Changes in reporting - March 2009
We’re changing the way we report how people enrolled with KiwiSaver in order to give a clearer picture of members’ enrolment methods.
The reporting change will be backdated to the financial year 1 July 2008, and relates to those members who nominated their own KiwiSaver scheme provider during the first three months they were members. (A default provider is automatically allocated to members who do not nominate their own provider.)
Previously, we have described this group of members who chose their own provider as Opt-in Via Provider. No distinction was made whether they automatically enrolled in KiwiSaver when taking new employment, or they chose to opt-in with their existing employer.
Under the new monthly reporting method, they will be reported as Automatically Enrolled or Opt-in Via Employer. Any subsequent decision to select their own provider will not be reflected in the revised figures, but will be reported in the six-monthly KiwiSaver Evaluation reports.
The revised reporting method is being backdated until 1 July 2008 and will result in a reduction in the reported number of members who have opted-in via provider and a corresponding increase in the numbers who were automatically enrolled or opted-in via their employer.
There are three methods under which people can join KiwiSaver:
- Automatic enrolment - the method of enrolment for individuals who change jobs, or commence employment. Upon commencing new employment, the individual is enrolled by their employer.
- Opt-in via employer - a prospective member submits an application form through their employer to Inland Revenue.
- Opt-in via provider - a prospective member goes to a scheme provider and submits an application that is forwarded to Inland Revenue by the provider.
Changes have also been made to contribution holiday numbers for the financial year beginning 1 July 2008. The total number of contribution holidays has been slightly overstated previously due to a recording anomaly which has now been fixed. The total number of contribution holidays as at January 2009 has decreased by 1,380.
We’ve also updated the June 2008 figures for the first year from 3,506 to 3,280 active contribution holidays.