Complying superannuation fund membership

2015 extension to KiwiSaver first home withdrawal rules to recognise membership in any complying superannuation fund as counting towards the eligibility period.

Schedule 1 of the KiwiSaver Act 2006, clause 8(1)(ab)

The previous first home withdrawal rules included an eligibility period of at least three years in one or more KiwiSaver schemes. The rules have been extended to recognise previous membership in any complying superannuation fund of three years or more as counting towards the three years eligibility period for a first home withdrawal.

The policy intent is that any previous period of membership in a complying superannuation fund should count towards the three-year eligibility period when a member transfers to KiwiSaver.

Background

A complying superannuation fund is a registered superannuation scheme with membership rules broadly in line with the KiwiSaver rules. Under the KiwiSaver Act, membership of a complying scheme is broadly treated as equivalent to membership of KiwiSaver.

The first home withdrawal rules in the KiwiSaver Act state that an individual can make a withdrawal if they have been a KiwiSaver member for at least three years. The rules did not explicitly recognise previous years of membership in another complying superannuation scheme. If a complying superannuation scheme member transferred their funds to KiwiSaver, the rules implied that the member needed to serve a further three years in a KiwiSaver scheme before making a first home withdrawal.

Key features

Three years' membership in a complying superannuation scheme before transferring to KiwiSaver counts towards the eligibility period for a KiwiSaver first home withdrawal.

The policy intent is that any prior period of membership in a complying superannuation fund should count towards the three-year eligibility period when the member transfers to KiwiSaver.

Application date

The amendment came into force for first home withdrawal applications made on and after 1 April 2015.