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The Government has appointed six investment companies to act as default providers for its KiwiSaver scheme, for workers who do not nominate a company.
The six default companies -- ASB, AMP, ING, Mercer, AXA and Tower -- will be ready to accept members when the workplace-based savings scheme is launched on July 1, 2007.
"The default providers are required to meet stringent criteria so as to ensure they are able to offer the kinds of retirement savings options New Zealanders want and need," said Finance Minister Michael Cullen.
The Government, which ran a competitive tender process, received a large number of applicants.
"I am heartened by the level of interest being shown by the savings industry, which gives me confidence that employees will have a good range of providers to choose from," Dr Cullen said.
KiwiSaver aimed to make it easier for employees to save, and develop better saving habits.
Employees can contribute 4 per cent or 8 per cent of their gross salary to the voluntary scheme, and receive a $1000 start-up grant from the Government. New employees are automatically enrolled, but can opt out.
One of the default providers, ASB, welcomed the announcement.
"Given the portability of KiwiSaver and the $1000 'kick start' benefit on offer from the Government, ASB anticipates that a large number of people will voluntarily opt into the scheme, particularly in situations where employers elect to contribute into their employees' KiwiSaver scheme," ASB Bank managing director Hugh Burrett said.
- NZPA
