The core obligations of KiwiSaver providers are set out in the KiwiSaver Act 2006.
In summary, these obligations include the need to:
- register the scheme under the KiwiSaver Act and lodge a copy of the trust deed and other documents with the Financial Markets Authority, as set out in the Schedule 2 to the Act. See the checklist for registration of a new KiwiSaver scheme.
- prepare annual reports and summary accounts, lodge these with FMA and distribute them to members (section 123)
- prepare statistics-based annual returns and lodge these with FMA (section 125)
- provide members with annual personalised statements of contributions and balances (section 125A)
- lodge copies of amendments to the trust deed within 14 days of execution (section 129)
- when they wind up a scheme, follow the processes in the Act (sections 173-176).
All KiwiSaver schemes (other than certain employer and restricted-entry schemes) must have:
- a manager who is the issuer for the purposes of the Securities Act 1978
- a licensed external trustee whose main function is to supervise the manager.
Six companies have been appointed as default providers of KiwiSaver schemes.
They were appointed by the government following an open competitive tender process. They were required to meet stringent criteria to ensure they could offer the kinds of retirement savings options considered appropriate for New Zealanders.
When an employee starts a new job, if they do not already belong to KiwiSaver and are eligible to join, they will be automatically enrolled in KiwiSaver, unless their employer is exempt from KiwiSaver automatic enrolments. If the employer has not chosen a preferred KiwiSaver provider the employee will be allocated to a default provider. See the Inland Revenue's KiwiSaver website for more information.
The special-purpose terms and conditions that default providers operate under are covered in the documents that were used to appoint them, which are known as Instruments of Appointment.