I changed banks from ANZ to NZCU before starting my new job. I had over $2000 in my KiwiSaver account with ANZ ... I now have two KiwiSaver accounts, one for over $2000 with ANZ and one with around $900 with NZCU. Can I transfer the money from the ANZ to NZCU?

It sounds like you signed up to the NZCU KiwiSaver Scheme when you opened your new bank account with them, but somewhere along the line communication between the providers has broken down so you are now running two KiwiSaver accounts, and incurring two lots of fees.

Inland Revenue keeps a record of KiwiSaver members and processes employee and employer contributions as well as the annual Member Tax Credits.

I asked for their comment and an IRD spokesperson replied: "KiwiSaver members should only have one account. While scheme providers aren't obliged to ask a customer if they already are a KiwiSaver member, most do. When a scheme provider enrols a new customer in KiwiSaver, they would receive a notification from Inland Revenue that a transfer of funds is required if that person is already a KiwiSaver member."

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NZCU uses Fisher Funds Management as their KiwiSaver provider, so you will now be in one of their KiwiSaver funds.

It should have been noted on your application form that you were previously in the ANZ Scheme, so that Fisher Funds Management could contact them and arrange to have the $2000 or so with them transferred across.

I asked Vedran Babic, operations manager for Fisher Funds Management, what might have happened here, and what you can do about it. He replied, "When we get a new member application, we load the details into our system and notify Inland Revenue immediately. If it is a transfer from another provider, IR will let us know who the previous provider is. We will send a transfer notification to that provider, along with supporting evidence of the enrolment. The old provider will check that the details match and if so they will proceed with processing the transfer by issuing a transfer breakdown letter to the new provider (this breaks down the balance between the different types of contributions) followed by the transfer of funds.

"There are cases where the details do not match. For example, a surname differs or signatories are different because a member might have joined their previous provider several years ago as a minor (and therefore did not sign the application form). In this case, the previous provider will notify the new provider of the reason for rejection. The onus will be on the new provider to provide sufficient evidence and/or contact the member to obtain the missing information. When the new provider cannot contact the member or produce this evidence, this can result in a member ending up with two providers. Their balance with the previous provider remains while any new contributions are delivered to the new provider.

"In short, IR will have them with one provider but their funds will be invested with two therefore unofficially ending up with two accounts. We have an ongoing programme to resolve these situations so I'd be happy to assist in getting the transfer completed for your reader."

Good on you for keeping track of your KiwiSaver and realising that something could be amiss. If you call Fisher Funds Management on their freephone number (refer to your latest statement), they will arrange to transfer the balance from ANZ. It is important to do this well before Member Tax Credits are calculated at the end of June, so that you get your full entitlement.

- Shelley Hanna is an authorised financial adviser (FSP12241). Her disclosure statement is available on request, free, by calling (06) 870 3838, or see peak.net.nz. The information contained in this article is of a general nature and is not personalised.
Send your KiwiSaver questions to shelley.hanna@peak.net.nz.