Every employee to whom the automatic enrolment rules apply when starting new employment may opt out at any time in the period beginning on the 13th day after the date on which the person started the new employment and ending on the close of the 55th day after the date on which the person started the new employment.
(1) Every employee who wishes to opt out must, within the time limit in section 16 , give an opt-out notice either
(a) to the Commissioner; or
(b) to the employer in respect of the new employment that triggered the automatic enrolment rules.
(2) An opt-out notice must be
(a) given in the form of the opt-out notice in an information pack; or
(b) given in any other form and manner permitted by the Commissioner.
(3) In order to be effective, an opt-out notice must contain the information required by that form or by the Commissioner, as the case may be.
(4) An opt-out takes effect on the later of
(a) the 13th day after the date on which the person started the new employment that triggered the automatic enrolment rules; and
(b) the date on which the opt-out notice is
(i) accepted by the Commissioner, in the case of a notice given to the Commissioner; or
(ii) received by the employer, in the case of a notice given to the employer.
(5) An employer who receives an opt-out notice must give notice of that opt-out to the Commissioner no later than the time that the next employer monthly schedule is required to be delivered to the Commissioner under section NC 15 of the Income Tax Act 2004.
(1) This section applies if
(a) an employee gives an opt-out notice outside the time limit in section 16 ; and
(b) 1 or more of the following applies:
(i) the employer did not supply the employee with an information pack within 7 days of the employee starting new employment with the employer; or
(ii) the Commissioner did not send an investment statement under section 50(3)(c); or
(iii) the employer did not supply an investment statement under section 43 (if an employer's choice of KiwiSaver scheme is effective); or
(iv) events outside the control of the employee meant that the opt-out notice could not be given within the time limit and, in the opinion of the Commissioner, it is reasonable that a late opt-out notice be accepted.
(2) The Commissioner may accept the opt-out notice in the period that ends 3 months after the date on which the Commissioner receives the first contribution in respect of the employee.
(3) If an opt-out notice is received by the Commissioner outside the time limit in section 16 , and the Commissioner does not exercise his or her discretion to accept it under this section, the Commissioner must treat the notice as if it were an application for a contributions holiday under section 102, if the person could have applied under that provision.