Parliamentary parties’ responses
NZ Pension Abuse does not support any particular political party. We have approached each party in Parliament to ask that it explain its stance on the direct deduction policy and the problems arising from the government’s current treatment of overseas pensions. Their responses (in alphabetical order) are as follows:
ACT Party
NZ Pension Abuse has received no information to date regarding ACT policy on the treatment of overseas pensions.
The Green Party supports overseas pensions reform.
Co-leader Jeanette Fitzsimons announced in August 2005 the Party's plan to make New Zealand Superannuation fairer and prevent discrimination against those who put money into government-administered pension schemes overseas:
“New Zealand's superannuation system needs urgent amendment to stop some overseas-born New Zealanders being hit in the pocket because they started saving for their retirement in their country of birth.
"Many retired and semi-retired people have worked both in their countries of origin and here in New Zealand.
"There are also New Zealanders by birth who are losing their entitlement to New Zealand Superannuation because they married somebody from overseas who has contributed to a pension scheme there and is now getting payments from that.
"As it stands now, these people are losing dollar for dollar from their NZ Super the amount paid to them from those overseas schemes.
"That's simply not fair. Our policy says that if you have put into a contributory pension scheme overseas, you should not be penalised by having that deducted from what you are entitled to here.
"New Zealanders who saved for their retirement independently are able to receive payments from those schemes and the taxpayer-funded NZ Super; it is not fair to penalise those who did the same overseas.
"We are not saying people should get taxpayer-funded super from both countries, but if someone has put away what are effectively savings in a contributory scheme, they should be able to enjoy the benefits of their foresight.”
Green Party policy states:
“In furthering the principles of sufficiency, simplicity and universality of the income support system, the Green Party will restrict the dollar for dollar abatement regime on overseas pensions to apply only if the overseas pension is paid from overseas government taxation systems analogous to New Zealand benefits; and treat income from contributory overseas pensions schemes no differently from other income for benefit abatement purposes.”
The Labour Party does not support overseas pensions reform.
The Party’s stance on overseas pensions is outlined in a 2007 report (by the then Acting Minister for Social Development and Employment Hon Steve Maharey) arising from the former government’s Review of Treatment of Overseas Pensions. Former Social Development Minister Hon Ruth Dyson announced in June 2008:
“The government has agreed to technical changes to the treatment of overseas pensions which will be implemented as funding and legislative opportunities allow.”
Addressing Grey Power Hutt City in September 2008, former Prime Minister Helen Clark conceded overseas pensions policy had been a "longstanding" issue with migrants from the UK and The Netherlands.
"It is Labour's view - and the view of all previous governments - that NZ Super is in essence the equivalent of the UK and Netherlands schemes."
Māori Party
NZ Pension Abuse has received no information to date regarding Māori Party policy on the treatment of overseas pensions.
National Party
National MPs have shown little inclination to discuss superannuation policy with affected pensioners. Letters on NZ Super injustices receive a standard noncommittal reply: "Any solution to the treatment of overseas pensions must be fair to all taxpayers”.
On 9 October 2008, National MP Wayne Mapp publicly admitted that National would not be doing anything to change the direct deduction policy.
National MP Chris Tremain confirmed a week later: "There is no proposed policy change to the status quo."
National MP Tony Ryall used recent developments to justify the party's reluctance to act: "It's one of those things we will have to work through country by country. It's quite complex, and difficult in these financial times."
Progressive Party
NZ Pension Abuse has received no commitment from the Progressive Party regarding any reform of the treatment of overseas pensions.
United Future supports overseas pensions reform.
Leader Peter Dunne set out his party’s position in August 2008:
“United Future has been following the debate over the provisions of section 70 regarding the treatment of overseas pensions with considerable interest. We supported the government’s initiative, announced in the Speech from the Throne in 2005, to review the operation of section 70, but we are not satisfied that its proposed solutions addressed the fundamental problem which has caused concern to so many who are in receipt of overseas pensions.
“In United Future’s view, the provisions of section 70 should only apply where the overseas pension in question has been fully funded from general tax revenues. Overseas pensions that are based on either a compulsory individual contribution, are in the form of a national insurance scheme, or which may be a combination of both and are deemed to be equivalent to a national pension should be exempted from the requirements of section 70 and should therefore be paid in full to the recipient without impacting on the entitlement to New Zealand Superannuation.
“This would mean that the only pension arrangements to be captured by the provision of section 70 would be national taxpayer-funded pension schemes in other countries. Contributory pensions, regardless of whether they are on a compulsory national basis or not, and private pensions should, in our view, be exempted from the provisions of section 70."
Addressing Kapiti Coast Grey Power in October 2008, Mr Dunne confirmed:
"For those 50-odd thousand pensioners who are caught by section 70 of the Social Security Act, we want to change the law so you get all the benefits of having paid into a super scheme all your working life, without being penalized by losing your New Zealand Super."