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Financial Markets Conduct Act 2013

Governance of financial products - Governance of managed investment products - Registration

130: Additional initial and ongoing registration requirements for workplace savings schemes

You could also call this:

"Extra rules for registering a workplace savings scheme to help people save for retirement"

Illustration for Financial Markets Conduct Act 2013

To register a workplace savings scheme, you must meet some extra requirements. You can find the main requirements in section 127. Your scheme must be a trust that follows New Zealand law.

Your scheme's purpose is to give retirement benefits to individuals and benefits when they stop working. You can also give benefits for other reasons, but only if they are allowed in your trust deed. For example, this could be because of financial hardship or if a member dies or becomes disabled.

You can only let certain people join your scheme, such as eligible individuals or the people who manage the scheme. Your scheme must be a certain type, like a defined benefit scheme, and you must meet any other requirements that apply to you. You cannot register your scheme as a KiwiSaver scheme.

If you are setting up a workplace savings scheme, you need to know what an eligible individual is. An eligible individual is someone who works for a certain person or company, or someone who works in a certain industry. This includes employees, directors, and people who work for someone but are not employees.

You do not have to meet all the requirements for your whole scheme, you can meet them just for a part of it. If you do this, then that part of your scheme is a workplace savings scheme.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5155251.

Topics:
Money and consumer rights > Savings and retirementBusiness > Industry rules
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129: Additional initial and ongoing registration requirements for superannuation schemes, or

"Extra rules for registering a superannuation scheme to help people save for retirement"

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131: Additional ongoing registration requirements for restricted schemes, or

"Extra rules for some types of savings schemes, like KiwiSaver, to stay registered"

Part 4Governance of financial products
Governance of managed investment products: Registration

130Additional initial and ongoing registration requirements for workplace savings schemes

  1. Every workplace savings scheme must meet the following registration requirements in addition to those in section 127:

  2. it must be a trust established and governed by a trust deed that is interpreted and administered in accordance with New Zealand law; and
    1. its purposes must be to provide—
      1. retirement benefits directly or indirectly to individuals; and
        1. benefits to eligible individuals on ceasing employment or engagement with 1 or more persons specified in the trust deed or in an industry specified in the trust deed (whether immediately on ceasing that employment or engagement, or subsequently); and
        2. it may allow redemptions, withdrawals, and benefits for other purposes (including in the way the trust deed is applied) only if—
          1. they are in accordance with other limited circumstances defined in the trust deed (for example, financial hardship or early partial withdrawal criteria, or insurance benefits to members (including in the event of a death or disability of a member)); and
            1. they are incidental or secondary to the purposes of the scheme; and
            2. it must admit as members (both in its conditions of entry of scheme participants and in the way those conditions are applied on entry) only either or both of the following:
              1. eligible individuals:
                1. persons who are the trustees or managers of a retirement scheme; and
                2. it must be—
                  1. a defined benefit scheme; or
                    1. a scheme under which contributions are allocated to scheme participants on an individual basis and the benefits provided by the scheme must be fully funded as they accrue; and
                    2. it must meet any additional prescribed registration requirements for workplace savings schemes that apply to it; and
                      1. it must not be registered as a KiwiSaver scheme.

                        1. In this section, eligible individual, in relation to a person or industry specified in the trust deed, means—

                        2. an employee or director of that person; and
                          1. an individual who provides personal services (other than as an employee) principally to that person; and
                            1. an individual who is employed or engaged in that industry.

                              1. However, a workplace savings scheme may meet the requirements in subsection (1)(b) to (f) in respect of a section of the scheme only, and, in that case, the scheme is a workplace savings scheme in respect of that section of the scheme.