IRIS KiwiSaver, which was set up by four unions, is to be wound up and Gareth Morgan KiwiSaver (GMK) will market a product to union members instead.
The deal is being touted as the first step of an expected consolidation in the KiwiSaver industry to give surviving companies scale.
Gareth
Morgan KiwiSaver has about 37,000 customers and $157 million under management, while IRIS has about 1000 members with between $2m to $3m under management.
IRIS-GMK, the branded version of the Gareth Morgan KiwiSaver Scheme, will be marketed to union members and their families.
Existing IRIS KiwiSaver members are being notified of the changes and will be invited to transfer to IRIS-GMK. They can also choose other schemes. Those who transfer to IRIS-GMK get a $20 fee rebate in the first year.
GMK is paying $70 per transfer to help cover the costs of the wind down of IRIS KiwiSaver.
IRIS was established in 1990 by the National Distribution Union (NDU), Engineering, Printing and Manufacturing Union, Nurses Organisation and Service and Food Workers' Union. Its superannuation scheme is not included in the deal.
Director Gareth Morgan said GMK was excited about reaching an agreement with IRIS.
NDU national secretary Laila Harre said union members would have the opportunity to access a large KiwiSaver scheme. GMK was also a New Zealand business.
- NZPA
