What are the annual fund charges?
These are paid from the funds, or the underlying funds the funds may invest in. These vary between funds as some require more active management than others (you can see estimates of these charges on page 9 of the LifeSaver Plan Product Disclosure Statement). They are made up of 1) the Management fee charged by Fisher Funds for providing investment management services to the funds, and 2) the Expenses incurred by the funds such as accounting and investment transaction fees.
What are the other charges?
These are set out in the NZRDA supplement.
There is an Administration Fees of $6 per member per month or $2,000 per annum (spread across all NZRDA members of LifeSaver), whichever is the greater. Administration fees are currently $6.00 per member per month.
There are Legal, audit and registry services fees, all wrapped up together and applied to all members on a pro-rata basis. These vary depending on the fund and are set out in your transaction history.
The Supervisor Fee of $3,500 is spread across all members of LifeSaver and amounts to a modest annual charge (currently around $1.20 per member per annum). The Supervisor fee is deducted quarterly from your employer account and will vary from time to time depending on the number of members in the fund.
Are there any individual action fees?
There are currently no establishment, termination, or withdrawal fees charged.
What might the fees look like in practice?
Sarah, a hypothetical member, invests $10,000 in the Balanced Fund. The starting value of her investment is $10,000. She is charged management and administration fees, which work out to about $108.00 (1.08% of $10,000). These fees might be more or less if her account balance has increased or decreased over the year. Over the next year, Sarah may pay other charges of $97.76 made up from the administration fee, the legal, audit and registry service fees, and the supervisor fee.
What is the employer contribution?
Under the NZRDA Plan, your employer (your District Health Board) will give you a $-for-$ subsidy up to 6% of your pay. This is the Employer Contribution. However, if you are a member of KiwiSaver, and wish to continue contributing to KiwiSaver, your employer will split the 6% Employer Contribution between the NZRDA Plan and KiwiSaver (3% each).
What are voluntary contributions?
This is anything you wish to contribute over and above what is required.
What is the investor contribution?
This is the percentage that you are required to contribute. If you are contributing to KiwiSaver, then you can contribute 3% to the NZRDA Plan and this will be matched by your DHB. If you are not contributing to KiwiSaver, then your Investor Contribution can be up to 6%.
What are lump sum contributions?
You are able to make lump sum contributions once your account is open, via internet banking. These contributions are added to your Voluntary Account.
Can I join more than one superannuation scheme?
Yes, you can join the NZRDA Member Superannuation Scheme (LifeSaver) and KiwiSaver, for example. In this case, both employer and member are required to contribute 6% and this can be split between LifeSaver and KiwiSaver (eg 3% LifeSaver and 3% KiwiSaver). Please note that all employer contributions are subject to ESCT. ESCT stands for Employer Superannuation Contribution Tax and is deducted from your employer’s contributions to your superannuation. You can read more about this on IRD’s website IRD – Employer Superannuation Contribution Tax.
What if I’m already a member of a superannuation scheme other than Lifesaver?
While your DHB will split contributions between KiwiSaver and another superannuation scheme, such as the NZRDA Scheme, they will not contribute to two schemes outside of KiwiSaver.
What if I don’t have KiwiSaver?
Then your DHB is required to contribute 6% (less ESCT) to the scheme of your choice, for example, the NZRDA Scheme. ESCT stands for Employer Superannuation Contribution Tax and is deducted from your employer’s contributions to your superannuation. You can read more about this on IRD’s website IRD – Employer Superannuation Contribution Tax.
What is ESCT?
ESCT stands for Employer Superannuation Contribution Tax and is deducted from your employer’s contributions to your superannuation. You can read more about this on IRD’s website IRD – Employer Superannuation Contribution Tax.
How does LifeSaver work and how is the NZRDA Scheme different to the DHB LifeSaver Scheme for SMO’s and non-RDA members?
Essentially the two superannuation schemes (NZRDA Fisher Funds LifeSaver and SMO Fisher Funds LifeSaver) are the same in that they both operate under the umbrella of the Fisher Funds LifeSaver Superannuation Plan Master Trust. There are a number of other employer superannuation schemes that also operate under this Master Trust, including all DHB’s. Each has its own scheme within the trust and has different rules.
All of the schemes have the protection of the Master Trust and operate under the Master Trust rules. The funds are invested in exactly the same way, the only difference will be the type of fund that the member chooses – Balanced, Conservative, etc. Returns on the Balanced Fund will be the same whether a member is in the NZRDA Scheme or the SMO Scheme, for example.
The advantages of your superannuation scheme
Whilst anyone can start contributing to a superannuation scheme, our MECA provides for the employer to contribute equally to your scheme up to 6% of your income. Before you say, “I’m too young for superannuation” or “I need to pay off my debt first”, think again. The benefits of commencing contributions early are well established: if you delay, you can never catch up.
Flexible, transportable, matched contributions
RMOs are amongst the very few health sector employees to have superannuation available – courtesy of NZRDA’s negotiations on our members’ behalf. Our scheme is transportable and can be taken to any DHB in NZ – essential given our mobility between DHBs throughout our careers. We can also suspend contributions for up to 2 years (and longer by agreement) – in case you need to go overseas, for example. Funds are not locked in, and are available to you upon ceasing your employment with your DHB.
The DHBs match your contribution up to 6% a year. Past and present NZRDA members can join our superannuation scheme.
Features of the NZRDA Superannuation Scheme
- The NZRDA Scheme is different in that it has flexible withdrawal provisions. Members of the NZRDA Scheme can transfer between hospitals without having to re-join as a new member. This is because the NZRDA has one scheme under the Lifesaver Master Trust for all DHB’s. Members changing DHB’s can retain their membership by simply signing a transfer form. They also have the choice of withdrawing their funds.
- Under the SMO Scheme, because each DHB has a separate scheme, members changing DHB’s must resign from one scheme to re-join another as a new member.
- The NZRDA Scheme has an additional withdrawal facility that allows a member to make a withdrawal of 50% of their Member Account once every 5 years, subject to a minimum withdrawal of $1,000.
- Membership is also available to past NZRDA members so that after qualifying as an SMO, a member can remain in the NZRDA scheme as long as they continue working for a DHB.
KiwiSaver Changes 2019
Additional employee contribution rates
- New contribution rates of 6% and 10% will be available for employees, in addition to the current 3%, 4% and 8%.
Contributions Holiday changes
- Contributions holiday will be renamed savings suspension to remove the positive connection with the word ‘holiday’.
- The maximum savings suspension period will be reduced from 5 years to 1 year, helping members to restart their savings sooner.
1 July 2019
More options for over 60’s
- People over age 65 will be able to opt-in to KiwiSaver, giving them an additional managed fund choice during retirement.
- People joining KiwiSaver from 1 July will not have a lock-in period, all new members will be able to withdraw their funds from their 65th birthday (currently people joining between 60 and 65 years old are locked into KiwiSaver for 5 years). The qualifying age for people who transfer to KiwiSaver from complying superannuation funds which they joined prior to 1 July 2019 will be the later of NZ Super age or 5 years after they joined the complying superannuation fund. Members who joined prior to this change retain their lock-in period.
1 April 2020
Locked in members have the option to withdraw KiwiSaver funds
From 1 April 2020, members who have a lock-in period will be permitted to withdraw KiwiSaver funds from age 65. However, from the date of first withdrawal they will lose eligibility to any future entitlements to government and compulsory employer contributions.
To join the plan
- Read the Fisher Funds LifeSaver Plan – Product Disclosure Statement – September 2018: click on image below.
- Download the application form here>
- NZRDA employer supplement Oct 2016 – this supplement outlines the specific NZRDA provisions in your Lifesaver Plan
Ongoing maintenance forms
- The DHB Transfer Form (use this form when transferring your superannuation between DHBs)
- LifeSaver Plan Amendment Request Form (use this form when changing your PIR rate, the amount of contribution, making a lump sum contribution or altering your investment strategy)
- Lifesaver Plan Withdrawal Request Form (April 2017) (use this form to withdraw all your savings)
- Lifesaver Investment Switch Form (April 2017)
Want to know more?
If you want more information on the scheme, please contact the office email@example.com and we will provide all the information to you.