IN-CONFIDENCE

14 June 2022

Jason Wu
[FYI request #19399 email]

Tēnā koe Jason Wu

On 19 May 2022, you emailed the Ministry of Social Development (the Ministry)
requesting, under the Official Information Act 1982  (the Act), the following
information:
•  Please provide the current clients' number of individual Taiwanese
pensions subject to direct deduction from NZ superannuation. The
required pensions are National Old Age Pension (National Pension),
Labor Old Age Pension, Civil Service Retirement Pension, and Military
Pension.
•  Please provide the client's number of individual pensions for these four
schemes.
Sections 187-191 of the Social Security Act 2018 (formerly section 70 of the
Social Security Act 1964) provide that where a person receives an Overseas
Pension (OSP) that is administered by or on behalf of the government of the
overseas country paying the pension, that person’s New Zealand
Superannuation (NZS) will be reduced by the amount of the OSP, as calculated
in accordance with regulations.
The policy intent of sections 187-191 of the Social Security Act 2018 is to
ensure that those entitled to NZS or other Main Benefits are treated equitably
and get the same level of government retirement support, whether solely
through NZS, or through a combination of OSP and NZS, or solely through the
OSP.
In some situations, it is possible for a person to receive a total rate of OSP that
is higher than their  rate of NZS. Where a direct deduction is applied which
reduces a person’s rate of NZS to zero, there is no penalty applied for any
excess OSP they receive.
For more information about the Government’s deduction policy, please see
the following link: www.workandincome.govt.nz/pensions/travelling-or-
moving/moving-to-nz/overseas-pensions-deduction-examples.html.

IN-CONFIDENCE

In response to question one of your request please see the table below:
Table: Number of Taiwanese pension deductions and amount to NZS
clients as at 31 March 2022.
Annualised
Amount
Country
Number of Clients
as at 31 March
2022
Taiwan
603
$2,407,629.84

Notes:
•  Only clients who receive New Zealand Superannuation have been
included in this report.

•  The country stated is where the Overseas Pension has been paid from.
•  The annualised amount is in New Zealand dollars. It is an approximation
of the annual value of overseas pensions based on amounts and
exchange rates as at time of report.

•  Figures are current as at the time of reporting. However, theses may be
subject to change due to new historical information being recorded by
the Ministry.

•  Post-June 2016 numbers and deductions are calculated using an
improved methodology which excludes some Overseas Pension records
that are in the system but not deducted from the recipients New Zealand
Superannuation.

Regarding the second part of your request, the Ministry’s centralised reporting
does not differentiate between different types of deductible Taiwanese
pensions. This information is held on individual client files. To provide you with
this information, Ministry staff would have to manually review a substantial
number of files. As such, I refuse your request under section 18(f) of the Act.
The greater public interest is in the effective and efficient administration of the
public service.
I have considered whether the Ministry would be able to respond to your
request given extra time, or the ability to charge for the information requested.
I  have  concluded  that,  in  either  case,  the  Ministry’s  ability  to  undertake  its
work would still be prejudiced.
The principles and purposes of the Official Information Act 1982 under which
you made your request are:
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IN-CONFIDENCE

•  to create greater openness and transparency about the plans, work and
activities of the Government,
•  to  increase  the  ability  of  the  public  to  participate  in  the  making  and
administration of our laws and policies and
•  to lead to greater accountability in the conduct of public affairs.
This Ministry fully supports those principles and purposes. The Ministry
therefore  intends  to  make  the  information  contained  in  this  letter  and  any
attached documents available to the wider public. The Ministry will do this by
publishing this letter on the Ministry’s website. Your personal details will be
deleted, and the Ministry will not publish any information that would identify
you as the person who requested the information.
If you wish to discuss this response with us, please feel free to contact
[MSD request email].
If  you  are  not  satisfied  with  this  response,  you  have  the  right  to  seek  an
investigation and review by the Ombudsman. Information about how to make
a complaint is available at www.ombudsman.parliament.nz or 0800 802 602.
Ngā mihi nui
Bridget Saunders
Manager, Issue Resolution
Service Delivery
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