The Truth About Section 70

Since announcing the formation of the New Zealand Seniors Party, the whiners and knockers have definitely come out of the woodwork attacking the Party as 'Double Dipping, greedy old people and winging Poms'. It has to be said there are over 85,000 x-pats from 30 different countries worldwide affected by Section 70 including returning Kiwi’s with overseas pensions...............not just Pom’s.

These people are commenting from a point of ignorance not knowing what Section 70 is all about and are helping to perpetrate the myth spread by the Government that ordinary New Zealanders would be disadvantaged if it was not for Section 70.

Currently anyone immigrating to New Zealand has to be a resident for 5 years to get citizenship and another 10 years to be eligible to receive a FULL New Zealand pension. On face value this looks fine but what about the Kiwi who has worked (usually around 45 years) and lived all their lives in NZ? Answer - they both get the same F ULL NZ pension, so who is being disadvantaged in this situation?

It was Rob Muldoon who offered everyone a FREE pension after 10 years qualifying period to get the National Party re-elected in 1975. Section 70 of the Social Security Act 1964 allows the NZ Government to confiscate overseas pensions regardless if they have an agreement or not. These overseas funds are used to help subsidise the so called FREE New Zealand pension scheme.

MSD administer Section 70 as both judge and jury with no recourse other than through the Human Rights Commissioner and even then nothing is guaranteed. They facilitate hearings at which the complainant cannot take notes or record the proceedings. Both MSD and the Human Rights Commission are government employees and neither can make decisions regarding individual claims.

All the proceedings are held 'in camera' with a threat of a $10,000 fi ne if any of the details of the hearing are released.
These hearings would have to be the most undemocratic held on the planet. No independent arbitrator, the threat of being fined, no record of what is said and no ability to make a binding ruling on the complaint. They are a total waste of TAX PAYER HARD EARNED MONEY.

New Zealand Seniors Party want to establish an even playing field so no one is being disadvantaged. By electing to increase the qualifying period for a FULL New Zealand pension to between 30-35 years with a minimum qualifying period of 10 years (after being granted citizenship). The person would then be eligible for a pro rata pension for time worked - ie 15 years worked = 15/30 (or half) of a full New Zealand Pension.

If this system was adopted, Section 70 would become obsolete and those entitled to an overseas pension (which is already calculated on a pro-rata basis on the number of years paid into) could receive it. If they have also worked and paid tax in NZ for 30-35 years then they would also be entitled to a full New Zealand pension.

All immigrants from overseas countries, after adopting the new qualifying period, would only receive pro rata pensions commensurate to their time worked in New Zealand and not a full pension, as is currently the case after only 10 years. Only after working in NZ for 30-35 years (depending on the period chosen) would they be entitled to a full NZ pension.

A pro-rata system would be the fairest for all concerned and would mean no one sector would be dis-advantaged. If adopted this would bring New Zealand in line with most overseas countries who already have pro-rata pension systems in place. The term 'Double Dippers' as used by Government, would then fade into obscurity once and for all.

ENDS

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