Grandparented clients on New Zealand Superannuation or Veterans Pension

Before 5 January 2010, clients who were receiving New Zealand Superannuation or Veteran's Pension while residing in a non-agreement country or in a Pacific country not covered by the Special Portability Arrangement were only paid 50% of their gross entitlement.

The new rules allow clients receiving the 50% flat rate to have a higher of either their payments based on their New Zealand residence between the ages of 20 and 65 or the 50% flat rate.

This means that:

• clients who resided in New Zealand for less than 270 months can choose to remain on the 50% rate because they would be entitled to less under the new rules
• clients who resided in New Zealand for more than 270 months and would therefore be entitled to more than 50% can receive the higher rate

Note overseas pensions are only deducted from grandparented rates. Only clients who are receiving a grandparented General Portability rate should have overseas pensions deducted.

To be eligible for the grandparented rate clients must have been receiving New Zealand Superannuation or Veteran's Pension or entitled to New Zealand Superannuation or Veterans Pension in their own right (not by virtue of a reciprocal social security agreement or as a grandparented non-qualified partner) before they leave New Zealand and must:

• be intending to reside in an overseas country for more than 26 weeks
• be ordinarily resident and present in New Zealand on the date they apply for payment overseas
• not be going to live in a country with which New Zealand has a social security agreement
• have made an application for payment overseas before 5 January 2010 and
• be receiving New Zealand Superannuation or Veteran's Pension overseas at the 50% rate in a non-Agreement country before 5 January 2010