Kiwibank Ends Kiwisaver Contract With Mercer

20 August 2009
Media Release

Kiwibank Ends Kiwisaver Contract With Mercer

Kiwibank announced today that it is ending its links with the Mercer KiwiSaver scheme with effect from 30 September 2009.

Kiwibank Chief Executive Sam Knowles said Kiwibank and Mercer have been working together since KiwiSaver was launched by the Government in mid 2007.

"Kiwibank has acted as a retail partner for Mercer, making information about the Scheme available in brochures and on its website. The nature of this role meant Kiwibank was not involved in investment decisions. However because we now have our own wealth management division and are considering being more actively involved in the superannuation and managed funds sector, we believe it is essential that we bring our involvement with Mercer to an end. To not do so could be confusing for Kiwibank customers considering their retirement plans," Mr Knowles said.

Mr Knowles said Kiwibank believed it was important when KiwiSaver was first launched by the Government that the bank was able to provide information about the scheme and have an association with a provider.

"However, as we grow and are able to take on more responsibilities for products and services, we are now looking closely at what we offer in the superannuation and managed funds sector."

Mercer has about 70,000 KiwiSaver members and Mercer's New Zealand business leader, Martin Lewington, said it is business as usual for these members. "Mercer has managed the funds of these members during our relationship with Kiwibank and we will continue to do so now it has ended," said Mr Lewington.

"We understand and respect Kiwibank's decision to end the partnership with us given their ambitions and I'm sure they will be worthy competitors."

Mr Knowles said the decision to end the association with Mercer will not affect any existing members of the Mercer KiwiSaver scheme and they will continue to receive direct communication from Mercer.

ENDS

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