Transfer from complying superannuation fund to KiwiSaver scheme

2010 legislation clarifies that people over the NZ Superannuation age who transfer from a superannuation fund to KiwiSaver will not receive the initial contribution.

Section 226 of the KiwiSaver Act 2006

A change has been made to the KiwiSaver Act to clarify that a person who is over the New Zealand Superannuation age and who transfers from a complying superannuation fund to a KiwiSaver scheme will not receive the initial Crown contribution. This $1,000 kick-start contribution is designed to encourage new savers to KiwiSaver and is inappropriate for those who are transferring from another scheme.

Background

A person aged over the New Zealand superannuation age cannot join KiwiSaver under the automatic enrolment rules, or by direct contract.

However existing members of a complying superannuation fund may transfer to a KiwiSaver scheme, either by choice or as a result of an involuntarily transfer if their existing fund ceases, even if they are over the New Zealand superannuation age.

Key features

Section 226 of the KiwiSaver Act 2006 has been amended to clarify that when a person over the New Zealand superannuation age transfers from a complying superannuation fund into KiwiSaver for the first time they are not entitled to the kick-start Crown contribution upon transfer.

Application date

The new rules apply from 21 December 2010.