MECA CLAUSE

17. Superannuation

17.1  The employer will make the required employer contribution in respect of any of the superannuation schemes operated by the National Provident Fund or the Government Superannuation Fund to which an employee belongs.

17.2  In respect of other employees not covered by Clause 17.1 above, the employer will pay a matching subsidy (the subsidy) up to a maximum of 6% of an employee’s gross taxable salary at the rate of one dollar for each dollar the employee contributes to an approved superannuation scheme of the employee’s choice provided that the subsidy shall be reduced by the amount, if any, that the employer is required to contribute or is contributing to the employee’s KiwiSaver scheme or complying superannuation fund (as those terms are defined by the KiwiSaver Act 2006).

17.3  Allowances or other payments that have been expressly negotiated and paid for obstetric services previously undertaken in terms of a Section 88 Notice shall not form part of an employee’s gross taxable income for superannuation purposes.

17.4  Employers will allow a minimum of five participation agreements. However employers will contribute in the prescribed manner to any registered superannuation scheme that a newly recruited employee brings with them from their previous employer who is also a party to this Agreement.  The employer will contribute in the prescribed manner to any KiwiSaver scheme or complying superannuation fund that the employer is required to under the KiwiSaver Act 2006.

17.5  An employee may elect to transfer from one approved scheme (including the National Provident Fund and Government Superannuation Fund) to another and the employer’s obligation to make the appropriate employer contribution shall continue after such election subject to the limits set out in Clause 17.2 above. In accordance with the KiwiSaver Act 2006 employees may only contribute to one KiwiSaver scheme at once.

17.6  New employees who apply to join an approved superannuation scheme within three months of commencement of employment shall be entitled to the employer’s matching contribution backdated to the date of the employee’s commencement of employment. For other employees the employer’s matching contributions will be backdated to the date of the employee’s application to join an approved scheme.

17.7  The employer and the Association will work together to ensure that the requirements of the KiwiSaver Act 2006 in regard to superannuation are complied with. Any process necessary to ensure compliance is to be agreed by the affected employer and the Association.