New Zealand Legislation: Acts
Acts are laws made by Parliament
Reprint as at 1 October 2011
| Public Act | 2006 No 40 |
| Date of assent | 6 September 2006 |
| Commencement | see section 2 |
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.
This Act is administered by the Inland Revenue Department and the Ministry of Economic Development.
Part 2
Membership of overall KiwiSaver scheme
Subpart 1—Becoming members of overall KiwiSaver scheme
9 Outline of how people become members of overall KiwiSaver scheme
10 Who automatic enrolment rules apply to
11 Meaning of new employment and secondee
13 Employment in schools [Repealed]
14 Other situations when automatic enrolment rules do not apply
15 Effect of automatic enrolment
18 Extension of opt-out period
19 Commissioner must give notice to employer of opting out
21 Opt-out only applies to employment that triggered automatic enrolment rules
Notice requirements for employees and employers
22 Employees giving information to employers
23 Employers must give information to Commissioner
24 Purpose of being exempt employer
25 Eligibility to be exempt employer
26 How 4% minimum amount may be calculated for exempt employer defined contribution schemes
27 Eligibility of employers who provide access to more than 1 scheme
28 Eligibility of employers who have schemes established under master trusts
29 How to apply to be exempt employer
30 How applications to be exempt employer must be dealt with
31 Revocation of exempt employer approval
32 FMA must give notice to Commissioner of exempt employers
34 Opting in by person 18 years or more
35 Opting in by persons under 18
36 Effect of opting in by employees
37 Effect of opting in by persons other than employees
Information about people who contract directly with providers
38 Providers must give notice to Commissioner if they contract directly with members
39 Commissioner must give notice to employer if provider gives notice that employee has opted in under section 38
Information about overall KiwiSaver scheme that must be provided
40 Commissioner must supply information pack
41 What information pack must contain
42 Employer must supply information pack to certain employees
43 Employer must also supply investment statement for employer’s chosen KiwiSaver scheme (if any)
Subpart 2—Allocation of people to KiwiSaver schemes
44 Outline of how people are allocated to KiwiSaver schemes under subpart
People may choose their own KiwiSaver scheme
45 People may choose their own KiwiSaver scheme
Employer choice of KiwiSaver scheme
46 Employer may choose scheme for employees
47 When employer choice of KiwiSaver scheme is effective
48 Effect of employer choice of KiwiSaver scheme
49 Effect on existing members of change, etc, in employer chosen scheme
50 Commissioner provisionally allocates certain people to default KiwiSaver schemes and sends investment statement
51 Completion of allocation to default KiwiSaver scheme if person does not choose his or her own KiwiSaver scheme
52 Effect of completion of allocation
53 Person may be member of only 1 KiwiSaver scheme at any one time
Subpart 3—Transfers between KiwiSaver schemes and between complying superannuation fund and KiwiSaver scheme
55 People may transfer between KiwiSaver schemes and between complying superannuation fund and KiwiSaver scheme
56 Notification of transfers and requirement to transfer funds and information
58 Information if employee ceases to be eligible to be member of employer’s chosen KiwiSaver scheme
59 Commissioner must send information to involuntary transferees
Subpart 4—Initial and confirmed back-dated validation of invalid membership
59B Initial back-dated validation
59C Confirmed back-dated validation
59D What happens when initial back-dated validation ends, with no confirmed back-dated validation?
Subpart 1—Deductions of contributions from salary or wages
Payments of salary or wages to which deduction rules apply
61 Commissioner may give notice
62 When subpart does not apply
63 Part also applies to PAYE intermediaries
63A How subpart applies to private domestic workers
65 Contribution rates may be changed by Order in Council
66 Obligation to make deductions: general rule
66A Obligation to make deductions: transitional rule [Repealed]
67 PAYE rules apply to deductions
68 Money paid for things other than retirement benefits does not count as contribution under this Act
69 Unremitted deductions made by employers
70 Unexplained remittances of deductions received from employers
71 Time at which unexplained remittances deemed to be received
Subpart 2—Miscellaneous provisions relating to contributions
Inland Revenue KiwiSaver Holding Account
72 Inland Revenue KiwiSaver Holding Account
73 Deductions entered in and paid out of holding account
74 Other contributions entered in and paid out of holding account
75 Initial contributions stay in holding account for 3 months
76 Employer contributions may stay in holding account until deducted contributions paid
77 Small amounts of contributions may be held until big enough to be on-paid
78 Treatment of unremitted deductions in holding account
79 Information that Commissioner must supply to providers when paying contributions
80 Refund by Commissioner of amounts paid in excess of required amount of deduction or if employee opts out
81 Refund by provider of amounts paid in excess of required amount of contribution
82 Trustee investment rules do not apply to contributions in holding account
83 Unclaimed money held by Commissioner
84 Interest on money in holding account
85 Time when contributions treated as received for interest purposes
88 How and when interest is paid on on-payments
89 How and when interest is paid on refunds
90 Position if Commissioner’s paying rate changes
Subpart 3—Contributions other than deductions from salary or wages
92 Application of this subpart
92A How subpart applies to private domestic workers
93 Employer contributions paid via Commissioner
94 Employer must give notice that employer contributions to be paid via Commissioner [Repealed]
95 Contributions from persons other than employers may be paid via Commissioner
96 What Commissioner must do with contributions received under this subpart
97 Commissioner must give notice if employer contributions not remitted
98 Short payments by employers if not enough money remitted to Commissioner to cover all of employees’ deductions and employer contributions
98A Quantifying short payments for the purposes of Income Tax Act 2007 and Tax Administration Act 1994
99 Short payments if not enough employer contribution remitted to cover all employees
100 Refunds of employer contribution by Commissioner if employee opts out
101 Refunds of employer contribution by provider
Subpart 3A—Compulsory employer contributions to KiwiSaver schemes and complying superannuation funds
101B Compulsory contributions must be paid on top of gross salary or wages except to extent that parties otherwise agree after 13 December 2007
101D Compulsory employer contribution amount: general rule
101E Payment: allocation between schemes and funds
101FB Grace periods: employers
101FC De minimis: other contributions and hybrid schemes amount
Complying superannuation funds
101H Failure to pay: provider notice
101I Failure to pay: FMA's duties
101J Failure to pay: Commissioner
Subpart 4—Contributions holiday
Applications for contributions holiday
102 Who may apply for contributions holiday
103 How to apply for contributions holiday
104 Granting of contributions holiday
105 Commissioner must give notice of grant of contributions holiday
106 When deductions stop at start of contributions holiday
107 Employers to whom contributions holiday applies
108 Contributions holidays have 3-month minimum life
109 Commissioner must give notice before contributions holiday ends
110 Commissioner must give notice to employer of end of contributions holiday
111 When deductions start at end of contributions holiday
Revocation and reinstatement of contributions holiday
112 Revocation and reinstatement of contributions holiday
113 Refund of initial contributions
114 Refunds if employee loses, etc, contributions holiday notice
Subpart 1—Preliminary provisions
Subpart 2—Main features of KiwiSaver schemes
116 Schemes eligible to be KiwiSaver scheme
116A Requirements for restricted KiwiSaver schemes
116B Requirements for managers of KiwiSaver schemes
116C Duty of manager with respect to money received
116D Requirements for trustees of KiwiSaver schemes other than restricted schemes
116E Removal of trustees of KiwiSaver schemes other than restricted schemes
116F Manager and trustee must be independent
116G Investments and property of KiwiSaver schemes
116I Appointment of nominee by nominated person
116J Trust deed or other instrument must not exempt trustees, managers, or investment managers from liability
116K Trustees of KiwiSaver schemes other than restricted schemes may apply to High Court for order relating to scheme
117 Additional duty of independent trustees
117A Restrictions on transactions
Application of Superannuation Schemes Act 1989 to KiwiSaver scheme
[Repealed]
118 KiwiSaver scheme must be treated as registered superannuation scheme for most purposes
119A Implied provision as to amendments reducing accrued benefits, etc
119B Application of sections 119C to 119I
119C Implied provision as to transfer of members, etc
119D Procedural requirements in case of certain transfers
119E When requirements of section 119D not met
119F Information required in case of transfer under section 119D
119G When FMA may approve section 119D transfers without consent of members
119H How approval under section 119G may be granted
119I FMA may exempt trustees and managers from requirement to obtain written consent of members
119J Application and enforcement of implied provisions
Prospective members' rights to information
119K Prospective members' rights to information
Members' rights to information
119L Members' rights to information
120 Application of sections 8 to 11 of Superannuation Schemes Act 1989 [Repealed]
121 Further modifications to application of sections 8 to 11 of Superannuation Schemes Act 1989 [Repealed]
122 Application of other provisions of Superannuation Schemes Act 1989 [Repealed]
123 Requirement for annual report
124 Annual report in case of KiwiSaver scheme established under umbrella trust
125 Requirement for annual return
125A Requirement for annual personalised statement of contributions and accumulations for members
126 KiwiSaver scheme rules are implied in trust deeds establishing KiwiSaver scheme
127 Exercise of functions by FMA relating to clause 2 of KiwiSaver scheme rules
128 Participation agreements executed before registration [Repealed]
128A Terms relating to members’ tax credits implied into trust deed
128B Terms relating to back-dated validation implied into trust deed
128C Terms relating to lump sum payments by complying superannuation funds
128D Terms relating to compulsory employer contributions implied into trust deed
128E Provisions implied in trust deeds by regulations
Amending trust deed in relation to KiwiSaver scheme
129 Amendment of trust deed or participation agreement governing KiwiSaver scheme
129A Implied provision as to alterations to scheme
Reversion of scheme assets to employer
129B Implied provision as to reversion of scheme assets to employer
130 Consent to reversion of assets to employer
Subpart 3—Registration of KiwiSaver schemes
Application to register new scheme as KiwiSaver scheme
131 Applications for registration of scheme governed by trust deed
132 Application for registration of scheme constituted under Act of Parliament [Repealed]
133 Matters required to be specified in application
Conversion of registered superannuation scheme
[Repealed]
135 Trustees may submit proposal to convert superannuation scheme [Repealed]
136 Form of proposal [Repealed]
137 FMA must provisionally register scheme as KiwiSaver scheme if satisfied of certain matters [Repealed]
138 Trustees must provide evidence of consents, and information, to Commissioner [Repealed]
139 Exceptions to requirements under section 138 [Repealed]
140 Process for obtaining consents and evidence to be provided to FMA [Repealed]
141 FMA must register scheme as KiwiSaver scheme if certain conditions met [Repealed]
142 Date of registration and conversion [Repealed]
143 Trust deed must be treated as having been amended in accordance with registration proposal [Repealed]
144 Effect of conversion of registered superannuation scheme to KiwiSaver scheme [Repealed]
145 Status of contracts and other instruments [Repealed]
146 References to scheme in existing instruments [Repealed]
147 Continuation of legal and other proceedings [Repealed]
[Repealed]
148 Trustees may submit proposal to establish KiwiSaver scheme under umbrella trust that also governs registered superannuation scheme [Repealed]
149 Form of proposal [Repealed]
150 FMA must register KiwiSaver scheme if satisfied of certain matters [Repealed]
151 Date of registration [Repealed]
152 Trust deed must be treated as having been amended in accordance with registration proposal [Repealed]
153 Effect of registration of KiwiSaver scheme under section 150 [Repealed]
154 Advice of right of election must be included in annual report provided under Superannuation Schemes Act 1989 [Repealed]
155 Right of election of members of registered superannuation scheme [Repealed]
Subpart 4—KiwiSaver schemes register
156 Register of KiwiSaver schemes
159 FMA is Registrar of register
160 Contents of register in relation to KiwiSaver schemes
161 Additional contents of register
162 FMA may refuse access to or suspend operation of register, or omit or remove, or restrict public access to, information and documents in register
164 Duty to notify changes to FMA
165 Form of notice under section 164
Subpart 5—Cancellation of registration and winding up
Cancellation of registration and winding up of KiwiSaver schemes
166 This subpart overrides provisions to contrary in trust deed
167 Meaning of winding up in relation to KiwiSaver scheme established under umbrella trust
168 Cancellation of registration and order to wind up KiwiSaver scheme
168A Scheme may cease to be restricted scheme
169 Powers of FMA in event of scheme operating in contravention of this Act, etc
170 FMA must remove scheme from register on cancellation of registration
171 Implied terms continue to be implied on cancellation of registration
172 Receiver or liquidator to designate or appoint independent trustee if required
173 Initial steps in winding up of KiwiSaver scheme
174A Registration deemed to be cancelled when assets distributed
175 Time for doing certain things may be extended
176 Member’s right to information
Subpart 6—Default KiwiSaver schemes
177 Appointment of default providers
178 Provisions of instrument of appointment to prevail over provisions of trust deed
179 Effect of appointment under section 177
180 Appointment must be notified to FMA and Commissioner
181 Availability of instrument of appointment
182 Minister not required to appoint maximum number of persons
183 Power of High Court to act in respect of terms and conditions of appointment as default KiwiSaver scheme and regulations relating to default KiwiSaver schemes
184 Revocations, etc, of instruments of appointment
185 Duration of obligations as default provider after terminating event
186 Right of appeal against certain decisions of FMA
187 Power of Government Actuary to delegate [Repealed]
188 Sharing of information and documents with Commissioner for purpose of administering KiwiSaver schemes
189 Conditions that may be imposed on providing information, documents, or evidence to Commissioner
189B Duty to give notice to FMA about fee increases
189C Powers of High Court in relation to unreasonable fees
191 Duty of certain persons to disclose information to FMA
192 Protection of administration managers, investment managers, and auditors
193 Personal liability [Repealed]
195 Unclaimed money held by trustees of KiwiSaver scheme
196 Member’s interest in KiwiSaver scheme not assignable
197 Offence to fail to provide information under this Part
198 Other offences under this Part
199 Criminal penalties for offences under this Part
200 FMA may decline to take action if fees not paid
201 Trustees not in breach of obligations, etc
202 Application of section 13G of Trustee Act 1956 if power of investment exercised in relation to member allocated to scheme under sections 50 to 52
203 General application of Financial Transactions Reporting Act 1996
204 Application of Financial Transactions Reporting Act 1996 to default allocation of members to KiwiSaver schemes
205 No Crown guarantee of KiwiSaver schemes or products
205A Investment statements must contain responsible investment statement
206 Factual description of, or transmission of information about, KiwiSaver scheme not financial adviser service
208 Information held by Commissioner in respect of person who has opted out or who should not have been allocated to overall KiwiSaver scheme
209 Application of Securities Act 1978
210 Certain sections of Securities Act 1978 modified in relation to KiwiSaver scheme
211 Duty of Commissioner under section 50 modified in certain cases in which section 210 applies
212 Persons may request reconsideration of certain decisions of Commissioner
213 Reconsideration of other decisions
214 Application of section 215
215 Penalty for employer to fail to provide information
216 Penalty for employer to fail or incorrectly make deductions, or to short pay compulsory employer contributions [Repealed]
217 Giving of notices by and to Commissioner
218 Giving of notices to other persons
219 Consent to electronic transactions
220 Special rules about giving of investment statements
221 Refunds made by direct credit to bank account
222 Role of Commissioner under this Act
223 Use of information by Commissioner obtained under this Act and other Inland Revenue Acts
227 Status of Crown contribution and fee subsidy for tax purposes
229 Regulations relating to mortgage diversion facility
230 Regulations relating to default KiwiSaver providers
230A Regulations relating to compulsory employer contributions
232 Transitional provision requiring all KiwiSaver contributions to be paid to Commissioner in first 3 months
233 Transitional provision: pre-1 July 2007 securities law documentation
234 Protection from non-compliance: Taxation (KiwiSaver) Act 2007
235 Protection from non-compliance: Taxation (Urgent Measures and Annual Rates) Act 2008
236 Protection from non-compliance: Taxation (Budget Tax Measures) Act 2009
237 Protection from non-compliance: Taxation (Annual Rates and Budget Measures) Act 2011
Schedule 1
KiwiSaver scheme rules
Schedule 2
Matters to be specified in application for registration or registration proposal
Schedule 3
Amendments to other Acts
Schedule 4
Transitional rates for employers and employees
[Repealed]
