Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698830394311.pdf (New Zealand)
Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Government Bill Explanatory note General policy statement The purpose of this Bill is to make amendments to the provisions in the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954 to make it easier for superannuitants and veteran’s pensioners to travel or retire overseas.
The provisions that provide for the payment of New Zealand super­ annuation and veteran’s pension overseas have been in place since 1 April 1990.

These provisions provide for a ﬂat rate payment of 50% of the do­ mestic rate of beneﬁt where a person leaves New Zealand with the intention to reside in a country with which New Zealand has no agree­ ment relating to reciprocity of social security monetary beneﬁts (not being a speciﬁed Paciﬁc country).
The ﬂat rate payment of 50% deters some older New Zealanders from retiring overseas because it provides insufﬁcient income to allow a reasonable standard of living in retirement in most countries.
Pay­ ment is also currently linked to residence in one particular overseas country which means that superannuitants or veteran’s pensioners 301—1 2 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note cannot travel to or between multiple countries and continue to re­ ceive payment.
This Bill will, from 2 November 2009, allow qualifying superannui­ tants and veteran’s pensioners— • who wish to travel to, or in, or between any overseas countries to retain their entitlement to New Zealand superannuation or veteran’s pension, whether they later become resident in any country with which New Zealand has no agreement relating to reciprocity of social security monetary beneﬁts (not being a speciﬁed Paciﬁc country) or not: who wish to reside in any country with which New Zealand has no agreement relating to reciprocity of social security monet­ ary beneﬁts (not being a speciﬁed Paciﬁc country) to retain their entitlement to New Zealand superannuation or veteran’s pension, whether they remain resident in that country, become resident in another such country or begin travelling.
to receive payment of New Zealand superannuation or vet­ eran’s pension overseas based on a formula of 1/540th of the full rate for each month of residence in New Zealand between the ages of 20 and 65.

• • The rate payable will not include payment for periods of time spent in another country and will therefore not be reduced by the amount of any overseas pension that may have been earned during that period of absence from New Zealand.
Clause by clause analysis This Bill is an omnibus Bill, making amendments to the New Zealand Superannuation and Retirement Income Act 2001 and the War Pen­ sions Act 1954.

It is intended that in the Committee Of the whole House it will be broken up into a New Zealand Superannuation and Retirement In­ come Amendment Act and a War Pensions Amendment Act.

Clause 1 states the Bill’s Title.

Clause 2 provides that the Bill comes into force on 2 November 2009.
Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 3 Part 1 Amendments to New Zealand Superannuation and Retirement Income Act 2001 Clause 3 provides that Part 1 amends the New Zealand Superannu­ ation and Retirement Income Act 2001.

Clause 4 makes a technical amendment to section 21 of the principal Act.
Section 21 is a general statement that people are not entitled to New Zealand superannuation while absent from New Zealand except as provided in sections 22 to 29 or in any agreement or convention adopted under section 19 of the Social Welfare (Transitional Provi­ sions) Act 1990.

The amendment amends the reference to sections 22 to 29 so that it becomes a reference to sections 22 to 35.
Clause 5 amends section 22 of the principal Act, which enables su­ perannuitants to be paid New Zealand superannuation while absent from New Zealand for a period of no more than 26 weeks (or, in cer­ tain limited circumstances, a period of no more than 30 weeks).
The amendment— • clariﬁes the relationship between the entitlement under that section and the entitlement under section 26; and (in particu­ lar) makes clear that a person who is being paid New Zealand superannuation under section 26 will be paid at only the rate provided for in that section (which may in some cases be the full amount, but may not), rather than the full amount contem­ plated by section 22.
• Clause 6 replaces section 26 of the principal Act, which is the general provision relating to the payment overseas of New Zealand super­ annuation, with 2 new sections.
New section 26 relates to 2 different categories of overseas travel by superannuitants— • travel by those who intend to live for a period longer than 26 weeks in a country (or 2 or more countries) with which New Zealand has no agreement relating to reciprocity of social security monetary beneﬁts: travel by those who intend to travel for a period longer than 26 weeks, but not to live in any particular country.
• 4 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note A superannuitant who has not made and is not entitled to make an election under section 12 of the principal Act,— • if not married, and not in a civil union or de facto relationship, will be entitled to a proportion of the entitlement (excluding any living alone payment) he or she would have while living in New Zealand, calculated on the basis of the total period during which he or she has lived in New Zealand between the ages of 20 and 65: if married, or in a civil union or de facto relationship, will be entitled to a proportion of the entitlement (excluding any living alone payment) he or she would have while they and their spouse or partner were living in New Zealand calculated on the basis of the total period during which he or she has lived in New Zealand between the ages of 20 and 65.
• • A superannuitant who has made or is entitled to make an election under section 12 of the principal Act will be entitled to a proportion of the gross rate of New Zealand superannuation payable under clause 1(c) of Schedule 1 of the principal Act.
The proportion for any superannuitant is to be calculated by— • treating each period during which he or she has lived in New Zealand while between the ages of 20 and 65 as whole calendar months and additional days: adding the number of additional days, dividing the total by 30, and disregarding any remainder: adding the number of calendar months and 30­day periods: dividing the total by 540.
• • New section 26A provides that no superannuitant is entitled to be paid New Zealand superannuation under new section 26 unless he or she— • makes an application for payment stating either— • the country or countries in which he or she intends to live and the period for which he or she intends to live there; or the country or countries to and in which he or she in­ tends to travel; and • • is ordinarily resident and present in New Zealand on the day he or she makes the application, and— Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 5 • • is entitled to receive New Zealand superannuation on that day; or will become entitled to receive New Zealand super­ annuation before he or she leaves New Zealand.
Clause 7 makes technical and consequential amendments to section 29 of the principal Act, which governs the relationship between pro­ visions relating to New Zealand superannuation and other beneﬁt provisions.

Clause 8 makes a consequential amendment to a cross­reference in section 35(1) of the principal Act.
Clause 9 makes to section 70 of the Social Security Act 1964, which relates to rates of beneﬁts payable if an overseas pension is payable, an amendment that is consequential on new section 26A(3) of the principal Act (as proposed to be enacted by clause 6).

Clause 10 is a savings provision relating to superannuitants who, when the Bill comes into force, are receiving New Zealand super­ annuation while overseas.
Until they return to New Zealand and be­ gin receiving New Zealand superannuation under the usual domestic arrangements, they will be entitled to be paid at the higher of the old 50% rate and the new proportional rate.

Part 2 Amendments to War Pensions Act 1954 Clause 11 provides that Part 2 amends the War Pensions Act 1954.
Clause 12 makes to section 74E of the principal Act an amendment to the same effect as that made to section 21 of the New Zealand Superannuation and Retirement Income Act 2001 by clause 4.

Clause 13 makes to section 74F of the principal Act an amendment to the same effect as that made to section 22 of the New Zealand Superannuation and Retirement Income Act 2001 by clause 5.
Clause 14 replaces section 74J of the principal Act, which is the gen­ eral provision relating to the payment overseas of the veteran’s pen­ sion, with 2 new sections.

The sections are to exactly the same effect as the new sections 26 and 26A proposed to be inserted in the New Zealand Superannuation and Retirement Income Act 2001 by clause 6.
6 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note Clause 15 makes to section 74M of the principal Act amendments to the same effect as those made to section 29 of the New Zealand Superannuation and Retirement Income Act 2001 by clause 7.
Clause 16 makes to section 70 of the Social Security Act 1964, which relates to rates of beneﬁts payable if an overseas pension is payable, an amendments that is consequential on new section 74JA(3) of the principal Act (as proposed to be enacted by clause 13).

Clause 17 is a savings provision to the same effect as clause 10.
Regulatory impact statement Executive summary The policies on treatment of overseas social security pensions and payment of New Zealand Superannuation (NZS) overseas are con­ tentious.

This is because affected superannuitants do not generally receive either the full rate or any NZS amount, and some other gov­ ernments consider that New Zealand is using their pensions simply to reduce its own pension liabilities.
The preferred option is a package of ten proposals that would amend the current policies concerning the treatment of overseas pensions, payment of NZS overseas and payment of NZS in certain Paciﬁc countries and would initiate a po­ tential Social Security Agreement with the United States of America.
The changes would clarify the legislation covering the treatment of overseas pensions, increase the rate of NZS received by certain su­ perannuitants with overseas pensions and superannuitants receiving NZS overseas, allow people resident in certain Paciﬁc countries to apply for NZS, and potentially remove the current barriers that pre­ clude a Social Security Agreement with the United States.
Adequacy statement This statement has been reviewed by the Ministry of Social Devel­ opment and is adequate according to the adequacy criteria.

Status quo and problem To qualify for New Zealand Superannuation a person must have 10 years’ residence in New Zealand since the age of 20, ﬁve of which must have been since the age of 50, and be 65 years of age or over.
New Zealand’s “residence­based” pension system contrasts with the contributory nature of most overseas pensions schemes Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 7 and does not easily lend itself to situations where people move in and out of New Zealand.
Two key issues have arisen as a result of increasing international movement of people: • the method for dealing with overseas pensions paid into New Zealand, which effectively tops up the amount of a overseas pension to the appropriate full rate of NZS, can be a con­ tentious issue for affected superannuitants and other govern­ ments, is difﬁcult to administer, and has remained essentially unchanged for almost 70 years; rules for payment of NZS overseas are overly restrictive and prevent many New Zealanders from receiving payment while living in the country of their choice or from receiving payment when travelling overseas without the intent to live in one par­ ticular country.
• Objectives modernise the current treatment of overseas pension policy; address issues associated with the payment of NZS overseas.
The overarching objectives of the Review are to: • • The secondary objectives are to: • provide an interface between New Zealand and overseas social security systems that provides a fair sharing of social security costs between countries; ensure that the treatment of overseas pensions paid to New Zealanders is equitable for New Zealanders who have lived and worked in New Zealand all their lives; allow New Zealanders to retire comfortably in the country of their choice.
• • Alternative options During the Review period, a number of alternative packages were developed: Alternative option 1 The range of proposals in the preferred option, but in addition a dual system of proportionalisation of NZS entitlement and direct deduc­ 8 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note tion that would only apply to overseas pensioners.
An overseas pen­ sioner could choose the system that would be most beneﬁcial to them.

Under this option, 1/45 of NZS would be paid for each year of resi­ dence in New Zealand between the ages of 20 and 65.

The amount of any overseas pension would not affect the amount of NZS.

This sys­ tem would suit those superannuitants who have lived in New Zealand for a long period and have a relatively high overseas pension.
Al­ ternatively the overseas pensioner could choose to continue in the direct deduction system if this would be more beneﬁcial.

This sys­ tem would suit those superannuitants with a smaller period of New Zealand residence and a relatively low overseas pension.

It is es­ timated that 37 000 overseas pensioners would choose to receive a proportionalised rate of NZS.
This is not the preferred option because: • there are equity issues (overseas pensioners with access to both NZS and an overseas public pension may be ﬁnancially advan­ taged in comparison to lifelong New Zealand residents who have access only to NZS); most of the difﬁculties around policy and administration would remain for people who choose the direct deduction option, and additional administrative complexity would be created.
• Alternative option 2 Changing the entitlement criteria for all NZS applicants to a propor­ tionalised rate that would depend on the number of years a person has spent in New Zealand between the ages of 20­65.

This amount would be payable overseas, and applications could be made by over­ seas residents if they left New Zealand after the legislative change was made.
This option would affect 2 groups of retirees: (a) New Zealand residents who wish to retire to a non­Agreement country; those who have lived overseas, but are now resident in New Zealand.

(b) People in group (a) would receive 1/40th of the full rate of NZS for every year of New Zealand residence between the ages of 20 and 65.

A person would need at least 10 years’ New Zealand residence to re­ ceive an NZS payment (which, after 10 years would be 10/40th).
The Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 9 current treatment of overseas pensions policy would be abolished for people in group (b) who would instead be able to keep their overseas pensions, but their NZS would be based on their working­life years in New Zealand (rather than on current residency requirements).
This option was rejected because it represents a signiﬁcant change to core NZS policy which is outside the mandate of the Review.

This option would have required a complex safety net mechanism to en­ sure that people with limited New Zealand residence and a small overseas pension were not left with insufﬁcient retirement income.
In addition, 2 000 people in group (b) who had lived overseas until they were aged 65 years or over but who then came to retire in New Zealand would not be eligible for NZS (whereas under the status quo they would be qualiﬁed once they had lived in New Zealand for 10 years).

Alternative option 3 Full portability of NZS and moderated treatment of overseas pen­ sions The full rate of NZS would be portable on fulﬁlment of the minimum residence requirements.
In order to minimise ﬁscal ramiﬁcations, the working­age residence requirement would be raised from 10 to 15 years.

The amended residence requirement would apply both to those who retire in New Zealand and to those who retire overseas.

The current treatment of overseas pensions policy would remain but would be moderated.
A “safe zone” would be implemented, so that a pensioner could keep an amount of overseas pension equivalent to 5% of the single sharing rate of NZS and the remaining amount would be directly deducted.

This option was not preferred because it requires a change to funda­ mental NZS policy, is incompatible with the payment provisions in New Zealand’s social security agreements, and would not have ad­ equately addressed problems in the treatment of overseas policy.
Alternative option 4 50% of NZS would be portable after 10 years’ residence in New Zealand, rising to 100% after 20 years.

Current treatment of over­ seas pensions rules would apply except for the implementation of a safe zone.
10 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note This option was not preferred because the rate formula would be incompatible with social security agreements which require longer periods of New Zealand residence for a comparable rate of payment of NZS, it would not overly improve the incentive for people to claim and declare their overseas pensions, and it would have relatively high ﬁscal implications for the Government.
Preferred option The preferred option is a package of 10 components which cover: Treatment of overseas pensions 1. updating the Social Security (Overseas Pension Deduction) Regulations 1996, which set out the mechanics of the treat­ ment of overseas pension policy; removing the proportion of foreign state pensions built up by voluntary contributions from the scope of section 70 of the Social Security Act 1964; clarifying the wording of section 70 of the Social Security Act so that it is in plain English, and set out the treatment of each country’s pension in regulations; discontinuing the policy of deducting a person’s overseas pen­ sion from their spouse’s NZS entitlement, by amending sec­ tions 69G, 69H and 70 of the Social Security Act and a conse­ quential amendment to the Special Banking Option (SBO) so that only 1 partner of a couple can join the SBO if they wish; amending the SBO legislation to allow for refunds; Payment of NZS overseas 6. allowing payment overseas of New Zealand Superannuation and Veteran’s Pension to be made to superannuitants travelling to more than 1 country for more than 30 weeks; paying NZS overseas based on a formula of 1/45th of the full rate for each year of residence in New Zealand between the ages of 20 and 65; 2.
3.

4.

5.

7.

Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 11 Paciﬁc 8.
9. allowing residents of Niue, the Cook Islands, Tokelau Samoa, Tonga and Fiji to apply for NZS from those countries, OR allowing residents of Niue, the Cook Islands and Tokelau to apply for NZS from those countries to reﬂect New Zealand’s special constitutional relationships with these three Paciﬁc countries; Social security agreement with the United States of America 10. making amendments to tax rules to facilitate conclusion of a social security agreement with the United States.
This package of proposals is the preferred option because it has the following beneﬁts: • it will make the treatment of overseas pensions legislation eas­ ier for clients to understand and will make some aspects of the policy easier to administer; it removes the anomalous aspects of the treatment of overseas pensions and payment overseas rules: it maintains the fundamental NZS policy settings; it does not disadvantage people who have lived and worked in New Zealand all their lives; it increases New Zealanders’ opportunities to retire where they wish.
• • • • The costs of this option approximately $11.5 million a year.

The legislative impact of the changes in the preferred option include amendments to the Social Security Act 1964, the New Zealand Superannuation and Retirement Income Act 2001, the War Pensions Act 1954, the Social Security (Overseas Pension Deduction) Regu­ lations 1996, and legislation relating to taxation.
The current regulatory framework would be impacted to the extent that: • the rule that the full amount of overseas public pensions re­ ceived are to have an effect reducing the amount of NZS also received will be altered by excluding from this rule those parts of overseas public pensions that are composed of voluntary contributions by the pensioner; 12 • • • • • Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note there will now be an ability to refund money to people using the alternative arrangements for overseas pensions (the Spe­ cial Banking Option) where the overseas pension received ex­ ceeds the amount of NZS that is provided to the pensioner; the rule that a person’s rate of NZS will be affected by any overseas pension received by their partner will be removed, as will the requirement that non­qualifying partners must apply to receive any overseas pension they may be entitled to when their partner receives NZS; a new rule will enable full NZS entitlement to New Zealand taxpayers resident overseas; the rule that a person must be resident in a particular country to enable payment of portable NZS at 50% of the gross rate will be altered so that the portable NZS payment rate will be based on number of years’ residence in New Zealand, and the person does not have to remain in one particular country in order to receive payment; the rule that a person must be present and resident in New Zealand in order to establish eligibility for NZS will be altered to allow residents in Nuie, the Cook Islands, Tokelau, Samoa, Tonga and Fiji (once Fiji has made sufﬁcient steps towards a democratic government) to make an application from those countries.
Key risks associated with this option are: • the Ministry of Social Development will be accepting applica­ tions for NZS from residents of Paciﬁc countries for the ﬁrst time.

This presents some administrative risks for the Ministry: although the Ministry does accept applications from overseas residents under the terms of New Zealand’s Social Security Agreements, the social security agencies in those Agreement countries assist with the application requirements.
Both pro­ posed Paciﬁc options require that a person be ordinarily in one of the three (or six) Paciﬁc countries on the date of application for NZS.
It will be difﬁcult for Ministry staff based in New Zealand to determine whether a person is ordinarily resident in 1 of the speciﬁed Paciﬁc countries when they apply, or whether that person is merely present in 1 of those 6 countries solely for the purpose of applying for NZS; Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 13 • • any discrimination involved in the treatment of overseas pen­ sions policy and present in any Bill required to give effect to this option will need to be justiﬁed to avoid a report by the At­ torney­General to the House of Representatives under section 7 of the New Zealand Bill of Rights Act 1990; any discrimination involved in the payment of NZS to certain Paciﬁc communities will similarly require to be justiﬁed.
Risks will be mitigated in the following ways: • assistance will be sought from relevant New Zealand govern­ ment agencies in Paciﬁc countries covered by the new policy.
Where New Zealand government agencies are not available, assistance will be sought from appropriate government agen­ cies of the other country; the Ministry of Justice has advised that conﬁning the proposal to those countries which have a special constitutional relation­ ship with New Zealand (Niue, Tokelau, and the Cook Islands) would be justiﬁed in terms of section 5 of the New Zealand Bill of Rights Act 1990.
Ofﬁcials from the Ministry of Social De­ velopment will continue to work with the Ministry of Justice to see if there is any justiﬁcation for extending the proposal to include Samoa, Tonga, and Fiji, once Fiji has made sufﬁcient progress towards a democratic government.

• Implementation and review At this stage there are no review or implementation plans.
Consultation Consultation has been undertaken with the following government agencies: Treasury, Ministry of Foreign Affairs and Trade, Veterans Affairs New Zealand, Ofﬁce for Senior Citizens, Department of Labour, Women’s Affairs, Ministry of Paciﬁc Island Affairs, Inland Revenue Department, Ofﬁce of the Retirement Commissioner, Department of the Prime Minister and Cabinet.

Consultation was in the form of inter­departmental working groups and circulation of draft papers.
No consultation was undertaken with the public.

The Ministry of Social Development receives a large amount of correspondence from 14 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Explanatory note the public on the issues and therefore it was considered that public feelings on the issues are already well known.
Minister of Finance’s statement on the consultation process followed in the formulation of amendments to the New Zealand Superannuation and Retirement Income Act 2001 in the Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pensions Overseas) Bill Introduction Section 73 of the New Zealand Superannuation and Retirement In­ come Act 2001 (the Act) provides that the Minister must, on the intro­ duction into the House of Representatives of a government Bill that proposes an amendment to the Act, bring to the attention of the House the consultation process that was followed in the formulation of the proposed amendment.
The term “Minister”, for the purposes of sec­ tion 73, is deﬁned in section 5 of the Act as the Minister of Finance.

That statement must include (without limitation)— (a) whether consultation has taken place with the parties that are in agreement with the Part proposed to be amended (as listed in Schedule 4 of the Act) (b) whether consultation has taken place with the Guardians (to the extent that the amendment relates to Part 2 of the Act) the results of the consultation.
(c) The Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pensions Overseas) Bill (the Bill) proposes amendments to Part 1 of the Act.

It does not propose to amend Part 2, Part 3, Part 4 or any of the schedules of the Act.

The Bill also proposes corresponding amendments to the War Pensions Act 1954.
Consultation process On 13 August 2008, the Minister for Social Development and Em­ ployment wrote to the parties that are in agreement with the Part pro­ posed to be amended (as listed in Schedule 4 of the Act (the Green Party, the National Party, the Progressive Party and United Future Explanatory note Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 15 New Zealand).
The letter advised them of the government’s inten­ tion to introduce an omnibus Bill to make amendments that will: • Allow payment of New Zealand Superannuation and Veteran’s Pension to be made to superannuitants and veteran’s pension­ ers who wish to reside in or travel to, in, or between any coun­ try or countries for longer than 26 weeks; Allow payment of New Zealand Superannuation and Veteran’s Pension to be paid based on a formula of 1/540th for every month of residence in New Zealand between the ages of 20 and 65; and resolve some existing inconsistencies in the New Zealand Superannuation and Retirement Income Act 2001 and the War Pensions Act 1954.
• • No consultation was undertaken with the Guardians of New Zealand Superannuation as the Bill does not propose to amend Part 2 of the Act.

Consultation was also undertaken with the New Zealand First Party as part of the Conﬁdence and Supply Agreement.

Results of the consultation The Green Party, the National Party, New Zealand First, the Progres­ sive Party and United Future New Zealand have indicated that they will support the Bill.
The Ministry of Social Development, as the government department responsible for administration of Part 1 of the Act, the Ministry of Veteran’s Affairs, and the Treasury also support the proposed amend­ ments to the Act.
Hon Dr Michael Cullen Minister of Finance Hon Ruth Dyson Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Government Bill Contents Title Commencement Part 1 Amendments to New Zealand Superannuation and Retirement Income Act 2001 Principal Act amended Effect of absence from New Zealand on New Zealand superannuation First 26 weeks of certain temporary absences New sections 26 and 26A substituted 26 26A Relationship with other beneﬁt provisions Application of this Act and Social Security Act 1964 Social Security Act 1964 consequentially amended Saving Payment overseas of New Zealand superannuation Entitlement Part 2 Amendments to War Pensions Act 1954 Principal Act amended Effect of absence from New Zealand on veteran’s pension 301—1 Page 2 2 2 2 2 3 3 5 5 6 6 6 6 6 1 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Payment overseas of veteran’s pension First 26 weeks of certain temporary absences New sections 74J and 74JA substituted 74J 74JA Entitlement Relationship with other beneﬁt provisions Social Security Act 1964 consequentially amended Saving 7 7 7 9 10 10 10 cl 1 The Parliament of New Zealand enacts as follows: Title This Act is the Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Act 2008.
5 Commencement This Act comes into force on 2 November 2009.

Part 1 Amendments to New Zealand Superannuation and Retirement Income Act 2001 10 Principal Act amended This Part amends the New Zealand Superannuation and Re­ tirement Income Act 2001.

Effect of absence from New Zealand on New Zealand superannuation Section 21 is amended by omitting “29” and substituting “35”.
15 First 26 weeks of certain temporary absences Section 22 is amended by inserting “(other than a person who is receiving New Zealand superannuation overseas under sec­ 20 tion 26)”.
Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Part 1 cl 6 6 New sections 26 and 26A substituted Section 26 is repealed and the following sections are substi­ tuted: “26 Payment overseas of New Zealand superannuation “(1) This subsection— 5 “(a) “(b) applies to a country if New Zealand has no agreement with it relating to reciprocity of social security monetary beneﬁts; and applies to a person if he or she has left New Zealand— “(i) intending to reside for a period longer than 26 10 weeks in a country (or any 2 or more countries) to which this subsection applies; or intending to travel for a period longer than 26 weeks, but not intending to reside in any particu­ lar country.
15 “(ii) “(2) A person to whom subsection (1) applies is entitled to be paid New Zealand superannuation at the appropriate rate stated in subsection (4)— “(a) in the case of a person who has left New Zealand in­ tending to reside for a period longer than 26 weeks in a 20 country (or any 2 or more countries) to which subsec­ tion (1) applies, until he or she— “(i) begins to reside in a country that is not a country to which subsection (1) applies; or “(ii) begins to reside in New Zealand again; or “(iii) begins to receive New Zealand superannuation 25 “(b) otherwise than under this section; and in the case of a person who has left New Zealand in­ tending to travel for a period longer than 26 weeks, but not intending to reside in any particular country, until 30 he or she— “(i) begins to reside in a country that is not a country to which subsection (1) applies; or returns to New Zealand.
“(ii) “(3) For the purposes only of subsection (2)(b)(ii), a person does 35 not return to New Zealand if— “(a) he or she— “(i) interrupts his or her overseas travel, and travels to and stays brieﬂy in New Zealand, in order to 3 Part 1 cl 6 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill attend an event (for example, a wedding or fu­ neral) or to visit a person (for example, a sick or injured family member); and then resumes his or her overseas travel; and “(b) he or she does not while in New Zealand begin to 5 “(ii) receive New Zealand superannuation otherwise than under this section.
“(4) The rates referred to in subsection (2) are,— “(a) if he or she has not made and is not entitled to make an election under section 12,— “(i) 10 “(ii) in the case of a person who is not married or in a civil union or in a de facto relationship, a rate that is a proportion (calculated under subsec­ tion (5)) of the gross rate of New Zealand super­ annuation (excluding any living alone payment) 15 that he or she would be entitled to receive if he or she resided in New Zealand: in the case of a person who is married or in a civil union or in a de facto relationship, a rate that is a proportion (calculated under subsec­ 20 tion (5)) of the gross rate of New Zealand super­ annuation (excluding any living alone payment) that he or she would be entitled to receive if he or she and his or her spouse or partner resided in New Zealand.
25 “(b) if he or she has made or is entitled to make an election under section 12, a rate that is a proportion (calculated under subsection (5)) of the gross rate of New Zealand superannuation payable under clause 1(c) of Schedule 1.
30 “(5) The proportion referred to in subsection (4) is to be calcu­ lated by— “(a) treating each period during which the person concerned has resided in New Zealand while aged 20 or more and less than 65 as whole calendar months and (where ap­ 35 plicable) additional days; and adding the number of additional days (if any), dividing the total by 30, and disregarding any remainder; and “(b) 4 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Part 1 cl 7 “(c) adding the number of calendar months and the quotient calculated under paragraph (b); and “(d) dividing by 540 the total calculated under paragraph (c).
“(6) This section is subject to section 26A.
5 “26A Entitlement A person is not entitled to be paid New Zealand superannu­ ation under section 26 unless he or she— “(a) has made an application for the payment of New Zealand superannuation under that section stating ei­ 10 ther (as the case may be)— “(i) the country or countries in which he or she in­ tends to reside and the period for which he or she intends to reside there; or the country or countries to and in which he or she 15 intends to travel; and “(ii) “(b) is ordinarily resident and present in New Zealand on the day he or she makes the application, and— “(i) is entitled to receive New Zealand superannu­ ation on that day; or “(ii) will become entitled to receive New Zealand superannuation before he or she leaves New Zealand.” 7 (1) (2) (3) Relationship with other beneﬁt provisions Section 29(1) is repealed.
Section 29(2) is amended by inserting “living alone payment,” after “receive any”.
Section 29(4) and (5) are repealed and the following subsec­ tion is substituted: 20 25 “(4A) Except as provided in this section, the Social Security Act 30 1964 (other than sections 69G to 69I, 70, 74(1)(a), 75, 75A, and 76) applies to New Zealand superannuation being paid under section 26.” 5 Part 1 cl 8 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 8 9 Application of this Act and Social Security Act 1964 Section 35(1) is amended by omitting “21” and substituting “22”.
Social Security Act 1964 consequentially amended Section 70 of the Social Security Act 1964 is consequentially 5 amended by inserting the following subsection after subsec­ tion (1): “(1A) Subsection (1) does not apply to New Zealand superannuation payable overseas under section 26 of the New Zealand Super­ annuation and Retirement Income Act 2001.” 10 10 (1) Saving This subsection applies to a person who, immediately before the commencement of section 6, was entitled to be paid New Zealand superannuation under section 26 of the principal Act, between— (a) (b) that commencement; and the time he or she ceases to be entitled to be paid New Zealand superannuation under that section.
(2) While subsection (1) applies to a person, he or she is entitled 15 to be paid New Zealand superannuation at the higher of the 20 following rates: (a) the rate at which he or she was entitled to be paid im­ mediately before the commencement of section 6: the rate at which he or she became entitled to be paid on that commencement.

(b) 25 Part 2 Amendments to War Pensions Act 1954 Principal Act amended This Part amends the War Pensions Act 1954.
Effect of absence from New Zealand on veteran’s pension 30 Section 74E is amended by omitting “74M or section”.

11 12 6 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Part 2 cl 14 13 14 First 26 weeks of certain temporary absences Section 74F is amended by inserting “(other than a person who is receiving a veteran’s pension overseas under section 74J)”.
New sections 74J and 74JA substituted Section 74J is repealed and the following sections are substi­ 5 tuted: “74J Payment overseas of veteran’s pension “(1) This subsection— “(a) “(b) applies to a country if New Zealand has no agreement with it relating to reciprocity of social security monetary 10 beneﬁts; and applies to a person if he or she has left New Zealand— intending to reside for a period longer than 26 “(i) weeks in a country (or any 2 or more countries) to which this subsection applies; or intending to travel for a period longer than 26 weeks, but not intending to reside in any particu­ lar country.
“(ii) 15 “(2) A person to whom subsection (1) applies is entitled to be paid a veteran’s pension at the appropriate rate stated in sub­ 20 section (4)— “(a) in the case of a person who has left New Zealand in­ tending to reside for a period longer than 26 weeks in a country (or any 2 or more countries) to which subsec­ tion (1) applies, until he or she— “(i) begins to reside in a country that is not a country to which subsection (1) applies; or “(ii) begins to reside in New Zealand again; or “(iii) begins to receive a veteran’s pension otherwise than under this section; and “(iv) begins to receive New Zealand superannuation under the New Zealand Superannuation and Re­ tirement Income Act 2001; and 25 30 “(b) in the case of a person who has left New Zealand in­ tending to travel for a period longer than 26 weeks, but 35 not intending to reside in any particular country, until he or she— 7 Part 2 cl 14 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill “(i) “(ii) begins to reside in a country that is not a country to which subsection (1) applies; or returns to New Zealand.
“(3) For the purposes only of subsection (2)(b)(ii), a person does not return to New Zealand if— “(a) he or she— “(i) interrupts his or her overseas travel, and travels to and stays brieﬂy in New Zealand, in order to attend an event (for example, a wedding or fu­ neral) or to visit a person (for example, a sick or 10 injured family member); and then resumes his or her overseas travel; and “(ii) 5 “(b) he or she does not while in New Zealand— “(i) begin to receive a veteran’s pension otherwise than under this section; or 15 “(ii) begin to receive New Zealand superannuation under the New Zealand Superannuation and Re­ tirement Income Act 2001.
“(4) The rates referred to in subsection (2) are,— “(a) if he or she has not made and is not entitled to make an 20 election under section 74(2),— “(i) in the case of a person who is not married or in a civil union or in a de facto relationship, a rate that is a proportion (calculated under sub­ section (5)) of the gross rate of veteran’s pen­ 25 sion (excluding any living alone payment, and after abatement under section 74D if that section applies to him or her) that he or she would be entitled to receive if he or she resided in New Zealand: in the case of a person who is married or in a civil union or in a de facto relationship, a rate that is a proportion (calculated under subsection (5)) of the gross rate of veteran’s pension (excluding any living alone payment, and after abatement under 35 section 74D if that section applies to him or her) that he or she would be entitled to receive if he or she and his or her spouse or partner resided in New Zealand.
30 “(ii) 8 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill Part 2 cl 14 “(b) if he or she has made or is entitled to make an election under section 74(2), a rate that is a proportion (calcu­ lated under subsection (5)) of the gross rate of vet­ eran’s pension payable under clause 1(c) of Schedule 11 (after abatement under section 74D if that section 5 applies to him or her) .
“(5) The proportion referred to in subsection (4) is to be calcu­ lated by— “(a) treating each period during which the person concerned has resided in New Zealand while aged 20 or more and 10 less than 65 as whole calendar months and (where ap­ plicable) additional days; and adding the number of additional days (if any), dividing the total by 30, and disregarding any remainder; and adding the number of calendar months and the quotient 15 calculated under paragraph (b); and “(b) “(c) “(d) dividing by 540 the total calculated under para­ graph (c).
“(6) This section is subject to section 74JA.
“74JA Entitlement A person is not entitled to be paid a veteran’s pension under section 74J unless he or she— “(a) has made an application for the payment of a veteran’s pension under that section stating either (as the case may be)— “(i) the country or countries in which he or she in­ tends to reside and the period for which he or she intends to reside there; or the country or countries to and in which he or she intends to travel; and “(ii) 20 25 30 “(b) is ordinarily resident and present in New Zealand on the day he or she makes the application, and— “(i) is entitled to receive a veteran’s pension on that day; or “(ii) will become entitled to receive a veteran’s pen­ 35 sion before he or she leaves New Zealand.” 9 Part 2 cl 15 Social Assistance (Payment of New Zealand Superannuation and Veteran’s Pension Overseas) Amendment Bill 15 (1) (2) (3) (4) 16 Relationship with other beneﬁt provisions Section 74M(1) and (2) are repealed.
Section 74M(3) is amended by inserting “living alone pay­ ment,” after “receive any”.

Section 74M(4) is amended by omitting “80” and substituting 5 “80BD”.

Section 74M(5) is amended by inserting “69G to 69I, 70, 74(1)(a),” before “75”.
Social Security Act 1964 consequentially amended Section 70 of the Social Security Act 1964 is consequentially 10 amended by inserting the following subsection after subsec­ tion (1A) (as inserted by section 10 of this Act): “(1B) Subsection (1) does not apply to a veteran’s pension payable overseas under section 74J of the War Pensions Act 1954.” 17 (1) Saving This subsection applies to a person who, immediately before the commencement of section 14, was entitled to be paid a veteran’s pension under section 74J of the principal Act, be­ tween— (a) (b) that commencement; and the time he or she ceases to be entitled to be paid New Zealand superannuation under that section.
(2) While subsection (1) applies to a person, he or she is entitled to be paid a veteran’s pension at the higher of the following rates: (a) the rate at which he or she was entitled to be paid im­ mediately before the commencement of section 14: the rate at which he or she became entitled to be paid on that commencement.

15 20 25 (b) 12 10 Wellington, New Zealand: Published under the authority of the New Zealand Government—2008