Automatically enrolling and opting in differences
Most of the time you automatically enrol new eligible employees into KiwiSaver. But some employees do not get automatically enrolled into KiwiSaver when they start. These employees ask to be in KiwiSaver. Choosing to join is ‘opting in’.
There's a difference between an employee who opts in and one who automatically enrols. The difference is employees who:
- were automatically enrolled by you can choose to leave KiwiSaver. It’s called ‘opting out’.
- opt into KiwiSaver cannot choose to opt out later.
Automatic enrolments into KiwiSaver
You must automatically enrol new employees aged over 18 and under 65. But not when your new employees are already in KiwiSaver.
New employees already in KiwiSaver
If you start a new employee who's already a KiwiSaver member, ask them to fill in a KiwiSaver deduction form - KS2.
Your employee uses the KS2 to tell you:
- the rate they want you to make KiwiSaver deductions from their pay
- they’re on a savings suspension. You’ll need to see their suspension notice before stopping their KiwiSaver deductions.
Employees who opt into KiwiSaver
There are some employees who you do not have to automatically enrol into KiwiSaver. If they’re eligible, they choose to opt in. These are:
- existing employees
- new employees you cannot automatically enrol. For example, because of the type of employee they are, such as casual or temporary employees.
Employees who do not tell you their age
Employees might not give you their date of birth. Some may also give you wrong information. This makes it hard to know if:
- they’re eligible for KiwiSaver contributions
- if you need to automatically enrol them.
In either case, automatically enrol your new employee. We do not penalise you. If their enrolment is a mistake, they can opt out later.