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Craig Foss

13 November, 2012

KiwiSaver discussion document released

Commerce Minister Craig Foss has released a discussion document on whether changes should be made to the default KiwiSaver provider arrangements.

“The Government is committed to ensuring that KiwiSaver is operating at an optimum level. To do so, the default provider scheme needs to be designed for investors’ best interests,” says Mr Foss.

“KiwiSaver has continued to grow rapidly since its introduction – in the past year about 17,500 New Zealanders have joined each month. This takes total membership to more than two million.

“It is important that current and potential KiwiSaver providers and members have the opportunity to comment on possible changes to the default provider scheme,” says Mr Foss.

The discussion document asks whether default provider arrangements should consider the role of scale and fees and be tailored for an investor’s life stage and likely risk profile. It also discusses the practicalities of transitioning to a new arrangement.

Six default providers were appointed for a seven-year term when KiwiSaver was launched in 2007. These appointments expire on 30 June 2014.

To view the discussion document, visit http://www.med.govt.nz/business/business-law/current-business-law-work/review-of-kiwisaver-default-provider-arrangements
Submissions close 24 December 2012.