Comparison between SSRSS and KiwiSaver

This information is based on legislation current at 1 April 2009.

  SSRSS KiwiSaver
Eligibility to join 
Effective 1 October 2008 the SSRSS has closed to all new members.

Existing members can continue to save in the SSRSS.

You can join a KiwiSaver scheme if you:

  • are living in (or normally live in) and are entitled to reside permanently in New Zealand
  • are aged below the age of entitlement to NZ Superannuation.
If you are under 18 years and want to join KiwiSaver, you must contract directly with a scheme provider. Other employees may opt in through their employer.

You can join KiwiSaver in addition to any other superannuation scheme of which you are a member. 
Employee contribution amounts
The minimum employee contribution rate is 1.5% of gross base salary.
Members can contribute any amount above 1.5% in increments of 0.5%.
(Unsubsidised members who started employment on or after 1 July 2007 need to contribute a minimum of at least 4% of gross base salary while they remain unsubsidised.)
The minimum employee contribution rate is 2% of gross pay and employed members can contribute either 2%, 4% or 8%.
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Employer contribution amounts
If eligible, your contributions are matched by your employer up to a maximum of 3% (after ESCT) of your gross base salary. SSRSS employer contributions count towards the KiwiSaver compulsory employer contributions, unless you joined your current employer's service on or after 1 April 2008 (in which case, if you join a KiwiSaver scheme, you will be eligible for KiwiSaver employer contributions but will become unsubsidised for SSRSS purposes while those are paid).  If you are a member of both SSRSS and a KiwiSaver scheme you cannot expect to receive employer contributions to both schemes.   If eligible, you will receive compulsory employer contributions at a rate of 2% of gross pay. 

Government Kick-start
The Government offers a lump sum of $1,000 paid to the KiwiSaver account when you first join a KiwiSaver scheme. You can withdraw this contribution when you reach the KiwiSaver End Payment Date (the later of the age of entitlement to NZ Superannuation and completing 5 years' membership of a KiwiSaver scheme). 
Tax Credit
 There is no tax credit in the SSRSS. For periods during which you reside mainly in New Zealand a member tax credit matching your contributions up to a maximum of $20 per week.  You can withdraw these amounts when you reach the End Payment Date (or earlier in limited circumstances).
Parental Leave
You can backdate your contributions for all or part of the time you are on parental leave.  If you make up these contributions within 7 months of returning to work you will be eligible to receive the matching employer subsidy. There is no parental leave backdating facility in KiwiSaver.
Access to funds and lock-in provisions (see also "Other Withdrawal Options" below)
  • Employee and employer contributions are locked in to the age of entitlement to NZ Superannuation (currently age 65) but can be accessed:
    - if you are fully/partially retiring from State sector employment in the ten years prior to this age, or
    - if, from age 50, you permanently leave State sector employment.
  • Voluntary contributions (all contributions made by you above 3%, or while you are unsubsidised) can be accessed at any time.
  • Death.
  • All contributions are locked in to End Payment Date
  • Death.
Transferring
Out
You can transfer your SSRSS total credit to a KiwiSaver scheme at any time. Additionally, once you have left State sector employment you can apply to transfer your SSRSS total credit to an approved locked-in superannuation scheme, in NZ or overseas.  You can apply to transfer to another KiwiSaver scheme or, if permanently emigrating, to an approved overseas superannuation scheme.
Other  withdrawal options
You may be eligible for early access to some or all funds in the following circumstances:

  • Permanent emigration1 
  • Serious Illness / Total and Permanent Disablement
  • First home deposit (if eligible)
  • Significant Financial Hardship. 
You can have early access to some or all funds in the following circumstances: 

  • Permanent emigration1
  • Serious illness
  • First home deposit (if eligible)
  • Significant Financial Hardship
  • Mortgage diversion (if available in your KiwiSaver scheme).

1 To be eligible for a withdrawal based on emigration you must be able to prove you have emigrated and have resided overseas for at least 12 months.  For KiwiSaver the total amount of member tax credits will be repaid to the Crown if your withdrawal is based on emigration.