Review of KiwiSaver default provider arrangements

The Treasury and Ministry of Business, Innovation and Employment conducted a review of the KiwiSaver default provider arrangements.  KiwiSaver members who do not choose their own fund and are between 18 and 65 years of age are automatically enrolled in a “default fund”. The government appoints providers that can provide default funds and sets the requirements that default funds must meet. The terms of appointment for the existing nine default KiwiSaver providers expire on 30 June 2021.

The discussion paper below sought feedback on what, if any, changes should be made to the terms of appointment for providers of default funds.  The paper sought feedback on the investment approach for default funds and options for reducing fees charged to default members.  The paper also sought feedback on responsible investment and whether default settings should be used to support the development of New Zealand’s capital markets.

The review has now closed. The Minister of Finance Hon Grant Robertson and Minister of Consumer Affairs and Commerce Hon David Clark announced changes to the KiwiSaver default provider arrangements on 14 May 2021: KiwiSaver default provider scheme improvements slash fees, boosts savings