Comparison of total contributions to SSRSS and KiwiSaver
This information is based on legislation current at 1 July 2011.
Here is a table to help you understand how much your contributions to SSRSS or KiwiSaver might be, and how much your employer and the Government may contribute to your savings.
Note that from 1 April 2011 the compulsory employer contribution to kiwiSaver will be subject to the member's marginal rate of Employer Superannuation Contribution Tax (ESCT). Also, from 1 April 2013 the minimum employee and employer contribution increases to 3%.
If you are an SSRSS member entitled to SSRSS employer contributions, the total amount contributed to SSRSS each year will be the total of your regular contributions and your employer contributions. For SSRSS members, contributions are calculated using your gross base salary.
If you are a KiwiSaver member entitled to KiwiSaver employer contributions, the total amount contributed to KiwiSaver each year will be the total of your regular contributions, your employer contributions and the member tax credit (matching your contributions dollar-for-dollar up to $521.43). The minimum KiwiSaver member contribution is 2% of gross pay and the compulsory employer contribution is 2%. You will also receive the $1000 kickstart payment in the year that you join KiwiSaver. For KiwiSaver members, contributions are calculated using your gross pay, which may be more than your gross base salary. Your gross pay is (with some exceptions) your total salary, including bonuses, overtime or any other kind of remuneration, before tax and other deductions like student loan repayments and child support. In the comparison table below it is assumed, purely for illustrative purposes, that your gross base salary and your gross pay are the same.
The figures in the comparison table assume you are a contributing member of either SSRSS or KiwiSaver for the whole year. Each 'year' is the 12 months commencing on 1 April that year – eg the 2011 year is the period 1 April 2011 to 31 March 2012. The table also assumes that if you are contributing to the SSRSS then you are contributing at the rate of 3% of your gross base salary, and that if you are contributing to a KiwiSaver scheme then you are contributing at the rate of 2% of your gross pay. Contributions are rounded to the nearest dollar. KiwiSaver member tax credits are shown in the total for the year in which they are earned – they are actually paid into your KiwiSaver account during the following year.
Table: Comparison of total annual contributions to SSRSS and KiwiSaver
If you join KiwiSaver, you will also receive the $1000 kickstart payment in the the year that you join.
|
Gross salary |
Scheme and contribution rate |
Your regular contributions fortnightly |
Your regular contributions each year |
Total employer and Government contributions each year |
|
20,000 |
SSRSS (3%) |
$23 |
$600 |
$600 |
|
KiwiSaver (2%) |
$15 |
$400 |
$600 |
|
40,000 |
SSRSS (3%) |
$46 |
$1,200 |
$1,200 |
|
KiwiSaver (2%) |
$31 |
$800 |
$1,200 |
|
60,000 |
SSRSS (3%) |
$69 |
$1,800 |
$1,800 |
|
KiwiSaver (2%) |
$46 |
$1,200 |
$1,721 |
|
80,000 |
SSRSS (3%) |
$92 |
$2,400 |
$2,400 |
|
KiwiSaver (2%) |
$61 |
$1,600 |
$2,121 |
|
100,000 |
SSRSS (3%) |
$115 |
$3,000 |
$3,000 |
|
KiwiSaver (2%) |
$77 |
$2,000 |
$2,521 |
|
120,000 |
SSRSS (3%) |
$138 |
$3,600 |
$3,600 |
|
KiwiSaver (2%) |
$92 |
$2,400 |
$2,921 |
Disclaimers
The information provided in the comparison table does not constitute investment advice, and none of the State Services Commissioner, AMP, ASB or AXA or any employee of the State Services Commission, AMP, ASB or AXA accepts any liability for any loss or damage of any kind arising out of the use of, or reliance on, the information provided in the table.
The table is intended solely to illustrate the total amounts that will be contributed to each scheme and does not include any returns you may receive from an SSRSS or a KiwiSaver scheme. Returns to members are subject to investment and other risks, including loss of income and principal invested, and are not guaranteed. Returns will vary depending on the performance of your chosen investment fund or investment funds. Returns are also subject to fees, which vary from provider to provider.
The levels of contributions and, for KiwiSaver schemes, the $1000 kickstart payment and member tax credit levels and entitlements are all prescribed by current legislation or government policy and are therefore subject to change.