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If your circumstances change

Circumstances that affect your KiwiSaver membership include changes in your work situation:

and changes in your personal situation:

In some cases you may need to consider taking a contributions holiday, or an early contributions holiday in cases of financial hardship.

What happens to your contributions when you go on leave?

If you're away on ... then your contributions will ...
  • sick leave, or
  • annual leave (whether you're staying in New Zealand or going overseas), or
  • paid parental leave (PPL)

    and

  • you're still being paid by your employer
 continue unless you take a contributions holiday.
  • paid parental leave

    and

  • you're not receiving any payments from your employer
 stop automatically but you can keep them going by contacting us - otherwise your contributions will start again when you're back at work.
unpaid leave stop automatically but you can keep them going by contacting your provider.

 

Note:

If you're working but you go on leave, as long as you keep making contributions through your pay, your employer will match your contributions.

What happens to your contributions if you change employers or start a new job?

 

If you ... then ...
still earn a salary or wage

you'll need to fill out a KiwiSaver deduction notice (KS2) - so that:

  • contributions can continue to be made at the rate you choose on the form, and
  • your employer knows that they need to make employer contributions to your scheme.
are still not earning a salary or wage your contribution arrangement will continue with your scheme provider.
become an employee and start earning a salary or wage

contributions will start being deducted from your pay at your chosen rate of 2%, 4% or 8%. You'll need to fill out a KiwiSaver deduction notice (KS2) so that your employer knows:

  • your preferred rate, and
  • they need to make employer contributions.

If you don't tell your employer what your preferred rate is, from 1 April 2009 the default rate of 2% will be used. You should also contact your scheme provider.
stop earning a salary or wage - for example, you become self-employed
  • contributions will cease to be deducted from your old job
  • your employer contributions will stop, and
  • you'll need to talk to your scheme provider about arranging payments.

You may even need to change providers if you're no longer eligible for membership of your original scheme.

What happens to your contributions if you have or start more than one job at the same time?

If you have more than one job:

  • contributions will also be deducted from any new jobs you start, and
  • you will receive compulsory employer contributions from all your employers.
Note:

12 months after your first contribution is received you can apply for a contributions holiday and apply it to any or all of your jobs.

What happens to your contributions if you stop working?

If at the time you stopped working you ... then ...
were earning a salary or wage your contributions will stop automatically unless you make arrangements with your scheme provider to keep them going.
did not earn a salary or wage you'll need to check with your scheme provider to see if your agreement allows you to stop contributing for any period of time.


Note:

You'll need to check with your scheme provider whether you're still eligible for the same scheme.

Have your contact details changed?

If your contact details change, you'll need to contact us and your scheme provider to advise your new details.

Moving overseas

If you ... then ...
join KiwiSaver before you leave New Zealand
  • you'll be eligible for the $1,000 kick-start
  • provided you're over 18, you'll also be eligible for the member tax credit until you leave New Zealand.
are a KiwiSaver member and have since moved overseas
  • you can continue to make voluntary or lump sum contributions
  • you won't be entitled to receive the member tax credit unless you're a:
    • New Zealand state sector employee living overseas, or
    • New Zealander volunteering or working overseas for token payment for a specified charitable organisation
  • if you've permanently emigrated, after one year you can apply to withdraw your funds and close your KiwiSaver account. The member tax credit you've received since joining will be returned to the Government. You keep any interest earned on the tax credits.


Note:

If you decide to return to New Zealand you:

  • can rejoin KiwiSaver if you're eligible, but you won't receive another $1,000 kick-start
  • may be able to apply to your overseas superannuation or pension scheme to transfer your funds to KiwiSaver.

Changing financial circumstances

You may want to stop making your KiwiSaver contributions for financial reasons.

If you've been a KiwiSaver member ... and your regular contributions ... then you can ...
for 12 months or more are taken from your salary or wage apply for a contributions holiday.
for less than 12 months are taken from your salary or wage

apply for an early contributions holiday if you're experiencing, or likely to experience, financial hardship.

You'll need to provide evidence to support your application.
for any period of time are paid by you directly to your scheme provider (for example, you're self-employed or not working) approach your scheme provider to negotiate a savings break.

Being declared bankrupt

If you're declared bankrupt, your KiwiSaver contributions may become subject to the bankruptcy proceedings. The outcome of these proceedings will determine how your contributions will be treated. Further information can be found on www.insolvency.govt.nz.

Your death

On your death, your KiwiSaver savings are paid to your estate.

Contributions holidays

What is a contributions holiday?

If you're an employee and have been contributing for 12 months or more, you can take a "contributions holiday". This is a break in contributions, of between three months and five years. If we agree, you could take one of less than three months.

If you're eligible for a contributions holiday, there's no limit to the number of times you can take one. You can renew a contributions holiday at any time.

If you take one you can still make extra contributions.

Note:

Your employer is not required to make compulsory employer contributions if you're not having contributions deducted from your salary or wages while you're on a contributions holiday.

Within three months of starting a contributions holiday you can restart having deductions from your wages, provided your employer agrees. After three months no agreement from your employer is required. If you do restart deductions your employer will be required to make compulsory employer contributions if you are eligible.

How do you apply for a contributions holiday?

To apply for a contributions holiday you can:


Step
 What happens
1 Your contributions holiday will begin on the date we approve it.
2 You'll receive a contributions holiday notice confirming the start and end dates for your contributions holiday - you need to keep this notice.
Note:

If you've lost your contributions holiday notice, deductions are required until you get a replacement letter from us. Any deductions made during this period won't be automatically refunded - you'll need to contact us if you want them to be refunded.
3

If you:

  • nominate your employer(s) when you apply, we'll notify them to stop:
    • deductions from your pay, and
    • employer contributions
    or
  • don't nominate your employers or have more than three employers, you'll need to show them your contributions holiday notice.
4 If you change jobs during your contributions holiday, you'll need to show your new employer your contributions holiday notice.
5

When your existing contributions holiday has one month left to run:

  • we'll write to remind you, and
  • you can apply for another contributions holiday, if you need one.
6

If your contributions holiday expires, we'll ask your employer(s) to resume:

  • deducting KiwiSaver contributions from your pay, and
  • making employer contributions.

Early contributions holidays

What is an early contributions holiday?

An early contributions holiday is a contributions holiday taken within the first 12 months of contributing. We'll consider an early contributions holiday where you're experiencing, or likely to experience, financial hardship.

We'll work out with you the appropriate length of an early contributions holiday - the default period is three months. We may give you a longer contributions holiday depending on your circumstances.

How do you apply for an early contributions holiday?

To apply for an early contributions holiday you can:

  • call us on:
    • 0800 549 472 (0800 KIWISAVER), or
    • 04 978 0800 if calling from a cellphone, or

What is financial hardship?

Financial hardship is when:

  • you've underestimated the impact of being a KiwiSaver member on your financial circumstances, and cannot afford to pay your day-to-day living expenses, or
  • your financial circumstances have changed due to:
    • events beyond your control related to the repair or replacement of essential items such as your car or washing machine, where there are no reasonable alternatives
    • the cost associated with an illness, injury or condition suffered by you or a dependant
    • the cost of medical treatment or rehabilitation for you or a dependant, including costs related to pregnancy or modification of your home to meet special needs or palliative care
    • inflationary factors such as price increases, rent increases or interest rate rises
    • changes in your living arrangements that result in an increase in rent or a reduction in board payments received
    • involuntary changes to your or your partner's employment circumstances, for example:
      • a reduction in overtime
      • an investment that causes a reduction in your household income (such as a vacant investment property)
    • education costs for yourself or your dependants (excluding private school fees).
Note:

If your financial circumstances have changed because of events or circumstances within your control or discretion, we may not accept your application.

Forms and guides

Check out what KiwiSaver forms and guides are available.

Date published: 12 Jun 2009
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