(1) This subpart provides for employees and other persons to become members of the overall KiwiSaver scheme by—

• (a) the operation of the automatic enrolment rules when an employee starts new employment, with the effect that a person becomes subject to automatic deductions from his or her salary or wages, but may opt out within specified time limits; or

• (b) opting in (whether as an employee who becomes liable for automatic deduction of contributions from his or her salary or wages or otherwise).

(2) This subpart also provides for employers to be exempt employers, with the effect that the automatic enrolment rules will not apply to their employees when they start new employment.

The automatic enrolment rules apply to every employee who is not a secondee and—

• (a) starts new employment with an employer that is not an exempt employer; and

• (b) is aged 18 or over, but less than the New Zealand superannuation qualification age, when he or she starts that new employment.

(1) New employment means any employment that is started on or after the date of commencement of the automatic enrolment rules, but—

• (a) does not include temporary employment (except as provided in section 12); and

• (b) does not include employment in respect of which the employee remains on the same payroll as the payroll that he or she was on immediately before starting that employment; and

• (c) does not include employment with an employer that carries on the same business as the business in which the employee was employed immediately before starting the employment; and

• (d) does not include employment, at the end of a secondment, by the employer from which a secondee was seconded.

(2) Same business means a business that, in substance, carries on the same or a similar role (regardless of whether or not the legal entity carrying on the business changes), and includes, without limitation,—

• (a) a company that results from, or continues after, an amalgamation under the Companies Act 1993 involving the company by which the employee was employed immediately before that employee started the employment; and

• (b) a business that takes over as a going concern the business in which the employee was employed immediately before that employee started the employment.

(2B) Secondee means an employee seconded from an employer to the employment of another employer (employer B), in respect of which the employee is on employer B’s payroll.

(3) However, subsection (1)(c) applies only if an employer has given to the Commissioner the notice (if any) that is required by the Commissioner for the purposes of the administration of this section.

(1) Employment is temporary, and the automatic enrolment rules do not apply, if—

• (a) the employment is as a casual agricultural worker within the meaning of section YA 1 of the Income Tax Act 2007; or

• (b) the employment is under a contract of service that is for a period of 28 continuous days or less; or

• (c) the employment is described in section 28(1)(a)(ii) of the Holidays Act 2003.

(2) However, employment ceases to be temporary, and the automatic enrolment rules then apply (as if the employee then started new employment)—

• (a) on the day after the date on which the employee ceases to be a casual agricultural worker within the meaning of section YA 1 of the Income Tax Act 2007; or

• (b) in the case of employment which was temporary under subsection (1)(b), on the 28th day after the employee started the employment.

(1) Despite sections 10 to 13, the following are not new employment, and the automatic enrolment rules do not apply:

• (a) if the person is an employee only because they are in receipt of payments of salary or wages of a type referred to in any of the following sections in the Income Tax Act 2007:

  • (i) section RD 5(1)(b)(iii) (which relates to certain ACC payments):

  • (ii) section RD 5(3) (which relates to payments to working partners):

  • (iib) section RD 5(3B) (which relates to payments to working owners):

  • (iii) section RD 5(7) (which relates to parental leave payments paid under Part 7A of the Parental Leave and Employment Protection Act 1987):

• (b) if the new employment is as an election day worker or a private domestic worker as those terms are defined in section YA 1 of the Income Tax Act 2007:

• (c) if the employee is not required to have tax deductions made from his or her salary or wages under the PAYE rules:

• (d) if amounts are withheld for an employee under the PAYE rules solely because section YD 1(7) of the Income Tax Act 2007 applies to them.

(2) Despite sections 10 to 13, the automatic enrolment rules do not apply if the employee is already a member of a KiwiSaver scheme.

(1) An employee who is subject to the automatic enrolment rules—

• (a) becomes liable in accordance with subpart 1 of Part 3 to automatic deduction of contributions—

  • (i) from the salary or wages paid in respect of the new employment that triggered the automatic enrolment rules; and

  • (ii) from the salary or wages paid in respect of any other new employment that the employee starts after becoming subject to the automatic enrolment rules; and

• (b) must become a member of a KiwiSaver scheme under subpart 2 of this Part.

(2) The employee must continue to be a member of a KiwiSaver scheme until the earliest of—

• (a) an opt-out notice taking effect; or

• (b) the KiwiSaver end payment date referred to in clause 4 of the KiwiSaver scheme rules (which relates to lock-in of funds); or

• (c) the provider terminating the employee’s membership of a KiwiSaver scheme under clause 4(5) of the KiwiSaver scheme rules (which relates to zero account balances); or

• (d) the date of withdrawal or transfer to a foreign scheme in the case of permanent emigration under clause 14 of the KiwiSaver scheme rules.

(3) The employee continues to be liable for automatic deduction of contributions in accordance with subsection (1)(a) in respect of salary or wages until the earliest of—

• (a) the dates referred to in subsection (2); or

• (b) the date on which section 62 otherwise applies to that payment of salary or wages.

Every employee to whom the automatic enrolment rules apply when starting new employment may opt out at any time in the period beginning on the 13th day after the date on which the person started the new employment and ending on the close of the 55th day after the date on which the person started the new employment.

(1) Every employee who wishes to opt out must, within the time limit in section 16, give an opt-out notice either—

• (a) to the Commissioner; or

• (b) to the employer in respect of the new employment that triggered the automatic enrolment rules.

(2) An opt-out notice must be—

• (a) given in the form of the opt-out notice in an information pack; or

• (b) given in any other form and manner permitted by the Commissioner.

(3) In order to be effective, an opt-out notice must contain the information required by that form or by the Commissioner, as the case may be.

(4) An opt-out takes effect on the later of—

• (a) the 13th day after the date on which the person started the new employment that triggered the automatic enrolment rules; and

• (b) the date on which the opt-out notice is—

  • (i) accepted by the Commissioner, in the case of a notice given to the Commissioner; or

  • (ii) received by the employer, in the case of a notice given to the employer.

(5) An employer who receives an opt-out notice must give notice of that opt-out to the Commissioner no later than the time that the next employer monthly schedule is required to be delivered to the Commissioner under sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of the Income Tax Act 2007 and sections 24J and 24P of the Tax Administration Act 1994.

(6) For the purposes of sections 17 to 20, a PAYE intermediary (within the meaning of section YA 1 of the Income Tax Act 2007) acting under sections RP 2 and RP 6 to RP 16 of that Act is treated as an employer.

(1) This section applies if—

• (a) an employee gives an opt-out notice outside the time limit in section 16; and

• (b) 1 or more of the following applies:

  • (i) the employer did not supply the employee with an information pack within 7 days of the employee starting new employment with the employer; or

  • (ii) the Commissioner did not send an investment statement under section 50(3)(c); or

  • (iii) the employer did not supply an investment statement under section 43 (if an employer’s choice of KiwiSaver scheme is effective); or

  • (iv) events outside the control of the employee meant that the opt-out notice could not be given within the time limit and, in the opinion of the Commissioner, it is reasonable that a late opt-out notice be accepted; or

  • (v) a mistake described in section 59A(b) has occurred.

(2) The Commissioner may accept the opt-out notice, if it is received by the Commissioner or the employer in the period that ends 3 months after the date on which the Commissioner receives the first contribution in respect of the employee.

(3) If an opt-out notice is received by the Commissioner outside the time limit in section 16, and the Commissioner does not exercise his or her discretion to accept it under this section, the Commissioner must treat the notice as if it were an application for a contributions holiday under section 102, if the person could have applied under that provision.

The Commissioner must, as soon as practicable after accepting an opt-out notice from an employee, give notice to the employee’s employer in respect of the new employment that triggered the automatic enrolment rules stating that—

• (a) the employee has opted out; and

• (b) the employer must not make any further deductions of contributions in respect of the employee, from the effective date of the opt-out.

(1) An employee who opts out ceases, on the date on which the opt-out takes effect under section 17(4), to be a member of any KiwiSaver scheme of which the employee might have become a member.

(2) The employer must stop making deductions, with effect on the next payment of salary or wages that the employer calculates,—

• (a) if the employee opts out by giving the opt-out notice to the employer, after the effective date of the opt-out notice under section 17(4); or

• (b) if the employee opts out by giving the opt-out notice to the Commissioner, after the date on which the employer receives notice of the employee opting out under section 19.

(3) The employer may refund any deduction to the employee, rather than pay it to the Commissioner.

An opt-out notice given in respect of one employment terminates the application of the automatic enrolment rules only in respect of that one employment, and does not apply to any other new employment in respect of which the employee may become subject to the automatic enrolment rules in the future.

(1) Every person who starts new employment must give notice to the employer of—

• (a) his or her name and address; and

• (b) his or her tax file number; and

• (c) whether or not he or she is already a member of a KiwiSaver scheme and, if that person is a member, must either—

  • (i) give to his or her employer a KiwiSaver deduction notice; or

  • (ii) give or show to his or her employer a copy of a notice given by the Commissioner under section 105 that grants a contributions holiday that has not yet ended; or

  • (iii) give his or her employer a non-deduction notice.

(2) That information must be given as soon as practicable after the person starts the new employment.

(3) A person who is in temporary employment and who is a member of a KiwiSaver scheme may give their temporary employer a KiwiSaver deduction notice.

(1) Every employer of a person who starts new employment must give notice to the Commissioner of the information referred to in section 22(1)(a) and (b) that the employee gives the employer, if the employer is satisfied that the employee is subject to the automatic enrolment rules.

(2) That information must be given no later than the time that the employer is next required to deliver an employer monthly schedule to the Commissioner under sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of the Income Tax Act 2007 and sections 24J and 24P of the Tax Administration Act 1994 after the information is given to the employer.

For the purposes of sections 22 and 23, a PAYE intermediary (within the meaning of section YA 1 of the Income Tax Act 2007) acting under sections RP 2 and RP 6 to RP 16 of that Act is treated as an employer.

(1) A person who starts new employment with an exempt employer is exempt from the automatic enrolment rules.

(2) For the avoidance of doubt, subsection (1)—

• (a) does not prevent an employee of an exempt employer from opting in under this subpart; and

• (b) does not prevent a person who is already a member of a KiwiSaver scheme from becoming liable for automatic deduction of contributions from the salary or wages paid in respect of employment with an exempt employer under section 15(1)(a)(ii) or 36(1)(a)(ii).

(1) An employer is eligible to be approved as an exempt employer if the FMA is satisfied that the employer provides access to a superannuation scheme for its employees that complies with the following rules:

• (a) every person who becomes, on or after the date of commencement of the automatic enrolment rules, a permanent employee (including a part-time employee) of that employer, and who is aged 18 or over but less than the New Zealand superannuation qualification age, must be eligible, in practice, at the time when the person so becomes an employee,—

  • (i) to become a member of the scheme; and

  • (ii) to transfer to the scheme the member’s accumulation in relation to other superannuation schemes (to the extent that transfers are available from those other superannuation schemes); and

• (b) the scheme must be a registered superannuation scheme that is registered on or before 7 October 2009; and

• (bb) [Repealed]

• (c) the trust deed of the scheme must have the effect that each member who satisfies the scheme’s requirements for a withdrawal benefit, and who elects to withdraw from membership of the scheme, may transfer the member’s accumulation to another registered superannuation scheme or KiwiSaver scheme (to the extent that transfers are available to those other schemes); and

• (d) the trust deed of the scheme must provide for an amount equal to at least 4% of annual gross base salary or wages to be contributed to, or otherwise credited within, the scheme in respect of each person who becomes, on or after the date of commencement of the automatic enrolment rules, a permanent employee of that employer and a member of the scheme.

(2) However, subsection (1)(d) does not apply—

• (a) to the extent that an employee is, in accordance with the terms of the scheme, temporarily relieved from contributions at that rate (for example, in the event of financial hardship); or

• (b) if the scheme is a defined benefit scheme of a type that does not satisfy the 4% minimum amount rule in subsection (1)(d), and if the actuary of the scheme certifies, to the satisfaction of the FMA, that the value of each employee’s accrued benefits to be provided by the scheme is, as a matter of fact, increasing, during each membership period, by an amount at least equivalent to such minimum amount that would otherwise be required by this section and section 26.

(3) In this section,—

(1) For the purposes of section 25(1)(d),—

• (a) the minimum amount required by section 25(1)(d) may be made up—

  • (i) entirely of contributions by the employee; or

  • (ii) entirely of contributions by an employer; or

  • (iii) partially of contributions by the employee and partially of contributions by an employer; and

• (b) the minimum amount required by section 25(1)(d) must be treated as satisfied if the sum of the following amounts is equal to at least 4% of annual gross base salary or wages:

  • (i) the minimum prescribed amount that the employee must contribute:

  • (ii) the maximum prescribed amount that the employer would be required to contribute if the member were to contribute the maximum prescribed amount:

• (c) any amount contributed to the scheme by an employer in respect of an employee does not count towards the minimum amount required by section 25(1)(d) unless—

  • (i) the employee is legally entitled to require the employer to contribute that amount on his or her behalf; and

  • (ii) the trust deed of the scheme provides for the minimum amount required by section 25(1)(d) to vest completely in the employee no later than the time when the employee begins his or her sixth year as a member of the scheme; and

• (d) any amount contributed to the scheme by an employer in respect of an employee must be calculated, for the purposes of the minimum amount required by section 25(1)(d), before any ESCT payable under the ESCT rules is deducted.

(2) Subsection (1)(b) does not limit subsection (1)(c) or (d).

An employer who provides access to more than 1 superannuation scheme for its employees is eligible to be approved as an exempt employer if the FMA is satisfied that, if all of those schemes were considered as a whole (as if they were 1 scheme), the rules in section 25 would be complied with.

An employer who provides access to a superannuation scheme for its employees that is established under a master trust is eligible to be approved as an exempt employer if the FMA is satisfied that the rules in section 25 would be complied with if the FMA considered only—

• (a) the master trust in so far as it relates to the employer’s scheme; and

• (b) the participation agreement executed between the employer and the trustees of the master trust in relation to the membership of the employer’s employees in the scheme; and

• (c) anything else that the FMA decides is relevant to evidencing compliance with the rules in section 25, in respect of the employer’s employees.

(1) A person may make an application to the FMA for approval of an employer (the current employer) as an exempt employer if,––

• (a) an application (the old application) was received by the Government Actuary on or before 19 November 2009; and

• (b) as a result of the Government Actuary's consideration of that old application under section 30 an employer was approved as an exempt employer; and

• (c) either that exempt employer is the current employer, or the current employer is a succeeding employer for that exempt employer.

(2) The application must be accompanied by—

• (a) information that satisfies the FMA that the scheme complies with the rules in section 25; and

• (b) the names, addresses, and tax file numbers of each employer in respect of whom the application is made; and

• (c) if the application is made in respect of an employer that is part of a group of companies, such details of the names, addresses, tax file numbers, and payroll arrangements of any other members of the group that the FMA may request.

(3) In this section succeeding employer means, for an exempt employer,––

• (a) an employer who succeeds the exempt employer due to a merger or acquisition of the exempt employer; and

• (b) another employer who succeeds a succeeding employer for the exempt employer due to a merger or acquisition of that succeeding employer.

(1) The FMA must, within 28 days after receiving an application that may be made under section 29(1) and the documents required under section 29(2) to accompany the application,—

• (a) consider whether the FMA is satisfied that each employer in respect of whom the application is made is eligible to be approved as an exempt employer; and

• (b) if so satisfied, approve the employer as an exempt employer and register the employer on the register of exempt employers.

(2) The FMA must—

• (a) give notice to the employer as soon as practicable after approving, or declining to approve, the employer as an exempt employer; and

• (b) specify in that notice an effective date after which an employee who starts new employment with the employer will be exempt from the automatic enrolment rules (unless those rules do not otherwise apply).

(1) The FMA may revoke an approval given under section 30 if—

• (a) the FMA has given not less than 28 days’ notice to the employer that the FMA is considering whether to revoke the approval; and

• (b) the FMA is satisfied on reasonable grounds that the employer no longer provides access to a scheme for its employees that complies with the rules in section 25.

(2) The revocation may be on application by the employer or on the FMA's initiative.

(3) The FMA must—

• (a) give notice to the employer as soon as practicable after revoking the approval; and

• (b) specify in that notice an effective revocation date after which an employee who starts new employment with the employer will be subject to the automatic enrolment rules (unless those rules do not otherwise apply); and

• (c) remove the employer from the register of exempt employers.

The FMA must give notice to the Commissioner as soon as practicable after an employer is approved under section 30 or an approval is revoked under section 31.

A person may opt in at any time provided—

• (a) the person is less than the New Zealand superannuation qualification age; and

• (b) the person is not already a member of a KiwiSaver scheme; and

• (c) the person is not subject to the automatic enrolment rules.

(1) A person who is 18 years or more and who wishes to opt in may do either or both of the following:

• (a) contract directly with a provider of a KiwiSaver scheme to become a member of a KiwiSaver scheme:

• (b) if the person is an employee, give his or her employer a KiwiSaver deduction notice.

(2) A person who opts in by giving his or her employer a KiwiSaver deduction notice must give the employer—

• (a) his or her name and address; and

• (b) his or her tax file number.

(3) The employer must give notice to the Commissioner of the information that the employee gives the employer under subsection (2), if the employer is satisfied that the employee is eligible to opt in under section 33.

(4) That information must be given no later than the time that the employer is next required to deliver an employer monthly schedule to the Commissioner under sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of the Income Tax Act 2007 and sections 24J and 24P of the Tax Administration Act 1994.

(5) For the purposes of sections 34 to 37, a PAYE intermediary (within the meaning of section YA 1 of the Income Tax Act 2007) acting under sections RP 2 and RP 6 to RP 16 of that Act is treated as an employer.

(1) A person who is less than 18 years may only opt in in accordance with this section.

(2) A person who is less than 16 years may opt in if all their guardians contract directly with a provider, in the name of the person. If the provider accepts the person, then the person is treated as––

• (a) contracting directly with the provider; and

• (b) 18 years for the purposes of the Minors' Contracts Act 1969; and

• (c) opting in under section 34(1)(a).

(3) A person who is 16 or 17 years old with a guardian or a CYPFA guardian may opt in if the person and 1 of their guardians or CYPFA guardians jointly contract directly with a provider, in the name of the person. If the provider accepts the person, then the person is treated as––

• (a) contracting directly with the provider; and

• (b) 18 years for the purposes of the Minors' Contracts Act 1969; and

• (c) opting in under section 34(1)(a).

(4) A person who is 16 or 17 years old with no guardian may opt in if the person contracts directly with a provider. If the provider accepts the person, then the person is treated as––

• (a) 18 years for the purposes of the Minors' Contracts Act 1969:

• (b) opting in under section 34(1)(a).

(5) A person who is less than 16 years with a CYPFA guardian may opt in if the CYPFA guardian (independently from the person, and from all other, if any, CYPFA guardians, guardians, or both, of the person) contracts directly with a provider, in the name of the person. If the provider accepts the person, then the person is treated as––

• (a) contracting directly with the provider; and

• (b) 18 years for the purposes of the Minors' Contracts Act 1969; and

• (c) opting in under section 34(1)(a).

(6) If a person who is less than 16 years with a CYPFA guardian is a member of a KiwiSaver scheme (whether opted into before or while the CYPFA guardian's guardianship has effect), the CYPFA guardian has for the purposes of this Act authority (instead of all guardians, if any, of the person, and independently from the person, and from all other, if any, CYPFA guardians of the person) to make decisions (for example, voluntary transfer decisions), or to take other steps, in respect of the person's membership of the scheme.

(1) An employee who opts in under section 34(1)(a) or (b)—

• (a) is liable in accordance with subpart 1 of Part 3 to deduction of contributions—

  • (i) from the salary or wages paid by the employee’s employer; and

  • (ii) from the salary or wages paid in respect of any other new employment that the employee starts after opting in; and

• (b) must become a member of a KiwiSaver scheme under subpart 2 of this Part.

(1B) If an employee to whom subsection (1)(a)(i) applies has more than 1 employer who pays salary or wages to them, then, despite subsection (1)(a)(i), they may choose 1 or more employers who must make deductions of contributions from salary or wages in accordance with subpart 1 of Part 3.

(2) The employee must continue to be a member of a KiwiSaver scheme until the earliest of—

• (a) the KiwiSaver end payment date referred to in clause 4 of the KiwiSaver scheme rules (which relates to lock-in of funds); or

• (b) the provider terminating the employee’s membership of a KiwiSaver scheme under clause 4(5) of the KiwiSaver scheme rules (which relates to zero account balances); or

• (c) the date of withdrawal or transfer to a foreign scheme in the case of permanent emigration under clause 14 of the KiwiSaver scheme rules.

(3) The employee continues to be liable for automatic deduction of contributions in accordance with subsection (1)(a) in respect of salary or wages until the earliest of—

• (a) the dates referred to in subsection (2); or

• (b) the date on which section 62 (other than section 62(a)) otherwise applies to that payment of salary or wages.

A person other than an employee who opts in must continue to be a member of a KiwiSaver scheme until the earliest of the events in section 36(2).

(1) Every provider who contracts directly with a person (A) for membership of its KiwiSaver scheme must give notice to the Commissioner of that fact as soon as practicable after entering into the contract.

(2) The notice must include all of the following information:

• (a) A’s name and address; and

• (b) A’s tax file number; and

• (c) the date of the first contribution received by the provider in respect of A (if any); and

• (d) if A is an employee,—

  • (i) the name and address of each of A’s employers in respect of whom deductions of contributions are to be made from salary or wages; and

  • (ii) the contribution rate in relation to each of those employers; and

• (e) the name and address and tax file number of both the provider and the scheme; and

• (f) any other information that the Commissioner requires.

The Commissioner must, as soon as practicable after receiving a notice under section 38 in respect of an employee who has opted in, give notice to each of the person’s employers to whom the opt-in notice relates, stating—

• (a) that the employer must start to make deductions of contributions from each payment of the person’s salary or wages that is calculated by the employer after the date on which the employer receives the notice under this section; and

• (b) the contribution rate; and

• (c) the person’s name and tax file number.

(1) The Commissioner must initially supply to each employer the number of information packs that the Commissioner reasonably believes will be a sufficient number to enable the employer to meet the employer’s obligations to supply information packs under this Act.

(2) The Commissioner must also supply 1 or more information packs, on any reasonable request, to any person who so requests.

Every information pack supplied by the Commissioner under this subpart must contain—

• (a) a description of the overall KiwiSaver scheme; and

• (b) a statement that membership of the overall KiwiSaver scheme, and of any individual KiwiSaver scheme, is at the member’s own risk; and

• (c) a summary of what could happen under the default allocation rules or if an employer has a chosen KiwiSaver scheme; and

• (d) a description of how to access information about KiwiSaver schemes; and

• (e) a statement that people should seek financial advice from a professional financial adviser (rather than an employer) if they want information in relation to—

  • (i) their personal financial circumstances; or

  • (ii) deciding whether to opt in or opt out or not; or

  • (iii) choosing a KiwiSaver scheme or investment product of a KiwiSaver scheme; or

  • (iv) the overall KiwiSaver scheme or its financial concepts; and

• (f) an opt-out notice form; and

• (g) a statement about collection of personal information that complies with principle 3 of the information privacy principles in the Privacy Act 1993; and

• (h) any other prescribed information.

(1) Every employer must supply an information pack to—

• (a) each employee who starts new employment with the employer and to whom the automatic enrolment rules apply, within 7 days of the employee starting the new employment; and

• (b) each employee who opts in under section 34(1)(b), within 7 days of the employee giving the employer the KiwiSaver deduction notice; and

• (c) each employee who requests an information pack in contemplation of opting in.

(2) An employer is not liable for a penalty for a failure to supply an information pack under this section if the employer proves that—

• (a) the failure of the employer to supply the information pack was caused by the fact that the Commissioner had not given the employer enough information packs to enable the employer to meet its obligations under this Act; and

• (b) the employer notified the Commissioner that the employer needed more information packs, as soon as practicable after realising that the employer did not have enough.

Every employer who supplies an information pack under section 42 must also, if an employer’s choice of KiwiSaver scheme is effective under section 47, supply to the employee at the same time—

• (a) an investment statement for that scheme; and

• (b) a statement that, if the employee does not choose his or her own KiwiSaver scheme, the employee will be allocated to the employer’s chosen KiwiSaver scheme (and not to one of the default KiwiSaver schemes by the Commissioner).

This subpart provides for people to be allocated to KiwiSaver schemes—

• (a) by the person choosing his or her own KiwiSaver scheme; or

• (b) if the person does not so choose, but if his or her employer has a chosen KiwiSaver scheme, by the person being allocated to the employer’s chosen KiwiSaver scheme; or

• (c) in any other case, by the person being allocated to a default KiwiSaver scheme nominated by the Commissioner.

A person may, at any time, choose the KiwiSaver scheme of which he or she will be a member by contracting directly with the provider of the scheme to become a member of that scheme.

(1) An employer may, at any time, choose a KiwiSaver scheme of which the employer’s employees will become members if the employees do not choose their own KiwiSaver scheme.

(2) However, an employer may choose a KiwiSaver scheme under this section only if all permanent employees of the employer are eligible to be members of the scheme (to the extent that this Act applies to the employees).

(3) In this section, permanent employees means employees—

• (a) who are not employed in temporary employment (as described in section 12); and

• (b) to whom the automatic enrolment rules apply, or would apply but for the application of section 14.

(1) The method by which an employer may choose a KiwiSaver scheme is—

• (a) by agreeing with the provider that the provider will provide access to the scheme for the employer’s employees; and

• (b) by giving notice to the Commissioner of—

  • (i) the name, address, and tax file number of the employer; and

  • (ii) the name, address, and tax file number of both the provider and the chosen KiwiSaver scheme.

(2) The employer’s choice of KiwiSaver scheme is effective—

• (a) as from the date on which the notice in subsection (1)(b) is accepted by the Commissioner, or on any later date specified in the notice; and

• (b) until the effective date of the earliest of any of the following notices:

  • (i) notice given by the employer to the Commissioner of an alternative choice of scheme under subsection (1); or

  • (ii) notice given by the employer to the Commissioner stating that the employer no longer has a chosen KiwiSaver scheme; or

  • (iii) notice given by the Commissioner to the employer stating that the employer’s choice of KiwiSaver scheme has been revoked by the Commissioner on the grounds that the Commissioner is not satisfied that the scheme is eligible to be the employer’s chosen scheme under section 46.

(1) This section applies when—

• (a) an employer’s choice of KiwiSaver scheme is effective under section 47; and

• (b) an employee of the employer has not directly contracted to be a member of a KiwiSaver scheme with the provider of a scheme; and

• (c) the employee is an employee—

  • (i) to whom the automatic enrolment rules apply; or

  • (ii) who opted in under section 34(1)(b); and

• (d) more than 3 months have passed since the Commissioner received the first contribution in respect of the employee; and

• (e) there is no relevant dispute under section 212 or 213 in relation to Part 2 or 3.

(2) On the first day that this section applies, the employee is treated as having—

• (a) offered to be a member of the employer’s chosen KiwiSaver scheme; and

• (b) subscribed for securities in that scheme.

(3) The provider of the employer’s chosen KiwiSaver scheme must accept that offer and allot those securities.

(4) The membership contract of the KiwiSaver scheme is binding on the employee and the provider, and enforceable as if it were a contract that was freely and voluntarily entered into.

(5) The contract may be amended or replaced or otherwise terminated, and the allotment of any securities relating to the contract may be voided, in the same way as if the contract were freely and voluntarily entered into.

(6) Subsection (5) is subject to section 220(3).

(7) The Commissioner must, as soon as practicable, give notice to the provider of the scheme of the employee’s name, address, date of birth (if known to the Commissioner), tax file number, and any other personal information that the Commissioner considers relevant.

(1) A notice under section 47(2)(b) does not affect any person who became a member of a KiwiSaver scheme while the scheme was the employer’s chosen KiwiSaver scheme.

(2) However, subsection (1) does not limit section 119G (which provides for transfers without consent in certain circumstances).

(1) This section applies, in respect of a person who is an employee of an employer and their employment with that employer, when the Commissioner has received from the employer,—

• (a) notice under section 23 of the person’s automatic enrolment; or

• (b) notice under section 34(3) of a person’s opt-in under section 34(1)(b).

(2) However, this section does not apply to a person referred to in subsection (1)(a) or (b)—

• (a) who is an employee of an employer whose chosen KiwiSaver scheme is effective under section 47; or

• (b) who has opted out; or

• (c) if the Commissioner has been notified by a provider that the person has become a member of a KiwiSaver scheme.

(3) As soon as practicable, the Commissioner must, in respect of the person’s employment with the employer,—

• (a) provisionally allocate, on a sequential basis, the person to a default investment product of a default KiwiSaver scheme that is nominated by the Commissioner; and

• (b) give notice to the person of that allocation, including the name and address of the provider of the nominated default KiwiSaver scheme, and of the name of the default investment product of that scheme, to which the person has been provisionally allocated; and

• (c) send to the person the investment statement relating to that product in that scheme; and

• (d) give notice to the person of what will happen if the person does not choose his or her own KiwiSaver scheme.

(4) Subsection (3) also applies, with necessary modifications, and as provided in section 57 in cases to which that section applies, to a person when—

• (a) the Commissioner receives notice under section 58 of the person having ceased to be eligible to be a member of his or her employer’s chosen KiwiSaver scheme; or

• (b) the Commissioner receives notice under section 173(1)(b) that the person must transfer to another scheme on a scheme's winding up and paragraph (bb) does not apply; or

• (bb) a scheme winds up, if that winding up is after the Commissioner receives notice under section 173(1)(b) that the person must transfer to another scheme on the scheme's winding up; or

• (c) the Commissioner receives notice under section 210(2); or

• (d) the Commissioner receives notice of any other situation where a person is not, or is no longer, eligible to become or be a member of a certain KiwiSaver scheme and needs to be allocated to a KiwiSaver scheme under this section in order to comply with this Act.

(1) This section and section 52 apply, at the final allocation date specified in subsection (4), to a person (A) who has been provisionally allocated under section 50 if the Commissioner has not been notified by that date by a provider that A has applied to become a member of a KiwiSaver scheme.

(1B) Despite subsection (1), subsections (4) and (5) do not apply if section 50(4)(b) or (bb) applies. Instead, the allocation under section 50(3) is treated as completed on the day on which it occurs.

(2) The Commissioner must give notice to A that the allocation of A is now completed as per the provisional allocation.

(3) The Commissioner must give notice to the provider of the default KiwiSaver scheme that A has been allocated to the scheme, and A’s name, address, date of birth (if known to the Commissioner), tax file number, and any other personal information that the Commissioner considers relevant.

(4) The final allocation date is—

• (a) in the case of a person referred to in section 50(1)(a) or (b), as soon as practicable after 3 months after the Commissioner receives the first contribution in respect of A:

• (b) in the case of a person referred to in section 50(4)(a), (c), or (d), 3 months after the date on which the Commissioner receives that notice.

(5) However, if a dispute in relation to Part 2 or 3 is underway under section 212 or 213 as at the date which would otherwise be the final allocation date, the final allocation date is the effective date of the notice given by the Commissioner to the effect that the dispute has been resolved or has otherwise been terminated.

(1) A person whose allocation is completed under section 51 is treated as having offered to become a member of that default KiwiSaver scheme and as having subscribed for securities in that scheme.

(2) The provider of the default KiwiSaver scheme to which the person has been allocated must accept that offer and allot those securities.

(3) The membership contract of the default KiwiSaver scheme is binding on the person and the provider, and enforceable as if it were a contract that was freely and voluntarily entered into.

(4) The contract may be amended or replaced or otherwise terminated, and any allotment relating to the contract may be voided, in the same way as if the contract were freely and voluntarily entered into.

(5) Subsection (4) is subject to section 220(3).