Frequently Asked Questions

 

• Join 'Online' in as little as 5 minutes.
• Download an Application Form - you can download the Huljich KiwiSaver Scheme Investment Statement and the Application Form here.
• Request an Investment Statement and Application Form - you can request an Investment Statement and Application Form to be sent to you here, or by calling 0800 20 40 60 or email kiwisaver@huljich.co.nz.

If you require any further information about the Huljich KiwiSaver Scheme or would like help in completing the application form call us on 0800 20 40 60 or email kiwisaver@huljich.co.nz

 

• Transfer 'Online' in as little as 5 minutes.
• Download an Application Form - you can download the Huljich KiwiSaver Scheme Investment Statement and the Application Form here.
• Request an Investment Statement and Application Form - you can request an Investment Statement and Application Form to be sent to you here, or by calling 0800 20 40 60 or email kiwisaver@huljich.co.nz.

As soon as we have processed your application form, we advise the IRD that you have chosen us as your KiwiSaver provider. If you are an employee, all of your contributions (including your $1,000 kick-start) will be held by the IRD for approximately the first three months. If you are self-employed or not employed, you can make contributions directly to us and the IRD will send through to us your $1,000 kick-start after approximately the first three months.

As soon as we process your application form, we advise the IRD that you have chosen us as your new KiwiSaver provider. We also send a transfer request to your previous provider after which they have up to 35 days to complete the transfer.

The kick-start will be paid into your KiwiSaver account approximately three months after you've joined or three months after Inland Revenue has received your first contribution from yourself or your employer (if earlier).

To be eligible for the matching government contribution:

• you must be 18 or over; and
  
• you must reside mainly in New Zealand, except when:
    - you're a government employee who's serving outside New Zealand; or
    - you're a person who's working overseas:
           - as a volunteer; or
           - for token payment for a charitable organisation named in the Student Loan Act regulations.
  

The matching government contribution is paid annually for the year beginning 1 July and ending 30 June. You don't have to do anything - we will claim the matching government contribution on your behalf from 1 July each year after which the IRD has 30 working days to process our claim.

To receive the maximum matching government contribution of up to $1,042.86 per year currently you must have:

• been a member of KiwiSaver or complying fund for the entire year; and
• contributed at least $1,042.86 yourself.

If you're joining KiwiSaver for the first time, the actual amount of the matching government contribution you receive will depend on when you became a KiwiSaver member and how much you have contributed.

If you are working age (broadly 18 to 65), your employer must contribute (in most cases) to your KiwiSaver account an amount equal to 2% of your gross Salary or Wages (excluding, for the purposes of employer contributions, ACC compensation and statutory parental leave payments).

Your employer contribution is forwarded to the IRD along with your own KiwiSaver contribution once per month through the PAYE system.  The IRD will the forward your employer contributions along with your own contributions to your account in the Scheme.

The standard rate of contribution for employees is an amount equal to 2% of gross Salary or Wages or you can choose to contribute an amount equal to 4% or 8%. If you do not make a choice then your contribution rate will be 2%.

Your contributions are paid by your employer to the IRD approximately one month after you receive your Salary or Wages. The IRD also has to process your contributions, so there is always a time lag between the contribution being deducted from Salary or Wages by the employer, and the funds being transferred to your chosen Huljich KiwiSaver Fund for investment. Please note that the IRD does not provide us with details as to which pay period each contribution relates, nor are we informed when we are likely to receive them.

There is no minimum commitment to the Huljich KiwiSaver Scheme - you decide how much or how little you would like to contribute. The government will match your contributions up to $20 per week ($1,042.86 per year), so if you contribute at least this amount then you receive the most benefit from KiwiSaver. You can contribute any amount you like via a direct debit authority form or by sending us a cheque to Huljich KiwiSaver Scheme, c/o Trustees Executors Limited, PO Box 409, Wellington 6140.

There is no minimum commitment to the Huljich KiwiSaver Scheme - you decide how much or how little you would like to contribute into your child's KiwiSaver account. Any money contributed can be taken out and put towards buying a first home (after three years' membership). So not only will the child have some or all of a deposit for a house, but they will also have a significant retirement package. You can contribute any amount you like via a direct debit authority form or by sending us a cheque to Huljich KiwiSaver Scheme, c/o Trustees Executors Limited, PO Box 409, Wellington 6140.

If you have been a KiwiSaver member for three years and you are buying your first home (that you will live in, not an investment property), you can withdraw:

• Your Contributions
• Employer Contributions
• Investment Returns on contributions
  

You cannot withdraw:

• $1,000 kick-start
• Matching government contribution of up to $20 per week ($1,042.86 per year)

If in the past you have bought a first home but you do not currently own a home (i.e. you are in the same financial position as a first home buyer), you may be eligible for the home deposit withdrawal as a "second chance" buyer.

The government may give you another $1,000 for every year you contribute to KiwiSaver (minimum 3 years or $3,000, maximum 5 years or $5,000) to go towards a deposit for your first home.

To qualify for the deposit subsidy, members of KiwiSaver must:

• have made regular contributions to KiwiSaver for at least three years (so the minimum deposit subsidy is $3,000);
• be first home buyers or a "second chance" buyer (see below);
  
• be buying a lower quartile price house (currently lower quartile house prices are set at $400,000 in higher prices areas such as North Shore City, Auckland City and Queenstown Lakes District, and $300,000 in the rest of New Zealand); and
  
• have a household income of less than $100,000 (for one or two people), or less than $140,000 (for more than two people).

Recipients of the deposit subsidy must have an intention to live in the house for at least six months.

The eligibility criteria relating to the income caps and regional house price caps will be reviewed in 2009 before the policy takes effect. Though the subsidy is intended principally for first home buyers, it is also proposed that the facility cover "second chance" home buyers who are in the same financial situation as first home buyers (and have a determination from Housing New Zealand to that effect). Visit the Housing Corporation of New Zealand website for more information.

KiwiSaver is voluntary. KiwiSaver members have the ability to stop and start contributing as they wish by applying for a contributions holiday (i.e. a member stops making contributions from their Salary or Wages). Members will not be able to take a contributions holiday until they have been making contributions to the scheme for at least 12 months (except if financial hardship is experienced within the 12 months). If a member goes on a contributions holiday their employer will not be required to make compulsory employer contributions. If a member stops making contributions altogether (i.e., stops making contributions from Salary or Wages and stops making voluntary contributions) they will stop receiving the matching government contributions.

You can withdraw your savings, including the government kick-start and other government contributions, as a lump-sum or regular payments when you qualify for NZ Superannuation (currently 65) or after five years for those people who join after age 60.

In some cases you may be able to make an early withdrawal of part (or all) of your savings, including any employer contributions that have been paid into your account.

• If you are buying your first home (after three years' membership) you can withdraw all of your own contributions, employer contributions and any investment returns (but not the government money).
• If you emigrate permanently (after a year) you can withdraw everything (including the $1,000 kickstart) but not the government matching contribution of up to $1,042.86 per year (this is repaid to the government).
• If you experience significant financial hardship you can withdraw all of your own contributions, employer contributions and any investment returns (but not the government money).
• If you suffer serious illness you can withdraw all of the money.

Your KiwiSaver money is your personal money so it will be paid out to your estate, on request.

KiwiSaver will become part of relationship property, therefore falling under the Property (Relationships) Act 1976 and will be taken into account in the event of separation. The Trustee must comply with the provisions of any law or Court order that requires it to release some or all of the member's Scheme entitlement.

Once you join or transfer you will receive a welcome letter which will confirm your membership of the Huljich KiwiSaver Scheme and will notify you of your membership number. Following that, we will keep you up-to-date on how your savings are growing with daily performance updates here. You will also receive:

• FundWatch - the Huljich quarterly newsletter, which will keep you up-to-date with the performance of your chosen Huljich KiwiSaver Fund, general KiwiSaver news and our view on the New Zealand economy;
• Annual transaction statements; and
• Annual reports.

You can help protect the environment by choosing to receive your correspondence paper-free, by email. Click here.

No.

Yes. There is no minimum lump sum contribution amount.

Yes. You can switch between the three Funds anytime at no cost.

The 2% minimum contribution rate only applies to your employment income. Any other person who is not in employment (provided they are under 65) can contract with us by contributing as much or as little as they like (we do not have a minimum regular direct debit contribution amount).

After three years membership you will be able to withdraw all your own contributions, your employer's contributions and any investment returns to put towards buying your first home. This must be your first home (unless Housing New Zealand notifies Huljich that your financial position in terms of income, assets and liabilities in what would be expected of a person who has never owned a home in which case you may apply it to purchase a subsequent home). You will not be able to withdraw the matching government contributions or the $1,000 kick-start; however you will be able to withdraw any returns generated on those contributions. The home withdrawal facility only applies for the purchase of your principal place of residence (and you will have to sign a statutory declaration to that effect), which means you will not be able to withdraw any funds to purchase an investment property.

An IRD number and a copy of their birth certificate (unless they are transferring form another KiwiSaver scheme, in which case you do not need to supply any identification on behalf of your child). To obtain your IRD number please call the IRD on 0800 227 774.

Once we have received and processed your application form we will forward your details on to the IRD. The IRD will then send your employer a letter advising that you have joined a KiwiSaver scheme and to begin making deductions if not already doing so. This notification process may take some time so to avoid any potential delays we recommend that you advise your employer you have joined KiwiSaver, how much you want to contribute and when you want your contributions to commence.

KiwiSaver schemes are portable, which means you can continue to contribute to the same scheme even if you change jobs. Even if your employer has chosen a Preferred Provider, you still have the choice to opt into any publicly offered KiwiSaver scheme. If you start new employment and do not notify your contribution rate to your new employer the 2% rate will apply.

Because you can only have one KiwiSaver account, it is easy for any or all of your employers to deduct KiwiSaver contributions from your pay and ensure that they go to your KiwiSaver account, even if you have deductions from two (or more) jobs. After 12 months of membership you can decide whether to continue contributing from each of your jobs, or take a contributions holiday so you only contribute from one or more of your jobs (or none at all).

If you opt-in at a time when you have more than one job, you may choose one or more employers to deduct KiwiSaver contributions from your gross Salary or Wages.

If you opt-in at a time when you have one job, but you subsequently start a second job after opting-in, you must have both employers deduct KiwiSaver contributions from your gross Salary or Wages.

If you are automatically enrolled and you subsequently start a second job after you become subject to the automatic enrolment rules, you must have both employers deduct KiwiSaver contributions from your gross Salary or Wages. You have the ability to opt-out in respect of both jobs.

If you are automatically enrolled and you already have a job you do not need to have KiwiSaver contributions deducted from the job you already have that has not triggered the automatic enrolment rules.

As an employer, you will play an important role in helping your employees save through KiwiSaver. Your main roles in KiwiSaver are to:

• Provide all new employees with a KiwiSaver information pack KS3 within seven days of starting work (those employers that already have their own superannuation scheme that meets certain criteria can apply to the Government Actuary for an exemption from the KiwiSaver automatic enrolment rules);
• Provide all existing employees with a KiwiSaver information pack KS3 within seven days of them opting in (irrespective of whether or not you are an exempt employer);
• Provide information to Inland Revenue about all new employees who qualify for automatic enrolment and eligible employees who want to opt in to KiwiSaver;
• Deduct KiwiSaver contributions and forward them to Inland Revenue along with your monthly PAYE statements;
• Act on opt-out and contributions holiday requests; and
• Stop or start deductions when Inland Revenue advises you to.
  

Selecting a preferred KiwiSaver provider does not mean any employer is providing investment advice.

Yes. You need to fill out the direct debit form, include your child's or grandchild's name under the investor name and fill in your bank account details and sign it and date it. Alternatively, you can send in a cheque addressed to 'The Huljich KiwiSaver Scheme'. On the back of the cheque please note your child's or grandchild's name and their IRD number or Huljich account number.

We note that grandparents cannot sign up their grandchildren in the Scheme, unless they are the grandchildren's legal guardian.

If you're currently an employee and you're eligible for KiwiSaver, you can choose to join the Huljich KiwiSaver Scheme. To join, please contact us or apply directly by clicking here. We will inform the IRD of your enrolment who will tell your employer to start deducting contributions from your Salary or Wages. To speed up the process, you can also let your employer know that you have joined KiwiSaver.

You can join KiwiSaver as well as be a member of another superannuation scheme. However, you can only get the matching government contribution (up to $1,042.86 per year) on contributions made to a KiwiSaver scheme or (on a KiwiSaver-equivalent "locked in" basis) to a complying superannuation fund. If your employer is contributing to your current superannuation scheme, then these contributions may discharge the compulsory employer contributions obligation, meaning that your employer may not be required to make compulsory contributions to your KiwiSaver scheme as well.

Other superannuation schemes (not complying superannuation funds) may prescribe an offset so that, in total, employer contributions to KiwiSaver and the superannuation scheme are equivalent to the required employer contributions to the superannuation scheme - meaning that you don't get the employer subsidy through the superannuation scheme as well as compulsory contributions to KiwiSaver.

Yes, you will be eligible to receive the matching government contribution if you are making contributions into a KiwiSaver scheme. The amount of matching government contribution you receive will depend on the level of contributions you make over the year and the period of the year you have been a member of the Scheme, but the amount of the matching government contribution will not exceed $1,042.86 per year. As you are not currently employed, you will not be entitled to compulsory matching employer contributions.

Yes, you can join KiwiSaver before you leave New Zealand. You will be eligible for the $1,000 kick-start. While you are living in New Zealand (and making contributions) you will also be eligible for the matching government contribution and, if you are contributing through your New Zealand employer, your employer is required to contribute into your KiwiSaver account too. Once you move overseas and your principal place of residence is no longer New Zealand you can continue making contributions but you will not be entitled to receive matching government contributions.

If you choose to permanently emigrate, and wish to withdraw your funds and close your KiwiSaver account, then the matching government contributions you have received since joining will be returned to the government. The investment returns made on those matching government contributions are yours to withdraw, as is the $1,000 kick-start (and any employer contributions).

Anyone under the age of 65 can join KiwiSaver. If you join, you will receive the $1,000 kick-start from the government. You will also receive the matching government contribution up to $20 per week ($1,042.86 per year) that will be paid directly into your KiwiSaver account. You will be able to withdraw your KiwiSaver funds at age 65, or after five years of membership, whichever is later. Once you become eligible for this withdrawal, you will cease being eligible for matching government contributions in respect of your contributions and compulsory employer contributions even if you continue contributing to KiwiSaver.

The rights and freedoms affirmed in the New Zealand Bill of Rights, including the right to be free from age discrimination, may be subject to reasonable limitations that are justifiable.

KiwiSaver aims to encourage a long-term savings habit and asset accumulation to improve financial well-being, particularly in retirement. Member contributions are 'locked in' (with some exceptions) until then. Eligibility conditions are rationally and proportionately connected to the KiwiSaver Act's objective and, in the government's view, are consistent with the Bill of Rights because the eligibility conditions are a reasonable limit that is justifiable.

In addition, New Zealanders aged 65 years old or over qualify to receive New Zealand Superannuation which is not income tested.

Your employer is not able to prevent you from joining KiwiSaver if you wish to do so. Under the KiwiSaver Act 2006, employers must provide access to KiwiSaver and make payroll deductions of KiwiSaver contributions if you join KiwiSaver.

No. The compulsory employer contribution is currently 2%. However, your employer can voluntarily contribute more than 2%, but contributions above 2% or those at any rate that are not matched by employee contributions will be subject to contribution tax at the applicable rate.

Under current income tax legislation, employer contributions to the Scheme which exceed the tax-exempt limit are taxed at the following ESCT rates:

• 12.5% if the total of your annual earnings and the before-tax employer superannuation contributions (comprising KiwiSaver Scheme and any registered superannuation scheme contributions) made for your benefit was not more than $16,800 in the previous income year (usually 1 April to 31 March);
• 21% (reducing to 20% on 1 April 2011) if the total of your annual earnings and the before-tax employer superannuation contributions made for your benefit was between $16,801 and $48,000 (increasing to $57,600 on 1 April 2009, then to $60,000 on 1 April 2010) in the previous income year; and
• 33% if the total of your annual earnings and the before-tax employer superannuation contributions made for your benefit was above the upper limit for the 21% (or, from 1 April 2011, 20%) rate in the previous income year.

Yes. 8% of salary or wages is the maximum contribution rate in respect of payroll deductions by your employer which can be passed through to the IRD through the employer's monthly PAYE statement. However, you can 'top up' this amount by paying an amount direct to us or through IRD. If you are self-employed or not employed, it is up to you how much or how little you would like to contribute into your KiwiSaver account.

Yes, it is the current Government's intention that KiwiSaver will not be a replacement for NZS. However, KiwiSaver will assist those who wish to have a better standard of living in retirement than would be possible if they were relying on NZS alone.