Frequently Asked Questions
This information is based on legislation current at 15 December 2008.
Will the SSRSS continue?
Contributions - how much do I have to save?
What do I get for joining SSRSS or Kiwisaver?
Can I choose to join KiwiSaver as an unsubsidised member and remain a subsidised SSRSS member, receiving the SSSRSS employer subsidy of up to 3% gross base salary?
Member tax credit
Withdrawal benefits - when can I get my money?
Transfers
SSRSS continues for existing members, but stopped accepting applications for membership effective 1 October 2008.
What is the contribution rate for KiwiSaver and SSRSS?
The minimum contribution rate in SSRSS is 1.5% of gross base salary (excluding all allowances, overtime and bonuses) for employees who are subsidised. There’s no maximum contribution rate, you can save as much as you like.
If you were employed after 1 July 2007 under a fixed term agreement of more than 28 days and less than four months, and you joined SSRSS as an unsubsidised member, your minimum contribution rate is 4% of gross base salary.
The minimum contribution rate in KiwiSaver for employees is 2% of your gross pay (refer to Your pay and contributions on the KiwiSaver website). You can choose to contribute 2%, 4% or 8%.
You can also make voluntary contributions to most KiwiSaver schemes. You can apply for a contribution holiday after 12 months of saving to KiwiSaver.
Click here to see how much your contributions to SSRSS or KiwiSaver might be, and how much your employer and the Government may contribute to your savings.
I can’t afford to contribute to both SSRSS and KiwiSaver, what can I do?
You don’t have to join both SSRSS and KiwiSaver. Choose the scheme that best suits your needs; the main thing is to get your savings started.
If you are a member, SSRSS provides a matching employer contribution of up to 3% of gross base salary, if you are eligible.
If you join KiwiSaver, under current policy the Government will make one payment of $1,000 when you start contributing to your KiwiSaver account. Member contributions to KiwiSaver schemes are also currently matched by member tax credit contributions of up to $20 a week.
Compulsory employer contributions are payable to KiwiSaver schemes, for those who are eligible, at a rate of 2% of gross pay until . Before-tax employer contributions to existing schemes such as SSRSS, to which employees joined before 1 April 2008, will qualify as compulsory employer contributions.
Can I receive my matching SSRSS employer contribution and the KiwiSaver compulsory employer contribution?
No. The matching SSRSS employer contribution and the compulsory KiwiSaver employer contribution will be payable as alternatives – so you will not be eligible to receive a subsidy into both schemes.
If you join a KiwiSaver scheme then if (and for as long as) you qualify for and are receiving compulsory employer contributions to that scheme you will be an unsubsidised member of SSRSS.
Can I choose to join KiwiSaver as an unsubsidised member and remain a subsidised SSRSS member, receiving the SSSRSS employer subsidy of up to 3% gross base salary?
You can be a member of both the SSRSS and KiwiSaver.
You will not get an employer contribution into both schemes. If you are contributing to both schemes by payroll deduction, the employer subsidy contributions that will be paid for you will depend on when you started employment with your current employer:
a. If you have not changed your employment since 1 April 2008, are a subsidised SSRSS member and have chosen to join KiwiSaver, your employer will continue to pay the SSRSS employer contribution of up to a maximum of 3% gross base salary, rather than the KiwiSaver employer contribution. However, if you prefer to receive the KiwiSaver employer contribution, you can elect to receive the KiwiSaver employer contribution (if eligible) instead of the SSRSS employer contribution.
b. If you have changed to another SSRSS employer since 1 April 2008, are an SSRSS member, and are auto-enrolled to KiwiSaver or have chosen to join KiwiSaver, your employer must pay the KiwiSaver employer contribution of up to 2% gross pay, if eligible, rather than the SSRSS employer subsidy. Under current KiwiSaver legislation (as at 1 April 2009) you can not choose to receive the SSRSS employer subsidy instead of the KiwiSaver employer contribution. However, after 12 months of membership of KiwiSaver, you can take a contributions holiday. Once you stop payroll contributions to KiwiSaver, you are entitled to receive the SSRSS employer subsidy of a maximum of 3% gross base salary, if eligible.
Can I receive the $1,000 Government kick-start contribution into SSRSS?
No. The $1,000 contribution from the Government is only available in a KiwiSaver scheme.
Can I get the 3% SSRSS contribution paid to KiwiSaver instead of to SSRSS?
No. Your 3% SSRSS employer contribution cannot be diverted to KiwiSaver.
Will the maximum matching SSRSS employer contribution decrease to 2%?
No. Ministers have announced that there is to be no decrease to the subsidy level offered in the SSRSS. The maximum employer contribution in SSRSS will remain at an effective 4.48% of gross base salary (including employer’s superannuation contribution tax at an assumed rate of 33%) for most employees.
Will I be able to get the member tax credit if I am contributing to a SSRSS?
No. In order to get the tax credit your contributions must be made into a KiwiSaver scheme or (on a KiwiSaver equivalent basis) a complying superannuation fund. The SSRSS is not a KiwiSaver scheme or a complying superannuation fund.
Member tax credits are locked-in contributions, treated in the same manner as other contributions to the relevant KiwiSaver scheme (though with greater restrictions on early withdrawal).
When can I withdraw my savings from SSRSS?
Existing benefit withdrawals available from SSRSS:
• On reaching your age of entitlement to NZ Superannuation (currently 65 years)
• In the ten years prior, on full/partial retirement
• From age 50 on leaving State sector employment permanently
• Transfer to another approved locked-in superannuation scheme (in NZ or overseas) on leaving State sector employment
• Transfer to a KiwiSaver scheme* at any time.
• Significant financial hardship
• Serious illness – as defined in the KiwiSaver Act - or total and permanent disablement
• Death
• Permanent emigration – you need to have permanently emigrated and resided overseas for at least 12 months before you can apply for this withdrawal benefit
• First home purchase deposit – you can withdraw your Member and Voluntary contributions (but not Employer contributions) for use towards a first home purchase deposit after saving in the SSRSS for at least 3 years from 1 July 2007. As such, the earliest you would be able to apply for this benefit is 1 July 2010. You may also be eligible for the Housing NZ subsidy of up to $5,000, if you have saved for 5 years from 1 July 2007.
* Please note that on transferring to another approved scheme or to KiwiSaver, the rules on when you can access your savings will change.
Can I transfer to a KiwiSaver scheme?
All KiwiSaver schemes have been approved as transferee schemes due to the stronger lock-in provisions. You can apply to transfer your savings to a KiwiSaver scheme at any time, and cease your SSRSS membership. Please note that on transferring to KiwiSaver, the rules on when you can access your savings will change.