27 November 2006

KiwiSaver regulations approved

Regulations to establish KiwiSaver, the new workplace-based retirement savings scheme, will come into law on December 1, Finance Minister Michael Cullen announced today.

Dr Cullen said the regulations will bring the KiwiSaver Act into force and allow KiwiSaver scheme providers to prepare for enrolling members on 1 July 2007.

"We are making good progress in introducing KiwiSaver which aims to help New Zealanders develop long term savings habits so they can have greater financial security in their retirement years.

"By bringing the regulations into law on 1 December, we are giving providers seven months to prepare for scheme enrolments. We are pleased we have been able to develop these regulations in consultation with the industry."

The KiwiSaver regulations cover:

- The commencement of the KiwiSaver Act;
- The terms of the Scheme Provider Agreement between providers and the Inland Revenue Department;
- The steps scheme providers must take to verify the identity of a member of a scheme;
- The fees payable to the Government Actuary to process applications for exemptions, conversions, registrations, transfers and other regulatory functions;
- The fees KiwiSaver scheme providers may charge customers; and
- The statistical annual return scheme providers must submit to the Government Actuary.

Dr Cullen said the regulations would ensure the best possible delivery of KiwiSaver to customers, employers and scheme providers.

“Provisions like the statistical annual return will also allow us to obtain accurate and complete information about KiwiSaver, without placing undue costs on providers. Having information on participation rates and the relevance and effectiveness of KiwiSaver features will also be valuable."

Further information, including a Cabinet paper, is available at:
http://www.med.govt.nz/kiwisaver/

The regulations will be gazetted Thursday and available Friday here:
http://www.knowledge-basket.co.nz/

ENDS

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