Union KiwiSaver Campaign Leaflet
KiwiSaver is here and unions are ready. Are you?
KiwiSaver is here
Workers can join a KiwiSaver retirement savings scheme of their choice. KiwiSaver is a voluntary, work-based retirement savings scheme.
All workers from 18 to 65 years old starting a new job are enrolled in KiwiSaver, with the opportunity to opt out up to the eighth week of employment.
The funds are locked in until the national superannuation retirement age (currently 65) or for five years - whichever is the longer time. KiwiSaver does not replace NZ Super. But, as many New Zealanders now find that NZ Super does not provide enough for them to comfortably retire, KiwiSaver aims to help workers save for a better standard of living when that time comes.
Making Saving Easier
If you opt to join a KiwiSaver scheme you contribute either 4% or 8% of your gross taxable pay into a retirement account run by a provider of your choice.
But if you and your employer can reach agreement on a shared contribution to make up 4% (2% contribution from your employer and 2% from you) that arrangement can continue until April 2010 when it goes to 3% each and then 4% in April 2011, and still attract the government payment matching your contribution of up to $20 a week.
Union KiwiSaver
Unions have campaigned for decades for employer contributions to retirement savings schemes. Your employer must contribute to your retirement savings if you chose to join a KiwiSaver scheme.
Now KiwiSaver is here, unions want their members to get the maximum benefits from KiwiSaver. This includes supporting union campaigns to improve KiwiSaver and also lift the ability of low income workers to join KiwiSaver through collective bargaining.
What Are The Benefits?
With KiwiSaver you get:
• A $1,000 kick-start from the government.
• An annual fee subsidy of $40.
• A tax credit of up to $20 per week ($1,040 per year) paid directly into your KiwiSaver account or another superannuation fund account which complies with KiwiSaver criteria.
• From 1 April 2008, all employees contributing to KiwiSaver (and complying superannuation funds) are entitled to a compulsory matching employer contribution of 1% of gross pay, rising by 1% each year until it reaches 4% in April 2011.
• After three years of saving, some savers will be eligible for a first home deposit subsidy of $1,000 per year of saving, up to $5,000 in total. Eligibility is determined by the individual’s income and house price caps.
• Any time after an initial 12 month contribution period, KiwiSavers can apply to Inland Revenue for a contributions holiday.
• After one year of being enrolled in a KiwiSaver scheme, you can divert up to half of your own contributions to make mortgage payments on your own home. These contributions will not be eligible for the member tax credit.
IRIS - A Retirement Savings Scheme For Unions
When you start saving with KiwiSaver, you choose your retirement savings scheme. IRIS is a union-supported retirement savings scheme, set up only to profit union members and their families. From 1 July IRIS will be an approved KiwiSaver provider. 
IRIS operates on low costs and low fees, returning the maximum profits to members. IRIS directors are nominated by participating unions, whose role is to represent members in decisions about the services IRIS provides.
IRIS was set up in 1990 and has nearly 5,000 members, 130 participating employers and $25 million in assets. IRIS uses industry experts for its professional services to make sure your savings are in safe hands.
- Call IRIS toll free on 0800 650 836
- Visit the IRIS website: www.irissuper.co.nz
- Talk to your delegate and arrange for an IRIS representative to come to your next workplace meeting.
The Union KiwiSaver campaign is all about getting the best out of KiwiSaver for union members.
This page aims to inform you about the key aspects of KiwiSaver and where you might get further information. Any decision on joining a scheme is for an individual to decide.
(Click here to return to the Union KiwiSaver campaign homepage)
