Milford KiwiSaver Plan FAQs - Milford Asset Milford Asset

Milford KiwiSaver Plan FAQs

 

I am not currently in KiwiSaver, can I join?

As long as you are below 65 years old and a New Zealand resident (and are living or normally living in New Zealand), you are entitled to join KiwiSaver.

Why should I sign up to a KiwiSaver Plan?

KiwiSaver is a long-term savings scheme. It aims to increase your wellbeing and financial independence, particularly in retirement. With a maximum member tax credit of $521.43 p.a. from the Government if you are over 18 and make contributions of $1,042.86 or more each year, signing up to KiwiSaver is a great way to save for your future.

How do I log in to view my investor account online?

Please view our Milford Investor Login User Manual (KiwiSaver) to assist with registering or logging in to view your account.

How much will I have saved by retirement age?

Depending on your salary or wage and/or how much you choose to contribute, how early you sign up to KiwiSaver, whether you make any early withdrawals from KiwiSaver, and which KiwiSaver provider you choose, this figure can vary dramatically. Although there are no guarantees, a provider with a history of delivering strong returns may give you a better chance of a comfortable retirement (although past performance does not guarantee future returns).

Can I stop my contributions at any point?

If you are a salary or wage earner and part of your salary or wages is being automatically paid to your KiwiSaver account, after 12 months membership of a KiwiSaver plan you are able to take a contributions holiday. You can restart your contributions whenever you wish. If you are not salaried (for example self employed or not employed) you can make contributions to your KiwiSaver account whenever you wish.

Can I withdraw my funds at any time apart from retirement?

If you are buying your first home, move permanently overseas (excluding Australia), or suffer significant financial hardship or serious illness you may be entitled to withdraw some or all of your KiwiSaver savings prior to retirement. Contact us to learn more about your potential eligibility for such withdrawals. Please see the Product Disclosure Statement for further details or contact us.

Can I switch my KiwiSaver provider after I have signed up?

Yes, anyone can switch their KiwiSaver provider at any time. However, you can only belong to one KiwiSaver scheme at any particular time.

Why should I choose Milford over other providers?

Milford are investment specialists with an astute, experienced team. Milford uses investigative rigour and analytical expertise to aim to give you strong returns on your KiwiSaver investment. Along with a history of delivering strong returns for their clients and a range of KiwiSaver Fund options, these are just some of the many reasons to switch to the Milford KiwiSaver Plan. 

How do I join or switch my KiwiSaver provider to Milford?

Click here and select the Fund from within the Milford KiwiSaver Plan that best suits your needs (or, if you prefer, a combination of those Funds). Read the Milford KiwiSaver Plan Product Disclosure Statement to learn more about those Funds, the Milford KiwiSaver Plan and Milford. Then simply print out the Application Form or the Investor Transfer Form, fill it out and sign it (attaching a cheque for your initial contribution, if applicable), together with a certified copy of your passport or birth certificate and send it back to us. We will do the rest.

I’m opening a new account, what proof of identity do I need to provide?

We have updated our KiwiSaver online application form, enabling you to verify your identity online. Please click here for further information.

If you would prefer not to apply online, or your online identity verification is unsuccessful, you will need to provide a certified copy of an Identity Document with your Application Form:

  • New Zealand Driver Licence; or
  • New Zealand Passport; or
  • New Zealand Firearms Licence

And an address verification, dated within the last three months:

  • Bank Statement; or
  • Utility Bill (e.g. Sky, Electricity, Water); or
  • A New Zealand Government department letter (e.g. IRD)

If investing on behalf of a minor we require certified copies of the birth certificate of the minor and identity documentation for the guardians as per the above.

Applications made on behalf of minors under 16 years old require both parents or all legal guardians to sign the Application Form. Identification for all signatories is required as specified for individual investors, as well as a copy of the minor’s birth certificate to verify parentage.

For applications made on behalf of minors aged 16 or 17 years old, the applicant must sign the Application Form, and one parent or legal guardian must counter sign the Application Form. Certified Identification for all signatories is required as specified for individual investors, as well as a copy of the minor’s birth certificate to verify parentage.

Legal guardians should provide documentary proof to verify that they are the applicant’s legal guardian (e.g. a copy of a guardianship order, a copy of the deceased parent’s death certificate or a signed declaration confirming that they are the legal guardian).

For further information on ID requirements please see: https://milfordasset.com/investing/id-requirements/

How long does it take to transfer my KiwiSaver account from another provider?

Your previous provider has up to 35 days to transfer your KiwiSaver account to your new provider once they receive notification advising them that you wish to change KiwiSaver providers.

How do I know that I’ve successfully been enrolled in KiwiSaver or have successfully changed providers?

You will receive a confirmation email and letter from Milford notifying you that you have been enrolled in the Milford KiwiSaver Plan. This letter will also outline the Fund/s you are investing in.

Is there a minimum amount that I need to contribute to my KiwiSaver account?

If you are self employed or not employed:

When you join the Milford KiwiSaver Plan the minimum initial contribution is $1,000 (excluding any Government contribution).

If you are self‐employed or not employed but transferring your KiwiSaver account to the Milford KiwiSaver Plan from another provider, you do not need to pay the initial $1,000 investment.

There is no ongoing annual minimum contribution required by Milford.

If you are a salary or wage earner:

As you will be contributing at a regular contribution rate, there is no minimum initial investment required. There is also no minimum yearly contribution amount which must be reached.

How much can I contribute?

You are able to contribute 3%, 4% or 8% of your salary or wages to your KiwiSaver plan. If you are employed and would like to invest an additional amount, please see the below FAQ ‘Can I make additional contributions to my KiwiSaver account?’

You can contribute as much as you like each year to the Milford KiwiSaver Plan, as there is no capped amount.

Can I make additional contributions to my KiwiSaver account?

You can contribute additional money to your KS account. However, please note that these contributions will not, in most cases, be able to be withdrawn until you are 65.

You can make additional contributions to your KiwiSaver account by:

Electronic Transfer

Milford KiwiSaver Plan
Account No. 02 0500 0966274 000

Please include your name and IRD number or your investor number (it will begin with ML) in the reference fields.

Cheque

Make the cheque out to “Milford KiwiSaver Plan” and post it to:

Milford KiwiSaver Plan
c/‐Trustees Executors Limited
PO Box 409
Wellington 6140

Please write your IRD number or your investor number (it will begin with ML) on the back of the cheque as a reference.

How can I change the amount I contribute?

When you begin a new job or sign up to KiwiSaver, the default contribution by your employer is set to 3% of your before‐tax pay. You can choose whether you contribute 3%, 4% or 8% of your salary before tax to your KiwiSaver account.

If you are a salary or wage earner and you receive a pay increase, your KiwiSaver contributions will automatically increase to reflect the increase in your salary or wage.

If you want to change the amount that you contribute to your KiwiSaver account, you will need to notify your employer in writing. You can do this by:

Writing a letter to your employer, indicating your new rate (3%, 4%, or 8%) or

Filling in a KiwiSaver deduction form (KS2) (available on the IRD website) and giving it to your employer.

Do I need to tell my employer when I join the Milford KiwiSaver Plan?

We recommend you tell your employer, although it is not a requirement to do so.

Can I transfer between the Funds in the Milford KiwiSaver Plan?

You can split your contributions among any of the Milford Conservative KiwiSaver Fund, the Milford Balanced KiwiSaver Fund and the Milford Active Growth KiwiSaver Fund.

Currently Milford does not charge any fees for switching your Fund.

Can I view my Milford KiwiSaver Plan account online?

You can access your Milford KiwiSaver account online to check balances, transactions and view your details or advise of a details update.

To register click on the button in the top right hand corner of the screen. Once you have registered you can log in to view your account at your convenience.

When you register you will need to provide your name, IRD number and email as per your initial application to the Fund. This generates a user name and temporary password which you use to login into your investor account.

If you have any issues with registering for or using your Investor login please contact Milford on 0800 662 346 or (09) 921 4700 or info@milfordasset.com

I’ve lost my password what do I do?

There is an option to click Forgot User ID or Forgot Password in the Investor Login Page, which will reset your information. If you are still having difficulty logging in to your account please contact Milford on 0800 662 346 or (09) 921 4700 or info@milfordasset.com

What is a Member Tax Credit?

The government will contribute 50 cents for every one dollar of member contributions to their KiwiSaver account up to a maximum of $521.43 per year for KiwiSaver members over 18 years of age.

The KiwiSaver financial year runs from 1 July to 30 June. Contributions considered for the annual Member Tax Credit are made within this time period. In July, the administrator of the Milford KiwiSaver Plan will provide the IRD with investors’ KiwiSaver contribution amounts for investors’ Member Tax Credits. The IRD will normally pay Member Tax Credits to investors’ KiwiSaver accounts directly in July.

When do I receive the Member’s Tax Credit?

For eligible members the Member Tax Credit gets paid out by the IRD once a year.

 

Our administrators advise the IRD in July of all the contributions they have received during the period 1 July to 30 June and the IRD then match that amount with the Member Tax Credit up to $521. These funds are normally received in July.

What does ‘Qualifying Date’ mean?

The Qualifying Date for KiwiSaver means the later of when a member reaches the Qualifying Date for New Zealand Superannuation (currently 65) or has been a member of one or more KiwiSaver schemes or complying Superannuation Funds for a period of five years.

At the Qualifying Date, members can access their KiwiSaver funds.

Can I move my UK or Australian Super or Pension into the Milford KiwiSaver Plan?

Please note that we (and other KiwiSaver providers) are currently unable to accept QROPS transfers from the UK.

 

Australia:

You are able to transfer your Australian superannuation into the Milford KiwiSaver Plan. To start the process we recommend you contact your Australian Superannuation Provider and confirm what information they require to make the transfer. After you have spoken to your Provider please contact Milford and we will assist where we can. For more information, please click here.

What does QROPS compliant mean?

QROPS stands for Qualifying Recognized Overseas Pension Scheme.

What happens to my contributions in the Milford KiwiSaver Plan if I change jobs?

If you change jobs the Milford KiwiSaver Plan will remain your KiwiSaver scheme provider. You will not need to fill out any new forms. Milford recommends that you advise your new employer you are a member of the Milford KiwiSaver Plan, although there is no requirement to do so.

What happens to my entitlement to Member Tax Credits if I am nearing retirement age (65)?

When you join KiwiSaver, the Government will meet your annual employee or voluntary KiwiSaver contributions with the Member Tax Credit (up to $521 a year). The eligibility to receive the Member Tax Credit ceases at the later of age 65 or five years after joining the scheme. For example, if someone joins at age 62, they will be eligible to receive the Member Tax Credit until they are 67.

Upon reaching your age of eligibility the amount of Member Tax Credit you are eligible for in that year will be pro-rated. If for example you reached the age of eligibility half way through the KiwiSaver year, you would only be eligible to receive half of the Member Tax Credit.

Who is Trustee Executors Limited? (Supervisor of the Milford KiwiSaver Plan)

Trustees Executors Limited is a licensed supervisor and is responsible for supervising our performance as manager of the Milford KiwiSaver Plan.

For more information see the document “Who is Involved & Other Important Information”

What are the circumstances for early withdrawal from KiwiSaver?

KiwiSaver members may be able to withdraw all or part of their KiwiSaver savings early if they are suffering significant financial hardship or serious illness, emigrating or buying a first home; however terms and conditions do apply. 
An Application Form must be completed (available from Milford) and supporting documentation must be provided in order for these applications to be processed and approved by the Supervisor or Milford. Please see the Member Guide for more detail.

How are the funds transferred out of a member’s KiwiSaver account for a first home purchase?


If the withdrawal is approved, the KiwiSaver funds will be transferred into the member’s solicitor’s trust account prior to settlement and will be used as part of the purchase price payable to the vendor on the settlement date. If the agreement is not completed then your solicitor will repay the funds back to Milford to be reinvested into your KiwiSaver account.

You may also be eligible for the first home owner’s subsidy from Housing New Zealand. To find out more please visit them at http://www.hnzc.govt.nz/hnzc/web/rent-buy-or-own/buying-your-first-home-with-kiwisaver/buying-your-first-home-with-kiwisaver_home.htm

For more information, or to obtain an Early Withdrawal Application Form, please contact Milford at info@milfordasset.com or phone 09 921 4700 or 0800 662 346.

What is a PIE Fund?

PIE stands for Portfolio Investment Entity. All of Milford’s Unit Trust Funds and KiwiSaver Funds are PIE registered entities. This provides potential tax benefits for you, enabling your investment to be taxed at your own Prescribed Investor Rate.

Eligible entities that elect to become a PIE will generally pay tax on investment income based on the prescribed investor rate (PIR) of their investors, rather than at the entity’s tax rate.

What is a Unit Trust?

Unit Trusts are investment vehicles that enable you to pool your money with other investors so that you can invest across a wider range of assets.

Investors buy and sell units which represent a unit share in the Fund. The value of the units fluctuate according to the changing value of the assets in which the Fund has invested.

Milford Unit Trust Funds offer investors many advantages, including the ability to have their investments managed by a team of professionals who make investment decisions based on extensive research and analysis.

Unit Trust Funds have an independent Trustee who holds the ownership of the assets within the Fund. Trustees Executors Limited is the independent trustee for Milford Unit Trust Funds and also oversees its administration. Milford does not handle investor money.

How secure are my funds?

All Milford Unit Trust PIE Fund investors and KiwiSaver members have their Fund assets held by an independent custodian appointed by the Supervisor to ensure security.

Trustees Executors Limited is the appointed Supervisor of the Milford KiwiSaver Plan and Milford Unit Trust PIE Funds.

All the assets of the KiwiSaver Plan and Milford Unit Trusts Funds are held by the Supervisor’s nominated custodian, National Australia Bank Limited ABN 12 004 044 937.

Both the Supervisor and the Custodian are independent of Milford.

Milford does not handle client monies at any time.

We have delegated certain specific administration functions (unit pricing and Fund accounting) to MMC Limited. MMC Limited is an administration manager of the Plan.  The individual investments in the Milford KiwiSaver Plan are independently priced by MMC Limited using independent sources (for example, Reuters or Bloomberg) and are reconciled each business day.

The securities services division of Trustees Executors Limited provides the registry function for the Plan and is therefore also an administration manager.

Both Trustees Executors Limited and Milford are audited by PricewaterhouseCoopers. 

 

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