KiwiSaver

KiwiSaver, a proposed voluntary work based savings scheme, was announced by the Government as part of the Securing your Future savings package in the 2005 Budget. Information about the scheme, including key facts and questions and answers, is available on the Securing your Future website.

Under the proposed KiwiSaver scheme, savings will be collected by employers and channelled to private providers via the Inland Revenue Department, using the PAYE system. For more detailed information on the scheme, visit the Inland Revenue Department's website.

The Ministry of Economic Development will be responsible for developing the regulatory regime that governs the savings products available in the scheme. The scheme will likely be a form of registered superannuation scheme and subject to the Superannuation Schemes Act 1989 and the Securities Act 1978. For more information on how registered superannuation schemes are currently regulated, visit the MED Insurance and Superannuation Unit website.

MED will also operate a tender process prior to the launch of KiwiSaver to determine which products/providers will be participants in the scheme.

The Government will develop and launch a financial education campaign prior to the planned launch of KiwiSaver on 1 April 2007. This campaign will aim to help improve New Zealanders' understanding of basic investment and financial concepts, including their ability to make informed decisions about whether to participate in the scheme.

Information about the specifics of the KiwiSaver scheme will also be provided closer to the start-up date.