The Special Banking Option

Alarming stories abound of people in their late sixties, seventies and eighties being subject to distress and bullying tactics - the sort of stress that elderly people should not have to face in a civilized, humane society.  For some pensioners, the fight for justice can turn ugly.  One example will be highlighted on this website:

Marie and John, formerly of Ireland and the UK, have lived and worked in Wellington for 32 years.  They have suffered much in the way of high-handed harassment from WINZ over their rights to NZ Super, actually receiving nothing in the way of a pension from New Zealand.  Subjected to a great deal of unwarranted stress, Marie and John have appealed to a host of politicians only to be fobbed off at every turn (a situation that will sound familiar to thousands of elderly people).

To supplement their meager income Marie had worked as a Parliamentary secretary (casual staff member) but when her case came before the WINZ Benefits Review Committee, Marie was bluntly informed that her contract to work at Parliament would not be renewed - as she had an “issue with the government”.  Marie was then ordered to hand in her ID tags and says that this action was done in a threatening and frightening manner.  Unemployed, the future of their pension in doubt, subject to harassment then intimidation, Marie and John exemplify the despicable treatment in store for some elderly couples in New Zealand on reaching retirement age.

Minister Steve Maharey, in response to one of several letters from Marie and John, magnanimously pointed out that they can in fact receive full NZ Super by “taking advantage of the Special Banking Option”, an option available to all persons eligible for overseas pensions.  Persons agreeing to accept the Special Banking Option can receive NZ Super payments in full - that is, provided they turn over their entire foreign retirement income to the NZ Government.

The SBO is intended to benefit the government both financially and in terms of convenience.  It does not benefit the pensioner.  The government cannot legally force anyone into accepting the SBO; nevertheless stories continue to surface of people - even in their late eighties - being bullied and threatened by WINZ into acceptance.

However, no one of sound mind should agree to accept the Special Banking Option.  Considering it is institutionalized theft, a number of people retaliate by making things as difficult for the government as humanly possible.  Far better, they say, to force the government to meet its legal requirement of calculating each individual correct NZ Super payment against the fluctuating exchange rates - for no less than 52,000 superannuitants, every single month of the year.

Last modified: February 21, 2007