Effect of imprisonment on grandparented clients

Grandparented non-qualified couples may no longer qualify for the grandparented non-qualified partner rate when either the client or partner is:

• in prison
• in custody on remand or
• an escapee from custody

There is discretion to continue New Zealand Superannuation for the 2 instalments following imprisonment.

Further ongoing payments for the period of imprisonment are also discretionary.

The decision guidelines - married, civil union or de facto clients should be used to decide whether the qualified partners payments continue for the period of imprisonment.

If payments will not continue during the period of imprisonment, the grandparented non-qualified partner rate will end, and the qualifying partner will not be able to include a non-qualified partner again. The grandparented non-qualified partner will need to apply for a main benefit.

Use the decision guidelines - married, civil union or de facto clients to decide whether the grandparented non-qualified partners payments continue for the period of imprisonment. If payments continue to the grandparented non-qualified partner or the full amount is paid to the partner not in prison, the grandparented non-qualified partner rate continues.

If payments to the grandparented non-qualified partner stop, the grandparented non-qualified partner rate can only be paid again on release if the qualifying partner:

• continues to qualify for New Zealand Superannuation for the period of imprisonment and
• wants to continue getting the grandparented non-qualified partner rate

When payments stop for the grandparented non-qualified partner, the qualified partner's payments continue at the same rate paid before their partner's imprisonment. The qualified partner can decide to cancel the grandparented non-qualified partner rate at any time.

The qualified partner may qualify for the single sharing or single living alone rate of New Zealand Superannuation while their grand-parented non-qualified partner is in prison. This must be considered separately based on the client's full circumstances, eg the partner may not intend resuming the relationship when their partner leaves prison, or may end the relationship due to the imprisonment.

Note the client should be informed that they will not be eligible for the non-qualified partner rate in the future if they cancel the grandparented non-qualified partner rate, eg because they are treated as single.