Direct deductions

In general, when a client is living in New Zealand and receiving a Danish state pension it will be directly deducted from their New Zealand benefit or pension. The amount to deduct is the rate of the benefit or pension after any deduction of tax in Denmark but before the deduction of any New Zealand tax.

The Danish 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, including Accommodation Supplement

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

Contact International Services with verification of the rate, type of Danish pension, the grant date and the name of the organisation making the payment.

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

If you are unsure whether an overseas pension is deductible or not, contact International Services for advice.

When MSD matches a client's information with information from Denmark, 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.