KEY POINTS:
Only one of the country's 3000 employer-sponsored superannuation schemes has been exempted from the new KiwiSaver scheme, just 45 days before it starts on July 1.
The slow response, with only detergent maker Unilever's scheme for 265 employees exempted to date, indicates that many employers are putting off
decisions until the last minute - some possibly waiting to see if the rules change in today's Budget.
"My pick would be that very few employers have made any decision about that," said Business New Zealand chief executive Phil O'Reilly.
"In the small to medium sector, I doubt that many employers have even thought about it."
The manager of the insurance and superannuation unit in the Ministry of Economic Development, Gavin Quigan, said only Unilever had been granted an exemption so far, and only one of the eight main "master trusts" - Axa's trust covering 24,650 employees in about 600 companies - had been certified as complying with KiwiSaver rules.
Employers in the Axa trust still have to amend the rules of their particular super schemes to take advantage of compliance status.
Mr Quigan said a number of other large super schemes had started talking to the ministry about changing their rules but no other changes had yet been approved.
"We have reviewed a few and given a few informal comments on some drafts, but we could probably count them on a couple of hands if you're lucky," he said.
"We are anticipating a bit of a rush of these things between now and June 30."
However, 11 new KiwiSaver schemes have been registered, including six "default" schemes which will be given to employees who do not choose their own scheme.
Roger Perry of AMP, one of the six default scheme providers, said the 700 companies with super schemes in AMP's existing master trust were still working through their options. He expects about 20 per cent to seek exemptions before July 1, while 80 per cent will simply keep their existing schemes running alongside KiwiSaver.
Tim Jenkins of Mercers, which manages the second-biggest master trust and 90 of the country's 400 standalone company super schemes, said many of the larger schemes would change their rules to comply with KiwiSaver, but could not do so until the law was changed to allow changes to schemes which offer defined pensions or lump sums in retirement.
Fletcher Building has agreed to offer a new KiwiSaver scheme to its 9000 employees, with a 2 per cent employer contribution on condition that employees contribute at least 4 per cent.
Human resources manager Peter Merry said the company was just waiting for the Budget before announcing details to staff.
The State Sector Retirement Savings Scheme, which has 36,000 members, said it would seek exempt employer status.
Time to decide
* Employers with existing super schemes have to choose whether to modify their schemes to comply with KiwiSaver rules, add on KiwiSaver options within an existing scheme, keep their existing schemes running alongside KiwiSaver, or wind up their schemes to let employees join KiwiSaver.
* They can also apply to be exempted from the law that all new employees aged 18 to 64 must sign up with KiwiSaver for at least 12 days before they can opt out.
* To do that, their existing scheme must be at least as good as KiwiSaver with at least 4 per cent of the members' earnings saved each year.
- www.kiwisaver.govt.nz
- www.isu.govt.nz
