Exemptions from section 70 deduction of overseas pensions from NZS

Barnaby Perkins made this Official Information request to Ministry of Social Development

Response to this request is long overdue. By law Ministry of Social Development should have responded by now (details and exceptions). The requester can complain to the Ombudsman.

From: Barnaby Perkins

Dear Ministry of Social Development,

Can you please tell me if Chinese super annuitants resident in New Zealand are subject to section 70 deductions from NZS in respect of their Chinese state pensions.

If they are not can you please explain why?

Yours faithfully,

Barnaby Perkins

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Jan McKeogh left an annotation ()

I agree whole heartedly Barnaby with your request. It is only right that we who are suffering some form of discrimination in the way Section 70 is applied to us from certain nationalities, seek an answer.
There are some countries ( namely China), who are exempt from being penalised in terms of having their China pensions deducted from their NZS.
MSD you have to answer this .

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From: Barnaby Perkins

Dear Ministry of Social Development,

By law my request (Exemptions from section 70 deduction of overseas pensions from NZS)
Should have been responded to by November 12, 2015.

Can you please advise me of the reason or reasons for delay.

Yours faithfully,

Barnaby Perkins

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From: OIA_Requests (MSD)
Ministry of Social Development

Dear Mr Perkins

We apologise for the delay in responding to your request.

The NZ Government does not have an agreement with the Chinese Government to apply section 70 deductions from NZ Superannuation in respect of Chinese super annuitants' resident in New Zealand who are in receipt of a Chinese pension.

Regards,

Official and Parliamentary Information Team
Ministry of Social Development

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Robert Latimer left an annotation ()

Once again MSD employees make up fictitious answers to justify their position. Read section 70! The NZ Government does not need the Chinese Government's approval to deduct Chinese State Pensions from NZ Super. The MSD just chooses not to, presumably because of some political pressure while NZ is trying to negotiate a trade agreement with China.

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From: Barnaby Perkins

Dear OIA_Requests (MSD),

In response to your recent answer:

Can you please tell me where is it specified in the Social Security Act that the overseas government's permission is required before overseas pensions can be deducted from New Zealand Superannuation?

Yours sincerely,

Barnaby Perkins

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Robert Newcombe left an annotation ()

Isn't this politicized racial discrimination when the law regarding overseas pensions is applied differently to those receiving Chinese pensions than those receiving pensions from America, Europe and the rest of the world?
The MSD, see below, has confirmed to me that no agreement for abating pensions under Section 70 is required so is this favourable treatment of Chinese pension holders a political decision from the government?.

-------- Original message --------
From: "International_Services (MSD)"
Date:19/11/2015 07:59 (GMT+12:00)
To: 'Bob & Jan'
Subject: RE: Section 70 deducting overseas pensions.
Dear Bob Newcombe
Section 70 of the Social Security Act 1964 (SSA) does not require that New Zealand have an agreement with a country in order for its pensions or benefits to meet the criteria of direct deductibility.
In a lay sense, the criteria for whether an overseas pension is directly deductible from New Zealand Superannuation or a benefit is as follows:
• the overseas benefit or pension is administered by or on behalf of the government from which the overseas pension or benefit is received; and
• the overseas benefit or pension is paid for a reason the New Zealand government does or could make a payment for under certain sections of legislation
If you have any questions or need help, please do not hesitate to contact us as we are happy to assist you. You can call us during weekdays between 8am and 5pm:

Kind regards,
Liam Oliver

Customer Service Officer, Senior Services International, Ministry of Social Development
Toll free: 0800 777 227 | Fax: 04 918 0159 | From Australia: 1800 150 479 | Other countries: +64 4 978 1180 | Email: international.services@msd.govt.nz

From: Bob & Jan [mailto:bjnewcombe@ihug.co.nz]
Sent: Wednesday, 18 November 2015 3:54 p.m.
To: International_Services (MSD)
Subject: Section 70 deducting overseas pensions.

Hi,
In the RPRC report Passing the Buck a review into the effects of Section 70 on overseas govt pensions, it states that pensions from non agreement countries can also be abated against NZS, is this still correct
For example does New Zealand have an agreement with Germany whereby it needs Germany permission to abate its pensions.
Are there any other countries in this category?
Regards
Bob Newcombe

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