KS10075
(6001) 040430 08-15
BNZ KiwiSaver Scheme
Investment Statement.
This is an Investment Statement for the purposes of the
Securities Act 1978 and is prepared as at 17 September 2015.
Important information.
(The information in this section is required under the Securities Act 1978.)
Investment decisions are very important. They often have long-term consequences.
Read all documents carefully. Ask questions. Seek advice before committing yourself.
Choosing an investment
When deciding whether to invest, consider carefully the answers to the following questions that can be found on the
pages noted below:
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What sort of investment is this? 39
Who is involved in providing it for me? 42
How much do I pay? 44
What are the charges? 46
What returns will I get? 48
What are my risks? 56
Can the investment be altered? 59
How do I cash in my investment? 61
Who do I contact with inquiries about my investment? 61
Is there anyone to whom I can complain if I have problems with the investment?
62
What other information can I obtain about this investment? 63
In addition to the information in this document, important information can be found in the current registered prospectus
for the investment. You are entitled to a copy of that prospectus on request.
The Financial Markets Authority regulates conduct in financial markets
The Financial Markets Authority regulates conduct in New Zealand’s financial markets. The Financial Markets Authority’s
main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets.
For more information about investing, go to http://fma.govt.nz
Financial advisers can help you make investment decisions
Using a financial adviser cannot prevent you from losing money, but it should be able to help you make better
investment decisions.
Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the
nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products.
When seeking or receiving financial advice, you should check:
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the type of adviser you are dealing with
the services the adviser can provide you with
the products the adviser can advise you on.
A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure
statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of
interest he or she may have.
Financial advisers must have a complaints process in place and they, or the financial services provider they work for, must
belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over an investment,
you can ask someone independent to resolve it.
Most financial advisers, or the financial services provider they work for, must also be registered on the financial service
providers register. You can search for information about registered financial service providers at http://www.fspr.govt.nz
You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser.
Capitalised terms and important definitions
Capitalised terms and important definitions used in this Investment Statement are defined in the ‘Definitions’ section on
page 66. Where the words ‘us’, ‘we’ or ‘our’ are used, they refer to the Manager, BNZ Investment Services Limited. ‘You’,
‘your’, ‘I’ and ‘member’ means the person who signs up to the BNZ KiwiSaver Scheme.1
Investments made in BNZ KiwiSaver do not represent deposits or other liabilities of Bank of New Zealand (‘BNZ’) or any
other member of the National Australia Bank Limited group, and are subject to investment risk, including the possible
loss of income and principal invested. None of BNZ, or any other member of the National Australia Bank Limited
group, the Trustee, any director of any of them, the Crown or any other person guarantees (either fully or in part) the
performance or returns of BNZ KiwiSaver or the repayment of capital. National Australia Bank Limited, the ultimate
parent of BNZ, is not a registered bank in New Zealand, but it is a licensed bank in Australia and is therefore subject to the
supervision of the Australian Prudential Regulation Authority.
There is no Crown guarantee in respect of any KiwiSaver scheme or investment product of a KiwiSaver scheme.
You may have received this Investment Statement because you have been allocated to BNZ KiwiSaver by Inland Revenue
or because BNZ KiwiSaver is your employer’s chosen KiwiSaver scheme. If this is the case, you don’t need to complete the
Application Form at the back of the Investment Statement, but you should consider providing us with your contact details
and correct PIR.
1. The term ‘BNZ KiwiSaver’ may be used in this Investment Statement as an abbreviation for ‘the BNZ KiwiSaver Scheme’ and readers should view
those terms interchangeably.
1
Key information.
KiwiSaver general overview
What is KiwiSaver? p6
KiwiSaver is a voluntary savings initiative set up by the Government to encourage
New Zealanders to save for their retirement. KiwiSaver schemes are established
under a framework set out in legislation. The Government and your employer may
also contribute to your KiwiSaver account.
Who can join? p39
You don’t have to be employed to join a KiwiSaver scheme, but you do have to be:
a New Zealand citizen, or entitled to live in New Zealand permanently;
living or normally living in New Zealand – unless you are a state sector employee serving
outside New Zealand; and
under the age of eligibility for New Zealand Superannuation (currently age 65) when you first
become a KiwiSaver member. If you are joining BNZ KiwiSaver by transferring from another
KiwiSaver scheme, you are able to join BNZ KiwiSaver even if you are over the qualifying age for
New Zealand Superannuation.
Why have I been automatically enrolled? p39
When you start a new job with a new employer, if you’re not already a member of a KiwiSaver scheme and are
eligible, your employer will automatically enrol you in KiwiSaver. If this happens, Inland Revenue will provisionally
allocate you to your employer’s chosen KiwiSaver scheme (if they have one) or otherwise to a default
KiwiSaver scheme. You may have been allocated to BNZ KiwiSaver by Inland Revenue for either of
these reasons. You will still have the option to choose a KiwiSaver scheme.
You can opt out of KiwiSaver between the end of weeks two and eight of your new employment if you
are automatically enrolled.
How much do I have to contribute? p44
If you’re employed, you need to contribute either 3%, 4% or 8% of your before-tax pay to your KiwiSaver account.
Your contributions will be deducted from your take-home pay. If you don’t choose a contribution rate, your employer
will deduct contributions at the minimum contribution rate of 3%. You can change your contribution rate, as well
as make regular or lump sum contributions at any time. You can take a contributions holiday at certain times.
If you’re self-employed or not working, the minimum amount that you must contribute is set by your KiwiSaver
scheme provider. BNZ KiwiSaver has no minimum amount that you have to contribute, however, we may close
your KiwiSaver account where it has a nil balance, provided we give you notice. You can easily set up bill payments
or a direct debit authority to make regular or lump sum contributions to your BNZ KiwiSaver account.
What are the benefits? p44-45
While you are over 18 and below your Qualifying Age and if you are contributing to KiwiSaver
through your pay, your employer will generally also contribute 3% of your before-tax pay.
Your Qualifying Age is the date when you reach the age of eligibility for New Zealand
Superannuation (currently age 65) and you have been a KiwiSaver member (and/or a member
of a Complying Superannuation Fund) for at least five years.
Employer contributions are taxed before they are credited to your KiwiSaver account.
If you are eligible, the Government pays into your KiwiSaver account, a Member Tax Credit
of 50 cents for every dollar you contribute, up to a maximum of $521.43 each year (1 July
to 30 June). You need to be over 18 and below your Qualifying Age (and meet the residency
requirements) to be eligible for Member Tax Credits.
Your employer may not have to make KiwiSaver contributions if they make contributions to
another superannuation scheme for you, and certain conditions apply. Your employer will be
able to confirm if they do not have to make KiwiSaver contributions for you.
When can I withdraw my KiwiSaver savings? p48-51
Generally, you won’t be able to withdraw your KiwiSaver savings until you reach your Qualifying Age.
Once eligible, you can withdraw all or part of your KiwiSaver savings (certain withdrawal restrictions apply).
In limited circumstances, you may also be able to
withdraw all or part of your KiwiSaver savings early,
including for the following reasons:
Buying your
first home
2
Significant
financial
hardship
Serious
illness
Permanent
emigration
In some cases, you can’t withdraw your full
account balance (see page 49 for details). If you
permanently emigrate to Australia you cannot
withdraw your KiwiSaver savings (unless
you otherwise qualify for a withdrawal, for
example due to serious illness). However, you
can transfer your KiwiSaver savings to certain
Australian complying superannuation schemes
(see page 51 for details).
If you die while you are a KiwiSaver member,
your KiwiSaver savings will generally be paid
to executors or administrators of your estate.
BNZ KiwiSaver Scheme overview
What is the BNZ KiwiSaver Scheme? p39
BNZ KiwiSaver is a registered KiwiSaver scheme under the KiwiSaver Act. BNZ KiwiSaver is also a Governmentappointed default KiwiSaver scheme.
Who provides the BNZ KiwiSaver Scheme? p42-43
Issuer and Manager: BNZ Investment Services Limited
Promoters: BNZ and its directors
Trustee: The New Zealand Guardian Trust Company Limited
Investment Adviser: Russell Investment Group Limited
Administration Managers: BNZ and MMC Limited
Registrar: Trustees Executors Limited
Where will my money be invested? p33-38
BNZ KiwiSaver has six funds for you to choose from:
1. Cash Fund:
100% income assets
0% growth assets
2. First Home Buyer Fund:
85% income assets
15% growth assets
3. Conservative Fund:
(default fund)
80% income assets
20% growth assets
4. Moderate Fund:
65% income assets
35% growth assets
5. Balanced Fund:
50% income assets
50% growth assets
6. Growth Fund:
30% income assets
70% growth assets
If you have been allocated to BNZ KiwiSaver or did not choose a fund, then your contributions will be invested in
the Conservative Fund until you tell us otherwise.
Each fund has a different target mix of assets (‘asset allocation’) that it invests in – such as cash and fixed income
investments (income assets) and shares (growth assets). You can choose to invest in just one fund, or spread your
investment among several funds.
We divide the value of each fund into equal parcels, called Units. The contributions you make, and other amounts
paid to BNZ KiwiSaver on your behalf, buy Units in the fund(s) you have selected. Each Unit has a price that reflects
the value of the relevant fund’s assets and liabilities (which are regularly revalued).
What are the returns and risks? p48 and p56-58
The key factor that determines returns is the investment performance of the fund(s)
you invest in. Investment performance is influenced by the asset allocation of your
selected fund(s), the performance of any investment manager and underlying investment
managers, the fund’s investments and the investment markets generally. Other key
factors include the level of contributions made, the length of time you have been a
member of BNZ KiwiSaver, whether you have made any early withdrawals, and the tax,
fees and expenses charged.
All investments involve an element of risk. Risk is the likelihood of losing money, or getting
a lower investment return than you expect. In general terms, the more a fund has invested
in growth assets, the greater the fluctuations in returns and long term growth potential.
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BNZ KiwiSaver Scheme overview continued...
What are the fees? p46-47
There are two types of fees:
a member fee of $1.95 per month, (or part month), paid directly from your BNZ KiwiSaver account.
a management fee of up to 1.1% per annum that varies depending on the fund(s) that you invest in.
This fee is paid from the fund(s) and is reflected in that fund’s Unit Price.
Certain expenses are paid by the funds.
We and the Trustee are entitled to be reimbursed from the funds for all expenses, losses, costs or
liabilities (and the costs of defending claims) incurred in managing or supervising BNZ KiwiSaver.
However, reimbursements cannot be made if the loss arises out of wilful default, wilful breach of
trust or breach of the standard of care or other duties imposed by law.
Can I make additional regular or lump sum contributions? p45
Yes. It’s easy to set up bill payments, or a direct debit authority, to make
regular or lump sum contributions to your BNZ KiwiSaver account.
Can I change the BNZ KiwiSaver Scheme funds in which I invest? p59
Yes, you can change funds within BNZ KiwiSaver at any time, for free.
Can I change to another KiwiSaver scheme or provider? p51-52 and 60
You can also change to a different KiwiSaver scheme or provider by contacting them directly.
Are my KiwiSaver savings guaranteed? p39
No, KiwiSaver savings are not guaranteed by any person or organisation,
including the Government.
What information will I get? p63
If you use BNZ internet banking, you’ll be able to check your BNZ KiwiSaver
account balance at any time.
You’ll also receive an annual statement of your account, a tax certificate,
and a copy of the BNZ KiwiSaver Annual Report (including summary
financial statements).
What if I belong to another KiwiSaver scheme? p64-65
You can still join BNZ KiwiSaver, but you can belong to only one KiwiSaver scheme at
a time. When you join BNZ KiwiSaver we will arrange the transfer of your KiwiSaver
account balance from your previous KiwiSaver scheme provider.
Who can I contact for further information? p61
Call us on 0800 269 5494, email us at [email protected]
or visit your local BNZ store.
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Your retirement savings are managed by global
investment managers
By investing into funds managed by related parties of Russell Investment
Group Limited (‘Russell Investments’), BNZ is able to access the expertise of
carefully selected global investment managers to manage the investments of
BNZ KiwiSaver. For more information on Russell Investments and its approach to
investing refer to page 38.
You have advisers
on hand to help
Our BNZ Authorised Financial
Advisers are specialists in their field.
So you will have dedicated access to
advice about retirement savings on
hand to help when you need it.
You can call into any of our stores
nationwide or call us on 0800 269
5494 for assistance with your BNZ
KiwiSaver account.
Choose a KiwiSaver scheme
the easy way with BNZ.
At BNZ we like to make things easier for you, including your KiwiSaver
savings. There are lots of great reasons to join or stay with BNZ KiwiSaver
– here are just a few.
How a KiwiSaver scheme can help you save for your
retirement – no matter what your stage of life
Once you understand the basics of KiwiSaver, you’ll want to know how it could
benefit you. We’ll look at the major stages of life many people may go through
before they retire in the next few pages, but first you should read the following
important information about KiwiSaver and why joining a KiwiSaver scheme is a
good way to help you prepare for your retirement.
Save for your first home
KiwiSaver is a great way to save for your first home. If you’re planning on using your KiwiSaver
savings for a first home purchase, check out ‘What kind of investor am I?’ on page 34-35 to see
which of our funds might be right for you.
Manage your account online
You can manage your BNZ KiwiSaver account through BNZ internet banking. You can make changes
to the fund(s) you invest in, check your balances and transactions and make voluntary contributions
at any time. Your BNZ KiwiSaver account will show alongside your other BNZ accounts.
Convert your Fly Buys
points into BNZ KiwiSaver
Scheme contributions
Give your BNZ KiwiSaver account a boost by
converting Fly Buys points into BNZ KiwiSaver
account contributions. 108 Fly Buys points converts
to a $20 contribution into a BNZ KiwiSaver account.
>
ontributions made with Fly Buys points can
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count towards your annual Member Tax Credit.
>
Fly Buys members can convert their Fly Buys
points into contributions to their or anyone
else’s BNZ KiwiSaver account.
>
I f you’re self-employed or not employed,
converting Fly Buys points into BNZ KiwiSaver
contributions is a great way to keep putting
money aside for your retirement.
Fly Buys points can be converted at flybuys.co.nz
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Fly Buys points and redemption rates are subject to change without notice. Current conversion
rates are available on bnz.co.nz/kiwisaver. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to convert Fly Buys points into BNZ
KiwiSaver contributions may be withdrawn at any time.
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What is
KiwiSaver?
KiwiSaver is a voluntary retirement savings initiative set up
by the Government to encourage New Zealanders to save for
their retirement.
By tucking a little away on a regular basis, you can watch
your savings grow and you may be able to take advantage
of Government and employer contributions.
The sooner you start, the more opportunity your nest
egg has to grow, which could provide you with a more
comfortable future.
How KiwiSaver works
3
If you are employed you will need to contribute a percentage of your before-tax pay - either
3%, 4% or 8%. Your contributions will be deducted from your take-home pay. If you don’t
choose a contribution rate, your employer will deduct contributions at the minimum
contribution rate of 3%. You can take a contributions holiday at certain times.
Should the need arise, you can take a break from contributing by applying for a contributions
holiday after you have been a KiwiSaver member for at least 12 months (or earlier if you are
experiencing financial hardship).
You can also make lump sum or additional regular contributions into your KiwiSaver account at
any time.
If you are not in paid employment, you can make regular or lump sum contributions.
521
18
If you’re over 18 and below your Qualifying Age the Government will (if you are
eligible) contribute 50 cents for every dollar you contribute up to a maximum
of $521.43 each year (1 July to 30 June). This is called a Member Tax Credit
and is paid directly into your KiwiSaver account each year (around July/August).
If you’re over 18 and below your Qualifying Age, and you are making
contributions to a KiwiSaver scheme from your pay, your employer will
generally also contribute 3% of your before-tax pay. Employer contributions
have tax deducted from them before they are credited to your account.
If you’re over 18 and below your Qualifying Age, and you are not currently
employed, KiwiSaver is still a great choice for you. You can set your own
contribution levels, and you may qualify for other KiwiSaver benefits such as
Member Tax Credits.
KiwiSaver can help you save towards your first home. If you have been a KiwiSaver member for three
or more years, you may be eligible to withdraw all your KiwiSaver savings (except for $1,000 and any
savings transferred from an Australian complying superannuation scheme) to help you purchase your
first home. In some situations you may also qualify as a ‘second chance’ home buyer.
5,000
You may also qualify for a KiwiSaver HomeStart grant after
contributing regularly to a KiwiSaver scheme for at least three
years. If you are purchasing an existing home the KiwiSaver
HomeStart grant is $1,000 for each year you’ve been contributing
to a KiwiSaver scheme, up to a maximum of $5,000.
If you are purchasing a brand new home, a home off the plans or land on which to build a new home,
the KiwiSaver HomeStart grant is $2,000 for each year you’ve been contributing to a KiwiSaver
scheme, up to a maximum of $10,000.
The KiwiSaver HomeStart grant is administered and paid by Housing New Zealand. For full details of the
eligibility criteria for a KiwiSaver HomeStart grant, visit the Housing New Zealand website at hnzc.co.nz.
It’s important to know that you won’t normally be able to withdraw your
KiwiSaver savings until you reach your Qualifying Age. There are some
limited circumstances where you may be able to withdraw your savings
sooner (see pages 49-52).
These are the benefits of KiwiSaver as at the date of this Investment
Statement. Eligibility criteria apply to the benefits mentioned. Benefits
could change in the future. See kiwisaver.govt.nz for current information.
6
Let’s look at how quickly your
KiwiSaver savings could grow.
Regular contributions to a KiwiSaver scheme really do add up over time. To show just how much,
let’s take Jane as an example:
Jane starts contributing to a KiwiSaver scheme balanced fund when she is 35 years of age, earning
a before-tax pay of $60,000 a year. Jane contributes 4% of her before-tax pay through to age 65.
At 45 Jane has $64,875 (or equivalent to $53,220 in spending power today).
At 55 Jane has $189,707 (or equivalent to $127,667 in spending power today).
At 65 Jane has $415,327 (or equivalent to $229,465 in spending power today).
C U M U L AT I V E T O TA L S
Jane’s KiwiSaver scheme contributions*
$
YE ARS IN A KIWISAVER SCHEME
Returns
Government Contributions
Employer Contributions
Employee Contributions
Please note that this graph does not reflect any actual returns and
is not a prediction of future returns (which are likely to fluctuate
due to investment and other risks, including loss of capital
invested). Returns may be negative in some periods. The lines on
the graph accumulate on each other.
KiwiSaver works no matter what your life stage
You’re never too young or too old to be good with your money. BNZ KiwiSaver is one way that could
help you make a big difference when saving towards your retirement. It is designed to help the money
you are saving towards your retirement work harder at different stages of life, so you can enjoy the
benefits. Over the next few pages you’ll see a number of life stages that many of us will journey
through before we retire. Simply choose the life stage that best suits where you are now and find out
how BNZ KiwiSaver can work for you.
*This is an example and intended for illustrative purposes only. It shows a hypothetical member who joins KiwiSaver on 15 June 2015. Future
inflation is assumed to be 2% each year in the calculation of today’s equivalent spending power. The figures are based on an assumed before
inflation return of 4.4% per year and also an inflation adjusted return of 2.4% per year (to illustrate the impact of inflation on spending
power) from a balanced fund after investment management fees, expenses and tax (at a prescribed investor rate of 28%. The graph
assumes an annual increase in salary during the period of 3.5%. The Member Tax Credits have been taken into account. Member Tax Credits
are calculated at 50 cents for every $1 each member contributes (up to a maximum Member Tax Credit of $521.43 per year). The graph
assumes eligibility for Member Tax Credits for the full period. Jane’s employer contributions of 3% of Jane’s before-tax pay have been
taken into account, after deductions of employer’s superannuation contribution tax at current applicable rates. The graph also assumes no
withdrawals are made and no contribution holidays are taken.
You can use Sorted’s KiwiSaver account calculator, available at sorted.org.nz/calculators/kiwisaver, to work out your potential KiwiSaver savings.
7
Automatically enrolled
Making the most
of KiwiSaver
after being
automatically
enrolled.
Automatically enrolled
Making the most of KiwiSaver
after being automatically enrolled.
Starting a new job and being automatically enrolled in KiwiSaver is a
great way to start building a nest egg for your retirement. Plus, with the
KiwiSaver benefits for first home buyers, it could make it easier to buy your
first home sooner.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals. See
pages 33-37 for details.
anage your account online – use BNZ internet banking to change how your
M
savings are invested, make contributions and check balances and transactions at
any time.
Your current KiwiSaver benefits
p to $521 Member Tax Credit – 50 cents for every dollar you
U
contribute to your KiwiSaver account, up to a maximum of $521.43
a year (if you are eligible).
ompulsory employer contributions – while you’re contributing
C
to a KiwiSaver scheme from your pay, your employer must generally
also contribute a minimum of 3% of your before-tax pay. Employer
contributions are taxed before they are credited to your account.
irst home withdrawal – after KiwiSaver membership of three years or
F
more, you may be eligible to withdraw all your KiwiSaver savings (except
for $1,000 and any savings transferred from an Australian complying
superannuation scheme) to help you purchase your first home.
iwiSaver HomeStart grant – after contributing regularly to a
K
KiwiSaver scheme for three years or more, you may also be entitled
to a grant from Housing New Zealand towards your first home. The
HomeStart grant is up to $5,000 for the purchase of an existing home
or up to $10,000 for the purchase of a brand new home, a home off the
plans or land on which to build a new home. For more information on
the amount of the HomeStart grant, see the table on page 50.
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could
change in the future.
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Automatically enrolled
BNZ KiwiSaver Scheme saving tips
To get your BNZ KiwiSaver account working for you, make sure to:
Choose a fund to invest in. Complete the ‘What kind of investor am I?’
questionnaire on page 34-37 to help you select a fund that is suitable
for your investor profile. If you don’t make a choice your BNZ KiwiSaver
savings will be automatically invested in the Conservative Fund.
Choose a prescribed investor rate (PIR) that’s right for you. You’ll find
information on page 54 to help with this. If you don’t select a PIR, the
tax we pay on your share of taxable income earned will automatically be
calculated at the highest PIR of 28%.
For more information or for help getting started with your decisions around KiwiSaver, give us a call
on 0800 269 5494, email us at [email protected] or visit your local BNZ store.
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First Home
Save for your
first home with
KiwiSaver.
First Home
Save for your first home
with KiwiSaver.
KiwiSaver is a great way to save for a first home. With the KiwiSaver
benefits and the possibility of qualifying for additional Government
assistance, getting into your first home could be easier than you think.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals. See page
33-37 for details.
he BNZ KiwiSaver Scheme First Home Buyer Fund – is a fund specifically
T
designed to suit the needs of a first home buyer with an expected investment
timeframe of around 5 years, and who is prepared to accept a small amount of
investment risk to achieve returns which may be higher than returns from bank
deposits (before tax, fees and expenses) over that timeframe. Check out the ‘What
kind of investor am I?’ tool on page 34-37 to see if this fund might be right for you.
Manage your account online – use BNZ internet banking to change how your
savings are invested, make contributions and check balances and transactions at
any time.
Your current KiwiSaver benefits
Up to $521 Member Tax Credit – 50 cents for every dollar you
contribute to your KiwiSaver account, up to a maximum of $521.43 a
year (if you are eligible).
Compulsory employer contributions – while you’re contributing
to a KiwiSaver scheme from your pay, your employer must generally
also contribute a minimum of 3% of your before-tax pay. Employer
contributions are taxed before they are credited to your account.
First home withdrawal – after KiwiSaver membership of three years or
more, you may be eligible to withdraw all your KiwiSaver savings (except
for $1,000 and any savings transferred from an Australian complying
superannuation scheme) to help you purchase your first home.
KiwiSaver HomeStart grant – after contributing regularly to a
KiwiSaver scheme for three years or more, you may also be entitled
to a grant from Housing New Zealand towards your first home. The
HomeStart grant is up to $5,000 for the purchase of an existing home,
or up to $10,000 for the purchase of a brand new home, a home off the
plans or land on which to build a new home. For more information on
the amount of the HomeStart grant, see the table on page 50.
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could change
in the future.
14
First Home
How the BNZ KiwiSaver Scheme could work for an example couple,
Rebecca and Sam, saving towards their first home.
Here’s a quick look at how much Rebecca and Sam could save towards
their first home through KiwiSaver after five years.
Let’s assume that Rebecca and Sam each have before-tax pay of
$50,000. After five years of saving in KiwiSaver, each contributing the
maximum 8% of their before-tax pay, they could have over $55,000
saved towards their first home. Here’s how their savings would look:
RebeccaSam
Total member contributions
$20,000
$20,000
Total employer contributions
$6,187
$6,187
Total Member Tax Credits
$2,605 $2,605
Less minimum account balance
($1,000)
($1,000)
Total available to withdraw for first home
$27,792
$27,792
Rebecca and Sam must each retain a minimum balance of $1,000 in their KiwiSaver account
following their first home withdrawal.
This is an example only. The above table shows accumulated contributions and is not a prediction of future benefits. The
table assumes there would be no increases to either Rebecca or Sam’s pay, no withdrawals made and no contributions
holidays taken. It assumes Rebecca’s and Sam’s employers contribute 3% of their before-tax pay to KiwiSaver and
employer’s superannuation contribution tax has been deducted from all employer contributions at the rate of 17.5%.
No investment earnings (positive or negative) or fee or expense deductions have been included. The maximum Member
Tax Credit has been rounded to $521 per year and assumes eligibility for Member Tax Credits for the full period.
BNZ KiwiSaver Scheme saving tips
If you’re buying a first home with someone else, you could both qualify to
make a KiwiSaver first home withdrawal. Consider increasing your KiwiSaver
contributions to as much as you can afford while you are saving for your first
home. You can do this by increasing the amount deducted from your pay to
4% or 8%. You can also make one off or regular contributions to your BNZ
KiwiSaver account.
The KiwiSaver HomeStart grant could be as much as $20,000 for a couple
buying their first home (where they are buying a brand new home, a home off
the plans or land on which to build a new home) and who both qualify for the
maximum grant. Check out the Housing New Zealand website for details at
hcnz.co.nz
For more information or for help getting started with your decisions around KiwiSaver, give us a call on
0800 269 5494, email us at [email protected] or visit your local BNZ store.
15
Over 18
Accelerate
your savings
when you
start working.
Over 18
Accelerate your savings when
you start working.
If you’re over 18 and below your Qualifying Age, have never owned a
home and are earning a salary or wage, BNZ KiwiSaver is a great choice.
By starting early you could make it much easier to be in a better financial
position at retirement.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals. See page
33-37 for details.
Manage your account online – use BNZ internet banking to join, change how your
savings are invested, make contributions and check balances and transactions at
any time.
Your current KiwiSaver benefits
Up to $521 Member Tax Credit – 50 cents for every dollar you
contribute to your KiwiSaver account, up to a maximum of $521.43 a
year (if you are eligible).
Compulsory employer contributions – while you’re contributing
to a KiwiSaver scheme from your pay, your employer must generally
also contribute a minimum of 3% of your before-tax pay. Employer
contributions are taxed before they are credited to your account.
First home withdrawal – after KiwiSaver membership of three years or
more, you may be eligible to withdraw all your KiwiSaver savings (except
for $1,000 and any savings transferred from an Australian complying
superannuation scheme) to help you purchase your first home.
KiwiSaver HomeStart grant– after contributing regularly to a
KiwiSaver scheme for three years or more, you may also be entitled
to a grant from Housing New Zealand towards your first home. The
HomeStart grant is up to $5,000 for the purchase of an existing home
or up to $10,000 for the purchase of a brand new home, a home off the
plans or land on which to build a new home For more information on the
amount of the HomeStart grant, see the table on page 50.
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could
change in the future.
18
Over 18
BNZ KiwiSaver Scheme savings tip
Give your KiwiSaver savings a boost with Fly Buys. BNZ KiwiSaver is the
only KiwiSaver scheme that lets you convert Fly Buys points into KiwiSaver
contributions. Converting your Fly Buys points is easy, just go to flybuys.co.nz
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
19
Plan a bright
future today.
Over 18, not currently working
Over 18, not currently working
Plan a bright future today.
If you’re a stay-at-home parent, a beneficiary or not currently working,
KiwiSaver can still work hard for you. That’s because, if you’re over 18 and
below your Qualifying Age, you may qualify for other KiwiSaver benefits.
Plus, while you are not working, there’s no minimum contribution you have
to make to BNZ KiwiSaver.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals.
See pages 33-37 for details.
anage your account online – use BNZ internet banking to join, change how your
M
savings are invested, make contributions and check balances and transactions.
No minimum contribution while you’re not working – save faster by making
lump sum contributions whenever you have some spare cash in your bank accounts.
It’s easy. You can make lump sum contributions to your BNZ KiwiSaver account any
time, including via internet banking.
Your current KiwiSaver benefits
p to $521 Member Tax Credit – 50 cents for every dollar you
U
contribute to your KiwiSaver account, up to a maximum of $521.43
a year (if you are eligible).
irst home withdrawal – after KiwiSaver membership of three years or
F
more, you may be eligible to withdraw all your KiwiSaver savings (except
for $1,000 and any savings transferred from an Australian complying
superannuation scheme) to help you purchase your first home.
iwiSaver HomeStart grant – after contributing regularly to a
K
KiwiSaver scheme for three years or more, you may also be entitled
to a grant from Housing New Zealand towards your first home. The
HomeStart grant is up to $5,000 for the purchase of an existing home
or up to $10,000 for the purchase of a brand new home, a home off the
plans or land on which to build a new home. For more information on
the amount of the HomeStart grant, see the table on page 50.
BNZ KiwiSaver Scheme savings tip
Give your KiwiSaver savings a boost with Fly Buys. BNZ KiwiSaver is the
only KiwiSaver scheme that lets you convert Fly Buys points into KiwiSaver
contributions. Converting your Fly Buys points is easy, just go to flybuys.co.nz
22
Conditions apply to the KiwiSaver benefits listed. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could change
in the future.
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
Over 18, employed and own a home
It’s easy for employees to
save and for homeowners
to diversify.
Over 18, employed and own a home
It’s easy for employees to save and
for homeowners to diversify.
A KiwiSaver scheme is a great way to diversify your investments by
having a regular manageable savings plan to help you grow a nest egg
for your retirement.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals. See
pages 33-37 for details.
anage your account online – use BNZ internet banking to join, change
M
how your savings are invested, make contributions and check balances and
transactions at any time.
Your current KiwiSaver benefits
Up to $521 Member Tax Credit – 50 cents for every dollar you
contribute to your KiwiSaver account, up to a maximum of $521.43
a year (if you are eligible).
ompulsory employer contributions – while you’re contributing
C
to a KiwiSaver scheme from your pay, your employer must generally
also contribute a minimum of 3% of your before-tax pay. Employer
contributions are taxed before they are credited to your account.
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could
change in the future.
24
Over 18, employed and own a home
How the BNZ KiwiSaver Scheme could work for an example person, Pat:
Let’s take a quick look at how KiwiSaver could help Pat save for retirement.
Let’s assume that Pat has before-tax pay of $62,000 and joins a KiwiSaver scheme when she is
42 years old. By contributing to KiwiSaver at a contribution rate of 3% until she reaches 65 (the
current age at which Pat has the right to withdraw from KiwiSaver) she could save over $84,000.
Here’s how her savings could look:
Based on before-tax pay of $62,000 and a member contribution rate of 3%:
Total member contributions
$42,780
Total employer contributions
$29,946
Total Government contributions
$11,983
Total $84,709
This is an example only. The above table shows accumulated contributions and is not a prediction of future benefits.
It assumes Pat joined KiwiSaver and contributes at the minimum employee contribution rate of 3% and her employer
contributes at 3%. It assumes no increases to pay, no withdrawals made, no contributions holidays taken and that
employer’s superannuation contribution tax has been deducted from all employer contributions at the rate of 30%.
No investment earnings (positive or negative) or fee or expense deductions have been included. The maximum Member
Tax Credit has been rounded to $521 per year and assumes eligibility for Member Tax Credits for the full period.
BNZ KiwiSaver Scheme savings tips
Save faster by making lump sum contributions whenever you have some spare
cash in your bank accounts. It’s easy. You can make lump sum contributions to
your BNZ KiwiSaver account any time, including via internet banking.
Give your KiwiSaver savings a boost with Fly Buys. BNZ KiwiSaver is the
only KiwiSaver scheme that lets you convert Fly Buys points into KiwiSaver
contributions. Converting your Fly Buys points is easy, just go to flybuys.co.nz
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
25
Under 18
Start your
child’s savings
with a KiwiSaver
account.
Under 18
Start your child’s savings
with a KiwiSaver account.
Joining a KiwiSaver scheme is a great way to start kids on the savings habit
early. And the earlier they start, the more their savings will have a chance
to grow. It’s also a great way for parents to help their children purchase
their first home by putting away a little cash for them today.
How the BNZ KiwiSaver Scheme can work for your child
et the savings habit – a KiwiSaver scheme is a great way for children
G
to understand the power of savings.
Manage their account online – use BNZ internet banking to link to
your child’s account, change how their savings are invested, make
contributions and check balances and transactions at any time.
Convert your Fly Buys points into contributions to your child’s
BNZ KiwiSaver Scheme account – use your Fly Buys points to give
your child’s BNZ KiwiSaver account a boost.
Current KiwiSaver benefits
irst home withdrawal – when they’re ready (after
F
belonging to KiwiSaver for at least three years) they could
put some of their savings towards buying their first home.
KiwiSaver HomeStart grant – after contributing regularly
to a KiwiSaver scheme for three years or more, you may also
be entitled to a grant from Housing New Zealand towards
your first home. The HomeStart grant is up to $5,000 for
the purchase of an existing home or up to $10,000 for the
purchase of a brand new home, a home off the plans or land
on which to build a new home. For more information on the
amount of the HomeStart grant, see the table on page 50.
28
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could
change in the future.
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
Self-employed
Plan ahead when you’re
self-employed.
Self-employed
Plan ahead when you’re
self-employed.
If you’re over 18 and below your Qualifying Age, and you’re not paying
yourself amounts that have had PAYE deducted, BNZ KiwiSaver is a great
choice for you. There are no minimum contribution levels but you may qualify
for other KiwiSaver benefits.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals.
See pages 33-37 for details.
anage your account online – use BNZ internet banking to join, change
M
how your savings are invested, make contributions and check balances and
transactions at any time.
No minimum contribution – save faster by making lump sum contributions
whenever you have some spare cash in your bank accounts. It’s easy. You can
make lump sum contributions to your BNZ KiwiSaver account any time, including
via internet banking.
Your current KiwiSaver benefits
p to $521 Member Tax Credit – 50 cents for every dollar you
U
contribute to your KiwiSaver account, up to a maximum of $521.43
a year (if you are eligible).
First home withdrawal – after KiwiSaver membership of three years or
more, you may be eligible to withdraw all your KiwiSaver savings (except
for $1,000 and any savings transferred from an Australian complying
superannuation scheme) to help you purchase your first home.
iwiSaver HomeStart grant – after contributing regularly to a
K
KiwiSaver scheme for three years or more, you may also be entitled
to a grant from Housing New Zealand towards your first home. The
HomeStart grant is up to $5,000 for the purchase of an existing home
or up to $10,000 for the purchase of a brand new home, a home off the
plans or land on which to build a new home. For more information on
the amount of the HomeStart grant, see the table on page 50.
BNZ KiwiSaver Scheme savings tip
Give your KiwiSaver savings a boost with Fly Buys. BNZ KiwiSaver is the
only KiwiSaver scheme that lets you convert Fly Buys points into KiwiSaver
contributions. Converting your Fly Buys points is easy, just go to flybuys.co.nz
30
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could change
in the future.
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
Approaching retirement
Get ready for
your retirement.
Approaching retirement
Get ready for your retirement.
As you approach retirement, it is smart to keep an eye on how your savings
are tracking. BNZ KiwiSaver has a range of investment funds ideally suited
for people approaching retirement and, through BNZ internet banking,
it’s simple to check your balance at any time.
How the BNZ KiwiSaver Scheme can work for you
Choice of six funds – a range of different funds to suit your savings goals.
See pages 33-37 for details.
anage your account online – use BNZ internet banking to join, change
M
how your savings are invested, make contributions and check balances and
transactions at any time.
Your current KiwiSaver benefits
p to $521 Member Tax Credit – 50 cents for every dollar you
U
contribute to your KiwiSaver account, up to a maximum of $521.43
a year (if you are eligible).
ompulsory employer contributions – while you’re contributing
C
to a KiwiSaver scheme from your pay, your employer must generally
also contribute a minimum of 3% of your before-tax pay. Employer
contributions are taxed before they are credited to your account.
BNZ KiwiSaver Scheme savings tips
If your finances allow and you are employed, consider contributing at the
maximum rate of 8% of your before-tax pay. Your contributions will be
deducted directly from your take-home pay.
You can also make lump sum contributions to your BNZ KiwiSaver account
with any spare cash you may have in your bank accounts any time via
internet banking.
Give your KiwiSaver savings a boost with Fly Buys. BNZ KiwiSaver is the
only KiwiSaver scheme that lets you convert Fly Buys points into KiwiSaver
contributions. Converting your Fly Buys points is easy, just go to flybuys.co.nz
32
Conditions apply to the KiwiSaver benefits listed above. For further information refer to pages 44-45 and 49-50. KiwiSaver benefits could
change in the future.
Fly Buys terms and conditions apply. Visit flybuys.co.nz for details. Neither we nor BNZ guarantee the redemption of Fly Buys points. The ability to
convert Fly Buys points into BNZ KiwiSaver contributions may be withdrawn at any time.
Choosing your investment options.
BNZ KiwiSaver offers you a range of six different investment funds to choose from.
Each fund invests your money differently and provides a different level of potential return
depending on the amount of risk you are willing to take.
You can choose from any of the following funds:
1. Cash Fund
2. First Home Buyer Fund
3. Conservative Fund
(default fund)
4. Moderate Fund
5. Balanced Fund
6. Growth Fund
How do I know which fund is right for me?
To help you choose the right fund, we’ve put together this simple questionnaire, which will only take
you a few minutes to complete. The questionnaire will help you get a better understanding of your
attitude to investment risk and what sort of fund might be best suited for you. There are no wrong or
right answers, just select the answer that best describes you and add up your score.
The questionnaire is designed to help you discover what type of investor you are. Your responses to
the questions will help you understand your attitude to investment risk. Your score will indicate the
fund that might be suitable for someone with a similar attitude to investment risk. It’s really important
to be comfortable with your investment, so if the investor description doesn’t sound like you, read the
other profiles and select the one that sounds the most like you and how you feel about investing.
For example, if you are planning on withdrawing your KiwiSaver savings to help with the purchase of
your first home (or if you expect to qualify as a ‘second-chance’ home buyer), and you expect to do
this in around five years time, you may want to consider simply investing in the First Home Buyer Fund
or the Cash Fund.
The questionnaire is of a general nature only and does not constitute personalised financial advice.
We have made every effort to ensure that the information provided is accurate. However, you should
not rely on this information to make any financial decision without first having sought advice from a
financial adviser. You also should not make an investment decision without first having read all of this
Investment Statement.
It is important to regularly review where your KiwiSaver savings are invested. As your experience with
investing grows or if there is a change to your personal situation after you become a member of BNZ
KiwiSaver, you should consider reassessing how your KiwiSaver savings are invested. To help you assess
your attitude to investment risk at any time, this questionnaire is also available on bnz.co.nz/kiwisaver.
You can change the fund(s) that you invest in at any time. Further information on how to do this is
on page 59.
If you don’t choose a fund (including because you are a Default Member), your savings will be
automatically invested into the Conservative Fund. You can change this investment selection at any
time. Further information on how to do this is on page 59.
33
What kind of investor am I?
Use your total score from the questionnaire and read the ‘Investor Description’ in the table
on pages 36-37 that matches your score.
Remember that the questionnaire is only a guide. It’s really important to be comfortable
with your investment, so if the investor description doesn’t sound like you, read the other
profiles and select the one that sounds the most like you and how you feel about investing.
How long do you have until you reach the age of 65
or intend to make a first home withdrawal?
Score
Less than 5 years
5
5 to 15 years
10
16 to 30 years
15
More than 30 years
20
How much do you know about investing?
I only know about bank accounts and term deposits
5
I know a little bit about investments like bonds and shares
10
I know that it’s important to spread my savings (diversify) across different types
of investments including bank deposits, bonds and shares
15
I know the potential risk and return rewards for different types of investments
20
Imagine if you had $10,000 invested in a KiwiSaver
scheme and the value reduced by 10% to $9,000
within a twelve month period, what would you do?
34
Move my entire investment to a cash fund
5
Move some (say half) of the investment to a cash fund, leaving half unchanged
10
Leave it as it is because it’s a long term investment
15
Increase my contributions because I know that I’ll be buying units at a lower price
20
When you think about investing for your retirement,
how comfortable are you with accepting higher risk
in order to potentially generate higher returns?
Score
I am not comfortable with taking any risk when it comes to my
retirement savings
5
I am comfortable with taking a relatively low risk when it comes to my
retirement savings
10
I am comfortable with taking some risk when it comes to my retirement
savings. I know that this means that there will be some ups and downs
in the value of my investment
15
I am comfortable with taking a higher risk when it comes to my
retirement savings
20
If you had inherited $50,000 and it had to be invested in
a KiwiSaver scheme what would you want it invested in?
Low risk investments like cash or term deposits
5
Mostly cash, term deposit(s) and bonds with a small amount in growth
investments like shares and property
10
A balanced mix of lower risk investments like cash, term deposit(s) and
growth investments like shares and property
15
Mostly growth investments like shares, managed funds and property
20
Total
The funds in BNZ KiwiSaver are invested across a mix of investment classes: cash, New Zealand and
international shares and fixed income investments. The information on pages 36-37 shows the target
asset allocation in each fund, along with the recommended minimum investment timeframe.
Timeframe is very important when selecting a fund. Some investments, like cash and bonds, typically
provide consistent but lower levels of returns than investments in shares and could be more suitable
for people nearing retirement or people with a shorter investment timeframe. Conversely shares
historically provide higher returns over the long-term and could be better suited to people who are
more than 10 years from retirement.
You can find further detail about the different funds in the registered prospectus.
If you would like help with selecting an investment fund,
call us on 0800 269 5494 to speak with a BNZ Authorised
Financial Adviser
35
Your risk profile.
YOUR SCORE
25-35
Cash investor
You’re a very cautious investor, who is more concerned about
preserving capital than growing your investment. You are not
comfortable investing in anything that could have any potential
for negative returns.
Cash Fund
bjective: suitable for people with a short term investment horizon or people with a very cautious
O
approach to investing.
Risk/Return Characteristics: the returns from the Cash Fund (before tax, fees and expenses) will be
similar to the returns from bank deposits. In all likelihood, there will be low volatility of returns. This
means there will not be significant movements up or down in the value of your investments. Generally
investment returns are likely to be lower, over the medium to long term, than funds that also invest in
growth assets (for example, shares). Investment returns may not exceed the rate of inflation (after tax,
fees and expenses).
Minimum time frame: None
Anticipated mix of investments
YOUR SCORE
40-45
NZ Cash1 100%
Cautious investor
You have a cautious approach to investing. You are prepared to accept a small
amount of investment risk to achieve small to modest returns over the short term
and to protect the value of your investment.
First Home Buyer Fund
Objective: suitable for people who have a short investment timeframe (like someone saving for their first home
through BNZ KiwiSaver) and who are prepared to accept a small amount of investment risk to achieve returns
which may be higher than returns from bank deposits (before tax, fees and expenses) over that timeframe.
Risk/Return Characteristics: may have some volatility of returns. This means there may be some movements up
or down in the value of your investments. Generally investment returns are likely to be lower, over the longer term,
than funds that invest a higher proportion in growth assets (for example, shares). Returns may vary and at times
may be low or negative.
Minimum time frame: First home buyers- 3 to 5 years. Other Investors- 1 to 5 years
Anticipated mix of investments
NZ Cash1 60%
NZ & Australian Fixed Income2 5%
International Fixed Income 20%
NZ & Australian Shares3 3%
International Shares 12 %
YOUR SCORE
50-55
Conservative investor
You have a conservative approach to investing. You are prepared to accept a small
to moderate amount of investment risk to achieve modest returns over the short
to medium term and to protect the value of your investment.
Conservative Fund (default fund)
Objective: suitable for people who have a short to medium investment timeframe, and who are prepared to accept
a small amount of investment risk to achieve returns which may be higher than returns from bank deposits (before
tax, fees and expenses) over that timeframe.
Risk/Return Characteristics: may have some volatility of returns. This means there may be some movements up
or down in the value of your investments. Generally investment returns are likely to be lower, over the longer term,
than funds that invest a higher proportion in growth assets (for example, shares). Returns may vary and at times
may be low or negative.
Minimum time frame: 3 to 5 years
Anticipated mix of investments
NZ Cash1 35%
NZ & Australian Fixed Income2 10%
International Fixed Income 35%
NZ & Australian Shares3 5%
International Shares 15%
36
YOUR SCORE
60-70
Moderate Fund
Moderate investor
You are prepared to accept slightly more investment risk over the medium term to
achieve moderate returns. You accept there will be some fluctuations in the value of
your investments.
Objective: suitable for people who have a medium investment timeframe, and who are prepared to accept
some investment risk to achieve returns which may be higher, over the medium term, than funds with a higher
investment in income assets (cash and fixed income investments).
Risk/Return Characteristics: will have some volatility of returns. This means there will be some movements up or
down in the value of your investments. Generally investment returns are likely to be lower, over the medium to long
term, than funds that invest a higher proportion in growth assets (for example, shares). Returns may vary and at
times may be low or negative.
Minimum time frame: 5 to 7 years
NZ Cash1 10%
NZ & Australian Fixed Income2 10%
Anticipated mix of investments
International Fixed Income 45%
NZ & Australian Shares3 7.5%
International Shares 27.5%
YOUR SCORE
75-85Balanced Fund
Balanced investor
You are prepared to accept a medium to high level of risk over the medium to long term
to achieve the potential of higher investment returns. You accept calculated risks that
have the potential for good returns.
YO UR
Objective: suitable for people who have a medium to long term investment timeframe,
and who are prepared to accept a medium to high level of investment risk to achieve the
potential of higher investment returns over the medium to long term.
Risk/Return Characteristics: will have more volatility of returns. This means there will be more
movements up or down in the value of your investments, than funds that invest a lower proportion
in growth assets (for example, shares). Returns may vary and at times may be low or negative.
Minimum time frame: 7 to 10 years
NZ Cash1 5%
NZ & Australian Fixed Income2 7.5%
International Fixed Income 37.5%
Anticipated mix of investments
NZ & Australian Shares3 12.5%
International Shares 37.5%
SCOR E
90-100
Growth investor
You are prepared to accept a high level of risk over the long term to achieve the
potential of higher investment returns. Your primary aim is to achieve the best
rate of return over the long term. You recognise and accept that you are likely
to experience significant fluctuations in the returns on your investment.
Growth Fund
bjective: generally suitable for people who have a long term investment timeframe and will not need to
O
access the balance of their account for at least 10 years. Investors will also be prepared to accept a high level
of investment risk to achieve the potential of higher investment returns over the long term.
Risk/Return Characteristics: will have more volatility of returns than any of the other funds in BNZ KiwiSaver.
This means there will be more movements up or down in the value of your investments, but with the potential to
generate higher returns than the other funds over the long term (10 years plus). Returns will vary and at times will
be low or negative.
Time frame: 10 years plus
NZ Cash1 5%
Anticipated mix of investments
Z & Australian Fixed Income2 5%
N
International Fixed Income 20%
NZ & Australian Shares3 17.5%
International Shares 52.5%
The information shows target asset allocations at the date of this Investment Statement.
Actual investment mixes may vary (typically, but not always, within agreed ranges which are currently up to +- 4% in each
investment class) from time to time depending on factors like market movements, changes in the value of the underlying assets
and the ability to invest or divest. Information on the allowable investment ranges of each fund and the investment policy for each
fund is contained in the registered prospectus.
The fund objectives, target asset allocations and allowable investment ranges may change from time to time without notice to you.
1. As at the date of this Investment Statement, the funds will gain their exposure to New Zealand cash by investing directly or indirectly in bank deposits and
short term securities.
2. As at the date of this Investment Statement, investment in Australian fixed income assets can range between 0% and 20% of the allocation to NZ & Australian
Fixed Income.
3. A
s at the date of this Investment Statement, investment in Australian shares can range between 0% and 30% of the allocation to NZ & Australian Shares.
37
How your money in the BNZ KiwiSaver Scheme will be managed
The funds may invest by holding assets directly or investing into other investment funds. As at the
date of this Investment Statement, all the funds (except the Cash Fund) invest their assets (except
for New Zealand cash) into other investment funds, rather than holding assets directly. We may
change this approach (including for New Zealand cash) at any time without updating this
Investment Statement.
The funds will be exposed to the investment management activities implemented by the investment
funds they invest into. For example, those investment funds may differ in the use of derivatives and
borrowing when compared to the funds in BNZ KiwiSaver, may hold cash and may enter into securities
lending, repurchase and other transactions.
As at the date of this Investment Statement, we utilise the skills and experience of a range of specialist
underlying investment managers by investing in other investment funds managed by related parties
of Russell Investments, except for BNZ KiwiSaver’s New Zealand cash investments. During the life of
this Investment Statement, we may choose to utilise specialist underlying investment managers to
invest New Zealand cash by investing in other investment funds.
We may change the funds that BNZ KiwiSaver invests in, and the underlying investment managers
may be added to, removed, or replaced, at any time without notice being given to you.
Russell Investments
Russell Investments is part of the Russell group of companies worldwide. The Russell group was
originally founded in 1936 and, as at the date of this Investment Statement, has 22 offices worldwide
and more than NZ$363 billion worth of assets under management globally. Russell Investments
offers actively managed, multi-asset portfolios and services that include advice, investments and
implementation. Working with institutional investors, financial advisers and individuals, Russell
Investments’ core capabilities extend across capital markets insights, manager research, asset
allocation and portfolio implementation. One of its core capabilities is identifying and blending
specialist investment managers in an investment style referred to as a multi manager approach. A
multi manager approach brings together a number of specialist underlying investment managers with
different but complementary investment styles.
To find out more about Russell Investments go to russell.co.nz.
Foreign currency hedging
Where the funds are invested in international (including Australian) fixed income and share investments,
currency movements may affect investment performance. The effects of currency movements can be
reduced or minimised by fully or partially ‘hedging’ the currency effects (trading foreign currency to
offset the impact of currency movements). As at the date of this Investment Statement, we intend to
seek to fully hedge international investments (other than Australian shares) to the New Zealand dollar
to the greatest extent practicable. Investments in Australian shares may be hedged to the New Zealand
dollar at the underlying manager’s discretion. While this approach continues:
>>
t he value of Australian share investments could be affected by Australian currency changes
relative to the New Zealand dollar and the decisions made on the level of hedging; and
>>
other international investments should not be significantly affected by currency movements.
We may change our hedging approach at any time without updating this Investment Statement.
Changes could cause the value of international investments to be more or less affected by changes in
currency values.
Further information
See bnz.co.nz/kiwisaver or call us on 0800 269 5494 for details of:
38
>>
t he latest approach to investing in New Zealand cash (including details of any specialist
underlying investment managers used and any investment manager appointed), currency
hedging and holding assets; and
>>
the specialist underlying investment managers indirectly managing some of the funds’ assets.
1. What sort of investment is this?
The investments offered are interests in BNZ KiwiSaver, which is a registered KiwiSaver scheme
under the KiwiSaver Act. BNZ KiwiSaver is also a Government-appointed default KiwiSaver scheme.
Investments made in BNZ KiwiSaver do not represent deposits or other liabilities of BNZ or any
other member of the National Australia Bank Limited group, and are subject to investment risk,
including the possible loss of income and principal invested. None of BNZ, or any other member
of the National Australia Bank Limited group, the Trustee, any director of any of them, the
Crown or any other person guarantees (either fully or in part) the performance or returns of BNZ
KiwiSaver or the repayment of capital. National Australia Bank Limited, the ultimate parent
of BNZ, is not a registered bank in New Zealand, but it is a licensed bank in Australia and is
therefore subject to the supervision of the Australian Prudential Regulation Authority.
You do not have any direct interest in any particular deposit made by BNZ KiwiSaver with BNZ,
or any right to require the transfer to you of any particular deposit made by BNZ KiwiSaver with BNZ.
BNZ KiwiSaver Scheme is a PIE
BNZ KiwiSaver is a Portfolio Investment Entity (‘PIE’) which may have certain tax advantages for
investors. More details on the PIE tax regime are set out on page 53.
BNZ KiwiSaver Scheme
BNZ KiwiSaver is designed to help you save for your retirement. The amount you receive when a
benefit is payable is determined by the contributions made to BNZ KiwiSaver, the investment returns
of the fund(s) you invest in, whether you’ve made any early withdrawals, and the fees, tax and
expenses deducted from your investment.
In most cases you won’t be able to withdraw your KiwiSaver savings until you reach your Qualifying
Age. In limited circumstances you may be able to withdraw all or part of your KiwiSaver savings sooner
(see ‘What Returns Will I Get?’ on page 48).
Who can join the BNZ KiwiSaver Scheme?
In most cases, if you are:
>>
a New Zealand citizen or entitled to New Zealand permanent residency;
>>
living or normally living in New Zealand; and
>>
nder the qualifying age for New Zealand Superannuation (currently age 65) and joining
u
a KiwiSaver scheme for the first time,
you will be able to join BNZ KiwiSaver.
You can become a member of BNZ KiwiSaver if you:
>>
apply to us directly;
>>
pt into KiwiSaver through your employer (and are allocated to BNZ KiwiSaver because it is your
o
employer’s chosen KiwiSaver scheme or a default KiwiSaver scheme); or
>>
a re automatically enrolled in KiwiSaver when you start a new job with a new employer (and are
allocated to BNZ KiwiSaver because it is your employer’s chosen KiwiSaver scheme or a default
KiwiSaver scheme).
If you are joining BNZ KiwiSaver by transferring from another KiwiSaver scheme, you are able to join
BNZ KiwiSaver even if you are over the qualifying age for New Zealand Superannuation.
Certain employees of the State services (within the meaning of the State Sector Act 1988) serving
outside New Zealand may also be able to join.
If you choose to join BNZ KiwiSaver, you won’t be able to opt out of KiwiSaver (the opt-out facility
applies only to those automatically enrolled in a KiwiSaver scheme).
Automatic enrolment and opting out
You may have been provisionally allocated to BNZ KiwiSaver if you have been automatically enrolled
in KiwiSaver. If you do not opt out of KiwiSaver or choose another KiwiSaver scheme, then you will
become a member of BNZ KiwiSaver, and you are deemed to have acknowledged and accepted the
terms and conditions set out in section 6 of the application form. You can opt out between the end of
weeks two and eight of your new employment.
39
Investment funds
BNZ KiwiSaver allows you to invest your contributions into one of the six available funds, or to
spread your investment among several funds. The minimum allocation to any one fund is 5% of
any contribution you make. Contributions are accepted from a number of members and then
collectively invested.
The six available investment funds are:
>>
Cash
>>
First Home Buyer
>>
Conservative (default fund)
>>
Moderate
>>
Balanced
>>
Growth
We will automatically invest your contributions in the Conservative Fund until you tell us
otherwise if:
>>
y ou have been allocated to BNZ KiwiSaver because it is a default KiwiSaver scheme or your
employer’s chosen KiwiSaver scheme; or
>>
we haven’t received your investment instructions; or
>>
your investment instructions are unclear.
For more information on each of the funds and how they are invested see pages 36-38.
How is your investment calculated?
Your investment is measured in ‘Units’ in the fund(s) in which you invest. Your contributions buy
Units in the fund(s) you have selected at what is known as a ‘Unit Price’. Each Unit represents a
proportional interest in that fund’s assets. As the investments made by the fund(s) rise or fall in value,
so does the value of each individual Unit. This means that the value of your investment will fluctuate
(up or down) based on the rise or fall in the value of the investments made by the fund.
The Unit Price for a fund is the price that you will pay (or receive) when each contribution is invested
(or any withdrawals are made from your investment) in that fund. The Unit Price reflects both the
capital growth and losses of the investments in a fund and any income earned less any fees, expenses
or other liabilities of that fund. Occasionally, if there are large volumes of contributions relative to
withdrawals, the Unit Price you pay may be adjusted to pass on some of the costs of investing those
contributions to ensure that members who are not buying Units are not impacted by those costs.
See page 48 for details.
BNZ Authorised Financial Advisers
For personalised advice about which fund is right for you we recommend that you contact a BNZ
Authorised Financial Adviser. A disclosure statement required under the Financial Advisers Act
2008 is available, free of charge, from your BNZ Authorised Financial Adviser or on request by
calling 0800 269 5494.
40
Transfers from an Australian Complying Superannuation Scheme
You can transfer your superannuation savings from an Australian complying superannuation scheme
to BNZ KiwiSaver if New Zealand is now your place of permanent residence.
Savings transferred to your BNZ KiwiSaver account from an Australian complying superannuation
scheme can be withdrawn once you reach the age of 60 and you also satisfy the ‘retirement’ definition
in Australian legislation. This definition requires you either to:
>>
have attained age 60 on or before the ending of your employment; or
>>
r easonably satisfy the Trustee that you intend never to again become employed on a full time or
a part time basis.
For more information on how to transfer your Australian complying superannuation scheme savings
to BNZ KiwiSaver, please call us on 0800 269 5494.
Your Australian complying superannuation scheme provider may charge a fee to transfer the savings.
You should also consider any effects of currency conversion (including exchange rate fees) and any
differences in the product terms, fees and tax treatment of the two schemes if you are considering
transferring your superannuation savings from an Australian complying superannuation scheme.
We recommend that you seek personalised tax and investment advice before transferring your
Australian savings, including advice as to the risks, benefits and options available to you.
Transfers from non-Australian foreign superannuation schemes
Transfers to a KiwiSaver scheme from a foreign superannuation scheme (other than an Australian
complying superannuation scheme) are treated as withdrawals from the foreign scheme and are
potentially subject to New Zealand tax. They may also affect your student loan repayments and any
income-tested benefits.
You may apply to make a withdrawal from your KiwiSaver account to pay any New Zealand tax liability
or additional student loan repayment obligation that arises as a result of you transferring to BNZ
KiwiSaver from a non-Australian foreign superannuation scheme. You will need to apply for the
withdrawal within two years of the tax liability or student loan repayment obligations being assessed
by Inland Revenue and provide certain information to us to support your withdrawal request.
You should be aware that in some circumstances the withdrawal may trigger a foreign tax liability.
We recommend that you seek personalised tax and investment advice before transferring your
savings from a foreign superannuation scheme. Please note that neither us, nor any of the other
parties involved in BNZ KiwiSaver, is responsible for any tax consequences arising from any transfer of
foreign superannuation savings you make.
Transfers including UK pension amounts
If you have transferred UK pension money into another KiwiSaver scheme, you may incur UK tax if you
transfer to BNZ KiwiSaver or another KiwiSaver scheme. If your KiwiSaver savings include UK pension
sourced amounts, we strongly recommend you talk to your independent tax adviser when considering
transferring your KiwiSaver savings.
Standard bank account terms and conditions apply
BNZ provides services to you, such as BNZ internet banking. When using these services in conjunction
with BNZ KiwiSaver, you will be bound by BNZ’s Standard Terms and Conditions in relation to your use
of those services. These terms and conditions can be viewed at bnz.co.nz.
41
2. Who is involved in providing
it for me?
The name of the scheme is the BNZ KiwiSaver Scheme. BNZ KiwiSaver was established by a trust
deed dated 8 January 2013 and was registered as a KiwiSaver scheme under the KiwiSaver Act on
16 January 2013.
As at the date of this Investment Statement the following are involved in BNZ KiwiSaver:
Manager
BNZ Investment Services Limited is the Issuer and Manager of BNZ KiwiSaver.
As at the date of this Investment Statement, we intend to apply for and obtain a managed investment
scheme manager licence under the Financial Markets Conduct Act 2013, prior to the 1 December
2016 due date.
Directors of the Manager
>>
Jacqueline Maree Farman;
>>
Lee Alexandra Hatton;
>>
Richard Louis Morath;
>>
Christopher Harril Reid; and
>>
Shelley Maree Ruha.
Please see the prospectus for biographies for each of our directors.
Promoters
BNZ and its directors are each promoters of BNZ KiwiSaver.
Directors of BNZ
>>
Mai Chen;
>>
Prudence Mary Flacks;
>>
Michaela Jane Healey;
>>
Anthony John Healy;
>>
Susan Carrel Macken;
>>
Douglas Alexander McKay;
>>
Stephen John Moir;
>>
Andrew John Pearce; and
>>
Gavin Robin Slater.
The Trustee
The New Zealand Guardian Trust Company Limited is the Trustee of BNZ KiwiSaver. The Trustee
supervises the management and administration of BNZ KiwiSaver. The Trustee is independent of us
and holds the assets of BNZ KiwiSaver on behalf of all members (either directly or through a nominee).
As at the date of this Investment Statement, the Trustee holds a licence to act as trustee for a range
of financial products, including BNZ KiwiSaver, under the Financial Markets Supervisors Act 2011, for
a term expiring on 16 March 2018. The conditions applying to the licence are set out in the registered
prospectus for BNZ KiwiSaver.
42
Investment Adviser
Russell Investments provides strategic investment advice to us in relation to the investment
management of BNZ KiwiSaver. This may include advice about the anticipated mix of investments
for each of the funds, rebalancing the funds to that anticipated mix, how each investment class is
invested and foreign currency hedging.
Investment Manager
As at the date of this Investment Statement, there is no appointed third party investment manager for
BNZ KiwiSaver. However, during the life of this Investment Statement, we are considering appointing
Nikko Asset Management New Zealand Limited (‘Nikko’) to manage BNZ KiwiSaver’s investment in
New Zealand cash. If the appointment is made or revoked, it will be published on bnz.co.nz/kiwisaver,
and you can call us on 0800 269 5494 for any updates on the appointment.
Registrar
Trustees Executors Limited provides registry administration services for, and is the Registrar of,
BNZ KiwiSaver.
Administration Managers
The administration managers of BNZ KiwiSaver are MMC Limited and BNZ.
MMC provides certain administration services including accounting services for BNZ KiwiSaver.
BNZ provides customer management and certain administrative functions in relation to BNZ KiwiSaver.
Contact details
The contact details for all companies listed in this section can be found in the ‘Directory’ on page 67.
Changes to details
The names above and the addresses in the ‘Directory’ on page 67 are as at the date of this Investment
Statement and may change from time to time without notice to you. The current names and addresses
can be found on the Companies Office website at business.govt.nz/companies.
Responsible Investment
The following statement is required under the KiwiSaver Act.
Responsible investment, including environmental, social, and governance considerations, is not
taken into account in the investment policies and procedures of BNZ KiwiSaver as at the date of this
Investment Statement.
However, we do utilise underlying investment managers, who are related parties of Russell
Investments (except for New Zealand cash). Russell Investments has a responsible investment policy
which is reviewed annually.
Additionally Russell Investments is a signatory to the UN Principles for Responsible Investment.
For a copy of the investment guidelines for BNZ KiwiSaver, please contact us on 0800 269 5494.
43
3. How much do I pay?
All KiwiSaver schemes, including BNZ KiwiSaver, have ongoing contribution obligations for
employees. If you’re contributing from your pay, you may be able to take a contributions holiday
(see ‘Contributions holiday’ on pages 59 and 60 for further information).
Employee contributions
As an employee, you must contribute either 3%, 4%, or 8% of your before-tax pay to your KiwiSaver
account. Your employer will deduct your contributions from your take home pay and then pay them
to Inland Revenue, who will then pass them on to us. If you do not choose a contribution rate, your
contributions will be deducted at the 3% rate.
You can change your contribution rate, or take a contributions holiday if you want to temporarily stop
contributing to your account. See pages 59 and 60 ‘Contributions holiday’ for more details about how
to change the rate at which you contribute, the restrictions on when you can take a contributions
holiday and how to take a contributions holiday.
You can also make additional lump sum payments when you wish. See page 45 ‘Voluntary contributions’
for details.
Employer contributions
If you are contributing from your before-tax pay to your KiwiSaver account, then your employer will
also generally contribute 3% of your before-tax pay to your KiwiSaver account. It’s important to know
that your employer may not have to contribute to your KiwiSaver account if:
a)
you are either under the age of 18, or over your Qualifying Age;
b)your employer makes contributions to another superannuation scheme for you and certain
other conditions apply. Your employer will be able to let you know if they do not have to make
KiwiSaver contributions for you.
Employer contributions have tax deducted from them before they are credited to your KiwiSaver
account. See page 55 ‘Tax on Contributions’ for further information.
You should check with your employer to understand if your employer contributions are paid in
addition to your before-tax pay or if they form part of your total pay arrangements with your employer.
Inland Revenue holding account
When you first become a KiwiSaver member, Inland Revenue will hold any contributions they receive
for you until you’ve been a member of KiwiSaver for three months. Once you’ve been a KiwiSaver member
for three months they will pass these contributions plus interest to us.
It can take up to three months for your employer or employee contributions to reach BNZ KiwiSaver.
This is because your employer generally only passes contributions on to Inland Revenue on the 20th of
the month following their deduction, and then Inland Revenue takes some time to process and check
the contributions before it passes them on. During the time your employer or employee contributions
are held by Inland Revenue they will earn interest which will be passed to us with your contributions.
If you have any questions about the amount of your contributions held by Inland Revenue, or the total
amount of your employer or employee contributions that they have processed, you can contact Inland
Revenue directly.
Not an employee
If you don’t earn a salary or wage, then you can choose how much and when you wish to contribute to
your BNZ KiwiSaver account. You can set up a bill payment or direct debit authority, or you can simply
make lump sum payments when you want.
44
Member Tax Credit
If you’re over 18 and below your Qualifying Age, then for each Member Tax Credit year (1 July to
30 June) the Government will (if you are eligible) contribute 50 cents for every dollar you pay into
your KiwiSaver account, up to a maximum Member Tax Credit of $521.43. This means that you have to
contribute at least $1,042.86 per year and be an eligible KiwiSaver member for the whole Member Tax
Credit year to get the maximum contribution from the Government.
In most cases you need to be principally residing in New Zealand to qualify for the Member Tax Credit,
although overseas Government workers, charity workers, and some volunteers may also qualify. If this
might apply to you, get in touch with us so that we can help you work out whether you qualify for a
Member Tax Credit.
The Member Tax Credit is generally paid to KiwiSaver schemes annually around July/August. If you’ve
been a KiwiSaver member for less than a full year when the Member Tax Credit is paid, if you’ve been
18 for less than a full year, if you ceased to principally reside in New Zealand or if you reached your
Qualifying Age part way through the year, you’ll receive a Member Tax Credit based on the number of
days in the year during which you qualified for it.
You don’t have to do anything to get paid the Member Tax Credit, as we’ll apply for it on your behalf.
However, you do need to tell us if your principal place of residence stops being New Zealand, or if you
otherwise stop being eligible for the Member Tax Credit.
Voluntary contributions
You can make voluntary contributions to us at any time through your usual banking methods (for
example, direct debit, automatic payment, cheque, internet transfer, cash deposit, or bill payment).
You can also make regular or one-off payments to your account by paying amounts directly to
Inland Revenue.
Uncleared funds and failure to make contributions
Contributions made by you or on your behalf which are cancelled or reversed, and contributions at a
non-standard rate or below the minimum threshold, may result in the cancellation of the Units issued
to you in reliance on those contributions.
Minimum investment amount
There is no minimum investment amount, although once you have reached your Qualifying Age
you may be required to close your account and end your membership if it contains less than $1,000.
In addition, provided we notify you, we may close your KiwiSaver account at any time if you have a
nil balance.
45
4. What are the charges?
The fees that are payable in relation to BNZ KiwiSaver are set out below:*
Type of fee or expense
Amount
How and when paid
Management fees*:
Cash Fund
First Home Buyer Fund
Conservative Fund (default fund)
Moderate Fund
Balanced Fund
Growth Fund
Up to 0.35% p.a.
0.50% p.a.
0.58% p.a.
0.90% p.a.
1.00% p.a.
1.10% p.a.
This fee is paid from the applicable fund, and is
reflected in its Unit Price. The management fee
is calculated as a percentage of the Gross Asset
Value of each fund on each valuation day.
See note 1.
$1.95 per member
per month (or part
month).
This fee is paid from your account in arrears
generally on the first Business Day following the
end of each month. See note 2. If your KiwiSaver
account has a nil balance, the member fee may
be deferred until a positive balance arises.
Nil.
No switch fee is payable.
Member fee:
The fee for the administration of
your account.
Investment Fund Switch fee:
The fee to change the fund(s) you
invest in.
* The management fees shown in the above table may be different to the amount disclosed in the quarterly and annual periodic disclosure
statements published for the BNZ KiwiSaver Scheme. The way management fees are required to be calculated in those statements is
different to the way management fees are charged.
Important notes
1. Management fees
As at the date of this Investment Statement, the management fee for the Cash Fund is 0.30% per annum.
The management fee for each fund is calculated as a percentage of the Gross Asset Value of that fund on each valuation
day and is reflected in that fund’s Unit Price. The valuation day is the day on which each fund is valued in accordance with
the Trust Deed. Generally, this is each business day.
The management fee is paid to us monthly in arrears.
We will pay the following fees, costs and expenses out of the management fee for each fund:
>>
t hat fund’s proportionate share of the Trustee’s fee for trustee and custody services (a fee capped at 0.04% per
annum plus GST or any other applicable tax or duty (if any) of the Gross Asset Value of BNZ KiwiSaver calculated on
each valuation day);
>>
f ees, costs and expenses incurred in connection with the management and operation of the fund (including an
allowance for GST), such as audit fees, registry and fund accounting, marketing and distribution costs including
any fees payable to BNZ (for its services), MMC for its accounting services and the Registrar for its registry services;
>>
>>
fees payable to Russell Investments in respect of investment advisory services provided for that fund;
>>
t hrough payments to the underlying fund manager(s), rebates or other adjustments, that fund’s proportionate
share of the fees, costs and expenses incurred in connection with the ordinary operation, administration or
investment management of the underlying funds into which that fund directly invests.
f ees payable to any investment manager appointed in respect of investment management services provided for
that fund; and
The management fee for each fund doesn’t include:
>>
irect or indirect costs of buying, selling or investing in assets – for example, transaction costs such as brokerage,
d
which are incurred when assets are bought and sold; entry and exit fees charged by underlying funds into which a
fund invests; and charges for listed investments. These costs are payable by the funds, as you would pay if you were
buying or selling the assets yourself;
>>
xtraordinary fees and expenses – for example fees and expenses associated with any member meetings or
e
significant regulatory change, including the Trustee’s special fees in such circumstances. There is no limit on these
fees and expenses. You can see the amount of any such additional fees and expenses in the financial statements for
BNZ KiwiSaver for the relevant year in which they were incurred; or
>>
any performance fees charged by the underlying fund(s) into which the fund directly or indirectly invests.
These costs are payable by the funds.
2. Member fee
A member fee of $1.95 per member per calendar month (or part calendar month) is generally paid from your account in
arrears on the first business day following the end of each month and paid to us for the administration of your account. If
your KiwiSaver account has a nil balance, the member fee may be deferred until a positive balance arises.
46
Entry and exit fees
As at the date of this Investment Statement, there are no entry or exit fees charged for buying or
selling Units in BNZ KiwiSaver. However, occasionally, if there are large volumes of contributions
relative to withdrawals, the Unit Price you pay may be adjusted to pass on some of the costs of
investing those contributions to those Members who are buying Units, so Members who are not
buying Units are not impacted by those costs. The amount of the adjustment to the Unit Price
will be used to meet the brokerage, spread or transaction costs which arise from investing the net
contributions. Usually these costs are met from the assets of the respective fund.
Exchange rate fees
If you transfer savings to (or from) BNZ KiwiSaver from (or to) an Australian complying superannuation
scheme or from another foreign superannuation scheme, currency exchange rate fees will be built
into the exchange rate(s) applicable to your transferred savings.
Reimbursements
We and the Trustee are entitled to be reimbursed from the funds for all expenses, losses, costs or
liabilities (and the costs of defending claims) incurred in managing or supervising BNZ KiwiSaver.
However, reimbursements cannot be made if the loss arises out of wilful default, wilful breach of trust
or breach of the standard of care or other duties imposed by law.
Limitation of liability
The Trustee is not responsible for any loss incurred as a result of any act, deceit, neglect, mistake or
default of us (or any of our agents) and is not required to check any information, document, form or
list supplied to the Trustee by us.
We are not responsible for any loss incurred as a result of any act, deceit, neglect, mistake or default of
the Trustee (or any of the Trustee’s agents) and are not required to check any information, document,
form or list supplied to us by the Trustee.
GST
All fees are stated on a GST-exclusive basis. Under current law some fees are wholly or partially
exempt from GST. The percentage of fees subject to GST is currently under review by Inland Revenue
and may change in the future. If GST is payable on any of the fees, then the GST component would be
payable in addition to the fee stated.
Changes
We and the Trustee may increase existing fees or introduce new fees on giving 30 business days’
prior written notice to you and in accordance with the Trust Deed and terms of the Instrument of
Appointment, which is the document that appoints us as a KiwiSaver default provider.
There is no limit on the amount by which a fee can be changed, although the fees payable in respect of
the Conservative Fund assets and by Default Members of BNZ KiwiSaver are limited by the Instrument
of Appointment. Under the KiwiSaver Act, all fees charged to you must be ‘reasonable’. You can apply
to the Court for an order that an unreasonable fee be annulled or reduced. Any such application must
be made within one year of the day that the fee is imposed or debited.
Related party transactions
BNZ KiwiSaver may use related parties to provide services in respect of the funds. For example:
>>
t he funds may invest their cash investments directly or indirectly in bank deposits and short term
securities with BNZ, National Australia Bank Limited, or any of their related companies;
>>
t he funds may invest in other managed investment schemes managed by the Manager or any of
its related companies; and
>>
the banking arrangements for BNZ KiwiSaver are provided by BNZ.
All related party arrangements will be conducted on arms’ length commercial terms.
As at the date of this Investment Statement, investments in New Zealand cash (including the Cash
Fund), are currently made by investing in bank deposits and short term securities with BNZ. This
approach to investing in New Zealand cash may change at any time without updating this Investment
Statement. The latest approach (including details of any specialist underlying investment managers
used, and any investment manager appointed) is described on our website, bnz.co.nz/kiwisaver, or is
available by calling us on 0800 269 5494.
47
5. What returns will I get?
Your returns from BNZ KiwiSaver will be obtained by selling Units when, or after, you reach your
Qualifying Age or when you make any earlier withdrawals permitted under the KiwiSaver Act and
subject to the terms of the Trust Deed. Withdrawals are not otherwise permitted.
Key factors
The key factor that determines returns is the investment performance of the fund or funds in which
you invest, which is in turn determined by the asset allocation of that fund, the performance of
any investment manager and underlying investment managers, the fund’s investments and the
investment markets generally.
Investment managers cannot control or guarantee the performance of investment markets, and
investors should be aware that fluctuations (up and down) in the market value of the investments
made by the funds will be reflected in the changing values of the respective Unit Prices for the funds.
This means that the Unit Price for each fund may rise or fall and the performance of the fund may vary.
See ‘Unit Prices’ below for more information.
Other key factors that determine the returns you will get are:
>>
when you start contributing to BNZ KiwiSaver;
>>
fees and expenses charged;
>>
the amount contributed to BNZ KiwiSaver by you or on your behalf;
>>
taxes paid in respect of your investment, the funds and any benefits; and
>>
the basis on which and when you make withdrawals from BNZ KiwiSaver.
We are legally liable for paying any returns from BNZ KiwiSaver to you.
The amount of any returns payable to you cannot be quantified as at the date of this Investment
Statement. Returns are not due on any particular date or with any particular frequency. No amount of
returns is promised to you.
Unit Prices
The value of the ‘Units’ you hold in a fund is determined by the ‘Unit Price’ in that fund. Each Unit
represents a proportional interest in that fund’s assets, so changes in the value of a fund’s assets
will result in changes in that fund’s ‘Unit Price’. Currency movements may also affect the value of the
assets of some funds.
Unit Prices are updated each valuation day (generally each business day) and are available via
bnz.co.nz/kiwisaver.
Your return will be affected by the difference between the Unit Price at which a Unit was issued to you
and the Unit Price at which you redeem it.
We have processes in place to check the accuracy of Unit Prices. We may make adjustments to
Unit Prices in accordance with current commercial practice or accounting standards or regulatory
guidelines. Declared Unit Prices (including any resulting from such adjustments) are final.
Retirement benefits
You can withdraw your KiwiSaver savings when you reach your Qualifying Age.
After that age, you can withdraw all or part of your savings at any time.
If you have transferred money from an Australian complying superannuation scheme to your KiwiSaver
account, this amount can be withdrawn when you reach age 60 and satisfy the retirement definition in
Australian legislation. Investment earnings received on this transferred amount cannot be withdrawn
until you reach your Qualifying Age.
As at the date of this Investment Statement, partial lump sum withdrawals must be for $500 or more,
and your remaining account balance must not be less than $1,000. If your remaining balance falls
below $1,000, you may have to make a full withdrawal and we may close your account.
48
As at the date of this Investment Statement, you may also choose to make regular withdrawals after
reaching your Qualifying Age to supplement your income in retirement. Regular withdrawals must be
for a minimum of $50 per week, $100 per fortnight, $400 per month, $1,000 per quarter or $2,000 per
year (or another frequency if we agree). Please note that if your account balance falls below $1,000,
you may have to make a full withdrawal and we may close your account.
We can change these amounts and introduce other withdrawal requirements from time to time.
You will be notified of any changes.
Early withdrawals
This section sets out the types of withdrawals you can apply for before you reach your Qualifying Age.
In some cases, you can’t withdraw your full account balance. Refer to the table ‘Your early withdrawal
entitlements’ on page 51 for details.
>> First home withdrawal
You may make a one-off withdrawal from a KiwiSaver scheme to purchase your first home if:
>> the land or house you are purchasing is in New Zealand;
>> i t has been at least three years from the date Inland Revenue received your first contribution
to a KiwiSaver scheme, or you have been a member of one or more KiwiSaver schemes or
Complying Superannuation Funds for a combined total period of three years or more;
>> the land or house is, or is intended to be, your principal place of residence; and
>> y ou have never held an estate in land (there are some detailed rules regarding when a person
holds an estate in land).
The purchase of an interest in a building on Maori land qualifies as a first home where:
>> the building’s intended principal use is occupation as a private residence; and
>> the building is or is intended to be your principal place of residence.
To make a first home withdrawal, there is a process that must be followed and certain information that
must be provided.
Your lawyer or conveyancing practitioner must provide a copy of the sale and purchase agreement
(‘agreement’), and give undertakings on your behalf. The undertakings and process will differ depending
on whether the agreement is conditional or unconditional. Please refer to the Home Purchase Withdrawal
application form on bnz.co.nz/kiwisaver for further information on the detailed requirements.
If you make a partial withdrawal of your full entitlement for a first home withdrawal, then we will
release your and your employer contributions and investment gains first, and your Member Tax
Credits second, subject to a minimum balance of $1,000, and any amount transferred from an
Australian complying superannuation scheme being maintained.
Your membership of BNZ KiwiSaver will continue after a first home withdrawal is paid from your
KiwiSaver account.
See the table on page 51 for details of what you can withdraw as part of a first home withdrawal.
>> KiwiSaver HomeStart grant
Under current Government policy, you may apply to Housing New Zealand for a KiwiSaver HomeStart
grant if:
>> you’re 18 years or over;
>> y ou have belonged and contributed at least the required minimum percentage of your
income to a KiwiSaver scheme, Complying Superannuation Fund or exempt employer
scheme for at least three years;
>> y ou have a deposit that is 10 percent or more of the purchase price of the house you are
buying (for this purpose, any KiwiSaver first home withdrawal or KiwiSaver HomeStart
grant you may be eligible for can be counted towards this deposit amount, even though
for purchases of existing homes, the KiwiSaver HomeStart grant is not paid out until
settlement);
>> you’re buying your first home and you’re going to live in the house for at least six months; and
>> y ou meet the household income and regional house price caps. as set out on the Housing
New Zealand website.
The HomeStart grant for the purchase of an existing home is a one-off contribution of $1,000 for each
year of contributions to one or more of the qualifying schemes (see above) up to a maximum of $5,000
per member.
The HomeStart grant for the purchase of a brand new home, a property off the plans or land to build
a new home on is a one-off contribution of $2,000 for each year of contributions to one or more of the
qualifying schemes (see above) up to a maximum of $10,000 per member.
49
Here is a summary of the KiwiSaver HomeStart grant entitlements:
Number of years of regularly
contributing to one or more of
the qualifying schemes
If you are purchasing an
existing home
If you are purchasing a new home, a
property off the plans or land to build
a new home on
3 years
$3,000 (the minimum)
$6,000 (the minimum)
4 years
$4,000
$8,000
5 years
$5,000 (the maximum)
$10,000 (the maximum)
For full details of the eligibility criteria for a KiwiSaver HomeStart grant, visit the Housing New
Zealand website at hnzc.co.nz or call them on 0508 935 266. Any HomeStart grant will be paid and
administered by Housing New Zealand.
>> ‘Second chance’ home buyers
If you’ve owned a home before, but no longer have a share in a property, you may also be eligible for a
first home withdrawal and a KiwiSaver HomeStart grant, as long as you:
>> h
ave not received either the first home withdrawal or the first home deposit subsidy or
KiwiSaver HomeStart grant before; and
>> are in a similar position to first home buyers in terms of assets, income and liabilities.
If you’ve previously owned a home, you will need to contact Housing New Zealand for confirmation
that you’re in a similar position to first home buyers, and show us this confirmation before applying to
make a first home withdrawal.
To find out more, visit the Housing New Zealand website at hnzc.co.nz or call them on 0508 935 266.
>> Significant financial hardship
You may apply to make a significant financial hardship withdrawal.
Generally, you should make an application only if you are not able to meet your normal essential living
expenses (but there are other specific criteria in the Act that are set out in the prospectus).
You’ll need to complete a withdrawal request and a statutory declaration of your assets and liabilities
and provide evidence that you are suffering or are likely to suffer significant financial hardship as
defined under the KiwiSaver Act, and that all reasonable alternative sources of funding have been
explored and exhausted.
See the table on page 51 for details of what you can withdraw as part of a significant financial hardship
withdrawal, if your application is approved by the Trustee. The Trustee can limit the withdrawal
amount to a lesser amount than what is available in your KiwiSaver account (if it decides that a lesser
amount is all that you need to alleviate your hardship). If you make a significant financial hardship
withdrawal, the amount withdrawn can include any Australian sourced amounts, but only to the
extent that the New Zealand sourced contributions able to be withdrawn (which will be paid to you
first) are insufficient.
Your membership of BNZ KiwiSaver will continue after your significant financial hardship withdrawal
is paid.
>> Serious illness
You may apply to make a serious illness withdrawal if you have an injury, illness or disability that:
>> r esults in you being totally and permanently unable to engage in work for which you are
suited by reason of experience, education or training, or any combination of those things; or
>> poses a serious and imminent risk of death.
If your application is accepted by the Trustee, you can withdraw some or all of your KiwiSaver savings.
You’ll need to complete a withdrawal request and provide evidence (such as medical evidence) that you
are suffering from a serious illness as defined under the KiwiSaver Act to support your withdrawal request.
>> Death
If you die while a member of BNZ KiwiSaver, all of your KiwiSaver savings will be payable, on request,
to the executors or administrators of your estate.
Alternatively, if your KiwiSaver savings are less than the prescribed amount (currently $15,000)
and certain other conditions are met, we may pay your KiwiSaver savings direct to (for example) a
surviving partner or caregiver. Contact us for further information. Our contact details are set out on
page 61 under the heading ‘Who do I contact with inquiries about my investment?’.
50
>> Permanent emigration (except to Australia)
You can make a withdrawal of your KiwiSaver savings (except any Australian-sourced amount and
Member Tax Credits) one year after you permanently emigrate from New Zealand.
You’ll need to complete a withdrawal request and provide evidence that confirms that you have
permanently emigrated.
Your account balance, excluding all Member Tax Credits and any Australian sourced amounts, will be
paid to you as a lump sum.
Your Member Tax Credits are repaid to Inland Revenue and you will cease to be a KiwiSaver member
(unless you have any Australian-sourced amounts, which will remain in your KiwiSaver account).
>> Permanent emigration to Australia
If you permanently emigrate to Australia, you are not able to withdraw your KiwiSaver savings, (unless
you otherwise qualify for a withdrawal, for example due to serious illness), but you can transfer your
KiwiSaver savings (including your Member Tax Credits) to an Australian complying superannuation
scheme that is willing to accept the transfer. If your KiwiSaver savings are above the maximum amount
set out in Australian legislation, you will not be able to transfer your KiwiSaver savings. For more
information on the cap that applies, please call us on 0800 269 5494.
Alternatively, your KiwiSaver savings can remain invested in BNZ KiwiSaver.
For more information on transferring your KiwiSaver savings to an Australian complying
superannuation scheme, please call us on 0800 269 5494.
>> Transfer from a non-Australian superannuation scheme
You may apply to make a withdrawal from your BNZ KiwiSaver account to pay any New Zealand
tax liability or student loan repayment obligation that arises as a result of you transferring to BNZ
KiwiSaver from a non-Australian foreign superannuation scheme. You will need to apply for the
withdrawal within two years of the date of the assessment of the income tax liability or student loan
obligation and provide certain information to us to support your withdrawal request. See page 41
‘Transfers from non-Australian foreign superannuation schemes’ for further information.
Your early withdrawal entitlements
Here is a brief overview of your early withdrawal entitlements:
Employer and
member
contributions*
and all returns
Member Tax
Credits
Government
kick-start
contribution**
Australian
sourced
amounts
First home buyer***
ü
ü
✗
✗
‘Second chance’ home buyer***
ü
ü
✗
✗
Significant financial hardship
ü
✗
✗
ü
Serious illness
ü
ü
ü
ü
Death
ü
ü
ü
ü
Permanent emigration
(except to Australia)
ü
✗
ü
✗
Permanent emigration
(to Australia) - scheme transfer
only
ü
ü
ü
ü
Foreign superannuation transfers NZ tax or student loan obligation
ü
✗
✗
✗
* Member contributions include amounts transferred into your BNZ KiwiSaver account from non-Australian superannuation schemes.
** Applies if you first joined a KiwiSaver scheme prior to 2pm on 21 May 2015.
***A minimum of $1000 must be retained in your KiwiSaver account following a first home withdrawal.
Transfer to another KiwiSaver scheme
If at any time you are accepted as a member of another KiwiSaver scheme, we will transfer all your
KiwiSaver savings to that scheme. Some KiwiSaver schemes may not accept Australian-sourced funds.
If you have these funds, you may not be able to transfer to certain KiwiSaver schemes because you can
be a member of only one KiwiSaver scheme at a time.
51
You may be required to transfer to another KiwiSaver scheme in certain circumstances, for example if
BNZ KiwiSaver is wound up.
In these circumstances, you will be given an opportunity to choose another KiwiSaver scheme. If you
do not choose one, you will be transferred to your employer’s chosen KiwiSaver scheme (if any) or to
another default KiwiSaver scheme selected by Inland Revenue.
There may be tax payable when you transfer (for whatever reason) to another KiwiSaver scheme
– see ‘Tax summary’ on page 53.
Other early withdrawals
We must comply with the provisions of any legislation or a Court order (such as a property sharing
order under the Property (Relationships) Act 1976) that requires us to release some or all of your
KiwiSaver savings.
General
When a withdrawal is paid from BNZ KiwiSaver, the amount you receive will reflect the value of the
redeemed Units at the time, less any fees, taxes, expenses and other authorised deductions from
your account.
Contributions that qualified for a Member Tax Credit when made to BNZ KiwiSaver will continue to
qualify even if, before the tax credit for the relevant year is paid, those amounts have been withdrawn.
You can’t withdraw your Member Tax Credits:
>>
efore you (or your personal representative or other relevant person) give us a statutory
b
declaration stating the periods for which you have had your principal place of residence in New
Zealand; or
>>
i f we have noticed that your claim for a Member Tax Credit is wrong because you have not met
the residence requirements for certain periods.
How to request a withdrawal
You can request a withdrawal by completing the relevant withdrawal form and dropping it into us
or sending it to us. Please contact us if you’d like us to send a withdrawal form to you, or you can
download the form from our website bnz.co.nz/kiwisaver. Our contact details are set out on page 61
under the heading ‘Who do I contact with inquiries about my investment?’.
It may take some time to consider an early withdrawal request and we may come back to you to ask for
further evidence to support your application.
Payment
You will normally receive payment of your early withdrawal within ten business days of your
application being approved.
You will normally receive payment of your retirement benefit after your Qualifying Age within 15
business days after we finalise your withdrawal request.
The value of your investments will generally be determined by reference to the Unit Price applying on
the day after your withdrawal transaction is finalised. The Unit Price may go up or down between the
date on which you submit your withdrawal request, the date on which it is approved or received, and
the date on which the relevant Units are actually redeemed.
Deferral of payments
Subject to the requirements of the KiwiSaver Act, if we decide that to allow a withdrawal or transfer
from BNZ KiwiSaver or a switch between funds would not be in the best interests of the members,
we may delay paying withdrawals or processing transfers from BNZ KiwiSaver or allowing switches
between funds. We cannot have a delay for more than 10 business days without the prior written
approval of the Trustee. Normally such delays may occur, for example, following the end of an income
tax period, while we finalise our tax calculations for BNZ KiwiSaver. See ‘Liquidity risk’ on page 57 for
more information about other circumstances in which we may delay payments.
Not all investments required to satisfy your withdrawal request may be sold on the same day.
Proceeds of sales may be held in an account in the name of the Trustee or its nominee until sufficient
investments have been sold to fully satisfy your withdrawal request.
52
Tax summary
Tax affects the returns you receive from BNZ KiwiSaver. Below is a general summary of the New Zealand
tax implications of investing in BNZ KiwiSaver.
The information is based on our understanding of taxation law that applies as at the date of this
Investment Statement. It is intended solely as a guide. Tax legislation, its interpretation and the rates
and basis of taxation are subject to change.
For tax advice relating to your specific circumstances, we recommend that you consult a professional
tax adviser before investing in BNZ KiwiSaver. For further information on tax matters, you can refer to
the IRD website ird.govt.nz and the BNZ KiwiSaver registered prospectus.
Tax rules applying to the BNZ KiwiSaver Scheme
BNZ KiwiSaver is a portfolio investment entity (‘PIE’). Tax is calculated by BNZ KiwiSaver on your share
of the taxable income earned by the funds (after allowing for applicable fees and expenses) at your
notified prescribed investor rate (‘PIR’), which is outlined on the following page.
The calculation basis and timing of taxable income recognised by BNZ KiwiSaver in respect of each
investment is dependent upon the nature of the investment itself. Certain types of investments may
give rise to gains which are taxable on an unrealised basis or a basis that may not directly correlate to
realised or unrealised gains arising from the investment.
Any capital gains (or losses) made by BNZ KiwiSaver on shares in New Zealand resident companies and
Australian resident companies that are listed on an approved Australian Stock Exchange index and
maintain a franking credit account, are not taxable (or deductible). Any dividends received from these
investments will be taxable.
Most overseas shares (not being certain Australian shares) and interests in foreign managed funds
held by BNZ KiwiSaver are taxed under the fair dividend rate method. Under the fair dividend rate
method, BNZ KiwiSaver is deemed to have received income each year equal to 5% of the average
daily market value of the shares or interests. Any dividends or other returns (including profits from
sale) received from those overseas shares and interests are not separately taxable. Generally, a tax
deduction may not be claimed for any losses.
BNZ KiwiSaver is taxed under the ordinary tax rules in respect of its other income. All interest received
and all gains on financial instruments, including hedging derivatives, are generally taxable (with a
deduction for any losses).
Calculation of tax
BNZ KiwiSaver calculates the tax balance on your account every valuation day using your PIR. Your tax
balance is settled with Inland Revenue shortly after the end of each tax year (ended 31 March).
If you close your account, switch some of your investment to a different investment fund or make a
partial withdrawal during the tax year, a proportional amount of your tax balance will be settled with
Inland Revenue shortly after the transaction is processed.
If there is a tax loss (or your attributed New Zealand tax credits exceed the tax liability attributable
to you) for a tax return period, we are able to claim a tax rebate which will be credited to your BNZ
KiwiSaver account in the form of additional Units.
Prescribed Investor Rates (PIR)
Your PIR is the rate used to calculate the tax payable by BNZ KiwiSaver on your share of the taxable
income of the BNZ KiwiSaver Scheme for that tax year. Provided you notify the correct PIR, there will
usually be no more tax for you to pay.
53
The following PIRs apply:
New Zealand Tax Resident Individuals (who provide their IRD number to us)
10.5%
17.5%
28%
In one of the last two income years:
>>
your taxable income* was $14,000 or less; and
>>
t he sum of your taxable income* and income from all your PIE investments after
subtracting any loss from your PIE investments was $48,000 or less.
If you do not qualify for the 10.5% rate but in one of the last two income years:
>>
your taxable income* was $48,000 or less; and
>>
t he sum of your taxable income* and income from all your PIE investments after
subtracting any loss from your PIE investments was $70,000 or less.
>>
If you do not meet the requirements for the 10.5% or 17.5% rates.
Non New Zealand Tax Resident Individuals
28%
If you are not a New Zealand resident for tax purposes.
If you do not provide a PIR and/or your IRD number to us, we will apply a PIR of 28%.
*Taxable income generally includes income earned from foreign sources even if you were a non resident when that income was earned.
New residents can choose to exclude their non-resident foreign-sourced income if they reasonably expect their taxable income to be lower
than their total income from the tax year before becoming a New Zealand resident.
If you are a new resident who chooses not to include your non-resident foreign-sourced income to determine your PIR, then you will be
responsible for paying tax on the income attributed to you. A credit is available for the tax paid by BNZ KiwiSaver on your behalf.
Checking your PIR
It is important that we always have your correct PIR because if:
>>
ou provide us with a PIR that is too low, you will have to include the income attributed to you in
Y
your tax return and pay tax on this income at your personal tax rate. A tax credit will be available
for any tax credits allocated to you and any tax paid by BNZ KiwiSaver on your behalf. Interest and
penalties may also apply.
>>
ou provide us with a PIR that is too high, too much tax may be paid on your share of income from
Y
BNZ KiwiSaver which can’t be claimed back from Inland Revenue.
If you notify us of a change to your PIR after the beginning of the tax year (1 April), your new PIR will apply
to your share of taxable income (or losses) in BNZ KiwiSaver that has not already been taxed in that tax year.
Inland Revenue may direct us to apply a different PIR to the PIR notified by you, and we are required
to comply.
Do you need help working out your PIR?
Are you a New Zealand tax resident?
No
Your PIR is 28%
Yes
Your PIR is 10.5%
Yes
Your PIR is 17.5%
No
Your PIR is 28%
Yes
In either of the last two income years was:
>>
Your taxable income $14,000 or less; and
>>
our taxable income plus income from all your
Y
PIE investments after subtracting any loss from
all your PIE investments $48,000 or less?
No
In either of the last two income years was:
54
>>
Your taxable income $48,000 or less; and
>>
our taxable income plus income from all your
Y
PIE investments after subtracting any loss
from all your PIE investments $70,000 or less?
Tax on contributions
Your contributions to BNZ KiwiSaver are made from your after tax pay, so no more tax is payable on
those contributions.
The Member Tax Credits are not taxable.
Your employer is required to withhold employer’s superannuation contribution tax (‘ESCT’) from all
contributions they make to BNZ KiwiSaver.
The current rates of ESCT as at the date of this Investment Statement are:
Total before-tax pay and
before-tax employer contributions
in the previous income year
ESCT rate
$0 to $16,800
10.5%
$16,801 to $57,600
17.5%
$57,601 to $84,000
30%
$84,001 upwards
33%
If your current employer did not employ you for all of the previous income year, the ESCT rate will
be based on estimates of your expected before-tax pay and employer contributions for the current
income year.
For more information on ESCT please refer to Inland Revenue’s website at ird.govt.nz.
Tax on withdrawals, fund changes and transfers
Whenever a withdrawal transaction occurs in your KiwiSaver account (including switching some or all
Units to a different fund) your tax balance will be adjusted proportionately.
If your KiwiSaver account has a tax payable balance, a proportionate amount of Units will be deducted
from your KiwiSaver account and the proceeds paid to Inland Revenue.
If your KiwiSaver account has a tax receivable balance a proportionate amount of the tax receivable
balance will be paid to your KiwiSaver account when you switch funds or transfer to another KiwiSaver
scheme. A proportionate amount of any tax receivable balance will be added to any withdrawal
amount paid to you.
Tax reporting to you
We will provide you with a tax certificate by 30 June each year, relating to the year ended 31 March.
Our discretion
There are restrictions on the percentage of Units that any one member and his or her associated
parties can hold in BNZ KiwiSaver, because it is a PIE. We may reject contributions (other than those
required under the KiwiSaver Act or tax credits payable in respect of a member) and requests to
change your fund investment selection or switch Units between funds if this is likely to result in a
breach of those PIE requirements.
55
6. What are my risks?
All investments involve risk. Risk is the likelihood of not getting all your money back, or getting
a different return than you expect. A further explanation of the risks associated with investing in
BNZ KiwiSaver is contained in the prospectus.
Each fund invests your money differently and provides a different level of risk and potential return
based on how that fund is invested. The funds are listed below from the lowest to highest risk:
>>
Cash
>>
First Home Buyer
>>
Conservative (default fund)
>>
Moderate
>>
Balanced
>>
Growth
More information on the risk characteristics of each fund is available on pages 36-37.
For help to choose an investment fund that’s right for you, see Choosing your investment options on
pages 33-37.
Investment Risks
The main types of investment risks for BNZ KiwiSaver are summarised below:
>>
I nvestment Asset Risk: This is a risk of negative or lower than expected returns from the fund(s)
you invest in. While all investments carry investment risk, the level of this risk varies based on
the type of investment assets into which each fund invests. In general terms, funds that invest
higher proportions in growth assets (like shares) will carry a higher level of investment risk - as
they are usually most affected by market risk and are exposed to stock selection risks. Funds
that invest higher proportions in income assets (like cash and fixed income investments) will
generally have lower investment risk. Fixed income investments are affected by interest rate
movements and default rates. For funds invested only or predominantly in cash, the risks are
the counterparty default risk and that the rate of inflation will exceed returns (after tax, fees and
expenses) meaning that the purchasing power of your KiwiSaver savings may reduce over time.
Short term fluctuations in the value of a fund are common, particularly for those funds with a
greater allocation to growth assets. Different types of investments perform differently through
market cycles and each type of asset carries a different type of risk.
Each of the funds, with the exception of the Cash Fund, invests into a range of investment assets.
The main risks associated with each of the investment assets are as follows:
Cash: Cash is generally suitable for short-term investment timeframes. The principal risk of
investing into cash is that the return will not keep pace with inflation. This could mean that
the purchasing power of your account balance may reduce over time.
Fixed Income: Fixed income is generally suitable for short to medium-term investment
timeframes. The value of a fixed income security can be affected by changes in interest rates
and default rates.
Shares: Shares are generally suitable for longer term investment timeframes. The principal
risks of investing in shares are the economic performance of a particular sector or company
and changes in general market sentiment and opinion.
The selection and performance of an investment manager, the underlying investment managers,
and individual assets or securities held by the funds can also influence the performance of
the funds (both positively and negatively). Other risks include borrowing within the assets or
securities held by the funds, and counterparty default.
56
>>
arket risk: Investment markets are affected by a host of factors, including economic,
M
taxation and regulatory conditions, market sentiment, political events, inflation, interest rate
movements, currency movements, and environmental and technology issues.
>>
Currency risk: As some of the assets of BNZ KiwiSaver are invested outside New Zealand,
fluctuations in the exchange rate may affect the returns on those assets. The extent to which
this currency exposure is hedged can mitigate currency risk. Information on the current hedging
policy is available on page 38 or on our website, bnz.co.nz/kiwisaver, or by contacting us on
0800 269 5494.
For members transferring savings from an Australian complying superannuation scheme, the
amount of money transferred will be affected by the exchange rate at the time of transfer.
>>
Derivative risk: Financial instruments known as ‘derivatives’ may be used by BNZ KiwiSaver to
manage risk. In essence, a derivative is a financial instrument, the value of which is dependent
on an underlying financial asset; for example shares, currencies, etc. In some circumstances,
however, derivatives can actually increase risk, by exaggerating the movement in the underlying
asset’s value. Any investment manager and some specialist underlying fund managers may
use derivatives or borrowing to increase the exposure to selected investments as part of their
investment strategy.
General Risks
These risks affect all funds in BNZ KiwiSaver:
>>
iquidity risk: If there is a mismatch between the maturity profile of the assets of BNZ KiwiSaver
L
and the amount required to meet withdrawal requests, there is a risk that BNZ KiwiSaver could be
unable to make payments on time. Similarly, if the underlying assets of BNZ KiwiSaver become
illiquid, then BNZ KiwiSaver may be unable to sell those assets, which would in turn restrict its
ability to make payments on time.
>>
oss of PIE tax status: Although we have mechanisms available to manage compliance with the
L
PIE eligibility requirements, there is a risk that BNZ KiwiSaver could lose its PIE status if there is a
breach of the PIE requirements under the Income Tax Act 2007 and we do not become aware of
the breach in time to correct it. Loss of PIE tax status would result in BNZ KiwiSaver being taxed
at a flat rate of 28% instead of the PIRs of individual members.
>>
Legislative risk: Changes to existing law or the introduction of new laws could have a significant
impact on an investment in BNZ KiwiSaver. There have been changes previously to the KiwiSaver
rules, including the employer, employee and Government contribution rates and changes could
occur in the future. Changes to tax rates, the PIE tax regime or tax legislation generally could also
impact on your returns.
>>
perational risk: If we, the Trustee or any of the parties appointed by us to provide services
O
to BNZ KiwiSaver fail to perform their obligations then this may adversely affect your KiwiSaver
account. If we, any investment manager, the specialist underlying fund managers, the Trustee
or any service providers experience a failure of processes and procedures (including system
failures or suspension of withdrawals from their funds), fraud, business disruption or any other
form of unforeseen external event (including insolvency, receivership, liquidation, statutory
management or voluntary administration), this may affect your investment in BNZ KiwiSaver.
There is also a risk that your employer may delay passing or fail to pass your contributions and
their employer contributions to Inland Revenue, who then pass these amounts to us. Any failure
of your employer to perform its obligations could adversely affect you.
>>
roduct risk: From time to time changes may be made to BNZ KiwiSaver. These changes could
P
include changing the objective or characteristics of a fund, the asset allocation, specialist
underlying investment managers, the third parties appointed to provide services, and fees.
Further details of how BNZ KiwiSaver can be changed are set out under the heading ‘Can the
investment be altered?’.
I f any of these risks eventuate, it is reasonably foreseeable that on withdrawal you may receive less
than the amount you invested.
Personal liability
Other than tax liability which you may incur as a result of advising us the wrong PIR, or failing to advise
us when your PIR changes, there are no circumstances in which you will be required to pay any further
money than that stated in section 3 (‘How much do I pay?’ page 44).
Winding up or insolvency
As at the date of this Investment Statement, we have no intention to wind up BNZ KiwiSaver or any
fund. If at a future point we resolve or are required to wind up BNZ KiwiSaver or a fund, then, claims
of creditors of the relevant fund(s), claims for tax, fees and expenses payable in the normal course of
business, and other claims preferred at law, will rank ahead of claims by members. Accordingly, you
may not recover the full amount paid to BNZ KiwiSaver by you or on your behalf. However, you are not
liable to contribute to any shortfall in the assets of BNZ KiwiSaver or any fund.
57
All investments made with the moneys of a fund must be held exclusively for that fund, and for the
exclusive benefit of the members who have Units in that fund.
This means that all liabilities incurred in relation to a fund must be met only from the assets held for
(or apportioned to) that fund, except where we transfer value between the funds to accommodate
BNZ KiwiSaver being a single taxpayer, or where (and only to the extent that) there are insufficient
assets in a fund to meet a liability for tax attributable to that fund. We will not permit the assets or
liabilities of any fund to become intermingled with those of any other fund, and we will maintain
separate records in respect of each fund.
If BNZ KiwiSaver is wound up, your claim on the assets of BNZ KiwiSaver will rank equally with the
claims of other members in the funds in which you have invested.
Following the wind up of BNZ KiwiSaver, you will be required to transfer from BNZ KiwiSaver to another
KiwiSaver scheme chosen by you or to another default KiwiSaver scheme selected by Inland Revenue.
Any transfer will be made in accordance with the KiwiSaver Act and the Trust Deed.
58
7. Can the investment be altered?
There are several ways your membership in BNZ KiwiSaver may change. These are set out below.
Changes to the funds you invest in
You can change the funds you invest in or the amounts you invest in each fund at any time. This is
often called ‘switching’ your investment. An easy way to do this is through BNZ internet banking.
Or you can call us on 0800 269 5494 or come in to see us at your local BNZ store.
You can:
>>
change the way your current account balance is invested; and/or
>>
change the way any new contributions to your account are invested.
Allocations to a fund must not be less than 5% of any contribution amount, and the selected
allocations must add up to 100%.
Changes may take up to three business days to process.
No switch fees currently apply.
Tax will be calculated and withheld (where appropriate) from any amount that is switched between
funds. We may hold or reject change requests where they may cause BNZ KiwiSaver to breach PIE
eligibility requirements.
Changes to fund investment policy and objectives
Under the Trust Deed we can, after notifying the Trustee, vary the investment policy and objective for
any of the funds (subject to legal compliance). This means we can change the manner in which each
fund’s assets are invested, including the investment guidelines and strategy, the objective, the asset
allocation, and benchmark targets and ranges, without notice to you. The Conservative Fund’s asset
allocation and benchmark ranges (or those of any default fund that replaces it) are required to comply
with the requirements in the Instrument of Appointment. The make-up of any underlying investment
fund into which a fund invests may also change from time to time, which in turn can alter the asset
allocations in the relevant fund.
Subject to the requirements of the KiwiSaver Act, we can, after notifying the Trustee, also close, wind
up or alter any fund, or set up a new fund. While BNZ KiwiSaver is a default KiwiSaver scheme, the
Conservative Fund cannot be wound up or closed unless a similar fund is offered. We can also set or
change rules from time to time relating to funds, including setting or changing a maximum number of
funds that can be chosen and a minimum amount that must be invested in a fund.
We may appoint or change investment manager(s) for each fund from time to time without notice to
you. During the life of this Investment Statement, we are considering appointing Nikko to manage BNZ
KiwiSaver’s investment in New Zealand cash. If the appointment is made or revoked, it will be published
on bnz.co.nz/kiwisaver, and you can call us on 0800 265 5494 for any updates on the appointment.
Changes to your contributions
If you contribute from your pay, you can change your contribution rate to either 3%, 4% or 8% of your
before-tax pay at any time by notifying your employer. Unless your employer agrees, you cannot
change your contribution rate more than every three months. Your new rate will apply to the next pay
after you notify your employer.
If you contribute directly to your BNZ KiwiSaver account, you can change the frequency and/or
amount of your regular payment, or cancel it entirely, at any time.
Contributions holiday
If you’re an employee, you’re entitled to take a ‘contributions holiday’ (which is when your contributions
to BNZ KiwiSaver are suspended) if at least 12 months have passed since your first contribution to a
KiwiSaver scheme or Complying Superannuation Fund, in which case your contributions holiday can
be for a period of between three months and five years.
If you are suffering, or are likely to suffer, financial hardship and Inland Revenue has received at least
one contribution from you, you can apply to Inland Revenue for an earlier contributions holiday.
If granted, your contributions holiday will be for a maximum of three months (or a longer period, if
Inland Revenue agrees).
59
You can apply for another contributions holiday when one expires. You can also revoke or reinstate
your contributions holiday at any time by notifying your employer.
Your employer may suspend its contributions to BNZ KiwiSaver for your benefit while you are on a
contributions holiday.
Changes to the Trust Deed
With the Trustee’s consent, we can amend the provisions of the Trust Deed at any time. However, such
changes must comply with the law.
Changes to fees
Fees may change from time to time. See ‘What are the charges?’ on page 46 for more information on
how fees can change.
Legislative changes
If there are legislation or policy changes, we may discuss with the Trustee about making amendments
to the Trust Deed, or changes to the administration of BNZ KiwiSaver, that are necessary or desirable
as a result of those changes.
Transfers
You are entitled to transfer your investment from BNZ KiwiSaver to another KiwiSaver Scheme at any
time. See ‘What returns will I get?’ on page 48 for more information about making a transfer.
Transfers to an Australian complying superannuation scheme
If you permanently emigrate to Australia, you are not able to withdraw your KiwiSaver savings as a
cash lump sum. Instead you are able to transfer all of your KiwiSaver savings (including your Member
Tax Credits) to an Australian complying superannuation scheme. If your KiwiSaver savings are above
the maximum amount set out in Australian legislation, you will not be able to transfer your KiwiSaver
savings. For more information on the cap that applies, please call us on 0800 269 5494.
Alternatively, your KiwiSaver savings can remain in BNZ KiwiSaver.
For more information, please call us on 0800 269 5494.
Instrument of Appointment overrides the Trust Deed
The provisions of the Instrument of Appointment override the terms of the Trust Deed.
60
8. How do I cash in my investment?
For information on making a withdrawal from BNZ KiwiSaver or transferring to another KiwiSaver
scheme, see ‘What returns will I get?’ on page 48.
Membership may cease
If the balance in your account is zero and we give notice to you that your membership is terminated,
you will cease to be a member of BNZ KiwiSaver.
Transfer of ownership
Units in BNZ KiwiSaver may not be sold, assigned, charged or otherwise passed to any other person by
any means, unless required by a Court order or by law.
Tax or student loan payments if you have made a transfer from a
non-Australian superannuation scheme
You may also make a withdrawal from BNZ KiwiSaver to pay any New Zealand tax liability or additional
student loan repayment obligation that arises as a result of you transferring funds from a nonAustralian foreign superannuation scheme to BNZ KiwiSaver. See ‘Transfers from non-Australian
foreign superannuation schemes’ on page 41 for further information.
9. Who do I contact with inquiries
about my investment?
You can inquire about your membership in BNZ KiwiSaver with our BNZ staff at your local BNZ store,
or for any general inquiries about your account (including the value of your investment) you can:
>>
call us on 0800 269 5494;
>>
contact your usual BNZ relationship manager;
>>
email us at [email protected]; or
>>
write to the BNZ Investment Team, at our address in the ‘Directory’ on page 67.
61
10. I s there anyone to whom I can
complain if I have problems
with the investment?
Complaints about your membership of BNZ KiwiSaver can be made to any BNZ representative at
any store or agency of BNZ. The first step is to raise your concern with the person you dealt with
initially. They should be able to resolve the majority of problems and will listen to and investigate your
concern. If a staff member is unable to resolve your problem on the spot, they will personally follow
it up and keep you informed about action being taken on your behalf. If the issue remains unresolved,
contact the Retail Regional Manager responsible for the store. They look after a group of stores in your
area and will be responsible for any outstanding issues. Your store will give you the name, address and
phone number of the appropriate Retail Regional Manager.
In the event the problem is still not resolved to your satisfaction,
you should refer your complaint to:
BNZ Resolve
BNZ Resolve’s contact address is the same as for BNZ, which can be found in the Directory on page 67,
or you can call BNZ Resolve on 0800 788 999.
Any complaint which reaches this level will receive the personal attention of a member of the BNZ
Resolve team. If after raising the matter with BNZ, you are still not satisfied, you can contact either the
Banking Ombudsman or the Trustee.
The Banking Ombudsman
BNZ is a member of an independent dispute resolution scheme operated by the Banking Ombudsman
and approved by the Ministry of Consumer Affairs, for the purposes of the Financial Service Providers
(Registration and Dispute Resolution) Act 2008.
Under the terms of this scheme, BNZ has three months to resolve your complaint. If you are not
satisfied with BNZ’s response you may refer the matter to the Banking Ombudsman at:
Level 5
Huddart Parker Building
1 Post Office Square
Wellington 6011
Write to:
FreePost 218002
PO Box 25327, Featherston Street
Wellington 6146
Email: [email protected]
Phone: 0800 805 950
Fax: (04) 471 0548
Full details of how to access the Banking Ombudsman scheme can be obtained at bankomb.org.nz
Trustee
You can also make complaints to the Trustee about your BNZ KiwiSaver account. The Trustee’s contact
address is in the Directory on page 67, or you can call the Trustee on (09) 909 5100.
Complaints about the BNZ KiwiSaver Scheme may also be made to:
Financial Markets Authority
Level 2, 1 Grey Street
Wellington
Write to:
DX Box CX10033
PO Box 106 672
Auckland 1143
Phone: (0800) 434 566
62
11. W
hat other information can I
obtain about this investment?
Other information about us, the Trustee, and BNZ KiwiSaver is included in the prospectus, Trust
Deed, and the financial statements for BNZ KiwiSaver.
Copies of the Trust Deed, prospectus, the financial statements and other documents relating to
us and BNZ KiwiSaver are filed on a public register at the Companies Office. Most documents are
available for public inspection free of charge on the Companies Office website at business.govt.nz/
companies. Where relevant documents are not available on the website, a request for the documents
can also be made by contacting the Companies Office Contact Centre on 0508 266 726. A fee may be
payable, if you request the documents from the Companies Office Contact Centre.
Copies of these documents can also be obtained by calling us on 0800 269 5494.
Quarterly and annual disclosure statements for each fund will be available on
bnz.co.nz/kiwisaver and will give you information on each fund’s returns, fees and expenses,
and asset and portfolio holdings.
You can ask us for the following at any time and free of charge:
>>
a written statement of your KiwiSaver savings in BNZ KiwiSaver;
>>
a copy of the Trust Deed, Establishment Deeds (these are documents establishing the funds in
BNZ KiwiSaver) and any amendments;
>>
a copy of the prospectus, current Investment Statement or the latest financial statements for
BNZ KiwiSaver;
>>
quarterly and annual disclosure statements for each fund; and
>>
a copy of the Instrument of Appointment, which is the document that appoints us as a KiwiSaver
default provider (you can also view and print a copy from the Financial Markets Authority’s
website fma.govt.nz).
Annual Information
We will provide you with the following annual information in relation to BNZ KiwiSaver:
>>
shortly after 31 March each year, a statement of your account and a tax certificate; and
>>
o later than 30 September each year, a copy of the BNZ KiwiSaver Annual Report
n
(including summary financial statements for BNZ KiwiSaver).
Your personal information
By becoming a member of BNZ KiwiSaver:
>>
ou agree that your personal information that we obtain from you or any third parties (including
Y
Inland Revenue) in relation to BNZ KiwiSaver:
>
may be disclosed to and securely held by the Trustee, the Manager, BNZ and any of their
authorised agents (each an ‘Authorised Person’). The address of each of these entities is on
page 67 of this Investment Statement;
>
may be used by each Authorised Person in developing and running BNZ KiwiSaver and may
be disclosed if required by law; and
>
may also be used by each Authorised Person to provide you with information about products,
accounts and services that it thinks might be of interest to you (including from BNZ’s
selected business partners). If you ask an Authorised Person not to provide you with this
information, all Authorised Persons will comply with your request.
>>
ou acknowledge that you have certain rights of access to and correction of information that an
Y
Authorised Person holds about you.
63
How can I apply to join the
BNZ KiwiSaver Scheme?
Joining or transferring to the BNZ KiwiSaver Scheme is easy.
Joining or transferring using BNZ internet banking if you are already a
BNZ customer
If you are already a BNZ customer and use BNZ internet banking, you can join or transfer to
BNZ KiwiSaver by simply logging in and selecting ‘Apply Now’. The whole process can be completed
in just a few minutes and there is no need to complete the Application Form at the back of this
Investment Statement.
If you are transferring from another KiwiSaver scheme once you’ve applied to us you don’t need to do
anything else to arrange the transfer of your KiwiSaver savings to BNZ KiwiSaver - we’ll take care of the
rest for you.
If you need assistance at any time, you can call 0800 269 5494 to talk to one of our helpful staff, or if
you would like personalised investment advice, we’ll put you in touch with one of BNZ’s Authorised
Financial Advisers.
Joining or transferring at a BNZ Store
You can join or transfer to BNZ KiwiSaver at over 180 BNZ stores nationwide.
Our friendly staff in store will take you through the application process and answer any questions you
may have. If you would like personalised advice, they’ll arrange to put you in touch with one of BNZ’s
Authorised Financial Advisers.
If you are transferring from another KiwiSaver scheme once you’ve applied to us you don’t need to do
anything else to arrange the transfer – we’ll take care of the rest for you.
There is also an Application Form in the back of this Investment Statement that you can complete and
take into your nearest BNZ store.
Not a BNZ customer?
If you’re not currently a BNZ customer, you can apply to join or transfer to BNZ KiwiSaver at our
BNZ stores. We’ll need to verify your identity and address so make sure that you bring along
identification with you.
Suitable documents to verify your identity include:
>>
Current passport; or
>>
New Zealand firearms licence; or
>>
New Zealand drivers licence, PLUS any one of the following:
>
Credit card issued by a New Zealand registered bank
(your name and signature must be on the card); or
>
Bank account statement dated within the previous 12 months; or
>
IRD statement dated within the previous 12 months; or
>
New Zealand or overseas birth certificate; or
>
New Zealand or overseas citizenship certificate.
And you’ll need to provide us proof of your address by showing us any one of the following original
documents. The documents must set out your name and current address and be dated within the
last 6 months.
64
>>
Power or home phone bill;
>>
Rates bill;
>>
Bank account statement;
>>
IRD statement;
>>
Car registration document.
Applying to join or transfer to the BNZ KiwiSaver Scheme as, or on behalf
of, a person under 18
There is an Application Form at the back of this Investment Statement specifically for enrolling
persons under the age of 18. We suggest that you complete this form and take it to your nearest BNZ
Store together with the documents noted below.
If the person enrolling is aged 15 or under, both parents/all legal guardians will be required to sign the
Application Form.
If you are aged 16 or 17, then you and one of your parents or legal guardians will need to sign the
Application Form.
If you are aged 16 or 17 and are married, in a de facto relationship or a civil union then you will not
need a parent/guardian either to provide identification or to sign the Application Form, but we will
need to see a copy of your marriage or civil union licence (or proof of the de facto relationship).
Supporting information for applicants under 18
If the applicant is under 18 we will need to see documentation that confirms:
>>
The applicant’s identity and address;
>>
nless the applicant is married, in a civil union or de facto relationship, the guardians’ identity
U
and address; and
>>
Unless the applicant is married, in a civil union or de facto relationship, proof of guardianship:
>
the minor’s birth certificate;
>
a certified copy of a guardianship order; or
>
certified copies of a deceased parent’s death certificate and a will appointing you as a
guardian.
If you need help with understanding the application process or the documents that you’ll need to
show us, please call us on 0800 269 5494.
Have you been allocated to the BNZ KiwiSaver Scheme?
If you have been allocated to BNZ KiwiSaver because it’s your employer’s chosen KiwiSaver scheme
or a default KiwiSaver scheme, you do not need to complete the Application Form at the end of this
Investment Statement.
However, we may not have complete and accurate information about you (such as your correct PIR)
as we rely on the details given to us by Inland Revenue. You can contact us on 0800 269 5494 or
bnz.co.nz or at any BNZ store to update your details.
65
Definitions.
Before-tax pay includes taxable salary/wages, bonuses, overtime pay, parental leave payments
out of public money and ACC compensation for the purposes of employee contributions (but, for
the purposes of employer contributions, excludes parental leave payments out of public money and
ACC compensation), but excludes exempt income, accommodation benefits, redundancy payments,
overseas living accommodation allowances and superannuation contributions made by your employer.
BNZ means Bank of New Zealand.
BNZ Authorised Financial Adviser means an adviser who is authorised by the Financial Markets
Authority to provide class and personalised financial adviser services under the Financial Advisers Act 2008.
BNZ Authorised Financial Advisers’ Disclosure Statements are available on request and free of charge.
BNZ Group means BNZ and all its subsidiaries.
Complying Superannuation Fund means a superannuation scheme that, while not a KiwiSaver
scheme, has rules enabling a KiwiSaver-consistent lock-in of balances and has been approved by the
Financial Markets Authority as a complying superannuation fund.
Default Member means a member who was allocated to BNZ KiwiSaver by Inland Revenue (because
BNZ KiwiSaver is a default KiwiSaver scheme) and who has not chosen a BNZ KiwiSaver Scheme fund.
ESCT means employer’s superannuation contribution tax.
Government kick-start means the one-off contribution made by the Government that you may have
received if you first became a KiwiSaver member prior to 2pm on 21 May 2015.
GST means goods and services tax chargeable or levied in accordance with the Goods and Services
Tax Act 1985.
Instrument of Appointment is the document that appoints us as a KiwiSaver default provider.
Investment Statement means this document, the BNZ KiwiSaver Scheme investment statement.
Issuer means BNZ Investment Services Limited.
KiwiSaver Act means the KiwiSaver Act 2006, as amended from time to time.
Manager means BNZ Investment Services Limited, the manager of the BNZ KiwiSaver Scheme.
Member Tax Credit means a contribution from the Government calculated by reference to your
contributions to BNZ KiwiSaver and/or a Complying Superannuation Fund. Further information is set
out under the heading ‘Member Tax Credit’ on page 45.
New Zealand Superannuation means the entitlements defined under the New Zealand
Superannuation and Retirement Income Act 2001.
PIE means a Portfolio Investment Entity as defined in the Income Tax Act 2007.
PIR means Prescribed Investor Rate as defined in the Income Tax Act 2007.
Qualifying Age means the date when you reach the age of eligibility for New Zealand Superannuation
(currently age 65) and you have been a KiwiSaver member (and/or a member of a Complying
Superannuation Fund) for at least five years.
Trust Deed means the trust deed for BNZ KiwiSaver dated 8 January 2013 and amended on
1 July 2014, and any Establishment Deed for any fund, as amended from time to time.
Trustee means The New Zealand Guardian Trust Company Limited, as the trustee of BNZ KiwiSaver.
Unit means a unit in a fund.
Unit Price means the price for a Unit in a fund, calculated in accordance with the Trust Deed. Unit
prices are based on the value of the underlying investments at the relevant time.
We means BNZ Investment Services Limited, the manager of BNZ KiwiSaver. ‘Our’ and ‘Us’ have
corresponding meanings.
You or I means the member, being the person who signs up, or is allocated, to BNZ KiwiSaver or the
person whose parents or legal guardians are signing up. ‘Your’ has a corresponding meaning.
Words or phrases not defined in this Definitions section but appearing in capital letters in this
Investment Statement have the same meaning as in the Trust Deed.
Reference to legislation is a reference to that legislation as amended or substituted.
66
Directory.
Manager and Issuer
BNZ Investment Services Limited
Contact address of Manager and Issuer
Level 4, 80 Queen Street
Private Bag 92208
Auckland 1142
Phone: 0800 269 5494
From overseas: +64 4 924 2424
Email: [email protected]
Promoters
Bank of New Zealand and its directors
Contact address of BNZ
Level 4, 80 Queen Street
Auckland 1010
Registrar
Trustees Executors Limited
Level 5, 10 Customhouse Quay
Wellington 6143
Administration Managers
MMC Limited
Level 13, 23 Customs Street East,
Auckland 1010
BNZ (see above for contact address)
Trustee
The New Zealand Guardian Trust Company Limited
Contact address of the Trustee
Level 14, 191 Queen Street
Auckland 1010
67
68
BNZ KiwiSaver Scheme
Applicants aged 18 and over application
17 September 2015
1. Your details
Mr
Mrs
3. Contribution details
Ms
Miss
Employee compulsory contributions
Other
If you are employed, your employer will start deducting KiwiSaver
contributions at the minimum compulsory rate of 3% of your
before-tax pay.
Name
First You can choose to contribute more, either 4% or 8% by simply notifying
your employer.
Middle Last Date of birth
D
D
M
Note that when you first become a KiwiSaver member, Inland Revenue will
hold any contributions they receive for you until you’ve been a member of
KiwiSaver for three months.
IRD number
M
Y
Y
Voluntary contributions
Postal address
You can make voluntary contributions to your BNZ KiwiSaver Scheme account
by depositing a lump sum, or make regular contributions by automatic payment
or direct debit. There’s no minimum contribution if you’re not working.
Street address Suburb Town/City Postcode Country Regular contributions
Amount $
Physical address
Fortnightly
Street address D
M
M
Y
Y
Town/City Monthly
Other (specify)
I agree to BNZ’s automatic payment terms and conditions set out at
bnz.co.nz. Please set up an Automatic Payment from my
BNZ Account
Suburb Postcode 0 2
Country Bank
Contact details
0 Mobile 02 I’d like to make an initial lump sum contribution of:
By providing your email address, you consent to the BNZ Group contacting you electronically
(e.g. by email, text, website link) from time to time with information about our products,
services, and promotions, and without an unsubscribe facility.
$
(Please attach your cheque made payable to the BNZ KiwiSaver Scheme)
You can also make lump sum or regular contributions via internet banking.
Preferred email address for email notifications
Work
4. Transferring from another KiwiSaver scheme
Mail delivery preference
If you’re already a member of another KiwiSaver scheme, we’ll arrange for
your savings to be transferred from your current provider. This may take up to
8 weeks from the date that you join the BNZ KiwiSaver Scheme.
Email
Prescribed Investor Rate (PIR)
10.5%
Suffix
Lump sum contribution amount
*For correspondence.
Post
Account number
Please find attached completed Direct Debit form
Home email* Home
Store
OR
Work email* 17.5%
28%
Please refer to page 54 of the Investment Statement or to bnz.co.nz/pir for
more information on your PIR.
If you wish to transfer an investment from a superannuation scheme other
than a KiwiSaver scheme please contact us for further details.
5. First home purchase
2. Investment selection
You can invest into one or more funds. Please see the Investment Statement
for more information on the funds.
This question is optional.
Do you intend to use your KiwiSaver savings for a first home purchase?
Yes
If you don’t choose a fund, you’ll automatically be invested into the
Conservative Fund. You can change this investment selection at any time.
Make sure there is at least 5% invested in any one fund and that the total adds
up to 100%.
Fund
Percentage
Cash Fund
No
6. Identification details
Existing BNZ customer
For existing BNZ customers, simply provide us with your
BNZ bank account number
First Home Buyer Fund
0 2
Conservative Fund
Bank
Moderate Fund
OR
Balanced Fund
your access number
Growth Fund
TOTAL
D
Contribution frequency
Tick if same as above
Home Commencing
100%
Store
Account number
Suffix
New to BNZ
relevant document or an internet URL for access to an electronic copy of
the relevant document. I agree that I will be deemed to have received the
electronic communication (including via BNZ internet banking) no later
than 1 business day after it has been sent to me or my address through
any of these forms of electronic communication (including via BNZ
internet banking).
We will need to see proof of your identity and address. To verify your identity
we’ll need to see one of the following documents:
Current passport; or
New Zealand firearms licence; or
New Zealand drivers licence, PLUS any one of the following:
››
Credit card issued by New Zealand registered bank (name and signature
must be on the card); or
›› Bank account statement dated within the previous 12 months; or
›› IRD statement dated within the previous 12 months; or
›› New Zealand or overseas citizenship certificate; or
›› New Zealand or overseas birth certificate.
AND
››
I have read and agree to be bound by the terms of the ‘Your personal
information’ section of the Investment Statement.
››
Terms defined in the Investment Statement have the same meaning in this
application form.
Signature
To verify your address we will need to see any one of the following original
documents. The documents must set out your name and current address and
be dated within the last 6 months:
Power or home phone bill; or
Rates bill; or
Bank account statement; or
IRD statement; or
Car registration document.
I understand that, except in limited circumstances, if my application is accepted
I won’t be able to access my contributions until I reach retirement age
(currently 65) or, if I am over 60 when I first join a KiwiSaver scheme, I won’t be
able to access my contributions for five years from the date that I joined.
Initials
I understand that, if I am a member of another KiwiSaver scheme, my savings
in that KiwiSaver scheme will be transferred to the BNZ KiwiSaver Scheme if
my application is accepted. I authorise the manager or trustee of that KiwiSaver
scheme to provide the Manager or Trustee of the BNZ KiwiSaver Scheme with
personal information about me as necessary to complete the transfer.
M
Y
Y
Certificate of non-revocation of power of attorney
I, Full name of attorney
of
,
Place and country of residence and occupation of attorney
certify
1. That by a deed dated
D
D
Investments made in the BNZ KiwiSaver Scheme do not represent deposits
or other liabilities of BNZ or any other member of the National Australia
Bank Limited group, and are subject to investment risk, including the
possible loss of income and principal invested. None of BNZ, any other
member of the National Australia Bank Limited group, the Trustee, any
director of any of them, the Crown or any other person guarantees (either
fully or in part) the performance or returns of the BNZ KiwiSaver Scheme
or the repayment of capital. National Australia Bank Limited, the ultimate
parent of BNZ, is not a registered bank in New Zealand, but it is a licensed
bank in Australia and is therefore subject to the supervision of the
Australian Prudential Regulation Authority.
All of the information in this application form is true and correct. I agree to
notify the Manager immediately if there is any change in the information
given in this application form.
››
I indemnify in all respects and hold harmless the Manager, BNZ and the
Trustee against all damages, costs, expenses, losses or liabilities which
may arise by reason of any of them accepting or acting on instructions
from me or an authorised signatory (or instructions which are
unauthorised, forged or fraudulent where we could not reasonably have
detected that) in respect of my membership in the BNZ KiwiSaver Scheme
(including any instructions issued by telephone, facsimile, email or other
electronic means), except in situations where the Manager, BNZ or the
Trustee fails to exercise the care, diligence and skill of a prudent person in
their respective capacities when giving effect to such instructions.
Choosing an investment fund (or funds) is solely my responsibility. My
investment fund(s) selection is a binding instruction from me to the
Manager. None of the Trustee nor, unless I have received advice from one
of BNZ’s Authorised Financial Advisers, BNZ or the Manager has
represented or implied that any particular investment fund is appropriate
for my particular circumstances or provided me with personalised advice.
M
M
Y
Y
Full name of donor
Place and country of residence of donor
of
appointed me his/her attorney.
2. That I have not received notice of any event revoking the power of attorney.
Signed at
Initials
››
››
M
Signature where power of attorney exists
6. Declarations and authorisations
››
D
Please complete and sign the following declaration if the application is being
made by an individual who holds power of attorney. Please attach a certified
copy of the power of attorney, and complete the following:
I wish to apply for membership of the BNZ KiwiSaver Scheme. I confirm that
I have received, read and understood the current BNZ KiwiSaver Scheme
Investment Statement. I agree to be bound by the terms and conditions set
out in the Investment Statement, prospectus and Trust Deed governing the
BNZ KiwiSaver Scheme.
Initials
I acknowledge and agree that:
D
this
day of
2
0
Y
Y
Signature of attorney
Signature Please return your completed application form to any BNZ store
BNZ USE ONLY:
Staff member name Staff member ID CHECKLIST (PLEASE TICK)
Applicant has initialled and signed
the application form
››
If a transaction request is invalid or insufficient information is provided it
will not be processed until valid documentation is received.
Applicant identity and address
has been verified
››
I consent to receiving all information and communications to be provided
to me in relation to my membership of the BNZ KiwiSaver Scheme
(including annual reports, annual member statements and annual tax
certificates) by receiving in any form of communication, electronic or
otherwise (including via BNZ internet banking), an electronic copy of the
Proof of NZ residency provided if
overseas ID supplied
Automatic payment has been set up
(as per customer’s instructions under
part 3 of this application form)
Direct debit form has been received
Initial lump sum payment has been received
Initial lump sum payment has been credited
to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions
under part 3 of this application form)
Evidence of power of attorney attached
(6001) 100903 07-15
››
››
››
››
››
Signature BNZ KiwiSaver Scheme
Applicants aged 18 and over application
17 September 2015
1. Your details
Mr
Mrs
3. Contribution details
Ms
Miss
Employee compulsory contributions
Other
If you are employed, your employer will start deducting KiwiSaver
contributions at the minimum compulsory rate of 3% of your
before-tax pay.
Name
First You can choose to contribute more, either 4% or 8% by simply notifying
your employer.
Middle Last Date of birth
D
D
M
Note that when you first become a KiwiSaver member, Inland Revenue will
hold any contributions they receive for you until you’ve been a member of
KiwiSaver for three months.
IRD number
M
Y
Y
Voluntary contributions
Postal address
You can make voluntary contributions to your BNZ KiwiSaver Scheme account
by depositing a lump sum, or make regular contributions by automatic payment
or direct debit. There’s no minimum contribution if you’re not working.
Street address Suburb Town/City Postcode Country Regular contributions
Amount $
Physical address
Fortnightly
Street address D
M
M
Y
Y
Town/City Monthly
Other (specify)
I agree to BNZ’s automatic payment terms and conditions set out at
bnz.co.nz. Please set up an Automatic Payment from my
BNZ Account
Suburb Postcode 0 2
Country Bank
Contact details
0 Mobile 02 I’d like to make an initial lump sum contribution of:
By providing your email address, you consent to the BNZ Group contacting you electronically
(e.g. by email, text, website link) from time to time with information about our products,
services, and promotions, and without an unsubscribe facility.
$
(Please attach your cheque made payable to the BNZ KiwiSaver Scheme)
You can also make lump sum or regular contributions via internet banking.
Preferred email address for email notifications
Work
4. Transferring from another KiwiSaver scheme
Mail delivery preference
If you’re already a member of another KiwiSaver scheme, we’ll arrange for
your savings to be transferred from your current provider. This may take up to
8 weeks from the date that you join the BNZ KiwiSaver Scheme.
Email
Prescribed Investor Rate (PIR)
10.5%
Suffix
Lump sum contribution amount
*For correspondence.
Post
Account number
Please find attached completed Direct Debit form
Home email* Home
Store
OR
Work email* 17.5%
28%
Please refer to page 54 of the Investment Statement or to bnz.co.nz/pir for
more information on your PIR.
If you wish to transfer an investment from a superannuation scheme other
than a KiwiSaver scheme please contact us for further details.
5. First home purchase
2. Investment selection
You can invest into one or more funds. Please see the Investment Statement
for more information on the funds.
This question is optional.
Do you intend to use your KiwiSaver savings for a first home purchase?
Yes
If you don’t choose a fund, you’ll automatically be invested into the
Conservative Fund. You can change this investment selection at any time.
Make sure there is at least 5% invested in any one fund and that the total adds
up to 100%.
Fund
Percentage
Cash Fund
No
6. Identification details
Existing BNZ customer
For existing BNZ customers, simply provide us with your
BNZ bank account number
First Home Buyer Fund
0 2
Conservative Fund
Bank
Moderate Fund
OR
Balanced Fund
your access number
Growth Fund
TOTAL
D
Contribution frequency
Tick if same as above
Home Commencing
100%
Store
Account number
Suffix
New to BNZ
relevant document or an internet URL for access to an electronic copy of
the relevant document. I agree that I will be deemed to have received the
electronic communication (including via BNZ internet banking) no later
than 1 business day after it has been sent to me or my address through
any of these forms of electronic communication (including via BNZ
internet banking).
We will need to see proof of your identity and address. To verify your identity
we’ll need to see one of the following documents:
Current passport; or
New Zealand firearms licence; or
New Zealand drivers licence, PLUS any one of the following:
››
Credit card issued by New Zealand registered bank (name and signature
must be on the card); or
›› Bank account statement dated within the previous 12 months; or
›› IRD statement dated within the previous 12 months; or
›› New Zealand or overseas citizenship certificate; or
›› New Zealand or overseas birth certificate.
AND
››
I have read and agree to be bound by the terms of the ‘Your personal
information’ section of the Investment Statement.
››
Terms defined in the Investment Statement have the same meaning in this
application form.
Signature
To verify your address we will need to see any one of the following original
documents. The documents must set out your name and current address and
be dated within the last 6 months:
Power or home phone bill; or
Rates bill; or
Bank account statement; or
IRD statement; or
Car registration document.
I understand that, except in limited circumstances, if my application is accepted
I won’t be able to access my contributions until I reach retirement age
(currently 65) or, if I am over 60 when I first join a KiwiSaver scheme, I won’t be
able to access my contributions for five years from the date that I joined.
Initials
I understand that, if I am a member of another KiwiSaver scheme, my savings
in that KiwiSaver scheme will be transferred to the BNZ KiwiSaver Scheme if
my application is accepted. I authorise the manager or trustee of that KiwiSaver
scheme to provide the Manager or Trustee of the BNZ KiwiSaver Scheme with
personal information about me as necessary to complete the transfer.
M
Y
Y
Certificate of non-revocation of power of attorney
I, Full name of attorney
of
,
Place and country of residence and occupation of attorney
certify
1. That by a deed dated
D
D
Investments made in the BNZ KiwiSaver Scheme do not represent deposits
or other liabilities of BNZ or any other member of the National Australia
Bank Limited group, and are subject to investment risk, including the
possible loss of income and principal invested. None of BNZ, any other
member of the National Australia Bank Limited group, the Trustee, any
director of any of them, the Crown or any other person guarantees (either
fully or in part) the performance or returns of the BNZ KiwiSaver Scheme
or the repayment of capital. National Australia Bank Limited, the ultimate
parent of BNZ, is not a registered bank in New Zealand, but it is a licensed
bank in Australia and is therefore subject to the supervision of the
Australian Prudential Regulation Authority.
All of the information in this application form is true and correct. I agree to
notify the Manager immediately if there is any change in the information
given in this application form.
››
I indemnify in all respects and hold harmless the Manager, BNZ and the
Trustee against all damages, costs, expenses, losses or liabilities which
may arise by reason of any of them accepting or acting on instructions
from me or an authorised signatory (or instructions which are
unauthorised, forged or fraudulent where we could not reasonably have
detected that) in respect of my membership in the BNZ KiwiSaver Scheme
(including any instructions issued by telephone, facsimile, email or other
electronic means), except in situations where the Manager, BNZ or the
Trustee fails to exercise the care, diligence and skill of a prudent person in
their respective capacities when giving effect to such instructions.
Choosing an investment fund (or funds) is solely my responsibility. My
investment fund(s) selection is a binding instruction from me to the
Manager. None of the Trustee nor, unless I have received advice from one
of BNZ’s Authorised Financial Advisers, BNZ or the Manager has
represented or implied that any particular investment fund is appropriate
for my particular circumstances or provided me with personalised advice.
M
M
Y
Y
Full name of donor
Place and country of residence of donor
of
appointed me his/her attorney.
2. That I have not received notice of any event revoking the power of attorney.
Signed at
Initials
››
››
M
Signature where power of attorney exists
6. Declarations and authorisations
››
D
Please complete and sign the following declaration if the application is being
made by an individual who holds power of attorney. Please attach a certified
copy of the power of attorney, and complete the following:
I wish to apply for membership of the BNZ KiwiSaver Scheme. I confirm that
I have received, read and understood the current BNZ KiwiSaver Scheme
Investment Statement. I agree to be bound by the terms and conditions set
out in the Investment Statement, prospectus and Trust Deed governing the
BNZ KiwiSaver Scheme.
Initials
I acknowledge and agree that:
D
this
day of
2
0
Y
Y
Signature of attorney
Signature Please return your completed application form to any BNZ store
BNZ USE ONLY:
Staff member name Staff member ID CHECKLIST (PLEASE TICK)
Applicant has initialled and signed
the application form
››
If a transaction request is invalid or insufficient information is provided it
will not be processed until valid documentation is received.
Applicant identity and address
has been verified
››
I consent to receiving all information and communications to be provided
to me in relation to my membership of the BNZ KiwiSaver Scheme
(including annual reports, annual member statements and annual tax
certificates) by receiving in any form of communication, electronic or
otherwise (including via BNZ internet banking), an electronic copy of the
Proof of NZ residency provided if
overseas ID supplied
Automatic payment has been set up
(as per customer’s instructions under
part 3 of this application form)
Direct debit form has been received
Initial lump sum payment has been received
Initial lump sum payment has been credited
to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions
under part 3 of this application form)
Evidence of power of attorney attached
(6001) 100903 07-15
››
››
››
››
››
Signature BNZ KiwiSaver Scheme
Applicants aged under 18 application
17 September 2015
1. Your details
2. Investment selection
Provide details of the applicant aged under 18.
You can invest into one or more funds. Please see the Investment Statement
for more information on the funds.
Mr
Mrs
Ms
Miss
Other
If you don’t choose a fund, you’ll automatically be invested into the
Conservative Fund. You can change this investment selection at any time.
Name
Make sure there is at least 5% invested in any one fund and that the total adds
up to 100%.
First Middle Fund
Last Cash Fund
Date of birth
D
D
Percentage
M
M
Y
First Home Buyer Fund
Y
Conservative Fund
IRD number
Moderate Fund
Balanced Fund
Postal address
Growth Fund
Street address Suburb TOTAL
Town/City Country 3. Contribution details
Physical address
Employee compulsory contributions
Tick if same as above
If you are employed, your employer will start deducting KiwiSaver
contributions at the minimum compulsory rate of 3% of your
before-tax pay.
Street address Suburb Town/City Postcode Contact details
0 You can choose to contribute more, either 4% or 8% by simply notifying
your employer.
Note that when you first become a KiwiSaver member, Inland Revenue will
hold any contributions they receive for you until you’ve been a member of
KiwiSaver for three months.
Country Home 100%
Postcode Mobile 02 Voluntary contributions
You can make voluntary contributions to your BNZ KiwiSaver Scheme
account by depositing a lump sum, or make regular contributions by
automatic payment or direct debit. There’s no minimum contribution if
you’re not working.
Work email* Home email* *For correspondence.
By providing your email address, you consent to the BNZ Group contacting you electronically
(e.g. by email, text, website link) from time to time with information about our products,
services, and promotions, and without an unsubscribe facility.
Regular contributions
Preferred email address for email notifications
Amount $
Home
Work
Fortnightly
Email
17.5%
D
M
M
Y
28%
Please refer to page 54 of the Investment Statement or refer to bnz.co.nz/pir for
more information on your PIR.
Monthly
Other (specify)
I agree to BNZ’s automatic payment terms and conditions set out at
bnz.co.nz. Please set up an Automatic Payment from my
BNZ Account
Prescribed Investor Rate (PIR)
10.5%
D
Contribution frequency
Mail delivery preference
Post
Commencing
0 2
Bank
Store
Account number
Suffix
OR
Please find attached completed Direct Debit form
Lump sum contribution amount
I’d like to make an initial lump sum contribution of:
$
(Please attach your cheque made payable to the BNZ KiwiSaver Scheme)
You can also make lump sum or regular contributions via internet banking.
73
Y
4. Transferring from another KiwiSaver scheme
6. Declarations and authorisations
If you’re already a member of another KiwiSaver scheme, we’ll arrange for
your savings to be transferred from your current provider. This may take up to
8 weeks from the date that you join the BNZ KiwiSaver Scheme.
If you are a parent/guardian you are accepting these declarations and
authorisations on behalf of the applicant named in section 1.
If you wish to transfer an investment from a superannuation scheme other
than a KiwiSaver scheme please contact us for further details.
5. Identification details
We’ll need to verify the identity of both the applicant and all parents/
guardians signing this form. We’ll also need to see proof of guardianship.
Existing BNZ customer - Applicant
I wish to apply for membership of the BNZ KiwiSaver Scheme. I confirm that
I have received, read and understood the current BNZ KiwiSaver Scheme
Investment Statement. I agree to be bound by the terms and conditions set
out in the Investment Statement, prospectus and Trust Deed governing the
BNZ KiwiSaver Scheme.
At least one parent, legal guardian or the applicant (where the applicant is
aged 16 or 17) must initial this section. All required parties must sign this
application form on the following page.
Initials
I understand that, except in limited circumstances, if my application is
accepted I won’t be able to access my contributions until I reach retirement
age (currently 65).
For existing BNZ customers, simply provide us with your
BNZ bank account number
Initials
0 2
Bank
Store
Account number
Suffix
Or your access number
Existing BNZ Customer - Parents/guardians
I understand that, if I am a member of another KiwiSaver scheme, my
savings in that KiwiSaver scheme will be transferred to the BNZ KiwiSaver
Scheme if my application is accepted. I authorise the manager or trustee
of that KiwiSaver scheme to provide the Manager or Trustee of the BNZ
KiwiSaver Scheme with personal information about me as necessary to
complete the transfer.
For existing BNZ customers, simply provide us with your
Initials
BNZ bank account number
I acknowledge and agree that:
0 2
Bank
Store
Account number
››
Investments made in the BNZ KiwiSaver Scheme do not represent deposits
or other liabilities of BNZ or any other member of the National Australia
Bank Limited group, and are subject to investment risk, including the
possible loss of income and principal invested. None of BNZ, any other
member of the National Australia Bank Limited group, the Trustee, any
director of any of them, the Crown or any other person guarantees (either
fully or in part) the performance or returns of the BNZ KiwiSaver Scheme
or the repayment of capital. National Australia Bank Limited, the ultimate
parent of BNZ, is not a registered bank in New Zealand, but it is a licensed
bank in Australia and is therefore subject to the supervision of the
Australian Prudential Regulation Authority.
››
All of the information in this application form is true and correct. I agree to
notify the Manager immediately if there is any change in the information
given in this application form.
››
I indemnify in all respects and hold harmless the Manager, BNZ and
the Trustee against all damages, costs, expenses, losses or liabilities
which may arise by reason of any of them accepting or acting on
instructions from me or an authorised signatory (or instructions which are
unauthorised, forged or fraudulent where we could not reasonably have
detected that) in respect of my membership in the BNZ KiwiSaver Scheme
(including any instructions issued by telephone, facsimile, email or other
electronic means), except in situations where the Manager, BNZ or the
Trustee fails to exercise the care, diligence and skill of a prudent person in
their respective capacities when giving effect to such instructions.
››
Choosing an investment fund (or funds) is solely my responsibility. My
investment fund(s) selection is a binding instruction from me to the
Manager. None of the Trustee nor, unless I have received advice from
one of BNZ’s Authorised Financial Advisers, BNZ or the Manager has
represented or implied that any particular investment fund is appropriate
for my particular circumstances or provided me with personalised advice.
››
If a transaction request is invalid or insufficient information is provided it
will not be processed until valid documentation is received.
››
I consent to receiving all information and communications to be provided
to me in relation to my membership of the BNZ KiwiSaver Scheme
(including annual reports, annual member statements and annual tax
certificates) by receiving in any form of communication, electronic or
otherwise (including via BNZ internet banking), an electronic copy of the
relevant document or an internet URL for access to an electronic copy of
the relevant document. I agree that I will be deemed to have received the
electronic communication (including via BNZ internet banking) no later
than 1 business day after it has been sent to me or my address through
any of these forms of electronic communication (including via BNZ
internet banking).
››
I have read and agree to be bound by the terms of the ‘Your personal
information’ section of the Investment Statement.
››
Terms defined in the Investment Statement have the same meaning in this
application form.
Suffix
Or your access number
For existing BNZ customers, simply provide us with your
BNZ bank account number
0 2
Bank
Store
Account number
Suffix
Or your access number
New to BNZ
We will need to see proof of identity and address for the applicant and all
parents or guardians signing this form. To verify identity we’ll need to see
one of the following documents:
Current passport; or
New Zealand firearms licence; or
New Zealand drivers licence, PLUS any one of the following:
››
Credit card issued by New Zealand registered bank (name and signature
must be on the card); or
››
Bank account statement dated within the previous 12 months; or
››
IRD statement dated within the previous 12 months; or
››
New Zealand or overseas citizenship certificate; or
››
New Zealand or overseas birth certificate.
AND
To verify your address we will need to see one of the following original
documents. The documents must set out the applicant’s or parent’s/
guardian’s (as applicable) name and current address and be dated within the
last 6 months:
››
Power or home phone bill; or
››
Rates bill; or
››
Bank account statement; or
››
IRD statement; or
››
Car registration document.
Note: If you require further clarification on valid document types please call
us on 0800 269 5494.
Proof of guardianship
To prove you are the applicant’s parent(s)/guardian(s) please show us one of
the following documents:
››
the applicant’s birth certificate; or
››
the guardianship order.
If you do not have either of these please call us on 0800 269 5494.
Signature(s) where applicant is aged 16 or 17.
Must be signed by the applicant and one birth parent or legal guardian
(including CYPFA guardian) (Unless the applicant is married, in a civil union or
a de facto relationship in which case only the applicant needs to sign).
Applicants name D
Signature M
M
Y
Y
D
D
M
M
Y
Y
Birth parent/Guardian name Birth parent/Guardian name Signature Signature D
D
M
M
Y
Y
Please return your completed application form to any BNZ store
BNZ USE ONLY:
D
D
M
M
Y
Y
Please return your completed application form to any BNZ store
BNZ USE ONLY:
Staff member name Staff member name Staff member ID Staff member ID CHECKLIST (PLEASE TICK)
CHECKLIST (PLEASE TICK)
Applicant identity and address has been verified
Applicant identity and address has been verified
Proof of NZ residency provided if overseas ID supplied
Proof of NZ residency provided if overseas ID supplied
Automatic payment has been set up (as per customer’s instructions under part 3 of this
application form)
Automatic payment has been set up
(as per customer’s instructions under part 3 of this application form)
Direct debit form has been received
Direct debit form has been received
Initial lump sum payment has been received
Initial lump sum payment has been received
Initial lump sum payment has been credited to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions under part 3 of this application form)
Initial lump sum payment has been credited to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions under part 3 of this application form)
Proof of guardianship or copy of marriage or civil union licence (or proof of de facto
relationship) attached
Proof of guardianship attached for all legal guardians
Applicant and one parent/guardian has signed the application form
(6001) 100902 07-15
Must be signed by all birth parents/one CYPFA guardian or all other legal
guardians. The applicant does not need to sign.
Birth parent/Guardian name Signature D
Signature(s) where applicant is under the
age of 16.
One parent or guardian has initialled and signed the application form (unless the
applicant is married, in a civil union or de facto relationship)
I dentification and address verification for the parents/guardian who signed the form is
attached to the application form (for non BNZ customers only)
Both parents/one CYPFA guardian, or all other legal guardians have signed the
application form
At least one parent/guardian has initialled the declaration and authorisation boxes
oth parents/one CYPFA guardian, or all other legal guardians identification and address
B
verification is attached to the application form (for non BNZ customers only)
BNZ KiwiSaver Scheme
Applicants aged under 18 application
17 September 2015
1. Your details
2. Investment selection
Provide details of the applicant aged under 18.
You can invest into one or more funds. Please see the Investment Statement
for more information on the funds.
Mr
Mrs
Ms
Miss
Other
If you don’t choose a fund, you’ll automatically be invested into the
Conservative Fund. You can change this investment selection at any time.
Name
Make sure there is at least 5% invested in any one fund and that the total adds
up to 100%.
First Middle Fund
Last Cash Fund
Date of birth
D
D
Percentage
M
M
Y
First Home Buyer Fund
Y
Conservative Fund
IRD number
Moderate Fund
Balanced Fund
Postal address
Growth Fund
Street address Suburb TOTAL
Town/City Country 3. Contribution details
Physical address
Employee compulsory contributions
Tick if same as above
If you are employed, your employer will start deducting KiwiSaver
contributions at the minimum compulsory rate of 3% of your
before-tax pay.
Street address Suburb Town/City Postcode Contact details
0 You can choose to contribute more, either 4% or 8% by simply notifying
your employer.
Note that when you first become a KiwiSaver member, Inland Revenue will
hold any contributions they receive for you until you’ve been a member of
KiwiSaver for three months.
Country Home 100%
Postcode Mobile 02 Voluntary contributions
You can make voluntary contributions to your BNZ KiwiSaver Scheme
account by depositing a lump sum, or make regular contributions by
automatic payment or direct debit. There’s no minimum contribution if
you’re not working.
Work email* Home email* *For correspondence.
By providing your email address, you consent to the BNZ Group contacting you electronically
(e.g. by email, text, website link) from time to time with information about our products,
services, and promotions, and without an unsubscribe facility.
Regular contributions
Preferred email address for email notifications
Amount $
Home
Work
Fortnightly
Email
17.5%
D
M
M
Y
28%
Please refer to page 54 of the Investment Statement or refer to bnz.co.nz/pir for
more information on your PIR.
Monthly
Other (specify)
I agree to BNZ’s automatic payment terms and conditions set out at
bnz.co.nz. Please set up an Automatic Payment from my
BNZ Account
Prescribed Investor Rate (PIR)
10.5%
D
Contribution frequency
Mail delivery preference
Post
Commencing
0 2
Bank
Store
Account number
Suffix
OR
Please find attached completed Direct Debit form
Lump sum contribution amount
I’d like to make an initial lump sum contribution of:
$
(Please attach your cheque made payable to the BNZ KiwiSaver Scheme)
You can also make lump sum or regular contributions via internet banking.
77
Y
4. Transferring from another KiwiSaver scheme
6. Declarations and authorisations
If you’re already a member of another KiwiSaver scheme, we’ll arrange for
your savings to be transferred from your current provider. This may take up to
8 weeks from the date that you join the BNZ KiwiSaver Scheme.
If you are a parent/guardian you are accepting these declarations and
authorisations on behalf of the applicant named in section 1.
If you wish to transfer an investment from a superannuation scheme other
than a KiwiSaver scheme please contact us for further details.
5. Identification details
We’ll need to verify the identity of both the applicant and all parents/
guardians signing this form. We’ll also need to see proof of guardianship.
Existing BNZ customer - Applicant
I wish to apply for membership of the BNZ KiwiSaver Scheme. I confirm that
I have received, read and understood the current BNZ KiwiSaver Scheme
Investment Statement. I agree to be bound by the terms and conditions set
out in the Investment Statement, prospectus and Trust Deed governing the
BNZ KiwiSaver Scheme.
At least one parent, legal guardian or the applicant (where the applicant is
aged 16 or 17) must initial this section. All required parties must sign this
application form on the following page.
Initials
I understand that, except in limited circumstances, if my application is
accepted I won’t be able to access my contributions until I reach retirement
age (currently 65).
For existing BNZ customers, simply provide us with your
BNZ bank account number
Initials
0 2
Bank
Store
Account number
Suffix
Or your access number
Existing BNZ Customer - Parents/guardians
I understand that, if I am a member of another KiwiSaver scheme, my
savings in that KiwiSaver scheme will be transferred to the BNZ KiwiSaver
Scheme if my application is accepted. I authorise the manager or trustee
of that KiwiSaver scheme to provide the Manager or Trustee of the BNZ
KiwiSaver Scheme with personal information about me as necessary to
complete the transfer.
For existing BNZ customers, simply provide us with your
Initials
BNZ bank account number
I acknowledge and agree that:
0 2
Bank
Store
Account number
››
Investments made in the BNZ KiwiSaver Scheme do not represent deposits
or other liabilities of BNZ or any other member of the National Australia
Bank Limited group, and are subject to investment risk, including the
possible loss of income and principal invested. None of BNZ, any other
member of the National Australia Bank Limited group, the Trustee, any
director of any of them, the Crown or any other person guarantees (either
fully or in part) the performance or returns of the BNZ KiwiSaver Scheme
or the repayment of capital. National Australia Bank Limited, the ultimate
parent of BNZ, is not a registered bank in New Zealand, but it is a licensed
bank in Australia and is therefore subject to the supervision of the
Australian Prudential Regulation Authority.
››
All of the information in this application form is true and correct. I agree to
notify the Manager immediately if there is any change in the information
given in this application form.
››
I indemnify in all respects and hold harmless the Manager, BNZ and
the Trustee against all damages, costs, expenses, losses or liabilities
which may arise by reason of any of them accepting or acting on
instructions from me or an authorised signatory (or instructions which are
unauthorised, forged or fraudulent where we could not reasonably have
detected that) in respect of my membership in the BNZ KiwiSaver Scheme
(including any instructions issued by telephone, facsimile, email or other
electronic means), except in situations where the Manager, BNZ or the
Trustee fails to exercise the care, diligence and skill of a prudent person in
their respective capacities when giving effect to such instructions.
››
Choosing an investment fund (or funds) is solely my responsibility. My
investment fund(s) selection is a binding instruction from me to the
Manager. None of the Trustee nor, unless I have received advice from
one of BNZ’s Authorised Financial Advisers, BNZ or the Manager has
represented or implied that any particular investment fund is appropriate
for my particular circumstances or provided me with personalised advice.
››
If a transaction request is invalid or insufficient information is provided it
will not be processed until valid documentation is received.
››
I consent to receiving all information and communications to be provided
to me in relation to my membership of the BNZ KiwiSaver Scheme
(including annual reports, annual member statements and annual tax
certificates) by receiving in any form of communication, electronic or
otherwise (including via BNZ internet banking), an electronic copy of the
relevant document or an internet URL for access to an electronic copy of
the relevant document. I agree that I will be deemed to have received the
electronic communication (including via BNZ internet banking) no later
than 1 business day after it has been sent to me or my address through
any of these forms of electronic communication (including via BNZ
internet banking).
››
I have read and agree to be bound by the terms of the ‘Your personal
information’ section of the Investment Statement.
››
Terms defined in the Investment Statement have the same meaning in this
application form.
Suffix
Or your access number
For existing BNZ customers, simply provide us with your
BNZ bank account number
0 2
Bank
Store
Account number
Suffix
Or your access number
New to BNZ
We will need to see proof of identity and address for the applicant and all
parents or guardians signing this form. To verify identity we’ll need to see
one of the following documents:
Current passport; or
New Zealand firearms licence; or
New Zealand drivers licence, PLUS any one of the following:
››
Credit card issued by New Zealand registered bank (name and signature
must be on the card); or
››
Bank account statement dated within the previous 12 months; or
››
IRD statement dated within the previous 12 months; or
››
New Zealand or overseas citizenship certificate; or
››
New Zealand or overseas birth certificate.
AND
To verify your address we will need to see one of the following original
documents. The documents must set out the applicant’s or parent’s/
guardian’s (as applicable) name and current address and be dated within the
last 6 months:
››
Power or home phone bill; or
››
Rates bill; or
››
Bank account statement; or
››
IRD statement; or
››
Car registration document.
Note: If you require further clarification on valid document types please call
us on 0800 269 5494.
Proof of guardianship
To prove you are the applicant’s parent(s)/guardian(s) please show us one of
the following documents:
››
the applicant’s birth certificate; or
››
the guardianship order.
If you do not have either of these please call us on 0800 269 5494.
Signature(s) where applicant is aged 16 or 17.
Must be signed by the applicant and one birth parent or legal guardian
(including CYPFA guardian) (Unless the applicant is married, in a civil union or
a de facto relationship in which case only the applicant needs to sign).
Applicants name D
Signature M
M
Y
Y
D
D
M
M
Y
Y
Birth parent/Guardian name Birth parent/Guardian name Signature Signature D
D
M
M
Y
Y
Please return your completed application form to any BNZ store
BNZ USE ONLY:
D
D
M
M
Y
Y
Please return your completed application form to any BNZ store
BNZ USE ONLY:
Staff member name Staff member name Staff member ID Staff member ID CHECKLIST (PLEASE TICK)
CHECKLIST (PLEASE TICK)
Applicant identity and address has been verified
Applicant identity and address has been verified
Proof of NZ residency provided if overseas ID supplied
Proof of NZ residency provided if overseas ID supplied
Automatic payment has been set up (as per customer’s instructions under part 3 of this
application form)
Automatic payment has been set up
(as per customer’s instructions under part 3 of this application form)
Direct debit form has been received
Direct debit form has been received
Initial lump sum payment has been received
Initial lump sum payment has been received
Initial lump sum payment has been credited to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions under part 3 of this application form)
Initial lump sum payment has been credited to customer’s BNZ KiwiSaver Scheme
account (as per customer’s instructions under part 3 of this application form)
Proof of guardianship or copy of marriage or civil union licence (or proof of de facto
relationship) attached
Proof of guardianship attached for all legal guardians
Applicant and one parent/guardian has signed the application form
(6001) 100902 07-15
Must be signed by all birth parents/one CYPFA guardian or all other legal
guardians. The applicant does not need to sign.
Birth parent/Guardian name Signature D
Signature(s) where applicant is under the
age of 16.
One parent or guardian has initialled and signed the application form (unless the
applicant is married, in a civil union or de facto relationship)
I dentification and address verification for the parents/guardian who signed the form is
attached to the application form (for non BNZ customers only)
Both parents/one CYPFA guardian, or all other legal guardians have signed the
application form
At least one parent/guardian has initialled the declaration and authorisation boxes
oth parents/one CYPFA guardian, or all other legal guardians identification and address
B
verification is attached to the application form (for non BNZ customers only)
BNZ KiwiSaver Scheme
Setting up a direct debit
Direct Debit details
Customer name
Mr
Date of birth
Mrs
Other
Miss
(please specify)
Ms
D
D
M
IRD number
M
Y
Y
Full name BNZ KiwiSaver Scheme account number
Bank
Store
Account number
Suffix
Effective date
Please set up/amend my BNZ KiwiSaver Scheme direct debit, to take effect from
D
D
M M
Y
Y
as follows:
If the date you specified is not a business day, the direct debit authority will take effect or be amended from the next business day.
Payment frequency
Weekly
Fortnightly
Monthly
Yearly
Amount
$
I wish to set up/amend the bank account my direct debit is made from:
I have completed and attached the direct debit form
I wish to cancel my direct debit:
Please cancel my direct debit until further notice
Name of account to be debited
Account name AUTHORITY TO ACCEPT DIRECT DEBITS
(Not to operate as an assignment or agreement)
Bank account from which payments are to be made
Bank
Store
Account number
Authorisation code
Suffix
0
To the manager please print full postal address clearly
2
2
3
9
9
Bank Date
Store/Branch D
D
M
M
Y
Y
Address I/We authorise you until further notice in writing to debit my/our account with you with all amounts which
BNZ KiwiSaver Scheme the registered initiator of the above Authorisation Code, may initiate by Direct Debit.
I/We acknowledge and accept that the Bank accepts this authority only upon the conditions listed on this form.
Information to appear on my/our bank statement
Payer particulars
Payer code
Payer reference
Name of account
Account name Authorised Signature(s)
Signature D
D
Signature M
M
Y
Y
D
FOR BANK USE ONLY:
13
Recorded by:
Date received:
D
D
M
M
D
M M
Y
Y
Original – Retain at Store/Branch
Copy – Forward to Initiator if requested
Approved
2399
02
Post or email this form to:
FreePost BNZ KiwiSaver Scheme
Private Bag 92208
Auckland 1142
or
[email protected]
Y
Y
Checked by:
Bank Stamp
2
CONDITIONS OF THIS AUTHORITY TO ACCEPT DIRECT DEBITS
3. The Customer acknowledges that:
(a)Undertakes to give notice to the Acceptor of the commencement date,
frequency and amount at least 10 calendar days before the first Direct
Debit is drawn (but no more than 2 calendar months). This notice will be
provided in writing (including by electronic means and SMS where the
Customer has provided prior written consent (including by electronic
means including SMS) to communicate electronically).
(a)This authority will remain in full force and effect in respect of all Direct
Debits passed to my/our account in good faith notwithstanding my/our
death, bankruptcy or other revocation of this authority until actual notice
of such event is received by the Bank.
Where the Direct Debit System is used for the collection of payments
which are regular as to frequency, but variable as to amounts, the
Initiator undertakes to provide the Acceptor with a schedule detailing the
amount and each payment date.
(c)Any dispute as to the correctness or validity of an amount debited to my/
our account shall not be the concern of the Bank except in so far as the
Direct Debit has not been paid in accordance with this authority. Any
other dispute lies between me/us and the Initiator.
In the event of any subsequent change to the frequency or amount of
the Direct Debits, the Initiator has agreed to give advance notice of at
least 30 days before the changes comes into effect. This notice must
be provided in writing (including by electronic means and SMS where
the Customer has provided prior written consent (by electronic means
including SMS) to communicate electronically).
(d)Where the Bank has used reasonable care and skill in acting in
accordance with this authority, the Bank accepts no responsibility or
liability in respect of:-
(b)May, upon the relationship which gave rise to this Authority being
terminated, give notice to the Bank that no further Direct Debits are to
be initiated under the Authority. Upon receipt of such notice the Bank
may terminate this Authority as to future payments by notice in writing
to me/us.
2. The Customer may:
(a)At any time, terminate this Authority as to future payments by giving
notice of termination to the Bank and to the Initiator by means agreed by
the customer, Bank and Initiator.
(b)Stop payment of any Direct Debit to be initiated under this authority by
the Initiator by giving written notice to the Bank prior to the Direct Debit
being paid by the Bank.
(c)Where a variation to the amount agreed between the Initiator and the
customer from time to time to be Direct Debited has been made without
notice being given in terms of clause 1(a) above, request the Bank to
reverse or alter any such Direct Debit initiated by the Initiator by debiting
the amount of the reversal or alteration of a Direct Debit back to the
Initiator through the Initiator’s Bank PROVIDED such request is made not
more than 120 days from the date when the Direct Debit was debited to
my/our account.
(b)In any event this authority is subject to any arrangement now or hereafter
existing between me/us and the Bank in relation to my/our account.
•
the accuracy of information about Direct Debits on Bank
statements; and
•
any variations between notices given by the Initiator and the
amounts of Direct Debits.
(e)The Bank is not responsible for, or under any liability in respect of the
Initiator’s failure to give notice in accordance with 1(a) nor for the nonreceipt or late receipt of notice by me/us for any reason whatsoever. In
any such situation the dispute lies between me/us and the Initiator.
(f) Notice given by the Initiator in terms of clause 1(a) to the debtor
responsible for the payment shall be effective. Any communication
necessary because the debtor responsible for payment is a person other
than me/us is a matter between me/us and the debtor concerned.
4. The Bank may:
(a)In its absolute discretion conclusively determine the order of priority
of payment by it of any monies pursuant to this or any other authority,
cheque or draft properly signed by me/us and given to or drawn on the
Bank.
(b)At any time terminate this authority as to future payments by notice in
writing to me/us.
(c)Charge its current fees for this service in force from time to time.
(6001) 100915 07-15
1. The Initiator:
BNZ KiwiSaver Scheme
Setting up a direct debit
Direct Debit details
Customer name
Mr
Date of birth
Mrs
Other
Miss
(please specify)
Ms
D
D
M
IRD number
M
Y
Y
Full name BNZ KiwiSaver Scheme account number
Bank
Store
Account number
Suffix
Effective date
Please set up/amend my BNZ KiwiSaver Scheme direct debit, to take effect from
D
D
M M
Y
Y
as follows:
If the date you specified is not a business day, the direct debit authority will take effect or be amended from the next business day.
Payment frequency
Weekly
Fortnightly
Monthly
Yearly
Amount
$
I wish to set up/amend the bank account my direct debit is made from:
I have completed and attached the direct debit form
I wish to cancel my direct debit:
Please cancel my direct debit until further notice
Name of account to be debited
Account name AUTHORITY TO ACCEPT DIRECT DEBITS
(Not to operate as an assignment or agreement)
Bank account from which payments are to be made
Bank
Store
Account number
Authorisation code
Suffix
0
To the manager please print full postal address clearly
2
2
3
9
9
Bank Date
Store/Branch D
D
M
M
Y
Y
Address I/We authorise you until further notice in writing to debit my/our account with you with all amounts which
BNZ KiwiSaver Scheme the registered initiator of the above Authorisation Code, may initiate by Direct Debit.
I/We acknowledge and accept that the Bank accepts this authority only upon the conditions listed on this form.
Information to appear on my/our bank statement
Payer particulars
Payer code
Payer reference
Name of account
Account name Authorised Signature(s)
Signature D
D
Signature M
M
Y
Y
D
FOR BANK USE ONLY:
13
Recorded by:
Date received:
D
D
M
M
D
M M
Y
Y
Original – Retain at Store/Branch
Copy – Forward to Initiator if requested
Approved
2399
02
Post or email this form to:
FreePost BNZ KiwiSaver Scheme
Private Bag 92208
Auckland 1142
or
[email protected]
Y
Y
Checked by:
Bank Stamp
2
CONDITIONS OF THIS AUTHORITY TO ACCEPT DIRECT DEBITS
3. The Customer acknowledges that:
(a)Undertakes to give notice to the Acceptor of the commencement date,
frequency and amount at least 10 calendar days before the first Direct
Debit is drawn (but no more than 2 calendar months). This notice will be
provided in writing (including by electronic means and SMS where the
Customer has provided prior written consent (including by electronic
means including SMS) to communicate electronically).
(a)This authority will remain in full force and effect in respect of all Direct
Debits passed to my/our account in good faith notwithstanding my/our
death, bankruptcy or other revocation of this authority until actual notice
of such event is received by the Bank.
Where the Direct Debit System is used for the collection of payments
which are regular as to frequency, but variable as to amounts, the
Initiator undertakes to provide the Acceptor with a schedule detailing the
amount and each payment date.
(c)Any dispute as to the correctness or validity of an amount debited to my/
our account shall not be the concern of the Bank except in so far as the
Direct Debit has not been paid in accordance with this authority. Any
other dispute lies between me/us and the Initiator.
In the event of any subsequent change to the frequency or amount of
the Direct Debits, the Initiator has agreed to give advance notice of at
least 30 days before the changes comes into effect. This notice must
be provided in writing (including by electronic means and SMS where
the Customer has provided prior written consent (by electronic means
including SMS) to communicate electronically).
(d)Where the Bank has used reasonable care and skill in acting in
accordance with this authority, the Bank accepts no responsibility or
liability in respect of:-
(b)May, upon the relationship which gave rise to this Authority being
terminated, give notice to the Bank that no further Direct Debits are to
be initiated under the Authority. Upon receipt of such notice the Bank
may terminate this Authority as to future payments by notice in writing
to me/us.
2. The Customer may:
(a)At any time, terminate this Authority as to future payments by giving
notice of termination to the Bank and to the Initiator by means agreed by
the customer, Bank and Initiator.
(b)Stop payment of any Direct Debit to be initiated under this authority by
the Initiator by giving written notice to the Bank prior to the Direct Debit
being paid by the Bank.
(c)Where a variation to the amount agreed between the Initiator and the
customer from time to time to be Direct Debited has been made without
notice being given in terms of clause 1(a) above, request the Bank to
reverse or alter any such Direct Debit initiated by the Initiator by debiting
the amount of the reversal or alteration of a Direct Debit back to the
Initiator through the Initiator’s Bank PROVIDED such request is made not
more than 120 days from the date when the Direct Debit was debited to
my/our account.
(b)In any event this authority is subject to any arrangement now or hereafter
existing between me/us and the Bank in relation to my/our account.
•
the accuracy of information about Direct Debits on Bank
statements; and
•
any variations between notices given by the Initiator and the
amounts of Direct Debits.
(e)The Bank is not responsible for, or under any liability in respect of the
Initiator’s failure to give notice in accordance with 1(a) nor for the nonreceipt or late receipt of notice by me/us for any reason whatsoever. In
any such situation the dispute lies between me/us and the Initiator.
(f) Notice given by the Initiator in terms of clause 1(a) to the debtor
responsible for the payment shall be effective. Any communication
necessary because the debtor responsible for payment is a person other
than me/us is a matter between me/us and the debtor concerned.
4. The Bank may:
(a)In its absolute discretion conclusively determine the order of priority
of payment by it of any monies pursuant to this or any other authority,
cheque or draft properly signed by me/us and given to or drawn on the
Bank.
(b)At any time terminate this authority as to future payments by notice in
writing to me/us.
(c)Charge its current fees for this service in force from time to time.
(6001) 100915 07-15
1. The Initiator:
Notes
85
Notes
86
Notes
87
Notes
88