retirement.org.nz

Of the approximately half a million New Zealanders over the age of 65, around 51,000 are entitled to at least two public pensions: one from New Zealand, and at least one other from abroad. This means that around 10% of superannuitants are subject to the direct deduction policy as set out in section 70 of the Social Security Act 1964. Section 70 mandates a dollar-for-dollar abatement of New Zealand Superannuation entitlements against a superannuitant’s, or the spouse’s, overseas entitlement. This treatment has been increasingly perceived as out of step with the times and inequitable by the individuals affected. This working paper reviews the origins of the direct deduction policy, its rationale and its impact on those receiving one or more pensions from overseas.  December 2007.
 

Attachment
Passing the Buck - The impact of the direct deduction policy on recipients of overseas pension bene.pdf