LEGAL LOWDOWN
NEWSLETTER #2 – August 2013
KiwiSaver: HOW, WHEN & WHY? What is KiwiSaver? KiwiSaver is a voluntary savings scheme which helps members save for their retirement. Such savings are made up of contributions from you, your employer (if employed) and the government. You can choose your KiwiSaver scheme or else be enrolled in one of the default schemes. How do I access or withdraw my KiwiSaver Contributions? Generally you cannot withdraw your contributions until you qualify for New Zealand Superannuation (currently at the age of 65). However there are limited and special circumstances in which your contributions may be withdrawn early as outlined below.
Employment
2
A look at minimum employment rights and what you need to know about starting a new job or signing a new employment contract.
Services
3
A brief overview of recent and upcoming OCLC events and legal services, including our outreach and public events and seminars.
EPOA
4
A look at how to protect yourself if something happens to you, rendering you mentally incapable of making your own decisions.
KiwiSaver Withdrawals: EARLY WITHDRAWAL CRITERIA EARLY WITHDRAWAL CRITERIA There is a strict criteria under the KiwiSaver Act 2006 (“the Act”) which allows early withdrawals of KiwiSaver contributions ONLY in the following circumstances: Significant Financial hardship; which includes inability to meet minimum living expenses, inability to meet mortgage repayments, medical treatment, palliative care or funeral costs Serious illness; meaning totally and permanently unable to work in a job suited to your education, experience or training, Permanent Emigration; If you plan to live in another Country for good (except Australia). You must wait 12 months after you have emigrated to apply, Purchase of your First Home; $1000 for
each year you have contributed to KiwiSaver up to $5,000 or
evidence that you have tried to find other sources of funds
If a KiwiSaver member dies; In such case the administrator of your estate or next of kin will need to apply to withdraw such funds.
a statutory declaration about your assets and liabilities
HOW TO WITHDRAW YOUR FUNDS? If you're an employee and it has been less than three months since you joined KiwiSaver, you can apply to the Inland Revenue Department (IRD) for a significant financial hardship withdrawal. Otherwise, you would need to make a withdrawal application to your provider. All KiwiSaver schemes have different processes to withdraw funds. Application forms can be obtained directly from your provider. You'll also need to provide the following:
any other information that will prove your financial situation and need for the money Ultimately it is not the providers who determine your withdrawal application but their independent trustees who have the last say. It is a matter of whether you NEED the funds for essentials as opposed to WANTING the funds for non-essentials. Some providers have determined in certain cases that school trip fees, holiday costs and even monthly Digital Television bills to be non-essentials. For more information on matters relating to your KiwiSaver contributions, see your KiwiSaver Scheme Provider.