You have the choice of joining either MRS or MKS, or both. If you decide to join both you need to specify on the application form how you wish your contributions to be split between the schemes.
You have the choice of investing your contributions in a balanced or a conservative portfolio, or splitting your contributions between these two portfolios. The PDS provides details of the risk and return expectations of these portfolios and the SIPO sets out their target asset allocations. At any time you can shift your savings between these portfolios.
The Trustees have prepared a guideline to assist you make your portfolio choice. Before making your portfolio choice you may wish to consult a financial adviser.
Your contributions to the Fund will be deducted from your pay each week and sent to the Fund. Contributions to MRS are sent to the Fund directly via your employer while contributions to MKS are sent to the Fund via IRD. On receipt these contributions are credited to your account.
The rate at which your employer will contribute is generally determined by your employment agreement.
Notwithstanding the rate at which your employer will contribute under your employment agreement, you can specify the rate at which you wish to contribute. You may wish to contribute at a higher rate than the rate which your employer will subsidise your contributions depending on your retirement savings target and the rate at which you need to contribute to achieve this target.
The Trustees have prepared a financial planning guideline which may assist you to determine your contribution rate. Again, in determining your contribution rate you may wish to consult a financial adviser.
If you are a Waterside Worker your minimum contribution rate is 4% of your gross taxable earnings and employers will generally match your contributions up to 7% of your gross taxable earnings. To qualify for the additional death benefit you need to contribute to MRS at the minimum rate of 4% unless you are also a member of MKS in which case you need to contribute at a minimum rate of 3%.
If you are an Ordinary Seafarer Member your minimum contribution rate is 4% of earnings and your employer is required to contribute a minimum of 8% of your earnings. These contribution rates may be reduced by any contributions you and your employer makes to MKS or any other KiwiSaver scheme. Notwithstanding these minimum contribution rates, higher contribution rates may be agreed in the employment agreements of participating employers.
To attract the maximum KiwiSaver annual Member Tax Credit of $521.43 you need to contribute not less than $1,042.86 to MKS in each financial year.