Terminal benefit rate

The provision to continue the benefit 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. A terminal benefit includes extra help being paid (for up to 28 days following the date of death), but does not include family tax credit and Best Start tax credit payments.

Family tax credit and Best Start tax credit payments do not form part of terminal benefit.

If the deceased client was getting these payments and there is a surviving partner, transfer family tax credit and Best Start tax credit payments to the partner.

When the client's benefit was paid at a reduced rate at the date of death, the terminal benefit is also paid at the reduced rate.

Benefit payments may have been reduced due to:

• hospitalisation
  The deceased client's benefit was reduced as they were in hospital for more than 13 weeks.

• income
• debt repayments
  • 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 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 of payment 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.

If the deceased client had Money Management imposed, this must be stopped from the day after they passed away.

The full amount of terminal benefit will be paid to the person that the benefit is payable to.