Removal of vesting scale for employer contributions

Effective 27 March 2026, the Scheme’s Trust Deed was amended to remove the vesting scale that previously applied to employer contributions. This change was approved by the Financial Markets Authority.

Previously, the vesting scale reduced the amount of an employer’s contributions that a member could receive, if they left service and had less than five years’ membership in the Scheme. Members with one year of membership in the Scheme used to receive 20% of their employer’s contributions made to their Employer’s No. 1 Account. This increased by 20% for each subsequent year of membership until 100% of the Employer’s No. 1 Account was available on leaving service after five years’ membership.

From 27 March 2026, this vesting scale will no longer apply to members who leave service.

What this means for you

If you have left or leave your employment on or after 27 March 2026, you are entitled to 100% of your employer’s contributions made to your Employer’s No. 1 Account, regardless of your length of membership in the Scheme.

Members who leave due to redundancy will continue to receive 100% of their employer’s contributions irrespective of their membership duration.

Locked Accounts remain unchanged

This change only concerns an employer’s contributions made to your Unlocked Accounts. Employer contributions to Locked Accounts have always vested immediately and will continue to do so. These funds remain subject to specific rules and cannot be accessed until certain conditions are met, such as reaching the New Zealand Superannuation qualifying age (currently 65).

No action is required from you.

For further information, the updated Trust Deed, product disclosure statement, and member booklet are available at www.dairysuper.co.nz, or you may contact the Helpline on 0800 355 900.