court for order relating to scheme [Repealed]
117Duty to give notice to FMA about fee increases
117ARestrictions on transactions [Repealed]
118Exercise of functions by FMA about unreasonable fees
119Powers of High Court in relation to unreasonable fees
119AImplied provision as to amendments reducing accrued benefits, etc [Repealed]
119BApplication of sections 119C to 119I [Repealed]
119CImplied provision as to transfer of members, etc [Repealed]
119DProcedural requirements in case of certain transfers [Repealed]
119EWhen requirements of section 119D not met [Repealed]
119FInformation required in case of transfer under section 119D [Repealed]
119GWhen FMA may approve section 119D transfers without consent of members [Repealed]
119HHow approval under section 119G may be granted [Repealed]
119IFMA may exempt trustees and managers from requirement to obtain written consent of members [Repealed]
119JApplication and enforcement of implied provisions [Repealed]
119KProspective members’ rights to information [Repealed]
119LMembers’ rights to information [Repealed]
120Terms relating to backdated validation implied into trust deeds of KiwiSaver schemes
121Terms relating to members’ tax credits implied into trust deeds of KiwiSaver schemes and complying superannuation funds
122Terms relating to compulsory employer contributions implied into trust deeds of KiwiSaver schemes and complying superannuation funds
123Terms relating to lump sum payments by complying superannuation funds
124Requirement for annual return
125Unclaimed money held in KiwiSaver scheme
125ARequirement for annual personalised statement of contributions and accumulations for members [Repealed]
126Restrictions on transactions for scheme with fewer than 20 members
127Member’s interest in KiwiSaver scheme not assignable
128Application of Financial Transactions Reporting Act 1996 to default allocation of members to KiwiSaver schemes
128ATerms relating to members’ tax credits implied into trust deed [Repealed]
128BTerms relating to back-dated validation implied into trust deed [Repealed]
128CTerms relating to lump sum payments by complying superannuation funds [Repealed]
128DTerms relating to compulsory employer contributions implied into trust deed [Repealed]
128EProvisions implied in trust deeds by regulations [Repealed]
129Product disclosure statements must contain responsible investment statement
129AImplied provision as to alterations to scheme [Repealed]
129BImplied provision as to reversion of scheme assets to employer [Repealed]
130Application of Financial Markets Conduct Act 2013
131Certain sections of Financial Markets Conduct Act 2013 modified in relation to KiwiSaver scheme
132Appointment of default providers
133Provisions of instrument of appointment to prevail over provisions of trust deed
134Effect of appointment under section 132
135Appointment must be notified
136Power of High Court to act in respect of terms and conditions of appointment as default KiwiSaver scheme and regulations relating to default KiwiSaver schemes
137Revocations, etc, of instruments of appointment
138Duration of obligations as default provider after terminating event
139Outline of subpart
140Failure to pay: provider notice
141Failure to pay: FMA’s duties
142Failure to pay: Commissioner
143Recovered amounts
144Reduction of scheme insurance upon transfer out of complying superannuation fund
145Revocation of approval of complying superannuation funds
146Effect of being exempt employer and outline of subpart
147Eligibility to continue to be exempt employer
148How 4% minimum amount may be calculated for exempt employer defined contribution schemes
149Exempt employers who provide access to more than 1 scheme
150Exempt employers who have schemes established under master trusts
151Employers may apply to succeed to former employer’s exempt employer status
152How applications to succeed to former employer’s exempt employer status must be dealt with
153Revocation of exempt employer approval
154FMA must give notice to Commissioner of exempt employers
155Register of exempt employers
156Right of appeal against certain decisions of FMA
157Sharing of information and documents with Commissioner for purpose of administering KiwiSaver schemes
158Conditions that may be imposed on providing information, documents, or evidence to Commissioner
159Annual report by FMA
160Offence to supply false or misleading information, etc
161No Crown guarantee of KiwiSaver schemes or products
162Factual description of, or transmission of information about, KiwiSaver scheme not financial adviser service
163Amendments to register [Repealed]
164Duty to notify changes to FMA [Repealed]
165Form of notice under section 164 [Repealed]
166This subpart overrides provisions to contrary in trust deed [Repealed]
167Meaning of winding up in relation to KiwiSaver scheme established under umbrella trust [Repealed]
168Cancellation of registration and order to wind up KiwiSaver scheme [Repealed]
168AScheme may cease to be restricted scheme [Repealed]
169Powers of FMA in event of scheme operating in contravention of this Act, etc [Repealed]
170FMA must remove scheme from register on cancellation of registration [Repealed]
171Implied terms continue to be implied on cancellation of registration [Repealed]
172Receiver or liquidator to designate or appoint independent trustee if required [Repealed]
173Initial steps in winding up of KiwiSaver scheme [Repealed]
174Winding up report [Repealed]
174ARegistration deemed to be cancelled when assets distributed [Repealed]
175Time for doing certain things may be extended [Repealed]
176Member’s right to information [Repealed]
[Repealed]
177Appointment of default providers [Repealed]
178Provisions of instrument of appointment to prevail over provisions of trust deed [Repealed]
179Effect of appointment under section 177 [Repealed]
180Appointment must be notified to FMA and Commissioner [Repealed]
181Availability of instrument of appointment [Repealed]
182Minister not required to appoint maximum number of persons [Repealed]
183Power of High Court to act in respect of terms and conditions of appointment as default KiwiSaver scheme and regulations relating to default KiwiSaver schemes [Repealed]
184Revocations, etc, of instruments of appointment [Repealed]
185Duration of obligations as default provider after terminating event [Repealed]
[Repealed]
186Right of appeal against certain decisions of FMA [Repealed]
187Power of Government Actuary to delegate [Repealed]
188Sharing of information and documents with Commissioner for purpose of administering KiwiSaver schemes [Repealed]
189Conditions that may be imposed on providing information, documents, or evidence to Commissioner [Repealed]
189BDuty to give notice to FMA about fee increases [Repealed]
189CPowers of High Court in relation to unreasonable fees [Repealed]
190Secrecy [Repealed]
191Duty of certain persons to disclose information to FMA [Repealed]
192Protection of administration managers, investment managers, and auditors [Repealed]
193Personal liability [Repealed]
194Annual report by FMA [Repealed]
195Unclaimed money held by trustees of KiwiSaver scheme [Repealed]
196Member’s interest in KiwiSaver scheme not assignable [Repealed]
197Offence to fail to provide information under this Part [Repealed]
198Other offences under this Part [Repealed]
199Criminal penalties for offences under this Part [Repealed]
200FMA may decline to take action if fees not paid [Repealed]
201Trustees not in breach of obligations, etc [Repealed]
202Application of section 13G of Trustee Act 1956 if power of investment exercised in relation to member allocated to scheme under sections 50 to 52 [Repealed]
203General application of Financial Transactions Reporting Act 1996 [Repealed]
204Application of Financial Transactions Reporting Act 1996 to default allocation of members to KiwiSaver schemes [Repealed]
205No Crown guarantee of KiwiSaver schemes or products [Repealed]
205AInvestment statements must contain responsible investment statement [Repealed]
206Factual description of, or transmission of information about, KiwiSaver scheme not financial adviser service [Repealed]
207Unique identifiers
208Information held by Commissioner in respect of person who has opted out or who should not have been allocated to overall KiwiSaver scheme
[Repealed]
209Application of Securities Act 1978 [Repealed]
210Certain sections of Securities Act 1978 modified in relation to KiwiSaver scheme [Repealed]
211Duty of Commissioner under section 50 modified in certain cases in which section 131 applies
212Persons may request reconsideration of certain decisions of Commissioner
213Reconsideration of other decisions
214Application of section 215
215Penalty for employer to fail to provide information
216Penalty for employer to fail or incorrectly make deductions, or to short pay compulsory employer contributions [Repealed]
217Giving of notices by and to Commissioner
218Giving of notices to other persons
219Consent to electronic transactions
220Special rules about giving of product disclosure statements
220BInformation sharing
221Refunds made by direct credit to bank account
222Role of Commissioner under this Act
223Use of information by Commissioner obtained under this Act and other Inland Revenue Acts
224Administration of Act
225Fee subsidies [Repealed]
226Crown contribution: kick-start contributions
227Status of Crown contribution for tax purposes
228Regulations
229Regulations relating to mortgage diversion facility
230Regulations relating to default KiwiSaver providers
230ARegulations relating to compulsory employer contributions
231Amendments to other Acts [Repealed]
232Transitional provision requiring all KiwiSaver contributions to be paid to Commissioner in first 3 months [Repealed]
233Transitional provision: pre-1 July 2007 securities law documentation [Repealed]
234Protection from non-compliance: Taxation (KiwiSaver) Act 2007 [Repealed]
235Protection from non-compliance: Taxation (Urgent Measures and Annual Rates) Act 2008 [Repealed]
236Protection from non-compliance: Taxation (Budget Tax Measures) Act 2009 [Repealed]
237Protection from non-compliance: Taxation (Annual Rates and Budget Measures) Act 2011 [Repealed]
238Protection from non-compliance: Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012
239Protection from non-compliance: Taxation (KiwiSaver HomeStart and Remedial Matters) Act 2015
240Protection from non-compliance: KiwiSaver Budget Measures Act 2015
[Repealed]
[Repealed]
[Repealed]
Reprint notes