Overseas pensions

Most countries have social security legislation that provides pensions for old age, disability, or death of a spouse.

A client getting an overseas pension will have their pension directly deducted from their New Zealand benefit or pension if that overseas pension is:

• part of a programme that provides benefits, pensions and periodical allowances for the same circumstances for which a New Zealand benefit or pension would be made and
• administered by or on behalf of the government of the overseas country. Overseas pensions are treated as income for other income tested assistance.

Note the portion of an overseas pension that comes from voluntary contributions to a country's pension scheme is not deducted from New Zealand Superannuation, Veteran's Pension or other benefits.

Overseas pensions are treated as income for other income tested assistance.

You need to be aware:

• in most instances the amount to deduct is the gross (before tax) amount converted to New Zealand dollars
• when a client is getting a pension from a country that has a Reciprocal Agreement with New Zealand you need to check the agreement of that country as special provisions may apply (eg Netherlands and Denmark have specific provisions)
• overseas pensions are directly deducted from all benefits types, including New Zealand Superannuation, Veteran's Pension and Accommodation Supplement
• when the overseas pension is more than the main benefit rate, the amount over the main benefit rate is also directly deducted from any Accommodation Supplement the client or partner is getting
• 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 from any other New Zealand benefit
• if the client has a partner the deduction is applied differently depending on whether:
  • both partners are getting a New Zealand benefit or pension in their own right or
  • one partner was included as a non-qualified partner (before 9 November 2020) or
  • only one client is getting a New Zealand benefit or pension, see: Couples getting overseas pensions
  • the couple are getting a main benefit
• some overseas pensions, or parts of these pensions, are not counted in the assessment of any benefit paid in New Zealand, and some are charged as income
• if the client has entitlement to an overseas pension but has not claimed it, this can also affect their New Zealand benefit or pension, see: Possible overseas pension entitlement

International Services must be told of all clients who are getting an overseas benefit or pension as it is their responsibility to carry out New Zealand benefit or pension reviews when the overseas benefit or pension deduction needs up-dating or reviewing.

If you are unsure whether all, or part of the overseas pension should be directly deducted from the New Zealand benefit or pension, you should contact International Services