The KiwiSaver Bill has made speedy process through its final stages receiving royal assent on 6 September.
The KiwiSaver Act is an attempt to encourage retirement savings by encouraging employees to join a voluntary scheme where retirement savings are deducted from their wages or salaries.
After 1 July 2007, the scheme will start automatically for people who begin employment, change employers and those who opt-in to join. It will not apply to existing employees, except for those that opt-in.
Employees may already be starting to think about whether they wish to be part of the scheme.
Employers may wish to consider whether they should nominate a scheme for their employees; whether they wish to add employer contributions and the future of any existing superannuation schemes in place. Closer to the introduction, employers will also need to become alert to their administrative obligations under the KiwiSaver scheme - including information that needs to be provided to new employees and obligations in deductions for savings.
To access detailed information about KiwiSaver visit the Government's new official KiwiSaver website at http://www.kiwisaver.govt.nz/.
For more information on any of the cases, articles and features in Commercial Quarterly, please email Diane Graham or call her on 64 9 916 8849.
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.