Social Security (Personal Development and Employment) Amendment Act 2002

1: Title
1: This Act is the Social Security (Personal Development and Employment) Amendment Act 2002.
2: In this Act, the Social Security Act 1964 the principal Act
1: Preliminary provisions
2: Commencement
1: Sections 4(2) to (6) 6 to 8 11 14 15(1) 25 30 32 37
2: Except as provided in section 23(1)
3: Purpose
The purpose of this Act is—
a: to facilitate the movement of domestic purpose beneficiaries and widows' beneficiaries from reliance on benefits to employment as their parenting responsibilities and individual circumstances allow; and
b: to introduce a requirement for those beneficiaries to prepare plans that will assist them to move towards employment and to demonstrate commitment to the goals set out in those plans; and
c: to amend the provisions of the principal Act relating to the establishment and recovery of debts; and
d: to make miscellaneous amendments to the principal Act.
2: Amendments to principal Act
4: Interpretation
1: The definition of income section 3(1)
xvii: any specified item or amount of income, or income from a specified source, that is declared not to be income for the purposes of this Act by regulations made under section 132
2: The definition of part-time work-tested beneficiary section 3(1)
3: Section 3(1) periodical personal development and employment plan section 60O
4: The definition of work-tested beneficiary section 3(1)
5: The definition of work-tested benefit section 3(1)
6: Section 3(1) of work-tested domestic purposes beneficiary work-tested widow's beneficiary
5: Review of decisions
Section 10A(1)
a: by omitting from paragraph (a) under this Act
b: by omitting from paragraph (b) under that Act
6: Widows' benefits
Section 21 subsections (2A) to (2C)
2A: A woman who receives a benefit under this section must—
a: comply with a requirement under section 60Q
b: comply with any other obligation arising under any of sections 60Q to 60S
7: Domestic purposes benefits for solo parents
Section 27B subsections (2A) to (2C)
2A: A person who receives a benefit under this section must—
a: comply with a requirement under section 60Q
b: comply with any other obligation arising under any of sections 60Q to 60S
8: Domestic purposes benefits for women alone
Section 27C subsections (4) to (6)
4: A woman who receives a benefit under this section must—
a: comply with a requirement under section 60Q
b: comply with any other obligation arising under any of sections 60Q to 60S
9: New section 60GAA inserted
The principal Act is amended by inserting, after section 60G
60GAA: Period for which independent youth benefit payable
1: An independent youth benefit is paid in respect of a 5-day working week.
2: The days of the week to be included in the working week of a person granted an independent youth benefit are determined by the chief executive after consultation with the beneficiary, but must not include—
a: a Saturday except with the agreement of the beneficiary; or
b: a Sunday.
10: Voluntary unemployment or loss of employment through misconduct, etc
Section 60H(7) 86(1A) 86(1)
11: New sections 60O to 60Z inserted
The principal Act is amended by inserting, before the heading Emergency benefits section 61
60O: Interpretation
In sections 60P to 60Z chief executive
a: an officer of the department acting under a delegation from the chief executive; and
b: a person authorised by the chief executive to act on behalf of the chief executive (except in sections 60U to 60Y personal development and employment plan plan
a: has goals—
i: to assist the beneficiary to move towards employment; and
ii: designed to support the economic and social participation of the beneficiary who developed it:
b: sets out a plan of action designed to meet the goals referred to in paragraph (a)
c: includes a statement of the information the department will provide to assist the beneficiary to do 1 or more of the following:
i: achieve the goals referred to in paragraph (a)
ii: improve his or her capabilities (including employment capabilities):
iii: obtain employment:
d: includes, if agreed to by the chief executive, a statement of the assistance that the department will provide to assist the beneficiary to do 1 or more of the things described in paragraph (c)﻿(i) to (iii)
60P: Purpose of sections 60Q to 60Z
The purpose of sections 60Q to 60Z
a: to facilitate the movement of domestic purposes beneficiaries and widows' beneficiaries into ongoing employment as their parenting responsibilities and individual circumstances allow:
b: to provide opportunities for those beneficiaries to improve their capabilities for employment:
c: to improve social and economic outcomes for those beneficiaries and their dependent children.
60Q: Personal development and employment plans
1: The chief executive may, from time to time, require a person to whom this section applies—
a: to attend and participate in 1 or more interviews with the chief executive for the purpose of identifying the matters referred to in subsection (2) paragraph (b), paragraph (c), or paragraph (d) of this subsection
b: to develop, in co-operation and with the assistance of the chief executive, a personal development and employment plan for the person based on the matters referred to in subsection (2)
c: to co-operate with the chief executive in the conduct of an annual review of the person's personal development and employment plan:
d: to develop, in co-operation with and with the assistance of the chief executive, a new plan for the person, if the chief executive considers that, because of a substantial change to the person's circumstances, the person's existing plan is inappropriate and the person requires a new plan.
2: The matters referred to in subsection (1)
a: any features of the person's individual circumstances or parenting responsibilities that may affect the ability of the person to obtain employment; and
b: any specific constraints arising from those circumstances or responsibilities that the person may have in obtaining and sustaining employment; and
c: any practical assistance the person requires to enable the person to support himself or herself through employment; and
d: the person's skills and experience (including those developed through unpaid work) that are relevant to facilitating the most effective path to enable the person to obtain employment.
3: For the purposes of this section and sections 60R to 60Z
a: a person who is required to develop a personal development and employment plan does not complete his or her development of the plan unless the person signs it:
b: a document developed by any person as his or her personal development and employment plan is not a plan unless he or she signs it:
c: a personal development and employment plan developed in accordance with section 60W(3) or section 60Y(4)﻿(b) subsection (1)﻿(d)
4: A personal development and employment plan does not create any rights or obligations that are enforceable in a court or tribunal.
5: Nothing in subsection (4) section 10A or sections 12J to 12R
6: This section applies to a person who is the recipient of—
a: a benefit under section 21
b: a benefit under section 27B
c: a benefit under 27C (the domestic purposes benefit for women alone).
60R: Developing and reviewing personal development and employment plans
1: A personal development and employment plan should be—
a: developed by the beneficiary with the assistance of the chief executive:
b: a plan that is acceptable to the beneficiary and that the beneficiary is willing to sign.
2: If, despite reasonable efforts by the chief executive, the beneficiary does not co-operate in the prompt development of a personal development and employment plan or does not sign it, the chief executive may conclude that the beneficiary has failed to comply with a requirement under section 60Q(1)
3: At any time after a personal development and employment plan is signed, a beneficiary or, if the beneficiary agrees, the chief executive, may ask for a review of the plan, but, until a review is completed, the beneficiary must demonstrate commitment to the plan in its current form.
4: If a beneficiary asks for, or agrees to, a review of the beneficiary's personal development and employment plan,—
a: the beneficiary, in co-operation with and with the assistance of the chief executive, must review the plan as soon as practicable; and
b: the beneficiary—
i: may confirm the plan by signing it; or
ii: may amend the plan by signing a revised version of it that includes the amendments.
60S: Beneficiary must demonstrate commitment to personal development and employment plan at annual review
1: This section applies to a beneficiary who has signed a personal development and employment plan developed in accordance with a request under 60Q(1).
2: The chief executive must review the personal development and employment plan annually with the beneficiary.
3: If the plan has been amended or replaced by a new plan, the chief executive must review that amended or new plan when the chief executive would have reviewed the original plan under subsection (2)
4: At the annual review of the personal development and employment plan, the chief executive may require the beneficiary to demonstrate that, during the period under review, the beneficiary has had a commitment to the goals set out in that plan and in any other plan in effect during that period.
5: The chief executive determines whether a beneficiary has demonstrated a commitment to achieving the goals set out in a personal development and employment plan during any period by considering the overall response of the beneficiary to those goals and to the action plan included in the plan, having regard to,—
a: the extent to which the beneficiary has—
i: undertaken the activities set out in that plan; or
ii: undertaken any other activities relevant to the goals set out in that plan; and
b: if the beneficiary has failed to undertake any or all of the activities set out in the plan, whether those activities were realistically achieveable during the period under consideration.
6: The annual review of each personal development and employment plan required by this section must be undertaken,—
a: in the case of the first review, within a period beginning not less than 8 months and ending not more than 19 months after the date on which the plan, or, if the original plan has been amended or replaced, the original plan, was signed:
b: in the case of each subsequent review, within a period beginning 8 weeks before and ending 4 weeks after the anniversary of the first review.
60T: Department must explain rights and obligations in relation to personal development and employment plans
The chief executive must take reasonable and appropriate steps to make every beneficiary aware, before the beneficiary signs a personal development and employment plan, of—
a: the beneficiary's obligations that arise from payment of a benefit and the beneficiary's right to assistance to develop or review a plan; and
b: the effect and consequences of signing a plan; and
c: the consequences of failure to comply with a requirement under section 60Q(1) section 60Y
d: the beneficiary's right under section 60R(3)
e: the beneficiary's right under sections 10A and 12J
60U: Failure to comply with personal development and employment plan obligations
1: The chief executive must impose the sanctions set out in section 60Y
a: failed to comply with a requirement under section 60Q(1)
b: failed to demonstrate commitment to the goals in the beneficiary's personal development and employment plan.
2: Before determining that there is a failure by the beneficiary and that the failure is a failure without good and sufficient reason, the chief executive must—
a: review the beneficiary's personal development and employment plan (if the beneficiary has one) to determine whether it is appropriate; and
b: apply the procedure in section 60V
3: For the purposes of this section and sections 60V and 60W
a: the undertaking by the beneficiary of any activities set out in the plan was dependent on the department taking any action or providing any assistance specified in the plan; and
b: the department did not take that action or supply that assistance, or did not do so to the extent or in the manner specified in the plan.
4: Subsection (3)
60V: Procedure for determining whether failure is without good and sufficient reason
1: This section applies if the chief executive is considering whether sanctions must be imposed on a beneficiary under section 60Y
2: If this section applies, the chief executive must set a review period of 30 working days during which the chief executive must give the beneficiary (and any support person of the beneficiary's choice) an opportunity to meet with the chief executive.
3: The purposes of the meeting and review period under subsection (2)
a: to ascertain whether there is a failure by the beneficiary and, if so, the reasons for the beneficiary's failure, and whether those reasons are good and sufficient reasons:
b: in the case of a failure to comply with a requirement under section 60Q(1)
c: in the case of a failure to demonstrate commitment to the goals set out in the beneficiary's personal development and employment plan, to give the beneficiary the opportunity to co-operate in developing a new plan within that period.
60W: Failure without good and sufficient reasons
1: If, during the review period set under section 60V(2)
a: in the case of a beneficiary who has failed to comply with a requirement under section 60Q(1)
b: in the case of a beneficiary who has failed to demonstrate commitment to the goals in the beneficiary's personal development and employment plan, require the beneficiary to undertake to the satisfaction of the chief executive, within a further period of 20 working days, a specified activity that the chief executive considers suitable.
2: If the beneficiary does not comply with a requirement under subsection (1)﻿(a) section 60Q(1)
3: If the beneficiary does not comply with a requirement under subsection (1)﻿(b)
4: In this section, specified activity
a: means—
i: an activity in the beneficiary's current personal development and employment plan; or
ii: a pre-employment activity (being an activity designed to prepare a person for employment); but
b: does not include any activity that requires the beneficiary to seek employment or undertake any work.
60X: Procedure for imposing sanctions
1: This section applies if a sanction is to be imposed on a beneficiary under section 60Y
2: If this section applies, the chief executive must not reduce a benefit payable to a beneficiary unless the chief executive has first given the beneficiary written notice—
a: stating that the beneficiary has failed to comply with a specified obligation under this Act; and
b: specifying the nature of that failure; and
c: stating that, because of that failure, the chief executive is reducing the benefit payable to the beneficiary; and
d: specifying a date on which the reduction is to take effect, and the nature and duration of the reduction; and
e: stating that the beneficiary has 10 working days from the giving of the notice to dispute the reduction; and
f: advising the beneficiary to contact the department if the beneficiary wants to dispute or discuss the decision to reduce the benefit; and
g: containing a clear statement of the beneficiary's right, under section 10A
3: Section 114
60Y: Sanctions for failure to comply with obligations in relation to personal development and employment plan
1: The sanctions that the chief executive must apply in respect of a failure under section 60U
a: the person's benefit must be reduced by 20% until the person complies; and
b: if, after 4 weeks from the date on which the reduction under paragraph (a)
2: A reduction under subsection (1)
3: The reduction of the benefit must not take effect before the close of the 10 working days specified in the notice under section 60X(2)﻿(e)
4: For the purposes of this section and section 60Z complies
a: remedies the relevant failure; or
b: if the person has been required to undertake an activity specified by the chief executive, undertakes that activity to the satisfaction of the chief executive, or develops a new personal development and employment plan.
5: This section is subject to section 60Z
60Z: Effect of compliance or agreement to comply
1: If a person complies, the reduction applied to the person's benefit ceases and the person is entitled to be paid the benefit at the rate otherwise payable on and after the date that the person's benefit was first reduced under section 60Y
2: Subject to subsection (4) subsection (4)﻿(a) section 60Y
3: The chief executive must give to every person to whom subsection (2)
a: confirms the agreement under subsection (2)
b: states the period for compliance set under sub- section (2) section 114
4: If a person who has agreed to comply fails to do so within the period set under subsection (2)
a: the chief executive must apply the sanctions set out in section 60Y(1)
i: if the person's benefit was subject to a reduction of 20% under section 60Y(1)﻿(a) subsection (2) section 60Y(1)﻿(a) section 60Y(1)﻿(b)
ii: if the person's benefit was subject to a reduction of 50% under section 60Y(1)﻿(b) subsection (2) section 60Y(1)﻿(b)
b: the chief executive is not required to comply with sections 60V to 60X section 60Y(3)
12: Interpretation
Section 61E(1) cash assets cash assets
a: means—
i: money saved, invested, or banked with a bank or other institution:
ii: money invested in securities, bonds, or debentures, or advanced on mortgage:
iii: money invested in shares in a partnership or limited liability company or other incorporated or unincorporated body; but
b: does not include any specified item or amount of cash assets, or cash assets of a specified kind, that is declared not to be cash assets for the purposes of this Act by regulations made under section 132
13: Mode of ascertaining annual income for benefit purposes
1: The heading to section 64 annual
2: Section 64(2A)
a: by omitting the words the beneficiary a person
b: by omitting the word beneficiary's person's
3: Section 64 subsection (2A)
2B: For the purposes of determining a person's weekly income under subsection (2A)
a: the extent to which it was earned in that period or those periods; or
b: the extent to which any other entitlement to it arose in, or in respect of, that period or those periods; or
c: the period or periods for which it was otherwise received, acquired, paid, provided, or supplied.
14: Effect of absence of beneficiary from New Zealand
Section 77 subsections (2) (3) or a widow's benefit or domestic purposes benefit
15: Commencement of benefits
1: Section 80(2)﻿(b) a domestic purposes benefit under section 27G of this Act a widow's benefit, a domestic purposes benefit
2: Section 80 subsection (4)
4: If the applicant is subject to a non-entitlement period,—
a: a work-tested benefit granted conditionally under section 123B section 80BA
i: the applicant is subject to the non-entitlement period because of the application of section 60H
ii: that section applies to the applicant because he or she is a person described in section 60H(2)﻿(a)
b: any other work-tested benefit commences on the later of—
i: the date the applicant became entitled to receive it; or
ii: the date the application for it was received.
16: Delayed redundancy and retirement payments
Section 80BB(4) 86(1A) 86(1)
17: Seasonal workers made redundant after benefit commences
Section 80BC(2) 86(1A) 86(1)
18: Ending of benefits
Section 80BD(5)
a: repealing paragraph (a)
b: omitting from paragraph (b) other
19: Payment of benefits
Section 82(6) 86(1D) 86(1)
20: Apportionment of benefit between spouses
Section 83(2) section 15(2) of this Act section 12(2) of the New Zealand Superannuation Act 2001
21: New section 85A inserted
The principal Act is amended by inserting, before section 86
85A: Payments that are debts due to the Crown
The following payments or other sums are debts due to the Crown:
a: any penalty payable under this Act:
b: any benefit paid conditionally or provisionally under this Act that a person has become liable to repay (by direction of the chief executive or otherwise):
c: any advance payment of a benefit made to a person under section 82(6)
d: any money paid to or for the credit of a person as a grant of special assistance under a welfare programme approved under section 124(1)﻿(d)
i: paid as a recoverable grant of assistance; or
ii: otherwise recoverable from that person under the terms and conditions of the programme:
e: any amount described by this Act as a debt due to the Crown from the person:
f: a sum (an overpayment
i: that is in excess of the amount to which the person is entitled; or
ii: to which the person has no entitlement.
22: Recovery of payments made in excess of authorised rates
1: Section 86 subsections (1) to (1D)
1: The chief executive, in order to recover a debt referred to in section 85A
a: bring proceedings in the name of the chief executive; or
b: deduct all or part of that debt from any amount payable to that person by the department as a benefit or a student allowance; or
c: in the case of a debt referred to in section 85A(d) section 124(1)﻿(d)
1A: Subsection (1) subsections (9A) and (9B) section 132G
1B: Nothing in section 94B of the Judicature Act 1908 subsection (1)
2: Section 86(1E) any of subsections (1) to (1D) subsection (1)
3: Section 86(2) any of subsections (1) to (1C) of this section section 85A
4: Section 86 subsection (9A)
9A: The chief executive may not recover any sum comprising that part of a debt that was caused wholly or partly by an error to which the debtor did not intentionally contribute if—
a: the debtor—
i: received that sum in good faith; and
ii: changed his or her position in the belief that he or she was entitled to that sum and would not have to pay or repay that sum to the chief executive; and
b: it would be inequitable in all the circumstances, including the debtor's financial circumstances, to permit recovery.
9B: In subsection (9A) error
a: means—
i: the provision of incorrect information by an officer of the department:
ii: any erroneous act or omission of an officer of the department that occurs during an investigation under section 12
iii: any other erroneous act or omission of an officer of the department; but
b: does not include the simple act of making a payment to which the recipient is not entitled if that act is not caused, wholly or partly, by any erroneous act or omission of an officer of the department.
23: Recovery of payments made in excess of authorised rates
1: Subsection (2)
2: Section 86 section 22(2) subsections (1E) (1F)
24: Application and obligations of work test
Section 102(6) paragraph (a)
aa: in the case of a person granted an independent youth benefit (other than a person who is enrolled in a course of secondary instruction), on the same days as are included in the person's working week under section 60GAA
25: Section 104 repealed
Section 104
26: Effect of participation in certain activities on non-entitlement period
Section 123B(7) 86(1A) 86(1)
27: Application of Health and Safety in Employment Act 1992 and Human Rights Act 1993
Section 123C subsection (1)
1: In this section, person A
a: who, in accordance with his or her job seeker agreement or under section 122 or section 123B
b: who is a beneficiary and, in accordance with a personal development and employment plan or otherwise, is doing work as part of an employment-related activity arranged by the department.
28: New section 132AA inserted
The principal Act is amended by inserting, after section 132
132AA: Regulations exempting items from treatment as income or cash assets may have retrospective effect
1: This section applies to regulations made under section 132
a: declare items or amounts of income or income from a specified source not to be income; or
b: declare items of cash assets or cash assets of a specified kind not to be cash assets.
2: Any regulations to which this section applies have effect in respect of any income or cash assets specified in the regulations on and after any date specified in the regulations (which may be a date before, on, or after the date on which the regulations are made).
29: New section 132G inserted
The principal Act is amended by inserting, after section 132F
132G: Regulations providing for remittance or suspension of debt
1: The Governor-General may, from time to time, by Order in Council, make regulations requiring or permitting—
a: the recovery of amounts recoverable under section 86(1) to (1B) and (3) to (5)
b: those amounts to be remitted.
2: Regulations under subsection (1)
a: of a particular kind or from persons of a particular kind:
b: of a particular value (which may differ between persons of a particular kind):
c: in the case of suspension, for periods that may differ for amounts of a particular kind or value, or between persons of a particular kind.
3: Regulations may not be made under subsection (1)
a: prevent accumulation of debt by any category of beneficiary and assist those beneficiaries to reduce their levels of debt while on a benefit; or
b: assist any category of beneficiary to move from dependence on a benefit to self-support through employment by ensuring that those beneficiaries do not face increasing benefit debt repayments when they enter the workforce; or
c: provide a positive incentive for beneficiaries to enter employment or stay in employment; or
d: achieve more than 1 of the objectives set out in paragraphs (a) to (c)
4: This section does not limit the power to make regulations conferred by section 132
30: New Schedules 3 and 16 substituted
The principal Act is amended by repealing Schedules 3 16 Schedules 3 16
3: Transitional provisions, amendments affecting principal Act, and consequential amendments to other enactments
Transitional provisions
31: Transitional provisions relating to review of decisions
No application for a review made under section 10A section 5 section 10A(1) section 5
32: Transitional provisions for cessation of work testing for certain benefits
1: Subsection (2) section 27G
2: On the date that this section comes into force,—
a: a person to whom this subsection applies—
i: ceases to be subject to the work test or, as the case requires, the obligation to comply with section 60HA
ii: ceases to be subject to any sanctions to which the person was subject under section 117
b: a benefit granted to a person to whom this subsection applies,—
i: if granted to the person under section 60H(6)﻿(b)
ii: if granted to the person under section 123B subsection (4)
3: Subsection (4) section 60H(4)
4: On the date that this section comes into force, a person to whom this subsection applies—
a: ceases to be subject to the non-entitlement period, and that period lapses; and
b: is entitled to be granted the benefit applied for if he or she otherwise qualifies for it.
5: Nothing in subsection (4) section 80BA
33: Transitional provision relating to mode of ascertaining annual income for benefit purposes
1: For the purpose of determining the validity of any determination or purported determination made under section 64(2A) section 13 section 64 section 13
2: Subsection (1)
a: does not apply in respect of any application, appeal, or proceedings of a kind specified in subsection (3) section 64(2A)
b: does not affect the rights of any person who made an application to which paragraph (a) paragraph (a)
i: any decision, or any judgment of a court, in relation to that application or appeal or those proceedings, as the case may be; or
ii: any decision or judgment given on appeal from that decision or judgment.
3: Subsection (2)﻿(a)
a: an application for review under section 10A
b: an appeal under section 12J 12Q 12R
c: any other proceedings.
34: Transitional provision relating to reviewing of payments made in excess of authorised rates
1: Subsection (2) section 86(1) to (1D)
2: Section 86(9A) section 22 section 22
3: This section overrides section 35
35: Transitional provision relating to recovery of debt
If, immediately before the commencement of this section, any amount is recoverable from any person under any of section 86(1) to (1D) section 22
a: that amount continues to be recoverable under section 86(1) section 22(1)
b: any proceedings taken in respect of its recovery before the commencement of this section continue as if brought under section 86(1)﻿(a) Repeal of amendments to principal Act yet to come into force
36: Amendment to Health and Disability Services (Safety) Act 2001
Schedule 2 Health and Disability Services (Safety) Act 2001 section 69F Social Security Act 1964 Consequential amendments to other enactments
37: Exemption from work test: work-tested spouses, domestic purposes beneficiaries, and widows
1: The heading to regulation 5 Social Security (Exemptions Under Section 105) Regulations 1998 , and domestic purposes beneficiaries, and widows
2: Regulation 5(1) Social Security (Exemption Under Section 105) Regulations 1998 , a work-tested domestic purposes beneficiary, or a work-tested widow's beneficiary