KiwiSaver Default Providers – A Step Into The Unknown

Following our earlier newsflash on the KiwiSaver Bill (Bill), we now provide an update for those who are interested in becoming default providers. Our main observation is that, as the Bill will progress in parallel with the tender process, providers will be in the unenviable position of tendering to provide services while there is still uncertainty and a lack of detail in a number of key areas. We elaborate on this below.

The Ministry of Economic Development (MED) has indicated that a Request for Proposal (RFP) for KiwiSaver default providers will be issued in late April 2006, with a closing date for submitting a tender sometime around mid-June 2006. It is expected that the RFP will contain key information regarding the criteria for appointment as a default provider. In the meantime, the Registration of Interest document (ROI) recently released by MED contains some