Tolley Anne: Social Assistance (Portability to Cook Islands Niue and Tokelau) Bill — Third ReadingText is incorporated into the Bound VolumeTolley Anne: Social Assistance (Portability to Cook Islands Niue and Tokelau) Bill — Third Reading[Sitting date: 18 June 2015. Volume:706;Page:4588. Text is incorporated into the Bound Volume.]Hon ANNE TOLLEY (Minister for Social Development): I move That the Social Assistance (Portability to Cook Islands Niue and Tokelau) Bill be now read a third time. This bill will provide greater pension flexibility for people who wish to live in the Cook Islands Niue and Tokelau. This Government wants to recognise the great contribution that people from those islands have made to New Zealand. We also want to make sure that those countries and territories that have close constitutional ties with New Zealand are recognised and that their ongoing economic and social viability is supported. Current pension portability arrangements allow people to take their New Zealand superannuation to 22 Pacific countries and territories including the Cook Islands Niue and Tokelau. The provision that makes this possible is called the Special Portability Arrangement.Under this arrangement New Zealand superannuation is paid at a minimum of 50 percent after 10 years’ residence in New Zealand rising to 100 percent after 20 years’ residence. There are also general portability provisions which cover people going to all other countries with which New Zealand does not have a social security agreement. The payment formula for the Special Portability Arrangement is more generous than the payment formula for the general portability provisions. This is because the Special Portability Arrangement is designed to recognise that contribution that Pacific peoples have made to New Zealand and the inability of Pacific countries and territories to fulfil the reciprocal obligations necessary to conclude social security agreements with New Zealand.Despite the relative generosity of the Special Portability Arrangement an issue for people who wish to retire in the Cook Islands Niue and Tokelau is that under the arrangement they must be resident and present in New Zealand on the date they apply for New Zealand superannuation. Consequently people who wish to receive New Zealand superannuation in those islands are not able to leave New Zealand until they are 65 which is the age of eligibility for New Zealand superannuation. Should they choose to return permanently to the Cook Islands Niue and Tokelau prior to age 65 they lose their ability to apply for New Zealand superannuation. This bill will remedy that situation by eliminating the resident and present in New Zealand requirement for the Special Portability Arrangement in respect of the Cook Islands Niue and Tokelau. The bill will allow people to move to those islands after reaching the age of 55 and apply for the New Zealand superannuation or veterans pension from these Pacific Islands at age 65. People still need to live in New Zealand until they are 55 because in order to be eligible for New Zealand superannuation or a veterans pension a person must have lived in New Zealand for 10 years since the age of 20 5 of which must be after the age of 50. The residence rule applies to all applicants for New Zealand superannuation.There has been a lot of debate in the House on this point. I want to make it clear that all New Zealanders must meet the 5 over 50 rule regardless of who they are and where they live. New Zealand superannuation is based on principles of fair and equitable treatment and it would not be fair and equitable to allow a small group of New Zealanders to avoid a rule simply because of where they choose to live when every other New Zealander must fulfil that rule. Members have also said that it is unfair that migrants can come to New Zealand and qualify for full New Zealand superannuation after 10 years’ residence in New Zealand whereas people who want to live in and receive their pension in the Cook Islands Niue and Tokelau must have had 20 years’ residence in New Zealand to get the full payment available. This bill reflects the universal nature of New Zealand superannuation. All applicants living in New Zealand will receive full superannuation after 10 years’ residence. This Government believes that all New Zealanders regardless of where they were born deserve to be treated equally.Where applicants want to receive their New Zealand pension in another country though we apply a different set of residency requirements. This can vary between countries depending on the details of the relevant legislative provisions or social security agreement. As I have already said people who live in the Pacific including the Cook Islands Niue and Tokelau have a relatively generous payment formula compared with people who take New Zealand superannuation anywhere else in the world. If a person moved to another country they would need to have lived in New Zealand for between 40 and 45 years to be eligible for full New Zealand superannuation. To be clear those who live in New Zealand qualify for full New Zealand superannuation after 10 years’ residence including 5 years after the age of 50. Those who choose to live in the Cook Islands Niue or Tokelau qualify for 50 percent of New Zealand superannuation after 10 years’ residence and full superannuation after 20 years’ residence. They must be resident in New Zealand for 5 years after the age of 50. Those who choose to live in another country subject to portability agreements would generally need to have lived in New Zealand for 45 years to be eligible for full superannuation. However there can be some difference between agreements.Some members have also said that the bill discriminates against people from the Cook Islands Niue and Tokelau. There is no inequality here. People from those islands who remain in New Zealand are subject to exactly the same rules as all other New Zealanders. They will receive full New Zealand superannuation after 10 years’ residence. All people who wish to take New Zealand superannuation to the Cook Islands Niue or Tokelau are subject to the rules in the special portability provisions regardless of whether they were born in New Zealand the Islands or another part of the world. The change in this bill is restricted to the Cook Islands Niue and Tokelau because it is about recognising New Zealand’s close constitutional relationships with these Pacific Islands which enjoy shared citizenship with New Zealand and unique legal arrangements. Tokelau is a non-selfgoverning territory of New Zealand. Both the Cook Islands and Niue have adopted constitutions enabling self-government in free association with New Zealand. Free association is a status distinct from that of full independence in that it allows for the Cook Islands and Niue to maintain New Zealand citizenship while administering their own affairs.As I mentioned earlier this bill is also about ensuring the economic and social viability of the Cook Islands Niue and Tokelau. Depopulation and its related social and economic consequences is a longstanding issue for those islands. The current “resident and present in New Zealand” requirement has been described as a disincentive for Cook Islanders Niueans and Tokelauans who are established in New Zealand to return home before the age of 65. Removing this disincentive would potentially help boost economic development and human resource capability in these islands through an increased return of experienced people who are able to effectively apply skills acquired in New Zealand in their home communities. People returning at age 55 would have the capacity to contribute to the workforce 10 years in advance of the age of qualification for New Zealand superannuation. As pension payments are paid in gross it is expected that more income and value-added tax will be paid by returning migrants to contribute to the local economy.I want to reiterate that this Government wants to make sure that those countries and territories that have close constitutional ties with New Zealand are recognised and that their ongoing economic and social viability is supported. This Government also wants to ensure that superannuitants have options as to where they choose to live. By allowing people to apply for New Zealand superannuation and the veterans pension while resident in the Cook Islands Niue or Tokelau this bill will achieve both of these things. I commend this bill to the House.