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 supplementary assistance (for up to 28 days following the date of death).
Payments at a reduced rate
When the client's Veterans Pension payment is paid at a reduced rate at the date of death, the terminal benefit is also paid at the reduced rate.
Payments may have been reduced due to:
- hospitalisation (only paid to the partner of a veteran, if the veteran had a war disablement below the threshold)
- income (only if a grandparented non-qualified partner is included or surviving partner is getting a main benefit)
- debt offsets
- when 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 the final 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 enquiries, refer them to Inland Revenue
- court attachment orders
- 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. See: Social housing, Assessment of eligibility Death of a client
Note all of the above deductions will continue to be made from the terminal benefit payments unless they are manually stopped before cancellation.
Changes to benefit rate payable
Rates of main benefits being paid as part of terminal benefit are adjusted to reflect changes in the rate payable arising from legislative amendments, such as the Annual General Adjustment of benefit rates on 1 April each year.
For more information see:
Legislation
- After death of beneficiary receiving specified benefit section 326 Social Security Act 2018
- Terminal benefit Schedule 3, Part 3A, clause 15H Social Security Act 2018
