KiwiSaver is the generic name for New Zealand’s voluntary work-based superannuation scheme. It’s designed to increase the long-term savings of New Zealanders.
KiwiSaver is administered by Inland Revenue and provided by approved independent investment organisations, including MAS. More generic information on KiwiSaver is available at the government’s KiwiSaver site at www.kiwisaver.govt.nz.
How does the Medical Assurance Society KiwiSaver Plan work?
KiwiSaver is a type of superannuation scheme which allows you to make regular contributions from your salary.
The money you contribute is pooled with other MAS KiwiSaver members and invested in a range of investments, such as shares and fixed interest. You have a choice of different options, depending on the level of risk you are comfortable with. It’s a great way to invest as it spreads your risk and increases the opportunities for your money to grow over the life of your investment. The Medical Assurance Society KiwiSaver Plan has:
- Valuable advice and support from your advisor.
- No set-up, entry or contribution fees.
- No administration fee – just one annual management fee of 0.5% per annum for the Cash Portfolio (minimum $50) or 1% per annum for other Portfolios (minimum $50).
- A $1,000 kick-start from the government when you first open your account.
- Compulsory contributions from your employer of an additional 3% of your pre-tax salary.
- Government contributions of up to $521.43 a year provided you pay at least $1,042.86 into your account (for those aged between 18 and age of entitlement to withdraw - the later of 65 or 5 years in Kiwisaver) – called a ‘member tax credit’.
This means that, if you earn $80,000 a year and pay just 3% into KiwiSaver, your $2,400 investment will be matched by $1,680 (after tax of 30%) employer superannuation contribution from your employer and $521.43 from the government, as well as an extra $1,000 from the government in your first year.
There are also additional benefits for first home buyers.
Who can join the Medical Assurance Society KiwiSaver Plan?
KiwiSaver is available to individuals under age 65 who are New Zealand citizens or a permanent resident living here.
Medical Assurance Society KiwiSaver Plan is a “restricted” scheme under the KiwiSaver Act. The group of people who may join the Medical Assurance Society KiwiSaver Plan are:
Doctors, Dentists, Veterinarians and students of those professions.
Professionals registered under the Health Practitioners Competency Assurance Act 2003.
Lawyers, Accountants, Architects and Engineers.
Employees of MAS or of an employer who is of a class of professional listed above.
Immediate family members of the above.
You may also be eligible to join the Plan if you have been approved as a Member of MAS. Further details on the eligibility rules are set out under the section “What sort of investment is this?” in the investment statement.
Your children will need an IRD number to join – you can apply for one by filling in an IR595 form and sending it to Inland Revenue. Once your children have an IRD number, call us on 0800 800 627 to set up their KiwiSaver account.
For more information see our Information Document on the changes to the trust deed as at 21 Sepember 2012, in which the Medical Assurance Society KiwiSaver Plan became a restricted scheme and introduced an independent trustee.
How much do I contribute?
If you're working, you can contribute 3%, 4% or 8% of your before-tax salary. You can switch between these levels of contribution and make lump sum payments whenever you like.
When a Member starts a new job, if they're not already a KiwiSaver member they are automatically enrolled in a scheme at the default contribution rate of 3% of their salary or wages. Unless they have opted to join a specific scheme, the Member will be enrolled in either a default scheme or the scheme of their employers preferred provider.
If you’re not working or are self-employed, you don’t have to make regular contributions – the Medical Assurance Society KiwiSaver Plan allows you to contribute as much or as little as you like.
Once you’ve made contributions for a year you can take ‘contribution holidays’ of between three months and five years.
How much does my employer have to contribute?
Employers must contribute 3% of your before-tax salary, as long as the amount of your own contributions matches or exceeds the amount of your employer’s contributions. Employer contributions are taxed at Employer Superannuation Contribution Tax (ESCT) rates.
If you are already getting employer-subsidised superannuation now, your employer won’t be required to make extra contributions, as long as their contributions are the same as or more than the compulsory amount.
When can I access the money?
- For most people, KiwiSaver savings are locked in until you reach the age of entitlement for New Zealand Superannuation (currently 65) or for five years if you’re already in your sixties.
- If you’re a first-home buyer, you can make a one-off withdrawal to pay for your first home.
- You can also access your money if you move overseas permanently, have a serious illness or suffer financial hardship. If you die, the money goes to your estate.
Download the investment statement and find out how to apply here.
The Medical Assurance Society KiwiSaver Plan is a unitised investment fund. This means that contributions to the Plan are used to purchase units. The unit price will rise or fall in value according to changes in the value of the underlying investments.
The Plan became unitised on 1 April 2013. Prior to this an investment return was declared for each six monthly period ending 31 March or 30 September. For a full description of how unitised investments work as well as information about related changes effective from 1 April 2013, please see the Written Notice to Members or check out our Understanding Unitisation Frequently Asked Questions sheet.
Latest Annual Report
2013 KiwiSaver and Retirement Savings Plan Annual Report.
A prospectus for the Medical Assurance Society KiwiSaver Plan was registered with the Registrar of Financial Service Providers on 20 September 2013. A copy of the prospectus can be viewed here, or online on the Companies Office website at www.business.govt.nz/companies under 'Search other register' and search for the Medical Assurance Society KiwiSaver Plan.
Or for personal, tailored advice, you can talk to a MAS adviser by phoning 0800 800 627 or emailing email@example.com.
This website contains information of a general nature and is not a substitute for professional, individually-tailored advice. The information is correct at the time of development.
Investments in the Medical Assurance Society KiwiSaver Plan are not guaranteed. Copies of the latest registered prospectus and investment statement can be downloaded here or obtained by calling us on 0800 800 627.