Direct deductions

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

The Maltese 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 Maltese pension is granted the deduction will be processed by International Services

Details should be sent to International Services with verification of the rate, type of Maltese pension, the grant date and the name of the organisation making the payment.

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

Not all pensions received from an overseas country are deductible. You should contact International Services for advice on the deductibility of overseas pensions before applying the direct deduction.

When it is determined that an overseas pension is not deductible the pension must be treated as income and taken into account for any income tested assistance the client receives.

Note the Special Banking Option is not available for Maltese pensions.

International Services must be advised of all clients who are receiving a Maltese pension.

International Services is responsible for ensuring that a New Zealand benefit or pension is reviewed as required where a Maltese pension is granted or where changes to the rate of a Maltese pension occur.

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