Payment to partners
When a client with a partner (with no dependent children) has their New Zealand Superannuation reduced to the hospital rate, their partner in the community from the same date can:
- get a Special Disability Allowance and
- have their portion of pension increased by the difference between the maximum half married, civil union or de facto rate and the single living alone rate for New Zealand Superannuation and Veteran's Pension partners (including grandparented non-qualified partners) or
- have their portion of benefit increased by the maximum half married, civil union or de facto rate and the single rate for main benefit partners
Note couples with dependent children do not have their rate reduced to the hospital rate.
Partner is also in hospital
If the partner is also in hospital, the same rules apply as when the client is in hospital. If they have been in hospital for more than 13 weeks their benefit or pension is also reduced to the hospital rate.
Note if the partner is receiving Veteran's Pension and is in hospital for more than 13 weeks, their payment must not be reduced to the hospital rate. This is because Veteran's Pension is not affected by hospitalisation. The partner of the Veteran's Pension client cannot have their payments increased or get Special Disability Allowance.
Charging income with a grandparented non-qualified partner included
You need to charge any income the couple gets against the married, civil union or de facto rate before you can determine the amount to pay.
The partner in the community will receive the half married, civil union or de facto rate (after charging income) plus the difference between the maximum married, civil union and de facto rate and single rate.
The client in the hospital will get the lesser of the:
- half married, civil union or de facto rate (after charging income) or
- hospital rate of payment
Charging income with a main benefit partner
You need to charge any income the couple gets against the main benefit using the half abatement rule for that benefit type. The rate paid to the client in hospital will not be affected by any income the couple gets.
For more information see:
Legislation
- Hospital rates of New Zealand superannuation section 19 New Zealand Superannuation and Retirement Income Act 2001
- Special disability allowance: entitlement in special circumstances section 89 Social Security Act 2018
