Maximise your financial benefits
As a Te Whatu Ora - Health New Zealand (formerly District Health Board (DHB)) employee, you could be entitled to an additional 6% of your salary to be paid into the MAS Retirement Savings Scheme. It’s important that you talk to your employer about your employment contract and what you may be eligible for.
Any money you contribute from your salary directly into a KiwiSaver Scheme or an approved superannuation scheme could be matched by your employer dollar for dollar* (up to a maximum of 6% of your salary). You don’t have to contribute the full 6%, but doing so effectively increases your pay by the maximum amount.
You can split your payments across both KiwiSaver and superannuation schemes. Your terms of employment may contain restrictions around the splitting options.
*Employer contributions are subject to Employer Superannuation Contribution Tax. This is a tiered rate, capped at tax of 39% for salaries of more than $216,001.
Key differences - KiwiSaver vs. superannuation schemes
KiwiSaver schemes are long-term savings schemes with a number of prescribed rules and benefits. MAS offers the MAS KiwiSaver Scheme for your long-term investment.
Key features of KiwiSaver schemes include:
- Contributions can be 3% (the minimum level), 4%, 6%, 8% or 10% of your salary.
- The Government will match every dollar you contribute with 50c, up to a maximum of $521.43 per annum (i.e. you will need to contribute a minimum of $1042.86 per annum to receive the full entitlement). Age-related and other eligibility requirements apply in order to receive the full entitlement.
- First Home Withdrawal benefits – after three years in KiwiSaver you may be able to make a withdrawal to assist with the purchase of your first home.
- Funds are locked away until the age of eligibility for NZ Superannuation (currently 65), with limited exceptions, including the first home withdrawal benefit and if you permanently emigrate from New Zealand.
You can find out more about how to invest in the MAS KiwiSaver Scheme.
Superannuation schemes can provide an effective way of saving for your retirement.
The MAS Retirement Savings Scheme has two Sections open to new investors - the Workplace Savings Section, which is restricted to a particular group of eligible persons, and the Superannuation Section, which is open to everyone. There are different withdrawal rules depending on which Section you join.
Members of the Workplace Savings Section of the MAS Retirement Savings Scheme are locked in until age 55 (a lower eligibility threshold than for all KiwiSaver schemes). This provides an added level of flexibility around when you can withdraw. Unlike KiwiSaver, member contributions can be any amount you choose.
You can find out more about how to invest in the MAS Retirement Savings Scheme.
Splitting your contributions
Once you’ve decided how much to contribute, you then need to decide where to invest. Should this be in KiwiSaver or a superannuation scheme, or a combination of both? In general, contributing to a KiwiSaver scheme allows you to maximise your benefit by taking advantage of the special benefits on offer. A KiwiSaver scheme also allows you to save for your first home.
If you are contributing your full 6%, and wish to split your contributions between KiwiSaver scheme and a superannuation scheme, remember that you must contribute a minimum of 3% to KiwiSaver.
Medical Funds Management Limited is the manager and issuer of investments in the MAS KiwiSaver Scheme and the MAS Retirement Savings Scheme (the ‘Schemes’).
Copies of the Product Disclosure Statements (PDS) for each Scheme are available on our website:
If you would like to talk to a MAS adviser, phone 0800 800 627 or email email@example.com.