As a KiwiSaver scheme provider they will perform all of the usual functions of a superannuation scheme provider and/or administrator:

  • administering enrolments and withdrawals
  • allocating contributions
  • investing members’ contributions
  • meeting reporting requirements
  • working with Inland Revenue
  • promoting their own schemes
  • having the primary relationship with KiwiSaver members.

KiwiSaver is different from other superannuation schemes in that:

  • Inland Revenue administers the collection of contributions from the employer through the pay as you earn (PAYE) tax system
  • Inland Revenue forwards members’ contributions to their KiwiSaver scheme provider
  • there are technical requirements for interfacing with Inland Revenue
  • there may be different trust deed rules as different legislation applies
  • if their scheme is a default scheme or an employer-chosen scheme, they are required to accept all members default-allocated to them.

Types of scheme providers

The type of KiwiSaver scheme a member belongs to depends on whether they have:

  • selected the scheme themselves, or
  • been allocated a default scheme.

Eligible new employees are automatically enrolled in KiwiSaver and allocated a default scheme.

Employers may choose one scheme for all their employees, otherwise the employees will be allocated to one of six default schemes.

The employee then has:

  • eight weeks in which to decide whether or not they want to opt out, and
  • three months to seek financial advice and actively select their own scheme before the enrolment is finalised.

Existing employees can choose to apply to any KiwiSaver scheme provider, including the employer-chosen and default scheme providers.

Default scheme providers

The Government has appointed nine default providers to offer KiwiSaver schemes for people who don’t choose their own scheme. This process was managed by the Ministry of Business, Innovation and Employment. The default scheme providers are:

  • AMP Services (NZ) Limited
  • ANZ New Zealand Investments Limited
  • ASB Group Investments Limited
  • BNZ Investment Services Limited
  • Fisher Funds Management Limited
  • Grosvenor Investment Management Limited
  • Kiwi Wealth Limited
  • Mercer (NZ) Limited
  • Westpac New Zealand Ltd.

Default scheme providers have to accept all members allocated to them.

Active choice scheme providers

If they are not a default scheme provider they will be known as an active choice scheme provider. People will apply to them directly to join their scheme, but they are not bound to accept all applicants.

Employer-chosen scheme providers

If they are a scheme provider they can become an employer-chosen scheme provider. Employers may come to them to negotiate to become their employer-chosen scheme provider. While they have to accept all the employees allocated to them, the employee still has the option of opting out, or choosing another scheme.

Working with other providers

They work with other scheme providers when members change from one provider to another. They pass their member’s accumulated savings to the new scheme provider, along with the following information:

  • the date of their first contribution
  • whether they’ve had a housing withdrawal
  • whether they’ve received a kick-start
  • whether they’re on a contributions holiday
  • the amount of contributions saved.

If they require more information from a member’s previous scheme they can make that request directly to the “old” scheme provider.

Source: Ministry of Business, Innovation and Employment


The information contained in this blog is purely for generic purposes and is general information to bring the matter to the attention of the reader.

We highly recommend that should the reader choose to act on this information, they seek professional advice specific to their circumstances to obtain all information relevant to the subject. This blog should not be relied upon as the sole source of information for this purpose. This blog does not represent the opinion of the company, rather is the opinion of the writer about the facts on which it is based.