Can employees opt out of KiwiSaver?
Employees who are automatically enrolled into KiwiSaver in New Zealand have the option to request an opt-out. However, this choice is only available to those who were automatically enrolled and not to employees who actively chose to join KiwiSaver.
Employers can assist in the opt-out process for new employees, but this can only be done within a specific timeframe of 2-8 weeks after the commencement of employment, falling between day 14 and day 56. To initiate the opt-out, employees must complete a KiwiSaver opt-out request form, known as the KS10, which employers are responsible for forwarding to the relevant authority.
If an employee's request is late, beyond the 8-week period, it is considered a late opt-out, and approval for such requests can be granted up to 3 months after the first contribution is received, but only under certain circumstances.
If the employee's request is late and cannot be processed by the employer, the employee may also contact the relevant authority directly to request the opt-out. The KS10 form is the official document used for this purpose.