FSC guidelines: KiwiSaver serious illness and life-shortening congenital conditions processing guidelines

1 min read
August 23, 2023

These Guidelines are for KiwiSaver scheme managers and supervisors (or trustees, in the case of restricted KiwiSaver schemes).

These guidelines may also be used by:

  • complying superannuation funds and other workplace savings schemes which incorporate KiwiSaver equivalent serious illness or life-shortening congenital conditions based early withdrawal facilities; and
  • New Zealand superannuation schemes, which are required under the Superannuation Scheme Rules to incorporate a KiwiSaver equivalent serious illness based early withdrawal facility.

The Guidelines assume a basic technical knowledge of the KiwiSaver and Financial Markets Conduct legislation and explain the industry standard approach for withdrawals from KiwiSaver schemes in cases of serious illness and life-shortening congenital conditions.

They also provide views on the suggested timeframes within which applications should be processed and guidance on the appropriate tone that should be adopted when communicating with members.

Whilst the Guidelines are not mandatory, they represent commonly agreed industry best practice.

The aim of the Guidelines is to help bring consistency across New Zealand’s KiwiSaver industry and drive good customer outcomes. They are intended to give a common basis for assessment, and in doing so, to minimise the prospects of inconsistency of approach.


These serious illness and life-shortening congenital conditions processing guidelines (the Guidelines) were approved by the Investment and KiwiSaver Committee of the
Financial Services Council of New Zealand
Incorporated (FSC) on 4 July 2023.

They are intended as general information and a resource for FSC members only, and do not constitute legal advice. They are not intended to replace existing legislation, regulations, or regulatory guidelines. Whilst their legal accuracy (where referring to the legislation) has been confirmed, some aspects are open to individual interpretation. Any conflict should be construed in favour of the applicable legislative requirement, with further legal advice sought.

Any third party websites and other materials referred to are additional resources that you access at your own risk and the FSC takes no responsibility for any third party content.

The FSC and its employees do not make any express or implied representations or give any warranties regarding these Guidelines, and we accept no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in this information.