Q: My wife and I moved to Rotorua from Australia eight years ago. She started teaching in 2009 as maternity cover, then fulltime from 2010. She had been given links for KiwiSaver by the payroll department in 2009 but didn't follow it up. Looking now at that link, the fund states it stopped taking new members with the KiwiSaver changes in 2008. By my calculations she has missed out on at least $12,500 of employer contributions and $4000 of Government contributions.
A: Unlike in Australia, where superannuation saving is compulsory, joining KiwiSaver is your choice. But employers are required to sign up all eligible new staff to KiwiSaver and immediately begin deducting and adding KiwiSaver contributions.
It is up to new staff to decide if they want to remain or opt out. There are limited exceptions to this automatic sign-up rule, including contractors, secondees and casual staff.
Chris Partridge, CEO of payroll specialists SmartPayroll, says employers are obligated to give new staff a KiwiSaver information pack (KS3) within seven days.
"The pack contains an introduction to KiwiSaver and a KS2 (joining) form. If the employee decides to join, they fill in the KS2 form stipulating if they want to make contributions at 3, 4 or 8 per cent.