Kiwisaver for Employees with Special Circumstances

KiwiSaver deductions and employer contributions may change depending on your employee’s situation.

Employees aged 60 years or over

There’s a withdrawal rule for employees who joined KiwiSaver before 1 July 2019. The rule is members must be in KiwiSaver for at least 5 years before they can withdraw their savings.

From 1 April 2020 your employee can choose to exit KiwiSaver when they turn 65. They do not need to be locked in for 5 years.

If your employee does not choose to exit KiwiSaver you’ll need to continue:

·         deducting KiwiSaver contributions from their pay (unless they’re on a savings suspension)

·         paying compulsory employer contributions.

Keep doing this until your employee either:

·         completes their 5 year lock in period

·         opts out during the lock in period (they can do this anytime after becoming eligible for NZ Super)

·         retires.

When any of these happens stop compulsory employer contributions.

An employee may continue their deductions beyond the 5 year lock in period. To stop they must give you a Non-deduction notice – KS51.

Employees on accident compensation

If you take part in the ACC partnership programme, or have an ACC employer reimbursement agreement, you continue:

·         paying an employee after an accident

·         deducting their KiwiSaver contributions from these payments.

Your employee can stop deductions from their pay with a savings suspension notice.

If your employee continues deductions, you can choose to continue making employer contributions.

When ACC pays weekly compensation to your employee, you can stop:

·         deductions from their pay

·         paying employer contributions.

Suspending KiwiSaver deductions and contributions

Employees on paid parental leave

If you continue to pay your employee while they’re receiving paid parental leave, keep:

·         deducting employee contributions

·         making employer contributions unless they’re on a savings suspension.

When an employee returns to work re-start deductions and your contributions.

Reference: https://www.ird.govt.nz/kiwisaver/kiwisaver-employers/contributions-and-deductions/employees-with-special-circumstances