Direct deductions of overseas pensions

When a client is eligible to get or is getting any overseas benefit or pension the gross amount is generally directly deducted from their New Zealand benefit.

The overseas benefit or pension is deducted from:

• the gross rate of New Zealand Superannuation or Veterans Pension and
• the net rate of any other New Zealand benefit (eg Accommodation Supplement)
• when an overseas pension is considered to be in the nature of a Disability Allowance, it will be directly deducted from any New Zealand Disability Allowance but not any other New Zealand benefit

Note to calculate the NZ dollar amount you will need to multiply the overseas currency by the exchange rate held on SELXT [no link find out why] . If the client wants you to take into account bank fees you should contact International Services for advice.

For more information see: Couples getting overseas pensions

When a client is already getting a New Zealand benefit or pension at the time the overseas benefit or pension is granted, the deduction will be processed by Senior Services - international.

The following information should be sent to International Services:

• verification of the rate
• type of overseas pension
• the grant date and
• the name of the organisation making the payment. If you are unsure whether an overseas pension is deductible, you should check the direct deduction list and contact International Services for advice
• If the client is already getting an overseas benefit or pension at the time a New Zealand benefit or pension is being granted the direct deduction should be added by International Services

International Services must be advised of all clients who are getting an overseas benefit or pension. International Services will complete all New Zealand benefit or pension reviews when the overseas benefit or pension deduction is being updated or reviewed.

Any other reviews of the client's New Zealand benefit, such as a change of relationship status or a change of chargeable income, should be completed by the Work and Income service centre.