Frequently Asked Questions
This information is based on legislation current at 1 January 2010.
Will the SSRSS continue?
Contributions - how much do I have to save?
What do I get for being an SSRSS or Kiwisaver member?
Member tax credit
Withdrawal benefits - when can I get my money?
Transfers
SSRSS continues for existing members, though it stopped accepting applications for membership effective 1 October 2008.
What is the contribution rate for KiwiSaver and SSRSS?
The minimum contribution rate in SSRSS, while you are employed by a participating employer, is 1.5% of gross base salary (excluding all allowances, overtime and bonuses). There’s no maximum contribution rate, you can save as much as you like.
The minimum contribution rate in KiwiSaver for employees is 2% of gross pay (refer to KiwiSaver 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?
If you are a member of SSRSS and of KiwiSaver, you can contribute to both schemes, but you don’t have to. Contribute to the scheme that in your view best suits your needs; the main thing is to continue saving for your future.
If you are an SSRSS member employed by a participating employer, 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 $1042.86 a year (which equals $20 a week) while you are aged between 18 and your KiwiSaver end payment date (usually NZ Superannuation entitlement age). Compulsory employer contributions are payable to KiwiSaver schemes, if you are eligible, at a rate of 2% of gross pay while you are aged between 18 and your KiwiSaver end payment date.
Can I receive my matching SSRSS employer contribution and the KiwiSaver compulsory employer contribution?
No. You can be a member of both the SSRSS and KiwiSaver, but the matching SSRSS employer contribution and the compulsory KiwiSaver employer contribution are payable as alternatives – so you will not be eligible to receive a subsidy into both schemes.
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?
Yes. You can be a member of both the SSRSS and KiwiSaver, but you will not get an employer contribution into both schemes. If you are a subsidised SSRSS member and have chosen to join KiwiSaver, your employer (including any SSRSS participating employer you subsequently start work with) will continue to pay the SSRSS employer contribution of up to 3% gross base salary, rather than the KiwiSaver employer contribution.
However, if you prefer, you can choose to receive the KiwiSaver employer contribution (if eligible) instead of the SSRSS employer contribution.
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 I be able to get the member tax credit if I am only contributing to SSRSS?
No. In order to get the tax credit you must be contributing to 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 similarly 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 at least 3 years from 1 July 2007.
* Please note that on transferring to another locked-in 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.