KiwiSaver, Lower Hutt, New Zealand, is searching for default service providers for the voluntary countrywide retirement savings plan, according to an RFP posted on the government's procurement website.
The current default providers, which manage about NZ$3.4 billion (US$2.8 billion) on behalf of participants, are AMP Services, ASB Group Investments, OnePath, Mercer and TOWER Managed Funds. They are all invited to bid. The providers were hired when the plan was launched in 2007, and their contracts expire June 30.
There are 28 KiwiSaver scheme providers. If a participant does not choose a specific scheme and an employer does not have one it has chosen, the participant is put into one of five schemes from government-appointed default providers.
The basic criteria for selecting providers are investment capability, corporate strength, administrative capability, track record and stability, according to a news release on the website of the Ministry of Business, Innovation and Employment.
The default providers manage conservative funds with the majority of assets in bank deposits and fixed-income investments. The overall KiwiSaver plan has about NZ$15 billion in assets.
The RFP is available on the government's procurement website. Proposals are due Dec. 13. Hiring decisions are expected in April.
Officials from KiwiSaver could not be reached for additional information.