Employer's Chosen Scheme

This page gives an overview of Employer's Chosen Schemes.

• What is an Employer's Chosen Scheme?
• The benefits of having an Employer's Chosen Scheme
• What do you have to do if you have an Employer's Chosen Scheme

Employers play an important role in KiwiSaver. In addition to making employer contributions, you also facilitate your employees' payments and are the person your staff may frequently turn to with their KiwiSaver questions. Being a KiwiSaver expert in addition to everything else required of you to run your business is something you can get assistance with by choosing an Employer's Chosen Scheme.

What is an Employer's Chosen Scheme?

There are a number of ways an employee can be allocated to a KiwiSaver scheme, and you can play a part in that. As an employer you can select a KiwiSaver scheme which your employees are automatically enrolled into when they join KiwiSaver, if they do not choose their own scheme. This is referred to as an Employer's Chosen Scheme (sometimes called a preferred KiwiSaver scheme). Here's how it works when an employee joins KiwiSaver:

1. Your employee can select their own KiwiSaver scheme.
2. If they don't select their own scheme and you have an Employer's Chosen Scheme for your business, they will be automatically enrolled into your Employer's Chosen Scheme.
3. If you don't have an Employer's Chosen Scheme and your employee does not select their own scheme, they will be allocated to one of the six default KiwiSaver schemes by Inland Revenue.

The benefits of having an Employer's Chosen Scheme

Having an Employer's Chosen Scheme does not cost you as an employer, but can give you access to expert assistance to help both you and your employees. Investing in managed funds is new to most New Zealanders, and many are unsure where to start. If you choose the ASB KiwiSaver Scheme as your Employer's Chosen Scheme, then we can assist your employees with any questions they may have and give them the help they need to get on the right path.

Choosing an Employer's Chosen Scheme can give you:

• The ability to give your employees a clear message of support that you are interested in their financial well-being.
• Access to support for any KiwiSaver queries that you and your employees may have.
• The ability to redirect KiwiSaver queries to a trusted expert.
• Access to specialist assistance in communicating your KiwiSaver message.
• The ability to introduce an investment expert for your employees to turn to.
• A consistent KiwiSaver message to give to your employees.
• A benefit to add to the employment package you offer your employees.

What do you have to do if you have an Employer's Chosen Scheme?

When you have an Employer's Chosen Scheme, the KiwiSaver provider you have chosen will give you a supply of investment statements for their KiwiSaver scheme. When you hand out the Inland Revenue information to existing or new employees, you must also give them:

• An investment statement for your chosen KiwiSaver scheme.
• A written statement advising that you have an Employer's Chosen Scheme and if they do not choose a KiwiSaver scheme they will be allocated to your chosen KiwiSaver scheme.
• ASB Wealth Managers' disclosure statements are available on request free of charge from your ASB Wealth Manager.