Government occupational pensions

Government occupational pensions are private pension plans for former government employees or those who have had a period of Government service.

Government occupational pensions are

• paid in addition to any pension or benefit paid through the public system and
• generally charged as income for benefit and pension purposes

When a client is getting an overseas pension which they claim is a government occupational pension it is important to obtain further information. This will help you decide whether the payments can be treated as a government occupational pension.

You will need to find out the following:

• a general summary of the paying country's pension system and
• whether the pension is paid in addition to benefits and pensions available to the general population

or

• whether it is offered as an alternative to the public system

If the pension is paid as an alternative to benefits and pensions paid through the public system then it is generally not a government occupational pension. That is, the client can't get benefits or pensions through both schemes.

This pension would be treated as a direct deduction from the New Zealand benefit or pension.

The pensions have to be 'similar', start at the same times (eg the same age or at retirement), and the amount payable is not hugely different.

• Charging income at commencement in relevant Main benefits
• Couples getting overseas pensions

For more assistance contact International services