KiwiSaver

About KiwiSaver

KiwiSaver is the generic name for New Zealand's voluntary work-based superannuation scheme. It's designed to increase the long term savings of New Zealanders.

KiwiSaver is administered by Inland Revenue and provided by approved independent investment organisations, including MAS. More generic information on KiwiSaver is available at the Government's KiwiSaver website.

Key benefits

If you join a KiwiSaver scheme the key benefits are:

• Compulsory contributions from your employer of an additional 3% of your pre-tax salary.
• Government contributions of up to $521.43 a year - called a "Member Tax Credit" - provided you pay at least $1042.86 into your account (for those aged between 18 and age of entitlement to withdraw - the later of 65 or 5 years in KiwiSaver).

This means that if you earn $80,000 a year and pay just 3% into KiwiSaver, your $2,400 investment will be matched by $1,680 (after tax of 30%) employer superannuation contribution from your employer and $521.43 from the Government.

There are also additional benefits for first home buyers once you have been in the scheme for three years. 

How does the Medical Assurance Society KiwiSaver Plan work?

KiwiSaver is a type of superannuation scheme that allows you to make regular contributions into the scheme from your salary, or directly if you are not employed. 

The money you contribute is pooled with other MAS KiwiSaver members and invested in a range of investments, such as equities and fixed interest investments. You have a choice of different investment options, depending upon the level of risk you are comfortable with. It's a great way to invest as it can spread your risk and help increase the opportunities for your money to grow over the life of your investment. The Medical Assurance Society KiwiSaver Plan has:

• Valuable advice and support from your adviser.
• No set-up, entry or contribution fees.

• Your money is professionally managed and monitored for you.

When you start a new job, if you're not already a KiwiSaver member you're automatically enrolled in a scheme at the default contribution rate of 3% of your salary or wages. Unless you've opted to join a specific fund, you'll be enrolled in either a default scheme or the scheme of your employer's preferred provider.

If you're not working or are self employed, you don't have to make regular contributions. KiwiSaver allows you to contribute as much or as little as you like.

Once you've made KiwiSaver contributions for a year you can take "Contribution Holidays" of between three months and five years.

Responsible investment

Our investment managers screen potential investments from an ethical perspective to ensure they meet the following criteria as an important part of our due diligence process. We will not invest in companies whose principal business activity is the manufacture and sale of armaments or tobacco, or the exploration, extraction, refining or processing of fossil fuels. In addition, the funds will not invest in any utility that primarily burns fossil fuels.

How much does my employer have to contribute?

Employers must contribute 3% of your before tax salary, as long as the amount of your own contributions matches or exceeds the amount of your employer's contributions. Employer contributions are taxed at Employer Superannuation Contributions Tax (ESCT) rates.

If you are already getting employer subsidised superannuation now, your employer won't be required to make extra contributions, as long as their contributions are the same or more than the compulsory amount.

When can I access my money?

• For most people, KiwiSaver savings are locked in until you reach the age of entitlement for New Zealand Superannuation (currently 65 years) or for five years if you're already in your sixties when you join.
• If you're a first home buyer, you can make a one off withdrawal to help pay for your first home, provided that you have held a KiwiSaver account for at least three years.  
• You can apply to access your money if you move overseas permanently to a country other than Australia, have a serious illness or suffer financial hardship. If you die your money goes into your estate.

Who can join the Medical Assurance Society KiwiSaver Plan?

KiwiSaver is available to individuals under the age of 65 who are living here and are New Zealand citizens or entitled, in terms of the Immigration Act, to be in New Zealand indefinitely. 

Medical Assurance Society KiwiSaver Plan is a 'restricted' scheme under the KiwiSaver Act. The group of people who may join the MAS KiwiSaver Plan are:

• Doctors, Dentists, Veterinarians and students of those professions.
• Professionals registered under the Health Practitioners Competency Assurance Act 2003.
• Lawyers, Accountants, Architects and Engineers.
• Employees of MAS or of an employer who is of a class of professional listed above.
• Immediate family members of the above.

You may also be eligible to join the Plan if you have been approved as a Member of MAS. Further details on the eligibility rules are set out under the section "Joining the Plan" in Section 2 of the Medical Assurance Society KiwiSaver Plan Product Disclosure Statement.

A child will need an IRD number to join - you can apply for one by filling in an IR595 form and sending it to Inland Revenue. Once your child has an IRD number, call us on 0800 800 627 to set up their KiwiSaver account.  

We can help you

A MAS adviser can discuss with you the portfolio options, splitting contributions between MAS Retirement Plan and KiwiSaver, and much more.

Fund Update

KiwiSaver Plan Fund Update March 2017

Holdings

KiwiSaver Holdings September 2017

MAS Responsible Investment World Index Holdings 30 Sept 2017

Apply now

Download and complete the application form at the back of the Medical Assurance Society KiwiSaver Plan Product Disclosure Statement.

Further information

The latest Annual Report can be downloaded here.

A copy of the Product Disclosure Statement can be viewed here, or online on the Disclose Register website under the offer for the Medical Assurance Society KiwiSaver Plan. The Trustees of the Medical Assurance Society KiwiSaver Plan are the issuer and manager of the Plan.

Investments in the Medical Assurance Society KiwiSaver Plan are not guaranteed. If you would like to receive a hard copy of the Product Disclosure Statement, or for personal, tailored advice, you can talk to a MAS adviser by phoning 0800 800 627 or emailing info@mas.co.nz.

Although care has been taken to ensure the accuracy of this information, MAS does not assume any liability arising out of its use.