Overseas pensions, and direct deductions

"There is a form of elder abuse no-one in Parliament wants to acknowledge," claims Democrats for Social Credit Party (DSC) Advocate for Seniors, Heather Marion Smith. "It is the outright theft by the MSD (Ministry of Social Development) of millions of dollars from overseas pension funds, resulting in shameful discrimination against thousands who have chosen to reside in our country".

A letter from the DSC to the Minister, the Hon. Anne Tolley, urges her to rectify the injustices perpetrated by her department which misinterprets Section 70 of the 1964 Social Security Act. This Act specifies that "only overseas pensions similar to New Zealand Super should be deducted”, i.e. from our universal state superannuation. But, of the 84,000 overseas pension schemes involved, most are occupation-linked contributory schemes, even if administered by state agencies.

The argument that deducting remuneration from such schemes saves our Government around $350 million a year is ludicrous. That sum barely pays one month's interest on Government debt. Ms Smith noted that the Government could save a dozen times that amount if it used its legal powers to borrow interest-free from New Zealand’s sovereign Reserve Bank.

“Politicians need reminding that remuneration from the former Government Superannuation Scheme, paid into by public servants, is not deducted from universal superannuation entitlements - nor are the generous state-funded pensions paid to retiring Members of Parliament.”

The Democrats for Social Credit Party points to the anxiety, bureaucratic harassment, and loss of income suffered by aggrieved pensioners.

"We not only demand the necessary administrative reforms, but also that the stolen moneys be reimbursed. We know that is financially possible, given the political will to do it. Meantime, KiwiSavers should be warned as to what could happen to their savings if policies are not changed.”

ENDS

© Scoop Media