Direct deductions

When a client is receiving a Canadian pension or other payment, the gross amount is directly deducted from their New Zealand benefit.

The Canadian pension is deducted from:

• the gross rate of New Zealand Superannuation or Veterans Pension and
• the net rate of any other New Zealand benefit (including Accommodation Supplement)
• if the Canadian 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

When a client is already getting a New Zealand benefit or pension at the time the Canadian pension is granted the deduction will be processed by International Services.

Written verification should be provided to International Services including the:

• verification of the rate
• frequency and type of Canadian pension
• grant date and
• name of the organisation making the payment.

If the client is already getting a Canadian pension at the time a New Zealand benefit or pension is being granted the direct deduction can be added using the SWIFTT process.

When MSD matches a client's information with information from Canada, MSD must send a written notice of adverse action to the client.

A notice of adverse action is only required upon receipt of the first information match.