Terminal benefit rate

The provision to continue payment for 28 days following the date of death is referred to as terminal benefit.

Benefit payment is continued at the rate which was payable to the client and partner (if any) at the date of death and includes any extra help being paid (for up to 28 days following the date of death).

If the client's New Zealand Superannuation payment is being paid at a reduced rate when the client dies, the terminal benefit is also paid at the reduced rate.

Payments may have been reduced due to:

• hospitalisation
• income (if a grandparented non-qualifying partner is included or surviving partner gets a main benefit)
• debt repayment
  • if there are benefit arrears due at the date of death attempt to recover the debt payment in full from the final benefit payment
  • do not recover debts, in full, from terminal benefit payments
• Child Support
  • if a client had an information share Child Support payment being charged as income at their date of death, they may have been getting a reduced rate of benefit. The effect of the income charge for the information share Child Support will continue for the duration of the terminal benefit, as the rate payable cannot be reviewed.
  • Child Support liability ends when the liable person dies; however, MSD cannot remove a Child Support deduction from a benefit record without the authorisation of Inland Revenue
  • when a surviving partner or family member makes enquires, refer them to Inland Revenue
• redirection to Kāinga ora or a community housing provider
  When the accommodation is being retained by a surviving partner or family member, continue the redirection to Kāinga Ora or the community housing provider. For more information see: Social housing, Assessment of eligibility Death of a client
• court attachment orders

Note all of the above deductions will continue to be made from the terminal benefit payments unless they are manually stopped before cancellation.